Nearly a third of state, local, and education organizations reported suffering cyber breaches in the past year, according to a recent study by LevelBlue, a private cybersecurity services firm. The survey, which included 200 public-sector technology leaders, revealed a significant gap between the increasing sophistication of cyber threats and the ability of these organizations to respond effectively. Specifically, 29% of respondents indicated they had experienced a security breach in the last year, while 46% noted a rise in the volume of cyberattacks.
Kory Daniels, LevelBlue’s global chief security and trust officer, emphasized that the actual number of cyber incidents could be even higher, given that many breaches go unreported by organizations. A growing concern is the rise of AI-driven attacks, with 45% of those surveyed anticipating threats enabled by artificial intelligence, yet only 28% believing they are adequately prepared for such challenges. The proliferation of AI has not only broadened the attack surface but also provided malicious actors with enhanced means to research targets and execute more convincing phishing attempts. As public agencies adopt new technologies, a greater number of entry points for potential attacks emerge, complicating the task for employees who are increasingly struggling to distinguish AI-enhanced phishing from legitimate communications.
The report further highlights that a lack of full visibility into systems and vendor partners hampers organizations’ security efforts, with 44% of agencies admitting to this shortcoming. This vulnerability in the supply chain has become a critical weakness, as attackers frequently circumvent direct defenses by targeting trusted vendors and partners. Daniels pointed out that this issue is garnering greater attention at the leadership level, as executives seek to understand how disruptions caused by cyber incidents affect government services and operations.
Addressing these challenges requires a multi-faceted approach, according to the findings. Strengthening leadership engagement, enhancing visibility within vendor ecosystems, and providing ongoing training for the workforce are essential steps to bolster cybersecurity defenses. As employees increasingly use artificial intelligence tools, Daniels stressed the importance of reinforcing security awareness and training, particularly when personal and professional uses of technology start to blur. Organizations that demonstrate a higher level of confidence in their resilience often have strong alignment among their leadership teams, treating cybersecurity as a shared responsibility that is backed at the executive level.
“Where we see organizations having the most success are the ones who feel heard at the board level,” Daniels stated. “The CXO team with a direct line to leadership—these are the organizations that have tailwinds for their cyber resilience programs.”
This report is part of a broader cybersecurity survey conducted in 2025 across 14 countries and seven sectors, with the majority of responses from IT and security engineers and architects within the U.S. public sector. The findings underscore the pressing need for public organizations to adapt to an evolving cyber threat landscape, which has seen incidents disrupt government operations nationwide. For instance, a ransomware attack in Nevada incapacitated state offices and services for several days, while a prolonged cyber breach in St. Paul, Minnesota, forced systems offline and triggered a local emergency declaration.
As organizations face an increasingly complex digital environment rife with potential vulnerabilities, the emphasis on proactive cybersecurity measures and strategic leadership engagement appears more critical than ever. The ongoing struggle against sophisticated cyber threats highlights the necessity for public sector entities to recalibrate their defense strategies and ensure resilience in the face of evolving risks.
See also
Anthropic’s Claims of AI-Driven Cyberattacks Raise Industry Skepticism
Anthropic Reports AI-Driven Cyberattack Linked to Chinese Espionage
Quantum Computing Threatens Current Cryptography, Experts Seek Solutions
Anthropic’s Claude AI exploited in significant cyber-espionage operation
AI Poisoning Attacks Surge 40%: Businesses Face Growing Cybersecurity Risks
