In this blog we breakdown the report’s key points that are relevant to New Zealand’s SMEs. For those interested in a deeper dive, the full report is available on Microsoft’s website.
A major theme in the report is the persistence and adaptability of ransomware. Microsoft reports a 2.75x year-over-year increase in incidents in “human operated ransomware linked encounters.” The silver lining? While attacks are more frequent, their success rate has dropped more than threefold over the past two years, indicating that many organisations are stepping up their defences.
To defend against ransomware Microsoft recommends basic steps like keeping backups up to date, applying software patches on time, and more advanced protections like improved email filtering (i.e. Defender for 365) and using advanced threat detection tools (i.e. Huntress) to spot threats early.
For New Zealand SMEs, we also suggest reviewing Conditional Access policies (e.g., by location), as we often find these are not well maintained. Regularly updating these settings can make a significant difference.
Financial scams are evolving as quickly as the technology that powers them, making tech-enabled fraud a top threat this year. Criminals are using sophisticated scams to catch even the most security-conscious organisations off guard. The most alarming trend is techscams. A techscam (short for "technology scam") refers to fraudulent schemes where scammers pose as tech support or IT professionals to trick individuals or organisations into giving away sensitive information, access to systems, or money. While the diagram shows a threefold increase, in 2024 it reportedly increased twelvefold.
In their report Microsoft stressed the value of having strong verification processes and regular employee training to minimise these risks. In our experience human error is usually the weakest link, so creating awareness and encouraging vigilance in your teams is key.
Identity-based attacks are surging, with over 99% of Microsoft’s daily blocked threats involving password vulnerabilities. These attacks happen when hackers try to exploit someone’s digital credentials—like passwords or tokens—to break into systems or steal data. Microsoft reports that over 600 million identity attacks happen every single day, with more than 99% of them targeting password vulnerabilities. In fact, Microsoft blocked a jaw-dropping 7,000 password attacks every second last year. That really drives home how relentless these threats are.
Microsoft recommends adopting multi-factor authentication (MFA) as a baseline and exploring passwordless options, like YubiKeys which we’ll dive into in next month’s blog. In the meantime, we recommend fostering a security-first mindset among your team in addition to training employees to identify suspicious requests and act quickly to stop them.
Microsoft emphasises in the report that just ticking the box on security compliance isn’t enough anymore. Security needs to be part of everything an organisation does—woven into all parts of operations. It’s a shift we believe every organisation should embrace.
To truly stay ahead, here are some key areas to focus on:
1. Fix Outdated Systems and Policies: Have you assessed the security profile of all the technology in your ecosystem? Are you aware of any shadow IT in your organisation, and are your policies on user behaviour up to date? Taking these steps is important for a robust security strategy.
2. Know the Attack Paths and Prepare Your Response: Understanding how a hacker could access your critical assets is crucial for maintaining security. Equally important is understanding how your organisation would respond to an attack. This can help in recognising and mitigating risks while improving your overall response strategy. We recommend that leadership teams conduct an annual security simulation to identify potential vulnerabilities and develop effective response plans.
This isn’t just about plugging gaps—it’s about building a culture of security that keeps organisations one step ahead of threats.
The report reveals a concerning trend: the increasing involvement of nation-state actors in cybercrime. These well-funded attackers often collaborate with cybercriminals to achieve complex, politically motivated objectives. We would expect that with the rise of Artificial Intelligence this will only increase.
Attackers are finding ways to misuse AI - from creating convincing phishing emails to generating deepfake videos. While Microsoft promotes global AI security standards, our message to NZ SMEs is to treat the risk of deepfakes as seriously as financial fraud. Start conversations with your teams about these risks and explore practices—often non-technical—that can help prevent them.
Microsoft’s 2024 Digital Defence Report shines a light on just how complex and fast-moving the world of cybersecurity has become, it shows that Microsoft believe the threats will only increase in quantity and become more sophisticated. It’s not just about blocking viruses anymore—threats like ransomware, identity attacks, and financial scams are evolving at lightning speed. These aren’t just theoretical problems; they’re real challenges that New Zealand organisations face daily.
The report makes it clear: a one-size-fits-all approach to security just won’t cut it. To stay safe, organisations need to think ahead and build strong, multi-layered defences. It’s about being proactive, not reactive, and ensuring every layer of your digital environment is secure. With threats growing more sophisticated, having the right strategy in place has never been more important.
If you'd like to discuss security strategies for your organisation, we're here to help.
