Australians wary of cybercrime as small business cuts security spend | #cybercrime | #infosec

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Recent research highlights an increase in Australians’ concerns about cybercrime, while small businesses are reducing their investment in cyber security measures.

According to auDA’s Digital Lives of Australians 2025 report, 83% of Australians believe that cybercriminals are becoming more sophisticated. As a result, a significant portion (67%) are actively avoiding certain online activities as a precaution against potential online harm.

The research, now in its fifth year, also highlights that fewer than a quarter of small businesses (20%) have a formal cybersecurity policy or provide staff training on cybersecurity issues. This figure has declined since the initial survey conducted in 2021.

Small business preparedness

The findings indicate that one-fifth of small businesses report not spending anything on cybersecurity. Only 44% of sole traders have at least one cybersecurity practice in place, a substantial gap when compared to 89% of small businesses and 87% of micro businesses that report having implemented such measures.

auDA CEO Bruce Tonkin stated, “auDA’s Digital Lives of Australians report provides essential insights for industry, policymakers and educators to better understand the online behaviours and attitudes of Australian consumers and small businesses.”

He added, “Unlocking the internet’s full potential and boosting digital skills for all Australians requires a concerted effort to build digital trust – a core focus for auDA. We believe that better collaboration between government, industry, academia and civil society will enhance the internet’s utility and uplift the value it provides to all.”

Cost of living shapes online behaviour

The report finds that the rising cost of living is driving changes in how Australians use the internet. Nearly three-quarters (72%) of Australians are now leveraging the internet to identify savings in their everyday expenses. Additionally, nearly a quarter (22%) have created or expanded a side hustle to supplement their income, with most (83%) relying on online operations.

Artificial intelligence adoption and concerns

The study reveals that majority of Australians (56%, up from 45% in 2024) now use artificial intelligence tools, with young men aged 18 to 34 being the largest user group (79%). The chief purposes for using AI are to answer search queries (30%) and to solve problems (18%). Despite growing usage, 70% of respondents want more personal control over how their data is used for AI model training, and 64% are seeking stronger regulatory protections for AI systems.

Perceptions of digital identity

According to the report, 35% of Australians say they have a Digital ID – a number considerably lower than government figures – suggesting there remains significant confusion about what constitutes a Digital ID. The term Digital Identity as used in the report refers to a secure online system for verifying identity, distinct from digital versions of government-issued identification documents.

Gender gap in technology careers

A notable finding is the difference in perceived technical ability between men and women in Australia. Almost three-quarters (72%) of women believe they do not have the required technical skills for a career in IT or technology, compared to just 54% of men.

Research methodology

The Digital Lives research is based on a survey conducted by SEC Newgate Research, involving 2,000 Australian consumers and 400 small businesses. The project also included an online discussion forum with 14 consumers and 12 small businesses, as well as qualitative interviews with eight consumers and seven small businesses, to further explore attitudes toward cybersecurity, digital skills, digital identity, and artificial intelligence.

The survey applies Australian Bureau of Statistics criteria in its definitions for small and micro businesses, providing detailed breakdowns where possible to distinguish between business sizes and their approaches to online safety.

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