
AI hack of Medicare exposes AustraliaâÂÂs vulnerabilities and experts warn âÂÂthere is more of this to comeâÂÂ
Council on AI Strategy chief says incident unlikely to be isolated and country should enhance capability to detect and report incidents
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Technology experts have warned revelations an artificial intelligence agent hacked MedicareâÂÂs internal systems will not be the only dangerous breach of government data and have called for Australia to boost its protections against the growing risk.
The prime minister, Anthony Albanese, challenged the OpenAI boss, Sam Altman, on Thursday after the companyâÂÂs agent infiltrated systems run by the Australian Institute of Health and Welfare, VictoriaâÂÂs Department of Health, the New South Wales Bureau of Crime Statistics and Research, and the Medicare statistics reporting service portal of Services Australia.
OpenAI alerted the government earlier this month to the June hacking via an email to a public-facing address, a situation Albanese called âÂÂobviously unacceptableâÂÂ.
But the Australian Council on AI Strategy chief executive, Anna-Maria Arabia, said the case was unlikely to be an isolated incident.
âÂÂAll of the evidence shows that our operating systems are vulnerable,â she told Guardian Australia.
âÂÂFrontier AI now has capability to expose those vulnerabilities at a rate quicker than we can keep up, quicker than we can patch them.
âÂÂWhen the companies are undertaking tests in what they think are secure environments, and when there are breaches of those environments and these incidences do happen, whether itâÂÂs accidental or not, what weâÂÂre seeing is the frontier AI capability exposing these vulnerabilities.
âÂÂAll evidence suggests that there is more of this to come.âÂÂ
Arabia said Australia needed to quickly enhance capability to detect and report incidents, and the country should host AI training labs here.
Johanna Weaver, AustraliaâÂÂs former chief cyber negotiator at the United Nations, agreed more incidents were inevitable.
Weaver is a member of the advisory board to the minister for government services, Katy Gallagher, and the executive director of the Tech Policy Design Institute.
âÂÂCybersecurity experts have been warning that frontier models and AI agents could expose vulnerabilities in critical systems. What we are seeing now is the tip of the iceberg.
âÂÂGovernments need to draw a clear line: if companies cannot control their AI systems, they should not release them publicly.âÂÂ
The US Studies Centre expert Olivia Shen warned AI companies should not be allowed to decide on their own disclosure obligations for hacks and breaches.
âÂÂWe just donâÂÂt know how big the problem is. It could be the tip of the iceberg, but either way, we canâÂÂt be ignoring the risk.
âÂÂItâÂÂs all happening at a time when Australia is designing our national standards on AI. It hasnâÂÂt been entirely clear if those national standards were going to be very hyper-focused on datacentres and leave governance questions as a bit of a bolt-on.
âÂÂI think this strengthens the argument that you need to have some pretty clear standards, even just based on mandatory incident reporting, built in.âÂÂ
Intelligence agency the Australian Signals Directorate (ASD) is reviewing how prepared the government is to block and respond to hacking by AI. Officials will look at policies around how AI companies should report cyber-incidents to the government, and how cooperative companies should be during and after an attack.
It will also investigate whether the current laws and systems are adequate to stop AI, and how government systems can be strengthened.
The shadow industry minister, Andrew Hastie, called for Australia to develop its own domestic AI capability, instead of relying on the US.
âÂÂIf thereâÂÂs rogue AI agents out there, we need to have our own defensive AI agents protecting Australian government data, our private sector, and other things that are important to us,â he said.
The Greens demanded Labor call in the new US ambassador, David Brat, to establish what President Donald Trump knew about the attack.
âÂÂThis breach by a foreign AI company on an Australian government database is deeply alarming and brings home the risks that these out-of-control tech corporations pose,â acting leader, Mehreen Faruqi, said.
âÂÂThe fact that the government did not even know it happened is disturbing.âÂÂ
