Small firms demand government aid to counter AI-driven cyber scams

The Council of Small Business Organisations Australia (COSBOA) is pressing the federal government to restore funding for the now-defunct Cyber Wardens training initiative, warning that small firms are increasingly exposed to AI-enhanced cyber threats. In a submission to a parliamentary inquiry, COSBOA noted that 81% of small businesses believe AI is making scammers more sophisticated, and 32% have already shared confidential information with generative AI platforms.

National data show Australians lost almost $260 million to scams in the first nine months of 2025, while the average cost of a cyber incident for small firms rose 14% to $56,600 in the 2024/25 financial year. The Business Chamber Queensland, also appearing before the inquiry, described AI-driven scams as the fastest-growing danger for its members. COSBOA’s chief executive Skye Cappuccio called for clear, sector-specific guidance on safe AI adoption and the reinstatement of the Cyber Wardens program to provide free, online cyber-security training tailored to small businesses.