The Battlefield Has Shifted: Key Takeaways for APJ Leaders
I’ve just spent the last day digesting the newly released CrowdStrike 2025 eCrime Report, launched this week at GovWare 2025 in Singapore. As a technology strategist who has been advising companies across the Asia Pacific and Japan (APJ) region for over two decades, I’ve read hundreds of these reports. Frankly, many of them are just a rehash of the same old FUD (Fear, Uncertainty, and Doubt).
This one is different.
The CrowdStrike report is a stark and sobering analysis of a fundamental shift in the cyber threat landscape. The key takeaway for every C-suite leader in the region is this: the old model of cybersecurity, focused on building walls and detecting malware, is rapidly becoming obsolete. The battlefield has shifted from our networks to our identities, and the attackers are now armed with AI.
This isn’t a future threat; it’s happening right now. And for many organizations in our region, it’s a battle they are not prepared to fight.
The Industrialization of eCrime and the Rise of the Chinese Underground
The report paints a vivid picture of a highly industrialized and sophisticated eCrime ecosystem, with a thriving Chinese-language underground market at its core. Despite government crackdowns, these marketplaces are booming, facilitating billions of dollars in illicit transactions. They offer a full suite of “as-a-service” products, from stolen credentials and phishing kits to malware and money laundering. One marketplace alone, Huione Guarantee, was estimated to have processed over $27 billion USD before it was disrupted.
This “industrialization” of cybercrime has dramatically lowered the barrier to entry for would-be attackers. A moderately skilled individual can now purchase the tools and services they need to launch a sophisticated attack for a few hundred dollars. This means that the volume and velocity of attacks are increasing at an alarming rate. We’re not just talking about lone-wolf hackers anymore; we’re talking about a global, interconnected economy of crime, with its own supply chains, service providers, and even customer support.
For APJ-based organizations, this is a particularly acute threat. The report highlights a significant increase in attacks originating from Chinese-speaking actors, who are leveraging these underground markets to target businesses across the region. From pump-and-dump schemes targeting Japanese securities platforms to “Big Game Hunting” ransomware campaigns against high-value targets in India and Australia, the threat is both widespread and highly targeted. The manufacturing, technology, and financial services sectors are particularly in the crosshairs, given their economic significance and the high value of their data.
AI-Accelerated Attacks: The New Apex Predator
The most alarming trend identified in the report is the rapid adoption of AI by eCrime actors. AI is being used to accelerate every stage of the attack chain, from reconnaissance and social engineering to malware development and evasion.
Think of it this way: in the past, a sophisticated phishing email might have been identifiable by its poor grammar or slightly “off” tone. Now, generative AI can be used to create perfectly crafted, highly personalized emails that are virtually indistinguishable from legitimate communications. These emails can be tailored to specific individuals, referencing their job title, their recent projects, and even their personal interests, making them incredibly difficult to detect.
AI can also be used to automate the process of finding and exploiting vulnerabilities, and to create polymorphic malware that can change its code to evade detection by traditional antivirus software. New Ransomware-as-a-Service (RaaS) providers like KillSec and Funklocker are already leveraging AI-developed malware to great effect, launching high-velocity, high-volume attacks against organizations of all sizes.
This is a game-changer. The speed and scale of AI-accelerated attacks are simply beyond the capabilities of human-led security teams to manage. We are now in an era of machine-on-machine warfare, and any organization that is not using AI to defend itself is fighting a losing battle.
The Shift to Malware-Free, Identity-Based Attacks
Perhaps the most subtle but significant finding in the report is the dramatic shift towards “malware-free” intrusions. CrowdStrike found that a staggering 81% of observed hands-on-keyboard activity did not involve malware.
So if they’re not using malware, how are they getting in?
The answer is simple: they are logging in.
Cybercriminals are increasingly focusing on compromising legitimate user identities and credentials. They are using social engineering, phishing, and the vast troves of stolen data available on the dark web to gain access to valid accounts. Once inside, they “live off the land,” using legitimate system administration tools like PowerShell and Python to move laterally, escalate privileges, and exfiltrate data. This makes them incredibly difficult to detect, as they are using the same tools and techniques as legitimate administrators.
This is a nightmare scenario for traditional, perimeter-based security. Your firewalls and antivirus software are useless if the attacker is already inside, masquerading as a legitimate user. The only way to detect this kind of activity is to shift the focus of your security strategy from the network to the identity. You need to be able to answer the question: “Is this user behaving in a way that is consistent with their normal activity?”
The Future of Cyber Defense in APJ: An AI-Powered Arms Race
The trends identified in the CrowdStrike report point to an unavoidable conclusion: the future of cyber defense in the APJ region will be defined by an AI-powered arms race. As attackers continue to leverage AI to enhance their capabilities, defenders must do the same.
This means moving beyond traditional, signature-based detection methods and embracing a more proactive, AI-driven approach. We need to be able to use machine learning to analyze vast amounts of data in real-time, to identify the subtle patterns of behavior that may indicate a compromise. We need to be able to use AI to automate our response, to contain threats before they can cause significant damage. This is not about replacing human analysts, but about augmenting their capabilities, allowing them to focus on the most complex and critical threats.
This is not a battle that can be won with technology alone. It also requires a new level of collaboration and intelligence sharing between the public and private sectors. The industrialization of eCrime is a global problem, and it requires a global response. Governments, law enforcement agencies, and private companies across the APJ region must work together to share threat intelligence, disrupt criminal infrastructure, and bring cybercriminals to justice.
The Bottom Line: It’s Time for an Identity-First Defense
The CrowdStrike report is a clear and urgent call to action for every C-suite leader in the APJ region. The threat landscape has changed, and our security strategies must change with it. The old model of building a bigger wall is no longer enough. We need to assume that the attackers are already inside, and we need to have the visibility and control to detect and respond to their activity.
This requires a fundamental shift to an “identity-first” security model. This means:
- Investing in modern, AI-powered identity and access management (IAM) solutions. You need to be able to verify the identity of every user and device that is accessing your systems, and you need to be able to enforce the principle of least privilege, ensuring that users only have access to the data and resources they absolutely need to do their jobs.
- Implementing a robust security awareness training program. Your employees are your first line of defense. They need to be trained to recognize and report social engineering and phishing attempts. This is not a one-time event, but an ongoing process of education and reinforcement.
- Deploying a modern, AI-powered security operations platform. You need to have the ability to monitor user activity across all of your systems in real-time, and you need to be able to use AI to detect anomalous behavior that may be indicative of a compromise.
I remember advising a manufacturing company in Australia a few years ago. Their CISO was proud of their “impenetrable” network perimeter. “Nothing gets in or out without us knowing about it,” he told me. A few months later, they were hit by a devastating ransomware attack. The attackers didn’t breach the perimeter; they logged in with the stolen credentials of a third-party contractor.
The battlefield has shifted. It’s time to shift our defenses with it. The era of perimeter security is over. The era of identity-first security has begun. The question for every leader in the APJ region is no longer if you will make this shift, but when - and whether it will be before or after you experience a major breach. The clock is ticking, and the time to act is now. The stakes are simply too high to ignore. The future of your business depends on it. Don’t be the next headline. Your customers are counting on you. Your board is watching. And your competitors are probably already making the shift. Don’t get left behind. The consequences of inaction are far too great. The time for complacency is over. We must act now. We must act together.