In a hyper-connected world, data security is now a critical issue for Australian businesses – and their clients.
More and more data breaches are being reported to the Australian privacy watchdog, with the Office of the Australian Information Commissioner (OAIC) receiving 812 notifications in 2018 as part of its mandatory breach reporting regime.[i]
What is the cost of data security?
Data breaches bring the potential for significant reputational damage and resource costs, as the Australian Parliament found recently when its computing network suffered an “unfortunate” breach. In response, all user passwords were reset and a range of other unspecified security measures implemented to protect the network.
The incident follows other embarrassing security breaches for the federal government, including the darkweb sale of Medicare card details and an incursion at Austal, a shipbuilding supplier for the Department of Defence.
Reputational damage and IT costs aside, organisations also risk hefty penalties if they suffer a data breach. In March, the Morrison Government announced plans to increase the penalties levied for a privacy breach under the Privacy Act to 10% of a company’s turnover.[ii]