The Times Australia
The Times World News

.
The Times Real Estate

.

Why do organisations still struggle to protect our data? We asked 50 professionals on the privacy front line

  • Written by Jane Andrew, Professor, Head of the Discipline of Accounting, Governance and Regulation, University of Sydney Business School, University of Sydney

More of our personal data is now collected and stored online than ever before in history. The rise of data breaches should unsettle us all.

At an individual level, data breaches can compromise our privacy, cause harm to our finances and mental health, and even enable identity theft.

For organisations, the repercussions can be equally severe, often resulting in major financial losses and brand damage.

Despite the increasing importance of protecting our personal information, doing so remains fraught with challenges.

As part of a comprehensive study[1] of data breach notification practices, we interviewed 50 senior personnel working in information security and privacy. Here’s what they told us about the multifaceted challenges they face.

Read more: The Australian government has introduced new cyber security laws. Here's what you need to know[2]

What does the law actually say?

Data breaches occur whenever personal information is accessed or disclosed without authorisation, or even lost altogether. Optus[3], Medibank[4] and Canva[5] have all experienced high-profile incidents in recent years.

Under Australia’s privacy laws[6], organisations aren’t allowed to sweep major cyber attacks under the rug.

People walking in front of an Optus store
Optus suffered a major data breach in 2022. Detail from Bianca De Marchi/AAP[7]

They have to notify both the regulator – the Office of the Australian Information Commissioner (OAIC) – and any affected individuals of breaches that are likely to result in “serious harm[8]”.

But according to the organisational leaders we interviewed, this poses a tricky question. How do you define serious harm?

Interpretations of what “serious harm” actually means – and how likely it is to occur – vary significantly. This inconsistency can make it impossible to predict the specific impact of a data breach on an individual.

Victims of domestic violence, for example, may be at increased risk when personal information is exposed, creating harms that are difficult to foresee or mitigate.

Enforcing the rules

Interviewees also had concerns about how well the regulator could provide guidance and enforce data protection measures.

Many expressed a belief the OAIC is underfunded and lacks the authority to impose and enforce fines properly. The consensus was that the challenge of protecting our data has now outgrown the power and resources of the regulator.

As one chief information security officer at a publicly listed company put it:

What’s the point of having speeding signs and cameras if you don’t give anyone a ticket?

A lack of enforcement can undermine the incentive for organisations to invest in robust data protection.

Only the tip of the iceberg

Data breaches are also underreported, particularly in the corporate sector.

One senior cybersecurity consultant from a major multinational company told us there is a strong incentive for companies to minimise or cover up breaches, to avoid embarrassment.

This culture means many breaches that should be reported simply aren’t. One senior public servant estimated only about 10% of reportable breaches end up actually being disclosed.

Without this basic transparency, the regulator and affected individuals can’t take necessary steps to protect themselves.

Closeup person holding credit card using laptop
Affected individuals can’t take steps to protect themselves if breaches aren’t reported. Yuri A/Shutterstock[9]

Third-party breaches

Sometimes, when we give our personal information to one organisation, it can end up in the hands of another one we might not expect. This is because key tasks – especially managing databases – are often outsourced to third parties.

Outsourcing tasks might be a more efficient option for an organisation, but it can make protecting personal data even more complicated.

Interviewees told us breaches were more likely when engaging third-party providers, because it limited the control they had over security measures.

Between July and December 2023 in Australia, there was an increase of more than 300%[10] in third-party data breaches compared to the six months prior.

There have been some highly publicised examples.

In May this year, many Clubs NSW customers had their personal information potentially breached[11] through an attack on third-party software provider Outabox.

Bunnings suffered a similar breach[12] in late 2021, via an attack on scheduling software provider FlexBooker.

Bunnings Warehouse carpark and signage
In 2021, Bunnings had outsourced some customer booking tasks to third-party provider Flexabooker. Dave Hunt/AAP[13]

Getting the basics right

Some organisations are still struggling with the basics. Our research found many data breaches occur because outdated or “legacy” data systems are still in use.

These systems are old or inactive databases, often containing huge amounts of personal information about all the individuals who’ve previously interacted with them.

Organisations tend to hold onto personal data longer than is legally required. This can come down to confusion about data-retention requirements, but also the high cost and complexity of safely decommissioning old systems.

One chief privacy officer of a large financial services institution told us:

In an organisation like ours where we have over 2,000 legacy systems […] the systems don’t speak to each other. They don’t come with big red delete buttons.

Other interviewees flagged that risky data testing practices are widespread.

Software developers and tech teams often use “production data” – real customer data – to test new products. This is often quicker and cheaper than creating test datasets.

However, this practice exposes real customer information to insecure testing environments, making it more vulnerable. A senior cybersecurity specialist told us:

I’ve seen it so much in every industry […] It’s literally live, real information going into systems that are not live and real and have low security.

What needs to be done?

Drawing insights from professionals at the coalface, our study highlights just how complex data protection has become in Australia, and how quickly the landscape is evolving.

Addressing these issues will require a multi-pronged approach, including clearer legislative guidelines, better enforcement, greater transparency and robust security practices for the use of third-party providers.

As the digital world continues to evolve, so too must our strategies for protecting ourselves and our data.

References

  1. ^ comprehensive study (www.doi.org)
  2. ^ The Australian government has introduced new cyber security laws. Here's what you need to know (theconversation.com)
  3. ^ Optus (www.abc.net.au)
  4. ^ Medibank (www.abc.net.au)
  5. ^ Canva (www.afr.com)
  6. ^ privacy laws (www8.austlii.edu.au)
  7. ^ Detail from Bianca De Marchi/AAP (photos.aap.com.au)
  8. ^ serious harm (www8.austlii.edu.au)
  9. ^ Yuri A/Shutterstock (www.shutterstock.com)
  10. ^ more than 300% (www.oaic.gov.au)
  11. ^ breached (www.rimpa.com.au)
  12. ^ similar breach (australiancybersecuritymagazine.com.au)
  13. ^ Dave Hunt/AAP (photos.aap.com.au)

Read more https://theconversation.com/why-do-organisations-still-struggle-to-protect-our-data-we-asked-50-professionals-on-the-privacy-front-line-236681

The Times Features

Understanding the Dangers of Ignoring a Gas Leak

Gas leaks are silent threats lurking within both homes and workplaces. A gas leak occurs when natural gas or any other gaseous substance escapes from a pipeline or containment. T...

Can You Sell Your House Privately in Queensland? Here’s How

Selling a house privately in Queensland is entirely possible and can be a cost-effective alternative to using a real estate agent. While agents provide valuable expertise, their co...

Itinerary to Maximize Your Two-Week Adventure in Vietnam and Cambodia

Two weeks may not seem like much, but it’s just the right time for travelers to explore the best of Vietnam and Cambodia. From the bustling streets of Hanoi to the magnificent te...

How to Protect Your Garden Trees from Wind Damage in Australia

In Australia's expansive landscape, garden trees hold noteworthy significance. They not only enhance the aesthetic appeal of our homes but also play an integral role in the local...

Brisbane Homeowners Warned: Non-Compliant Flexible Hoses Pose High Flood Risk

As a homeowner in Brisbane, when you think of the potential for flood damage to your home, you probably think of weather events. But you should know that there may be a tickin...

Argan Oil-Infused Moroccanoil Shampoo: Nourish and Revitalize Your Hair

Are you ready to transform your hair from dull and lifeless to vibrant and full of life? Look no further than the luxurious embrace of Argan Oil-Infused Moroccanoil Shampoo! In a...

Times Magazine

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

How AI-Driven SEO Enhancements Can Improve Headless CMS Content Visibility

Whereas SEO (search engine optimization) is critical in the digital landscape for making connections to content, much of it is still done manually keyword research, metatags, final tweaks at publication requiring a human element that takes extensiv...

Crypto Expert John Fenga Reveals How Blockchain is Revolutionising Charity

One of the most persistent challenges in the charity sector is trust. Donors often wonder whether their contributions are being used effectively or if overhead costs consume a significant portion. Traditional fundraising methods can be opaque, with...

Navigating Parenting Arrangements in Australia: A Legal Guide for Parents

Understanding Parenting Arrangements in Australia. Child custody disputes are often one of the most emotionally charged aspects of separation or divorce. Parents naturally want what is best for their children, but the legal process of determining ...

Blocky Adventures: A Minecraft Movie Celebration for Your Wrist

The Minecraft movie is almost here—and it’s time to get excited! With the film set to hit theaters on April 4, 2025, fans have a brand-new reason to celebrate. To honor the upcoming blockbuster, watchfaces.co has released a special Minecraft-inspir...

The Ultimate Guide to Apple Watch Faces & Trending Wallpapers

In today’s digital world, personalization is everything. Your smartwatch isn’t just a timepiece—it’s an extension of your style. Thanks to innovative third-party developers, customizing your Apple Watch has reached new heights with stunning designs...

LayBy Shopping