Are you in a high-risk cybersecurity environment: 3 indicators to look out for to save your company $50,000 or $5.8 million
Published on February 4, 2026 by Selwyn Black and Yue Lucy Han
Statistics show a cybercrime incident can cost a business on average at least $56,000 to $202,700 depending on size [i]. This is before quantifying the loss of customer trust, reputation and brand damage, and any regulatory fines.
Investing in improving your business’ cybersecurity practices may reap future benefits and prevent substantial losses.
A mature cybersecurity practice is more than just technology investment. It is about taking reasonable steps to implement practices, procedures and systems to protect your business’ data, and that of your customers and clients, from misuse, interference and loss.
3 Indicators of higher Cybersecurity Risk
1. Industry Sector
Business operating in these industry sectors are exposed to high cyber threat risk[ii]:
(a) Finance and insurance services;
(b) Health services;
(c) Professional services (legal, accounting, management, etc); and
(d) Retail services.
The risks for these industries are well documented by various Australian authorities. Therefore, businesses operating in these industries are on notice of their heightened risk, which also increases the regulator’s expectation on the implementation of appropriate mitigation steps.
2. Data Handling
Businesses involved in handling large volumes of data are a lucrative target for cybercriminals. These businesses are custodians of personal information or sensitive information, which can be exploited by cybercriminals for identity theft or cybercrime.
3. Business Operations
Publicly listed or large entities are prime targets for cybercriminals. However, cybercriminals can target entities operating in the high-risk industry sectors or handles a large volume of personal or sensitive information. These business operations increase the cyber threat risk.
Time To Take Action
If your business is in a high-risk cybersecurity environment, then you should ask yourself:
- When was the last time that your business reviewed its cybersecurity and privacy maturity?
- Do your business have practices, procedures and systems in place to mitigate its cyber threat risks?
It is expensive to do nothing.
This article was published on 4 February 2026 by Carroll & O’Dea Lawyers and is based on the relevant state of the law (legislation, regulations and case law) at that date for the jurisdiction in which it is published. Please note this article does not constitute legal advice. If you ever need legal advice or want to discuss a legal problem, please contact us to see if we can help. You can reach us on 1800 059 278 or via the Contact us page on our website.
[i] Australian Cyber Security Centre, Annual Cyber Threat Report 2024-2025, https://www.cyber.gov.au/about-us/view-all-content/reports-and-statistics/annual-cyber-threat-report-2024-2025
[ii] Office of the Australian Information Commissioner, Notifiable Data Breach Report: July to December 2024, https://www.oaic.gov.au/__data/assets/pdf_file/0021/251184/Notifiable-data-breaches-report-July-to-December-2024.pdf
