New Mandatory Data Breach Notification Rules in Australia
Posted on 04 December, 2017
In February 2018, a new mandatory data breach notifications scheme will come into effect in Australia, with a number of companies being required to notify customers, as well as the Australian Privacy Commissioner of any data breaches.
This new policy makes holding the appropriate cyber attack insurance more important than ever, especially considering new research has shown that small businesses are just as exposed as larger corporations to cyber attacks.
For instance, in 2016 alone, the Australian Cyber Security Centre (ACSC) reported that approximately 90 per cent of small Australian organisations experienced a cyber threat or data breach, with 58 per cent of these attacks proving successful. These results have increased significantly when compared to data from previous years.
The Cost of Cyber Security Breaches in Australia
Regardless of how secure your network is, small businesses do have the risk of falling victim to a ransomware attack or a data breach. This can impact your business in a variety of ways and can come with a number of associated costs, including:
- IT forensic costs
- Customer notification costs
- Increased costs of working
- Legal defence costs
- The costs associated with a loss of customers, due to lack of trust
Data breaches can also have a negative effect on your business’s image and reputation, which can influence your future earning potential.
Large-Scale Data Breaches in Australia
In the last year, Australia, and the world has been hit with a series of major ransomware attacks, which have affected both big and small businesses alike.
The latest cyber attack to hit Australian shores has seen 50,000 Australian personal records, including full names, passwords, IDs, contact details, credit card details, and even confidential salary information become vulnerable.
In what appears to be one of the country’s largest data breaches, second only to the leak of information on 550,000 blood donors last year, a whopping 48, 270 Australian employees from several government agencies, banks and utility organisations have had their personal information left accessible as a result of a misconfigured Amazon S3 bucket.
Thanks to this third party misconfiguration, the likes of AMP, UGL and even the Department of Finance have been affected. The identity of the responsible third party is unknown, but the breach was reported to the ACSC, allowing all of those involved to start working on a fix.
“Once the Australian Cyber Security Centre (ACSC) became aware of the situation, they immediately contacted the external contractor and worked with them to secure the information and remove the vulnerability,” a spokesperson for the ACSC’s parent agency said.
“Now that the information has been secured, the ACSC and affected government agencies have been working with the external contractor to put in place effective response and support arrangements.”
This is just one example of the vulnerabilities and risks that are faced by countless Australian businesses. It is hoped that the new mandatory data breach notification laws will help the relevant Australian authorities crack down on cyber threats to businesses, while also minimising the effect of such breaches.
However, holding an appropriate cyber attack insurance policy is an absolute must for any business, as the costs of a successful cyber attack can be crippling. To learn more about how you can protect your businesses finances through the appropriate insurance schemes, contact Donnellys today!
Posted on 27 June, 2018
This month, the Donnellys team delve deeper into our Car Insurance series, and detailing in greater detail exactly what...Read on
Posted on 18 May, 2018
In last month’s Part 1. Of our Home & contents insurance trips and traps series, we took aim at...Read on
Posted on 02 May, 2018
If you’ve ever been caught out by the fine print in your home and contents insurance policy conditions, you’ll...Read on
Posted on 02 April, 2018
In the final instalment of our ‘Car Insurance Tips and Traps’ series, we’re going to take a look at...Read on
Posted on 05 March, 2018
In part one of our Car Insurance Tips and Traps series, we looked at total loss claims, new for...Read on
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- September 2017
- August 2017
- July 2017
- May 2017
- April 2017
- March 2017
- February 2017
- December 2016
- July 2016
- June 2016
- April 2016
- October 2015
- June 2015
- October 2013
- March 2013
- April 2012
- February 2012