Strengthening New Zealand’s Cyber Defences in the New Security Landscape

Steve Bray, Vice President at Cloudflare ANZ, provides insights on the state of New Zealand’s cybersecurity and the critical steps businesses need to take to strengthen their defences in an increasingly volatile environment.

It’s no secret that New Zealand’s digital landscape is evolving, bringing with it both opportunities and unprecedented challenges. As businesses and government continue to develop and become more reliant on modern digital infrastructure, cyber threats become a pressing concern.

Cloudflare recently conducted a market report in New Zealand, surveying over 200 cybersecurity decision-makers and leaders. The findings underscore the significant challenges they face in protecting their businesses and customers from global cyber threats.

The report revealed that 42% of New Zealand’s cybersecurity decision-makers experienced data breaches within the past year.

With nearly half of businesses impacted by a data breach, it highlights an increasingly volatile environment where malicious actors are continuously developing more sophisticated attack methods.

These threats, from phishing to ransomware, are not merely disruptive— it is known, they have the potential to cause severe damage, not just to organisations and their customers, but also the wider economy.

In the global scheme of things, New Zealanders have been relatively successful in their strategies to prevent and combat cyber threats, but staying ahead requires constant evolution. To maintain this edge, businesses must continue to elevate their cybersecurity efforts, investing in stronger protections and proactively adapting to new risks.

It’s no longer enough to simply respond when threats arise— organisations need to anticipate risks before they emerge, staying agile in the face of an ever-shifting threat landscape. By doing so, they’ll not only safeguard their own operations, but also help protect the broader economy.

Cybersecurity Investment Priorities and Challenges

Across New Zealand, organisations are increasingly recognising the need to strengthen their cybersecurity frameworks. With businesses now allocating 10% of their IT budgets to cybersecurity, it’s clear that protecting digital assets has shifted from being an optional expense to an essential investment.

This investment is directed at key areas, with 24% going towards protecting company financial information, 22% to defend against cyberattacks, and 21% in place to secure networks and data. This investment is critical and equally important for businesses to ensure effective resource allocation.

Cybersecurity is also being shaped by the rise of AI and automation. While AI has the potential to enhance defences, it also poses a growing threat by enabling more sophisticated cyberattacks. Organisations in New Zealand are grappling with the dual challenge of integrating AI into their defences, while protecting themselves from AI-driven threats becoming an investment priority.

New Zealand’s Strengths in Cybersecurity

Despite the challenges, New Zealand has demonstrated considerable resilience in its cybersecurity approach, standing out in the Asia-Pacific region.

The study reveals that 82% of New Zealand’s cyber leaders feel their organisations are prepared to prevent data breaches, positioning New Zealand as a leader in cybersecurity innovation, particularly in its proactive stance towards tackling cyber threats.

Organisations in New Zealand have also demonstrated strong strategies when it comes to tackling ransomware. While ransomware remains a growing global threat, New Zealand businesses are notably less likely to pay ransoms compared to their regional counterparts—a stance that serves as a significant deterrent to cybercriminals.

This reflects a broader commitment to resilience, with 67% of businesses focusing on proactive measures like employee training and two-factor authentication to protect their operations.

What also sets New Zealand apart is its relatively stronger talent pipeline. While many APAC countries struggle with a shortage of skilled cybersecurity professionals, only 32% of New Zealand organisations report this as a major challenge. This highlights the country’s continued focus on building and maintaining robust defences against rising cyber threats.

New Zealand’s Path Forward

New Zealand is in a solid position when it comes to cybersecurity, but can’t afford to be complacent. To stay ahead, it’s important to focus on simplifying security solutions. Many organisations struggle with the complexity of managing multiple vendors, and by consolidating these, not only can businesses make things more manageable, but they can also better use resources—a challenge that 57% of organisations already face.

Another critical step for companies is embracing Zero Trust models, which are becoming essential for securing supply chains by ensuring threats are contained before they cause damage. With 37% of organisations already on board, this approach is clearly taking root as a key component of modern cybersecurity.

Combating ongoing issues such as ransomware resilience and AI is important for businesses to not forget about amongst upcoming pressures. Staying prepared for ransomware or AI-driven attacks will be key in AI adaption.

Finally, as compliance pressures grow, streamlining regulatory processes is essential to keep organisations agile, especially considering that 41% of respondents are already dedicating significant time to regulatory demands. So, while New Zealand is in a good place, it is important they don’t rest on their laurels—there’s still work to be done to ensure they stay ahead of the evolving threats.

New Zealand is in a prime position to emerge as a regional leader in cybersecurity. With the digital landscape becoming more interconnected, there’s the chance to set the standard by adopting a proactive and resilient approach. By focusing on innovation and staying adaptable, New Zealand businesses can not only tackle the challenges of today’s cyber threats but also influence the direction of cybersecurity across the region.

It’s about being forward-thinking and making smart investments to keep New Zealand’s digital world secure.