Have you ever asked yourself; what are data breaches? Considering how to protect your data is incredibly important for your business.
Data protection is for your customers, so that they are properly safeguarded. You can do this with a comprehensive data breach policy. Recent changes in Australian privacy legislation means that fines for privacy breach will be dramatically increased.
It is a good idea to consider how these changes can affect your business and what you can do to prevent a large fine in your mailbox. With high profile data breaches from Optus and Medibank, protecting consumers is more important than ever.
This post will cover what data breaches are and the important changes that you need to know for your small business.
What are data breaches?
A data breach is when there has been a loss or unauthorised use of sensitive personal information. As a business it is important to keep your customer’s data safe so that you can ensure data safety. This will help you avoid any legal issues down the line.
If your business for any reason has been affected by a data breach, you need to inform the Office of the Australian Information Commissioner. Even with the best safeguards in place sometimes breaches can still occur.This is a mandatory obligation under the Privacy Act 1988 (Cth) in order to comply with the Notifiable Data Breaches Scheme.
Examples of a data breach
Practically speaking there are more ways that data breaches can occur beyond a mere physical breach or simply a human error.
Firstly, a malware breach works by a user downloading a particular software onto their systems. This allows scammers to gain access to the system and any sensitive data such as credit card details, personal details, passwords and even access to your accounts such as a bank account.
In addition to this, social engineering is a type of data breach that deals with someone impersonating a person with authority or an organisation. Additionally this involves the impersonator manipulating a person to send sensitive information and data.
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What are the new fines?
Under the newest changes to the Privacy Act, businesses can now face a fine up to $2.2 Million. This is a dramatic increase from the previous maximum of $444,000.
In addition, any body corporate that engages in conduct that results in multiple failures to compy with the Privacy Act, will be charged criminally and the maximum penalty is $50 million or 30% of the entity’s turnover.
How to protect your small business from a data breach?
When thinking about how to protect your business from a data breach it is important to consider what information you obtain from your customers. The following steps can be followed for you to ensure that your customer’s data is safe:
- Prepare a data breach response plan;
- Create a data breach policy;
- Ensure that there are daily backups of your data;
- Create a privacy policy;
- Store files in a secure location;
- Ensure that only approved people have access to the customer data;
- Educate your employees on how to prevent and deal with data breaches; and
- Ensure that if there is a breach that you report it.
Key Takeaways
Data breaches can significantly impact your business and your customers’ privacy. This is why it’s so important for you to ensure you have the necessary safeguards in place.
The recent changes are designed to make sure businesses are acutely aware of the risks of data breaches. Moreover, it’s designed to be a deterrent so that companies will better protect the data of Australians.
If you would like to know more about how to prevent your business from breaching consumer data, you can hire a Lawpath lawyer. They can help you better understand what is required of you and your business.
