But the penalty does indicate what policymakers think of the gravity of a failure in privacy protection. Of course, the data records kept by Optus are not covered by this law. If the class action lawyers latch on to this statistic then the total cost to Optus would be $2 billion. According to the Australian Securities and Investments Commission, each penalty point under federal government legislation is $222 from July 1 this year. The way to do this is to look at the rules which underpin the federal governments My Health Records legislation.Īccording to the Healthcare Identifiers Act 2010, the penalty for allowing a person’s healthcare records to be stolen is 50 penalty points. One way of working out the financial damage to an individual from the data breach at Optus is to examine what the federal government regards as the price of privacy protection failure. This drastic scenario would include the criminal using the stolen documents to switch the customer’s mobile to another SIM card, which could then be used for two-factor identification. These customers are particularly vulnerable because once a criminal with skills in social engineering has a driver’s licence or a passport, they could take control of your finances. This would be a much smaller subset of the total. #Telstra Credit Hack drivers#It is highly likely this option will only be offered to those customers who had their drivers licences and passports stolen. Also, it may only offer the service for six months which would cost substantially less. This is an unrealistic number given that Optus could probably negotiate a reasonable discount. If Optus decides to be generous and offer every customer who lost data a one-year subscription to the local Equifax credit monitoring service it would cost $119.40 for each customer. But it was not clear on Friday whether it would extend it to all the customers whose data was stolen or only those who lost drivers licences and passports. This solution is being considered by Optus. This was a pragmatic solution to the problem because it allowed each individual affected by the data breach to be alerted if a criminal tried to use their personal details to obtain a fraudulent loan. Over the past few years, customers have been leaving TPG Telecom, which owns the Vodafone brand, to Telstra and, to a lesser extent, to Optus.Ī settlement which received approval in February 2020 resulted in each of the customers being awarded a one-year, $US125 subscription to the Equifax credit monitoring service. Mobile customers regularly churn from one telco to another to obtain better deals on plans and phones. Neither Telstra nor TPG were crowing on Friday even though there are many individuals and corporations likely to rethink moving their business to Optus. David Roweīoth of these financial issues are hard to quantify because of the uncertainty about exactly how many people were affected, how many lost drivers licences and passports, and the extent of the liabilities borne by Optus for not stopping the hackers. Optus CEO Kelly Bayer Rosmarin is dealing with a cyberattack nightmare. Also, its expenses will balloon to cover the cost of fixing its weak security defences and to compensate customers. It will lose profits to competitors as existing and potential customers go elsewhere. Optus will suffer financial damage in two ways. The minor move in the share price of Singapore Telecommunications, the parent of cyber-hacked telecommunications company Optus, is surprising given the likely heavy commercial costs from losing the data of up to 9.8 million customers.
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