NZ spy agency warns of realistic terror attack risk

New Zealand's spy agency has revised how it describes the national terrorism threat level, saying an attack remains a realistic possibility and warning of growing concern about antisemitic and Islamophobic narratives among violent extremists.

The New Zealand Security Intelligence Service says its internal Combined Threat Assessment Group has updated the descriptors used for the National Terrorism Threat Level. What was previously labelled LOW is now described as POSSIBLE, to emphasise the need for preparedness.

Director-General Andrew Hampton warned the domestic threat environment extends beyond terrorism, with foreign interference, espionage and insider risks within organisations remaining persistent challenges.

Bondi impact

The agency set up an operation after the terrorist attack at Bondi Beach in Australia to assess any impact on New Zealand's threat environment and to support Australian and New Zealand police, Hampton said.

The operation ran over the summer and the agency continues to receive relevant intelligence, he told the Intelligence and Security Committee. The service is also monitoring the situation in Iran for any domestic impact. So far, it has not seen any change to the current threat profile.

The Bondi attack has resonated across different extremist ideologies, Hampton said. Faith-based violent extremist groups such as ISIS and Al Qaeda paid close attention. Identity-based violent extremists have promoted antisemitic and Islamophobic narratives linked to the attack, while it has also fed anti-immigration narratives used by some politically motivated violent extremists.

Hampton also raised concern about artificial intelligence in the online information environment, saying AI was used to falsify and spread content about the Bondi attack.

Threat level

Hampton said he was shocked by the Bondi attack but not completely surprised, describing it as a low-capability, no-warning attack of the type the agency has repeatedly warned could occur in New Zealand.

The change relates to wording, not an elevated threat level. The updated scale is intended to reflect that an attack remains a realistic possibility in New Zealand and to focus attention on preparedness.

He linked the threat environment to antisemitism and Islamophobia, describing both as "diseases" present within violent extremist settings in New Zealand, often alongside other motivations.

New Zealanders should remain alert to the possibility that someone with extreme antisemitic or Islamophobic views could develop the intent and capability to carry out an attack, he said.

Community concerns

Faith-based and ethnic communities feel this threat deeply and are increasingly concerned about the level of hate they face, Hampton said. He said he heard those concerns directly through engagement with Jewish and Muslim communities in the month before the Bondi attack.

He urged the public to report concerning behaviour. While the agency and Police are focused on detecting violent extremists, New Zealand's democratic settings mean intelligence agencies are not all-seeing, he said. Members of the public may be just as likely to notice warning signs and should report them to the agency or Police.

Espionage risks

Beyond terrorism, Hampton described a broader threat environment that includes foreign interference, espionage and insider risks, including people who act knowingly or unknowingly in ways that can harm national security.

The agency is stepping up efforts to promote what he called a stronger security mindset across a range of sectors, including through its annual security threat environment report.

Hampton said New Zealand's international relationships, innovation base, South Pacific location and proximity to Antarctica contribute to its geostrategic significance. Those factors support international reputation and economic prosperity, but also create national security risks.

A number of states continue to conduct foreign interference and espionage against New Zealand, he said, describing such activity as not benign. Foreign actors seek covert influence and non-public information that can be used for leverage against New Zealand or its partners.

The agency is increasingly seeing influential New Zealanders, and others with access to privileged information, targeted by foreign intelligence services through deceptive online recruitment, he said.

He also said some states try to pressure New Zealand to align with their talking points and to shape what communities and civil society organisations say. Deception, coercion and corruption are used to advance such goals in ways that run counter to New Zealand's national interest, he said.

Hampton noted New Zealand now has criminal offences for foreign interference and espionage-related activities, saying the legal framework reinforces that such conduct is unacceptable.

While the service continues to disrupt foreign interference and espionage, he warned that what is visible may represent only a portion of the activity underway.

"We were all shocked and appalled by the senseless attack at Bondi, but unfortunately, I was not completely surprised," said Andrew Hampton, Director-General, New Zealand Security Intelligence Service.

He said leaders across organisations, businesses and communities need to protect people, critical information and assets, and that the agency will continue providing guidance while expanding outreach across sectors.