New Zealand‘s intelligence community has issued a clear warning about the rising threat of cyber espionage and state-sponsored interference. They are urging the private sector to quickly improve security protocols. This call is part of a vital national effort to protect the economy and maintain the country’s standing on the global stage.
Andrew Hampton, the Director-General of the New Zealand Security Intelligence Service (NZSIS), emphasized that national security isn’t just the responsibility of intelligence and security agencies. In an interview after his speech at the Aspen-Otago National Security Forum, he highlighted the need for everyone to work together in today’s risky environment. “The public, including businesses, needs to report the threats they see so that we can work together to deter and disrupt,” Mr. Hampton said. He pointed out the increasing overlap between public and private sector vulnerabilities. This mix of risks raises the stakes for corporate New Zealand, especially as foreign espionage tactics become more advanced.
According to the NZSIS Director-General, there are “multiple examples of foreign states conducting espionage to seek covert access to a range of information,” which includes everything from government policies to technological innovations and research. These threats are no longer just theoretical. Cyberattacks, deception through cover companies, targeting traveling delegations, and exploiting insiders within organizations are among the varied tactics of modern espionage.
Disturbingly, Mr. Hampton suggested that the activity observed is likely just “the tip of the iceberg.” He asserted that “almost certain espionage activity is going undetected at both public and private organizations.” He also addressed a common misconception: the belief that New Zealand’s geographic and psychological isolation offers solid protection. The question, “‘Why would a foreign state be interested in us?'” remains a significant barrier to effective security preparation among directors and executive leaders.
Intelligence reports show that sectors dealing with science and technology, especially those with dual uses, are particularly vulnerable, and intellectual property can be targeted for military use, regardless of its original intent, as some foreign states see “stealing innovation as a legitimate means of gaining an edge.” Data-rich companies are also in high demand, with “identity information” and large amounts of customer data being “highly sought after by foreign state actors.”
This intelligence has already led to shifts in government policy. Recent foreign attempts to exploit New Zealand’s location and its developing space industry have prompted urgent countermeasures. The Director-General mentioned an instance where a foreign state repeatedly tried to “establish ground-based space infrastructure through third-party companies,” leading to quick legislative action to address the threat.
Additionally, he highlighted that one of the biggest risks is the exploitation of insiders. He advocates for strong insider threat programs in both public and private sectors, emphasizing that vigilance is particularly important during overseas travel when business delegations are often targeted by foreign intelligence services.
The belief that security and business growth are at odds is, in the Director-General’s view, outdated: “The reality is that you can’t have one without the other.” Referring to a concerning Australian report estimating espionage losses at NZ$13.7 billion annually, he concluded that even a small portion of that figure for New Zealand deserves much “greater attention than we currently give it.”
The Dual-Edged Sword of AI and Collaborative Opportunity
Artificial intelligence (AI) was identified as both a major opportunity and a risk. While AI can improve the effectiveness of intelligence agencies, it also increases the threat landscape. The use of AI to support violent extremism and state-sponsored interference is rising, as it makes harmful propaganda more convincing and streamlines research into attack plans.
Despite the growing risks, the changing technological landscape offers new chances for collaboration between the public and private sectors. Mr. Hampton mentioned the strength of New Zealand’s technology sector in creating small, specialized, and high-quality applications. He expressed interest in exploring opportunities with small businesses that, while not created for national security purposes, have solutions that could find a significant market among New Zealand’s international partners, including the Five Eyes nations.
The intelligence chief’s message to the business and technology sectors is clear: addressing the current security gap must begin with “a recognition that the espionage threat is real and happens here,” and that “security is not a barrier to innovation or our future prosperity, but an enabler.”
