AI-Driven Data Breaches Surge Across Asia-Pacific: Cloudflare survey

Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, has released a new study on cybersecurity in Asia-Pacific, titled Navigating the New Security Landscape: Asia-Pacific Cybersecurity Readiness Survey. The report highlights the growing challenges organizations face, especially with the increasing role of Artificial Intelligence (AI) in data breaches and other cyber threats.

Rise in Data Breaches

The survey reveals a sharp rise in data breaches, with 41% of respondents reporting their organizations experienced a breach in the past year. Alarmingly, 47% of these organizations suffered more than ten breaches. Industries most affected include Construction and Real Estate (56%), Travel and Tourism (51%), and Financial Services (51%). Cybercriminals primarily target customer data (67%), user credentials (58%), and financial data (55%).

With AI advancing at an unprecedented rate, 87% of respondents expressed concern about the technology increasing the sophistication and severity of data breaches. Many fear AI could help cybercriminals bypass security measures, particularly through password cracking, encryption attacks, and social engineering.

AI, A Double-Edged Sword in Cybersecurity

While AI can improve organizational efficiency, its potential to enhance cyberattacks is a growing concern. The study indicates that 50% of cybersecurity leaders expect AI to be used for cracking passwords, and 47% believe it will lead to more effective phishing and social engineering attacks. Additionally, 40% foresee AI being used to create deepfakes that could compromise privacy and security.

In response, 70% of organizations are adjusting their operations, with a particular focus on governance and regulatory compliance (40%), cybersecurity strategies (39%), and vendor engagement (36%). Key initiatives include hiring generative AI analysts (45%) and investing in threat detection and response systems (40%).

Ransomware: An Escalating Threat

Ransomware attacks continue to plague the region, with 62% of organizations paying the ransom, despite public vows to avoid doing so. The most common entry points for these attacks are compromised Remote Desktop Protocol or VPN servers. Indian organizations (69%) are among the most likely to pay ransoms, while countries like South Korea (19%) and Japan (19%) are more resistant.

Regulatory Compliance: A Double-Edged Sword

Compliance with ever-increasing regulations is another challenge for cybersecurity leaders. The report shows that 43% of respondents allocate more than 5% of their IT budget to meet regulatory demands, while 48% spend over 10% of their workweek keeping pace with certification requirements. However, these efforts are not in vain—improved security levels, data integrity, and enhanced reputations are among the benefits of stricter regulatory adherence.

Cloudflare’s Chief Security Officer, Grant Bourzikas, commented, “Cybersecurity leaders face mounting pressure from increasingly sophisticated cyberattacks, tightening regulations, and constrained resources. Success lies in continually assessing and upgrading talent, budgets, and technological solutions.