AI-driven cyber attacks, ransomware payments rising in NZ

Emerging AI-powered threats

A key finding from the report is the increasing role of artificial intelligence in cybercrime. Businesses are reporting more AI-generated phishing attacks, which mimic writing styles to deceive recipients. There is also rising concern over “shadow AI,” where employees use AI tools without company approval, risking data leaks.

The report also warns that quantum computing could soon break existing encryption, prompting calls for businesses to develop long-term cybersecurity strategies.

NZ ransomware payments higher than international average

Kordia’s research found that 70% of large New Zealand businesses are willing to pay ransoms to cybercriminals—well above the 50–60% international average. Despite official guidance from the New Zealand government discouraging ransom payments, some companies feel they have no choice in order to resume operations quickly.

There is also widespread underreporting of cyber incidents, particularly regarding ransom payments, making it difficult to measure the full extent of the issue.

Supply chain and third-party risks

The research highlights that over 25% of businesses suffered attacks through vulnerabilities in their third-party suppliers. This suggests that even companies with strong internal cybersecurity practices remain at risk if their partners and vendors have weaker protections.

Among businesses that suffered cyber incidents, 43% reported email phishing attacks as a key threat. Identity theft is also a growing concern, often linked to exposed login credentials from data breaches.

Security gaps leave businesses exposed

Despite the increasing threat landscape, the report found that many businesses lack basic security measures, such as multi-factor authentication (MFA) and regular software updates. Cybersecurity experts warn that businesses remain underprepared, with limited incident response plans in place.

Kordia’s incident response lead, Conan Bradley, urged businesses to act before they become targets. “It’s going to happen. Be prepared and prepare now. Don’t wait. It’s a matter of when, not if,” he said.