National Broadband Netwrok Susceptible to Hacking and Eavesdropping

The report by strategic think tank the Kokoda Foundation says the $36 billion network may need to be accompanied by tougher regulation to protect it against threats that could range from foreign cyber spies to local criminals.

It says the network’s builder, NBN Co, along with industry and internet service providers, needs to be alert to the “vulnerabilities” of the new network that could be exploited by hackers. So far, the foundation says, cyber security has not been part of the national debate on the NBN. “At this stage NBN Co has not articulated its approach to ensuring or improving cyber security,” says the foundation’s report, which will be released later this month.

“Introduction of the new National Broadband Network could provide a tipping point in terms of new and tougher regulation.

“It will be important for NBN Co to ensure security standards are adequate and to build strong relationships with industry associations, the Internet Industry Association and the Internet Society of Australia, and not just with government.”

The report notes that once the network is built, taking high-speed broadband services through fibre-optic cable to an estimated 93 per cent of households, responsibility for maintaining cyber security will rest with retail service providers rather than NBN Co. “The rollout of the NBN offers a significant opportunity to engage the public to better understand the vulnerabilities that exist and that could be exploited through the significantly increased bandwidth that will be made available, and in turn the responsibilities of individuals as well as the ISPs to take appropriate security measures,” the report says. “This opportunity must be grasped by all relevant parties.”

As revealed in The Australian yesterday, the Kokoda report warns that Australia is poorly prepared for the growing cyber security threat.

The report warns that cyber hackers now pose a serious threat to national security, the economy and to personal privacy.

In 2008, The Australian revealed that Australian intelligence agencies were investigating Chinese telecommunications giant Huawei, in the wake of international concerns about its alleged links with the Chinese military and government.

Huawei, which is seeking to be a major player in the NBN, has strongly denied any such links and has enlisted former foreign minister Alexander Downer’s lobbying firm Bespoke Approach to help it open doors for it in Australia.

The federal government believes China is the nation that poses the most serious cyber threat to Australia because of the scale and sophistication of its hacking capabilities.

China denies it employs cyber spies to glean national security information from Australia.