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While the penalty might have gone some way to acknowledging the severity of the incident, it did little to address the systemic vulnerabilities that led to the incident happening in the first place. Fines alone cannot drive the meaningful changes needed to improve cybersecurity practices across the sector.
Telecommunications companies are the custodians of vast amounts of sensitive customer data, from personal identification details to billing records and communication metadata. This makes them prime targets for cybercriminals. However, a deeper issue lies in the legacy infrastructure, operational challenges, and lack of sector-wide strategies that leave telcos vulnerable to increasingly sophisticated attacks.
The telecommunications sector faces several complex cybersecurity challenges, both in infrastructure and technology. Networks are particularly susceptible to Distributed Denial of Service (DDoS) attacks, which can overwhelm systems and disrupt essential services. This combined with the complexity of modern telecom infrastructure – which integrates various software systems for billing, customer management, and operations – creates an environment that is difficult to secure and attractive for cybercriminals to exploit.
Another crucial factor is the operational technologies (OT) used within this sector, which often have lifespans measured in decades.
These ageing systems frequently run outdated software, exposing vulnerabilities that cybercriminals can exploit. Updating these systems is far from simple.
Not only is it incredibly expensive, but it also requires careful coordination to avoid disruption to customers, who rely on these services every day.
Hardware compatibility issues are also a hurdle that the telecommunications industry has yet to clear. For example, when spectrum re-allocation occurs, telcos may need to rely on older, less secure equipment until infrastructure upgrades can be implemented. These gaps make it difficult to maintain a robust cybersecurity network that is capable of defending itself against cyber criminals.
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Many vulnerabilities in the telecommunications network stem from connecting legacy systems to the internet for remote management, which exposes older, unpatchable systems to modern threats. The rise of AI-generated malware complicates things further, as these tools can create novel variants designed to evade traditional security measures.
Internal decision-making processes can also exacerbate these vulnerabilities and prevent investment in more robust networks. Commercial pressures often conflict with the broader need for sector-wide resilience due to updates being expensive, time-consuming and resource-intensive.
Even routine security measures, such as system updates and patches, can inadvertently create new vulnerabilities in complex networks, as can integration points between various software systems.
This is particularly the case when multiple vendors are involved in the software development process, resulting in reduced effectiveness of cybersecurity standards.
Data breaches are expensive – sometimes running into hundreds of millions of dollars, including legal fees, compensation, and reputational damage – but so is the process of investing in infrastructure and software upgrades to protect against cyberattacks. When faced with commercial pressures and competitive market conditions, it’s no surprise that some telcos may choose to risk the fine, and hope for the best.
The problem is that penalties focus on punishment rather than prevention. To drive real change, there must be incentives for proactive investments in security infrastructure. These investments should be sector-wide, encouraging collaboration and sharing of threat intelligence to protect against evolving threats.
Collaboration is key to building a more resilient telecommunications sector.
The cooperative efforts of telcos during the pandemic showed that when providers set aside competition, the entire sector benefits.
The key to preventing major telecommunications data breaches is a unified, sector-wide approach to cybersecurity. Cybercriminals, including state-sponsored actors and AI-generated malware, exceed the defences of any single organisation to combat effectively. By working together, telcos can share critical threat intelligence and improve response capabilities.
Importantly, information sharing doesn’t have to compromise competitive advantage. Secure mechanisms can enable providers to exchange security intelligence anonymously, protecting sensitive business information while strengthening collective defences.
This sector-wide approach is not just about protecting the personal data of millions of Australians – although this on its own is reason enough for change. It’s also important to remember that telecommunications providers play a vital role in ensuring the stability of essential services – from healthcare and banking to emergency services. Robust cybersecurity is the only way to protect our national infrastructure and economic stability from cybercriminals who wish to target them.
Until telecommunications companies adopt a sector-wide collaborative approach to cybersecurity, the next data breach is just a matter of time. By uniting to address shared vulnerabilities, telcos can build a more secure future for their organisations, their customers, and the critical infrastructure they support.
David Sandell, co-founder and CEO of CI-ISAC, is a security professional with over two decades of industry experience in Australia and abroad. Having moved to Australia from the UK in 2019, he has since led technical and non-technical teams in the Big Four banks to develop critical security products and capabilities.
