Why Ransomware Reporting Is Critical for Finance Firms in Australia

Cyberattacks are becoming more sophisticated, frequent, and damaging—and ransomware sits at the top of the list.

While all industries are exposed, finance firms are among the hardest hit.

Financial data is highly sensitive and valuable, making it a prime target for cybercriminals seeking to extort money. When systems go down, financial transactions can be delayed or compromised, impacting both institutions and their clients.

In April 2025, several major Australian superannuation funds, including AustralianSuper, Australian Retirement Trust, Hostplus, and Rest, suffered significant cyberattacks. Hackers exploited the absence of Multi-Factor Authentication (MFA) to perform credential-stuffing attacks, leading to unauthorised access and the theft of approximately $500,000 from member accounts. This breach highlighted the critical need for robust cybersecurity measures within the financial sector.

Similarly, in April 2024, Firstmac, a Brisbane-based mortgage lender, fell victim to a ransomware attack by the Embargo group. Attackers encrypted internal servers and exfiltrated 500GB of sensitive customer data, including contact information and bank details.

The company refused to pay the ransom, and the stolen data was later leaked on the dark web.

Australia’s Cyber Security Act 2024 now requires financial firms to report ransomware payments within 72 hours, recognising how critical it is to respond swiftly and transparently. This regulation marks a turning point in how they must approach cybersecurity and incident reporting.

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Why Financial Firms Are Prime Targets for Ransomware Attacks

Finance firms are under constant cyber pressure for several key reasons:

• Valuable data: Banks, credit unions, lenders, and superannuation providers store vast amounts of sensitive customer information—tax file numbers, credit histories, account credentials, investment data, and more. This data is highly profitable on the dark web and can be used for identity theft, fraudulent transactions, or extortion. Criminal groups know that financial data has a short window before detection, so speed and impact are key.
• Operational urgency: Disrupted payment systems, frozen accounts, or inaccessible trading platforms can cause cascading effects across markets, leading firms to consider paying ransoms simply to restore service quickly. Attackers exploit this urgency to pressure victims into faster payouts.
• Security gaps in mid-market firms: While larger banks & financial institutions have mature cybersecurity programs, many mid-sized lenders, fintech startups, and boutique investment firms still lag behind. A lack of Multi-Factor Authentication (MFA), unpatched software, or unmanaged endpoints creates ideal conditions for phishing, credential stuffing, and ransomware payload delivery.
• Proven attack history: Over the past 12 months, several high-profile Australian financial entities—including super funds and asset managers—have faced cyberattacks. The trend is clear: attackers are shifting focus from heavily fortified institutions to those with regulatory obligations but weaker defences.

Even firms with robust security postures are not immune, particularly when third-party providers or cloud platforms are involved.

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The Consequences of Not Reporting Ransomware Payments

Reporting ransomware payments under the Cyber Security Act 2024 is a legal obligation, and it's also a safeguard designed to support financial institutions.

From 30 May 2025, firms that meet the reporting threshold must notify authorities of any ransomware payments within 72 hours.

Rather than being punitive, this requirement is about enabling faster government response, coordinated threat intelligence sharing, and better protection for the broader financial ecosystem.

By reporting early, firms can access support and demonstrate accountability to regulators and clients alike.

The consequences of non-compliance include:

• Regulatory enforcement: Finance firms are held to higher standards of accountability. Failing to report could trigger fines, audits, or enforcement action, especially if the breach impacts clients or market integrity.
• Loss of client confidence: Financial firms rely on trust, and if clients discover a breach was concealed—or reported late—it undermines confidence in your ability to manage risk and safeguard assets. This erosion of trust can have long-term effects on retention, reputation, and referrals.
• Repeat targeting: Cybercriminals share intelligence. If your business is seen as unprepared, slow to respond, or willing to pay without reporting, it increases your risk of future attacks. Reporting signals that your firm is alert, compliant, and likely to involve law enforcement.
• Increased insurance scrutiny: Cyber insurance providers are tightening requirements in light of the Cyber Security Act. Failure to report could invalidate your policy or lead to higher premiums during renewal.

Transparency is a critical component of effective cyber risk governance. Early reporting enables faster containment, stakeholder communication, and access to government support mechanisms.

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How Finance Firms Can Strengthen Their Cybersecurity

With ransomware threats growing and regulatory expectations tightening, financial firms must take a proactive approach to cybersecurity.

A strong defence doesn’t just protect your systems—it preserves client trust, operational continuity, and legal compliance.

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Getting the basics right creates a solid foundation for resilience and helps ensure you meet both client expectations and regulatory obligations.

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Need Help With Compliance?

At Superior IT, we specialise in helping Australian businesses strengthen their cybersecurity defences and meet their obligations under the Cyber Security Act 2024. From ransomware response planning to regulatory reporting, we support you in staying compliant, protecting your operations, and communicating effectively with relevant authorities.

Call Us: 1300 93 77 49

Email: info@superiorit.com.au

Explore DefenderSuite: https://www.superiorit.com.au/defendersuite-au