Councils now run most of their services online. From payments and planning to community records, almost every task relies on connected systems. 

Many councils, especially in regional areas, depend on small teams and older technology, which in turn can make them easier targets for cybercriminals.

Unlike fraud, which is defined as deception for financial gain, cybersecurity is about preventing and containing attacks on the systems councils rely on.

In October 2025, several Tasmanian government agencies were affected by a cyberattack after criminals were able to access data through VETtrak, a student management system. 

As a result, parts of the platform were taken offline, authorities were notified, and the public was warned about possible breach of personal information. It demonstrated how a single weak link in a shared system can disrupt services and expose sensitive data to risk.

National figures tell the same story. 

According to ASD’s most recent Annual Cyber Threat Report, more than 87,400 cybercrimes were reported in 2024/2025, averaging to about 1 every 6 minutes. 

Attacks continue to rise in frequency and sophistication, with government and essential services among the targets. Based on ASD’s previous year’s report, the organisation  answered over 36,700 calls to its Cyber Security Hotline and responded to more than 1,100 incidents in 2023 to 2024.

Australian local councils manage $643 billion in community assets. If systems go down, roads, water, waste and facilities will be heavily disrupted. 

Hence, it’s obvious that for local government, cybersecurity isn’t just an IT task. It’s about keeping services available, protecting people’s information, and maintaining public trust. 

What local governments are facing: key threats and challenges

Cyberattacks on local councils are rising. In 2022, the government sector was the third most frequently impacted by cyber extortion. These attacks show how vulnerable local governments have become, and how much is at stake when systems go down or data is stolen.

Phishing, ransomware, and credential theft

Phishing remains the most common threat. Across Australia, $84.5 million in phishing losses were reported in 2024, making it one of the highest-loss scam categories.

Once inside, attackers can lock systems with ransomware or use stolen passwords to move through networks and access sensitive information.

Infrastructure and third-party risks

Councils rely on a wide mix of digital tools to run their services, like cloud systems, public Wi-Fi, supplier portals, and Internet-connected devices. 

Each of these adds another potential entry point for attackers. Smaller and remote councils are particularly at risk because they heavily depend on external providers and often lack full-time IT staff.

Skills shortage and funding gaps

Many councils still lack the people and resources needed to stay secure. 

A CyberCX report found that most local governments in Australia don’t yet have strong cyber policies or clear plans for handling incidents. In fact, almost 80 percent of local-government data breaches come from simple mistakes, which shows how important training and awareness are.

Rural and regional councils are hit hardest because they have smaller budgets and fewer resources available. 

Tight annual budgets also make it harder to keep up with new threats or invest in modern protection tools. In Victoria alone, about 90 percent of local councils reported a cyberattack in 2022, underlining how widespread the problem has become.

Without the right skills, funding, and tools, councils remain easy targets for cybercriminals. To protect communities, councils need clear plans, stronger systems, and better awareness across every level of their organisation.

How this is different from fraud-focused risks

It’s true that fraud and cybersecurity are closely linked, but it’s important to understand they aren’t the same. 

Fraud typically involves the misuse of funds or personal information, such as individuals inside or outside an organisation attempting to steal money or data through deception.

Cybersecurity, on the other hand, goes so much further. It’s not only about protecting financial transactions but also about keeping the systems that run a council safe. 

These systems manage everyday services like water, rates, waste collection, and community records. When they’re compromised, the impact reaches far beyond finances; it affects how councils deliver services to their communities.

Fraud prevention often focuses on verifying transactions after they have occurred. Cybersecurity is rather about stopping attacks before they start. 

It’s proactive, building secure networks, training staff, and keeping technology up to date so that threats are caught early, and communities stay protected.

What a strong cybersecurity strategy should look like

For councils, cybersecurity needs a clear, structured plan that brings together people, processes, and technology. 

A strong strategy should cover the following foundations:

Risk assessment and vulnerability scanning

Councils need to know where they are most at risk. Regular checks of systems, networks, and supplier connections help identify weak points before attackers do.

Governance: policies, oversight, and clear roles

Security works best when everyone understands their role. Councils should embed security into everyday decision-making rather than treat it as an IT issue. Clear policies, oversight, and accountability are key to making this happen.

Technology controls

Practical steps, such as multi-factor authentication, encryption, zero-trust principles, software patching, and network segmentation, form the basics of effective protection. The Australian Government’s Essential Eight outlines simple, proven measures that help organisations build resilience and reduce risk.

Incident response and recovery planning

Even with strong prevention, incidents can still happen. Therefore, local councils need clear plans for how to respond, who to notify, how to restore systems, and how to maintain essential services. 

Fast recovery helps protect both data and community trust.

Training and awareness

People remain the easiest target for cybercriminals. Many attacks succeed because of simple human error, so staff awareness and training should be ongoing. 

Building a culture where everyone plays a role in protecting information is one of the best defences a council can have.

Regular audits and continuous improvement

Cybersecurity is never “finished”. Hence, councils should regularly test their defences, review their policies, and update their systems in line with national standards such as the earlier mentioned Essential Eight. 

The Local Government Security Framework (LGITSA) also helps local governments strengthen their approach and build maturity over time.

It’s worth noting that cyber rules and standards are tightening across government. Councils now need to demonstrate they meet national and state cybersecurity requirements and review their progress regularly to stay compliant.

Special considerations for remote councils

Remote and regional councils face many of the same cyber risks as larger cities, but often with far fewer resources to manage them.

Limited connectivity, legacy systems, and smaller teams make it much harder to maintain strong defences or respond quickly when something goes wrong.

Some councils might also rely on external providers for IT support and cloud services. While this helps them stay operational, it can create extra points of vulnerability if those third parties aren’t properly secured or monitored.

And when a cyber incident happens, the impact is often greater. Service disruptions can last longer because recovery takes more time and staff are stretched thin. 

In some cases, even temporary outages can impact essential operations, such as community services, infrastructure maintenance, or emergency response.

In addition to this, lower visibility across networks can also make it harder to spot unusual activity early. Without consistent monitoring, smaller councils can become easy targets for attackers looking for weak entry points into government systems.

For these reasons, regional and remote councils need tailored cybersecurity plans, the ones that reflect their unique challenges, resource limits, and community needs, while still meeting the same security standards as larger organisations.

How a platform like CouncilFirst can help

The goal with cybersecurity is to build technology that makes protection part of everyday operations rather than an afterthought.

Modern cloud platforms tailored for local government, such as CouncilFirst, help achieve this by removing many of the weaknesses that leave councils exposed. 

For example, security is built into the infrastructure itself, with regular updates, managed patches, and data hosting in protected cloud environments. This approach helps close vulnerabilities before they can be exploited.

In addition, features such as role-based access, detailed audit trails, and consistent reporting provide councils with a clearer picture of activity across their networks. These controls support better oversight and make it easier to spot unusual behaviour early.

Another great advantage of a unified system is its simplicity. Many councils still rely on a stack of various disconnected platforms, each with its own logins, data stores, and risks. Centralising these into one secure environment reduces that clutter and lowers the number of potential entry points for attackers.

It’s also important to remember that technology should empower people rather than burden them. When tools are designed to be intuitive and support everyday workflows, staff are more likely to follow security processes and less likely to make mistakes. 

Checklist: Questions councils should ask vendors and themselves

A great point worth remembering is that strong cybersecurity depends on the questions councils ask both of themselves and of their technology partners. 

The right questions help identify weak spots early and build confidence that systems and suppliers are secure.

Every council should start by asking these questions:

Do we have an incident response plan? 

When a cyberattack occurs, the first few hours are crucial. Knowing who is responsible, what to isolate, and how to communicate can make the difference between a contained issue and a full-scale outage.

What is our record on security breaches? How transparent are our partners? 

Past performance can reveal how seriously an organisation treats security. Councils should expect their vendors to be open about incidents, testing, and improvements made since.

How often are systems audited or tested for vulnerabilities? 

Independent penetration tests, compliance reviews, and risk assessments help ensure that protection is not just assumed but proven.

How do we manage vendor risk? 

Councils rely on numerous third parties, from cloud providers to specialist software vendors. Every integration or open API adds another door into council systems. Understanding how those doors are monitored and protected is essential.

Do we have the necessary funding and resources to remain secure? 

As mentioned earlier, cybersecurity is not a one-off project; it’s an ongoing investment in people, systems, and processes.

Final thoughts

Cyber threats aren’t slowing down, and neither can local government. 

Every year, councils handle more data, rely on more interconnected systems, and face more attempts to breach them. The risk will only grow, but so will the opportunity to get ahead of it.

Australia’s cybersecurity market is expanding rapidly; it was valued at about USD 7.6 billion in 2024 and projected to reach over USD 19 billion by 2033. 

This growth reflects the growing seriousness with which both the public and private sectors are treating cyber resilience as an investment in continuity and trust.

With the right foundations in place, councils can strengthen their defences and protect the services people rely on every day.

Enhance Your Council’s Readiness

While cybersecurity requires a multi-layered approach, CouncilFirst supports your efforts by reducing system complexity, improving data integrity, and ensuring your operations run on secure, modern Microsoft cloud infrastructure.

Get in touch to learn how CouncilFirst’s modern ERP environment works alongside your existing cybersecurity measures.