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                                      This report examines the major cybersecurity risk trends affecting organizations across Australia. It covers the growing adoption of genAI tools and the data security challenges that accompany them, as well as the rising data policy violations involving sensitive data that is increasingly leaked through unapproved cloud services, personal apps, and genAI platforms. Additionally, it highlights the rise of phishing and the distribution of malware via cloud applications.

                                      14 min read

                                      In This Report link link

                                      This report analyzes recent trends in the use of genAI applications, data policy violations, and malware distribution across Australian organizations, highlighting the significant challenges posed by the evolving cybersecurity landscape as generative AI becomes more embedded in daily operations and cloud application adoption increases.

                                      GenAI usage: AI adoption in Australia continues to grow, with ChatGPT, Gemini, and Copilot leading the way in usage. Personal account use spiked late last year, but is now falling as organizations shift to safer, approved platforms. DLP policies are on the rise to reduce data leaks, especially for source code and intellectual property.

                                      Agentic AI and custom apps: Organizations are moving toward privacy-first genAI setups, using Azure OpenAI, Bedrock, and on-prem tools like Ollama. Custom agents and interfaces are gaining traction, offering better control and flexibility over data handling, but introducing new shadow AI risks.

                                      Phishing threats: Phishing campaigns are evolving, often mimicking trusted cloud services. Google and Microsoft remain top targets, with gaming platforms also commonly abused. Attackers are after credentials, tokens, and access grants. On average, 121 out of every 10,000 users click on phishing links each month, highlighting the continued effectiveness of these attacks despite awareness efforts.

                                      Malware delivery: Attackers abuse trusted platforms like GitHub, OneDrive, and S3 to host malware, because users are more likely to download from familiar sources. On average, 22 out of every 10,000 users encounter malicious content each month.

                                      Personal cloud app risk: Personal apps like LinkedIn, OneDrive, and Google Drive are heavily used, and heavily blocked. Most data policy violations involve regulated data or intellectual property, prompting organizations to restrict risky personal usage.

                                       

                                      GenAI usage link link

                                      GenAI: Adoption and usage trends

                                      GenAI adoption is accelerating across Australia, with 87% of organizations now using genAI applications, up from 75% just a year ago. In Australia, 95% of organizations use tools that include genAI-powered features, and 97% rely on genAI applications that use user data for training. Overall, 87% of organizations have adopted genAI apps directly, aligning local usage with global trends, where 90% have adopted cloud-based genAI solutions.

                                      Chart showing GenAI adoption and usage trends in Australia - Australia Threat Report 2025

                                      At the same time, the use of personal genAI accounts has shifted over the past year, starting at 64% in June last year, peaking at around 80% by the end of the year, and then dropping to 55% as of June 2025. This decline aligns with a growing move toward company-approved genAI solutions that offer better control and stronger safeguards for sensitive data. As this transition continues, Australian organizations should prioritize secure, enterprise-grade platforms that enable innovation while supporting compliance and reducing risk.

                                      Chart showing personal vs. organization account breakdown in Australia - Australia Threat Report 2025

                                      In Australia, the top 10 most widely used genAI applications closely mirror global usage patterns. Leading the pack is ChatGPT, which is currently used by 73% of organizations, making it the most popular genAI app in the region. Google Gemini has also seen strong adoption, with 52% of organizations integrating it into their workflows, positioning it as a prominent alternative to ChatGPT. Microsoft 365 Copilot follows, used by 44% of organizations, reflecting growing interest in genAI tools embedded within productivity platforms. The rest of the top 10 includes a diverse mix of domain-specific applications and embedded AI tools tailored to particular business needs and industry use cases.

                                      Chart showing The most popular GenAI apps based on the percentage of orgs using those apps in Australia - Australia Threat Report 2025

                                      The chart below illustrates how the popularity of these top 10 genAI applications has evolved over the past year, highlighting the rapid pace of change in the genAI landscape. ChatGPT remains the most widely used app among Australian organizations, though its usage has seen a slight decline over the past few months. This is the first decline we have ever observed in ChatGPT’s popularity, aligning with global trends. Meanwhile, Google Gemini has shown steady, gradual growth throughout the year, reflecting increasing interest and adoption. Notably, Microsoft 365 Copilot has experienced a sharp rise in usage in recent months, driven by its integration into widely used productivity tools and enterprise platforms. Grok has also entered the top 10 for the first time ever, and at 15% it is slightly more popular in Australia than the global average.

                                      Chart showing most popular apps by percentage of organizations in Australia - Australia Threat Report 2025

                                      GenAI: App usage and data policy violation

                                      As genAI adoption accelerates across Australian enterprises, the risks tied to data exposure are becoming a central concern. Organizations across the country are increasingly leveraging genAI tools for tasks like summarizing large documents, generating content, and streamlining software development workflows. However, the very nature of these use cases, summarization and generation, requires users to send potentially sensitive data to genAI applications, creating a growing surface for data security threats.

                                      Data security remains a growing concern for organizations in Australia as genAI adoption becomes more widespread. The risks associated with data loss prevention (DLP) are increasingly relevant, particularly as genAI apps become embedded in everyday workflows and shadow IT continues to emerge as a challenge.

                                      Analysis of recent data policy violations reveals that the most common type of sensitive information exposed to genAI apps in Australia is intellectual property, making up 42% of all violations. Source code follows closely, accounting for 31% of violations, often leaked as developers use genAI to summarize, write, or review code. While sensitive information, such as passwords, API keys, and regulated data, is also being exposed through genAI apps, the frequency of these exposures in Australia is broadly consistent with global patterns.

                                      Chart showing the type of data policy violations for GenAI apps in Australia - Australia Threat Report 2025

                                      The scale of these risks is amplified by the sheer number of genAI tools available in the market and their rapid, often unmonitored adoption across business units. Without centralized oversight, many organizations are unknowingly allowing sensitive data to flow into unapproved platforms, making it harder to enforce security controls or comply with internal governance standards.

                                      To move forward safely, Australian businesses must strike a careful balance: harnessing the productivity and innovation that genAI enables, while also putting in place strong data governance and access controls. Encouragingly, the adoption of DLP solutions in Australia is on the rise, increasing from 32% to 41%, reflecting growing awareness of the need to protect sensitive information in the age of genAI.

                                      Chart showing the percentage of organizations using DLP to control genAI app access in Australia - Australia Threat Report 2025

                                      Most blocked genAI apps

                                      Australian organizations are taking a strategic approach to managing genAI tools, with many implementing blocks based on security, privacy, or compliance concerns. While specific policies vary across industries, certain applications consistently appear on block lists, signaling areas of heightened scrutiny. If any of the apps in the top 10 list below are active in your environment, it may be worth reviewing the usage and evaluating whether category-wide restrictions are more appropriate than managing tools individually.

                                      In Australia, DeepSeek tops the list of most blocked genAI apps, with 69% of organizations restricting access, often due to concerns over data handling and model transparency. Reverso Translation follows at 34%, reflecting growing caution around the use of AI-driven language tools. Stable Diffusion, known for its content generation capabilities, is blocked by 32% of organizations, typically due to concerns around image generation and content licensing.

                                      Following the same trend seen globally, Grok AI is present with a 30% block rate, suggesting that emerging tools are also being actively assessed for risk. These trends indicate that Australian businesses are not only responding to specific threats but also taking broader steps to align their genAI usage with internal risk frameworks and data protection standards.

                                      Chart showing the most blocked AI apps by percentage of organizations enacting a blanket ban on the app in Australia - Australia Threat Report 2025

                                       

                                      Agentic AI usage link link

                                      Growing use of genAI platforms

                                      As genAI adoption matures in Australia, organizations are increasingly shifting their attention from SaaS-based tools to more flexible and privacy-conscious genAI platforms. Unlike SaaS genAI apps, which gained traction due to their plug-and-play simplicity, these platforms offer a higher degree of control, allowing businesses to host models privately and deploy them within their own infrastructure. These platforms also enable users to build custom apps and agents.

                                      Currently, 29% of organizations in Australia are using at least one of the three major genAI platforms, while 8% are using at least two, and 1.2% are using at least three. One of the driving factors behind this shift is the accessibility of genAI services through major cloud providers. OpenAI’s services via Azure lead adoption, with 18% of organizations using the platform. Amazon Bedrock follows at 15%, while Google Vertex AI trails at 4.2%. These adoption rates in Australia remain slightly behind global averages, indicating room for continued growth.

                                      Chart showing cloud AI framework adoption by percentage of organizations in Australia - Australia Threat Report 2025

                                      As familiarity with these platforms grows, more users are exploring their capabilities for tailoring AI to specific workflows. The ease of spinning up these platforms means that employees often select whichever framework they find most familiar or suitable for their project, bypassing formal approval channels. Since these platforms can directly connect to enterprise data sources, organizations must be especially vigilant. Misconfigurations or uncontrolled access can put sensitive information at risk.

                                      To maintain security while enabling innovation, it’s essential for organizations to monitor usage patterns closely. Netskope can help organizations gain visibility into who is using genAI platforms, how they are being used, and where data flows might expose risks. Identifying and reviewing these behaviors is a critical first step toward enforcing responsible AI use within the enterprise.

                                      Rising interest in on-premises genAI deployments

                                      More Australian organizations are exploring on-premises genAI to maintain control over sensitive data. This approach encompasses both running local models and integrating on-premises apps and agents with cloud services.

                                      A popular method is deploying LLM interfaces, lightweight frameworks that enable users to interact with various models through a single tool. They are used slightly less than genAI platforms, with 23% of organizations using LLM interfaces compared to 29% using genAI platforms. Ollama is the leader, used by 22% of organizations. However, it comes with tradeoffs: no default authentication or protections are provided, requiring secure deployment practices such as proxies and access controls.

                                      On-premises genAI tools privacy and customization, but shift full responsibility for security to the user, making awareness of AI risk frameworks like OWASP or MITRE for LLMs critical as adoption grows.

                                      Chart showing top LLM interfaces by percentage of organizations in Australia - Australia Threat Report 2025

                                      Rising use of genAI APIs outside the browser

                                      Even when AI agents and apps operate on-premises, the models they rely on are often hosted in the cloud, including in SaaS or genAI platform environments. These agents and apps typically connect to API endpoints that differ from the ones used in web browsers. For example, interactions with OpenAI in a browser go through chatgpt.com, but APIs like api.openai.com are used for automated, programmatic access, whether by custom tools, internal workflows, or AI agents.

                                      Today, 41% of organizations are connecting to api.openai.com, highlighting OpenAI’s lead in non-browser (native app or agent) genAI usage. Other frequently used genAI APIs include api.assemblyai.com (25%) and api.writesonic.com (11%), suggesting a growing trend toward integrating SaaS AI services directly into back end processes and tools.

                                      Chart showing top 10 SaaS API domains by percentage of organizations in Australia - Australia Threat Report 2025

                                       

                                      Phishing link link

                                      Cloud app phishing

                                      Phishing attacks targeting cloud environments continue to evolve in sophistication. Tactics range from counterfeit login pages and malicious OAuth apps to reverse proxies that silently capture credentials and session data. Despite widespread security training programs, phishing remains one of the most effective tactics used by attackers. A key reason is the growing reliance on cloud-based applications where access hinges on credentials, tokens, and session cookies, making identity the new perimeter. As more sensitive business operations migrate to the cloud, attackers are increasingly exploiting this shift to bypass traditional defenses.

                                      In the Australian landscape 121 out of every 10,000 users clicked on phishing links each month, highlighting the real-world impact and the ongoing need for organizations to monitor identity-based threats more closely. Google has become the most impersonated brand in cloud phishing schemes, accounting for 75% of observed campaigns. Microsoft is also a frequent target, appearing in 25% of phishing attempts, particularly those aimed at compromising Microsoft 365 accounts. These impersonations are designed to harvest credentials or gain unauthorized access through deceptive app permissions.

                                      Chart showing top top cloud phishing targets by links clicked in Australia - Australia Threat Report 2025

                                      In Australia, gaming platforms have emerged as the top targets for phishing, accounting for 52% of all observed phishing campaigns. Attackers often exploit the popularity of these services and the high value of associated accounts, many of which store payment details or social connections. By mimicking login pages or sending fake alerts, attackers trick users into surrendering credentials, making gaming a prime entry point for broader attacks or financial fraud.

                                      Chart showing top phishing targets by links clicked in Australia - Australia Threat Report 2025

                                       

                                      Malware downloads link link

                                      Malware distribution via cloud apps

                                      Attackers often leverage trusted cloud platforms to distribute malware, knowing that users are more likely to open files hosted on familiar services. In Australia, 22 out of every 10,000 users encounter malicious content each month, and victims can inadvertently spread infected files within the organization using these popular cloud apps. GitHub is the most commonly used platform for this purpose, with 9.9% of organizations encountering malware downloads from the site each month. Its popularity among developers and its role in hosting open-source tools, some of which are misused by attackers, make it a frequent choice. Microsoft OneDrive follows at 7.2%, and Amazon S3 at 2.4%, both of which benefit from broad enterprise use. While these services actively remove harmful content, the short window before detection can be enough for an attack to succeed.

                                      Chart showing top apps for malware downloads in Australia - Australia Threat Report 2025

                                       

                                      Cloud apps usage link link

                                      Personal apps activity

                                      In Australia, the widespread use of personal cloud apps within workplaces continues to blur the lines between corporate and personal data handling. LinkedIn and Microsoft OneDrive are the most commonly used personal apps, each present in 95% of monitored environments, followed closely by Google Drive (94%), Facebook (93%), and ChatGPT (85%). While much of this use is well-intentioned, such as backing up files or using familiar tools to stay productive, it still introduces risks, especially when sensitive data is involved. Whether it’s personal genAI accounts or social media platforms, these apps represent potential points of data exposure, particularly when used by departing employees or for unofficial sharing.

                                      Chart showing top apps for upstream activities to personal apps in Australia - Australia Threat Report 2025

                                      Personal app data violations

                                      Organizations in Australia use a range of tools to mitigate the risk of data leaks via personal cloud apps. These controls range from blocking all uploads to personal apps, to implementing real-time user coaching that empowers users to make informed decisions about uploading to personal apps, and using DLP to prevent certain types of sensitive data from being uploaded to personal apps. Google Drive is the most popular app for implementing such controls, used in 49% of Australian organizations, and followed by Microsoft OneDrive at 41%. Personal Gmail instances and personal ChatGPT instances round out the top 4 at 33% and 31%, respectively. These percentages reflect organizations’ efforts to limit unauthorized data movement and mitigate risks associated with personal account usage on unmanaged services.

                                      Chart showing top apps for upstream blocks to personal apps in Australia - Australia Threat Report 2025

                                      Many organizations in Australia are actively using DLP controls to manage the movement of sensitive data into personal applications, aiming to reduce the risk of unintended exposure or misuse. Regulated data, such as personal, financial, or healthcare information, accounts for the majority of policy violations at 54%, followed by intellectual property at 28%. While less common, the collection of encrypted data or data containing passwords and keys remains a tactic used by insider threats and external attackers to conceal their activity.

                                      Chart showing data policy violations for personal apps in Australia - Australia Threat Report 2025

                                       

                                      Recommendations link link

                                      With the growing use of generative AI tools (both managed and personal), alongside the rise in phishing tactics, misuse of personal cloud apps, strengthening visibility, refining policies, and prioritizing proactive defenses will be key to staying protected in this fast-changing threat landscape.

                                      Based on the trends uncovered in this report, Netskope Threat Labs strongly encourages organizations across Australia to take a fresh look at their overall security posture:

                                      • Inspect all HTTP and HTTPS downloads, including all web and cloud traffic, to prevent malware from infiltrating your network. Netskope customers can configure their Netskope One NG-SWG with a Threat Protection policy that applies to downloads from all categories and applies to all file types.
                                      • Block access to apps that do not serve any legitimate business purpose or that pose a disproportionate risk to the organization. A good starting point is a policy to allow reputable apps currently in use while blocking all others.
                                      • Use DLP policies to detect potentially sensitive information, including source code, regulated data, passwords and keys, intellectual property, and encrypted data, being sent to personal app instances, genAI apps, or other unauthorized locations.
                                      • Use Remote Browser Isolation (RBI) technology to provide additional protection when there is a need to visit websites that fall into categories that can present higher risk, like newly observed and newly registered domains.

                                       

                                      Netskope Threat Labs link link

                                      Staffed by the industry’s foremost cloud threat and malware researchers, Netskope Threat Labs discovers, analyzes, and designs defenses against the latest cloud threats affecting enterprises. Our researchers are regular presenters and volunteers at top security conferences, including DefCon, BlackHat, and RSA.

                                       

                                      About This Report link link

                                      Netskope provides threat protection to millions of users worldwide. Information presented in this report is based on anonymized usage data collected by the Netskope One platform relating to a subset of Netskope Australian customers with prior authorization.

                                      The statistics in this report are based on the period from June 1, 2024, through June 30, 2025. Stats reflect attacker tactics, user behavior, and organization policy.