The last month and a half have been an exceptionally trying time for Australian consumers and businesses. And now, in the wake of the Optus and Medibank data breaches, the federal government is proposing unprecedented heavy fines to scare businesses and organizations into better data security practices.
The Optus data leak exposed 2.1 million customers’ personal information (Medicare cards, passport numbers, addresses, driver’s licenses, names, and so on). This happened because the telecommunications company fell victim to a cyber attack.
The situation is quite grim because the type of data that was exposed is what cybercriminals use to steal a person’s identity. Plus, many people whose data were exposed and made public online are now being blackmailed into sending money to keep cybercriminals from using their data to commit fraud.
But, as things seemed to calm down, Medibank, one of Australia’s biggest health insurance providers, was hit. The breach was massive, and it is believed the hackers had access to the personal data of the entire database of customers (1 million+ customer). Again, the situation is dire since Medibank’s data breach also included intimate medical records.
New Legislation for Heavy Fines
According to Mark Dreyfus, the Attorney-General of Australia, the existing safeguard against privacy breaches are inadequate. He also mentioned that some companies may consider the current penalties for major data breaches as the cost of doing business.
Considering the recent events, the AG will work on introducing new legislation that would increase penalties for serious or repeated data breaches from $2.2 million to whatever is higher between these three options:
$50 million
Three times the value of any benefit obtained through the misuse of information
30% of a company’s adjusted turnover in the relevant period
The legislation will consider a data breach serious based on the number of people involved and the type of information leaked (among other factors). Also, if the company has a history of disregard for keeping customers’ data safe will also be taken into consideration.
You Can Protect Your Business!
Between bold and clever hackers willing to go many extra miles to breach a company’s defences and the federal government, which is hell-bent on heavy privacy reforms, the situation seems a bit desperate for Australian businesses (especially small and mid-sized ones).
But you do have options when it comes to protecting your business against cyber attacks and keeping sensitive data safe from prying eyes!
First, you may need to invest more in your cybersecurity system. One of the main reasons these attacks are successful is a lack of proper security and data protection methods in businesses of all sizes. But, when you use several layers of protection and train your employees how to recognize and deal with an attack attempt, it becomes increasingly more challenging for attackers.
Second, you need experts (like our team) to audit your systems and provide guidance and recommendations. We can help implement the 8 security recommendations from the Australian Government and add our own recommendations based on your specific situation.
So, if you don’t want to see your business in the news for a data breach allegation, call us today! Our well-trained IT specialists will be at your disposal!
