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New research from WFI Insurance shows only a quarter of Australian farmers are considering cyber insurance as a future need, compared to 70% of the broader business population.
The findings indicate that farmers may be unaware of their increasing cyber vulnerabilities, with around 80% of farms now utilising some form of agri-tech1.
WFI's latest 'Good People to Know' podcast, hosted by WFI Executive General Manager Damien Gallagher, explores farmers growing exposure to cyber-crime and how increased digitisation on farms has shifted the risk landscape.
"No industry is immune to cyber risk," Mr Gallagher said, "And for farmers, it's an unseen risk compared to the more obvious on-farm risks they see in their daily execution of tasks."
Our research shows the consideration of cyber insurance is significantly lower among agri-businesses compared to other industries. This indicates greater consideration and targeted risk education is needed to ensure farmers are aware of their cyber vulnerabilities.
Damien Gallagher
WFI Executive General Manager
Dr Kyle Mulrooney, Co-Director of the University of New England's Centre for Rural Criminology, who features in the episode, said, "Increasing automation and greater capacity for the collection of data on farms means greater risk.
"Targets can include cyber criminals tapping into smart irrigation systems and flooding crops, and automated tractors being infiltrated to destroy properties. These things can cause immense pain for farmers. They need to think about how to best protect themselves from these types of offenses and whether the technology has a level of inbuilt security."
Other potential targets include intellectual property such as livestock genetics which may have taken generations to build, and personal or employee data. Robotic milking systems, and grain or other storage monitoring systems can also be hacked.
The Australian Securities and Investments Commission (ASIC) has recently advised businesses to urgently strengthen their cyber resiliency amid increasing global threats, and to identify and protect critical assets and systems2.
Only around 20% of Australian SMEs currently hold cyber insurance3, despite the average cost of cybercrime increasing 50% overall between FY24 - FY25 at an average cost of $56,000 for a small business4.
Cyber insurance products are becoming more sophisticated, with some combining the risk transfer with active preventative tools that continuously scan technologies to reduce the likelihood of an attack. Many also provide 24/7 incident response should a cyber-attack occur.
Agriculture businesses are attractive targets to cyber criminals because they can operate on a 24/7 basis and downtime during harvest or livestock operations can be extremely costly.
Damien Gallagher said, "For farmers, it's not only the immediate cost implications from a cyber-attack, but the potential for farming operations to be completely disabled. This can have a knock-on effect across supply chains, and potentially impact food supplies."
WFI's top 10 tips to help farmers strengthen their cyber resiliency include:
1. Use strong passwords and turn on Multifactor Authentication for email, banking and farming software
2. Back up important farm and financial data regularly - keep one back up offline
3. Be cautious of suspicious emails, invoice changes, and payment requests
4. Keep computers, phones, routers, and smart farming equipment updated
5. Separate operational systems (machinery, irrigation, sensors) from office networks
6. Limit or monitor remote access to farm systems and equipment
7. Train staff and family members to recognise phishing and scams
8. Have a simple cyber incident response plan ready before something happens
9. Protect phones and tablets with screen locks and updates as required
10. Consider Cyber Insurance as part of your overall risk management plan
Cyber risk should be treated like any other farm risk. Preparation is critical in reducing exposure, and a back-up plan is essential to ensure the ongoing continuity of farming operations.
To listen to the podcast, please visit:
https://www.wfi.com.au/news/good-people-know-podcast
Sources:
1Roy Morgan Farmer AgTech Survey 2024
226-092MR ASIC calls for urgent cyber uplift as AI accelerates cyber threats | ASIC
3Shifting cyber insurance growth into the next gear | Swiss Re
4Annual Cyber Threat Report 2024-25 fact sheet - For businesses and organisations
About WFI
WFI has been insuring Australians since 1919. It is a leading rural and business insurer with more than 150 local area managers situated across Australia.
For more than 100 years, WFI has been there for its clients, providing support and assistance when they've needed it the most.
WFI Cyber Insurance can help protect businesses from a range of cyber and digital risks. Ransomware, business email compromise, phishing and AI-assisted scams are some of the common threats businesses can face.
For more information visit: Cyber Insurance for small business | WFI
About UNE Centre for Rural Criminology
A world-first, multidisciplinary research hub founded by UNE, dedicated to understanding all dimensions of rural crime - from livestock theft and illegal hunting to environmental offences and interpersonal violence.
For more information visit: www.une.edu.au