The
Sydney Morning Herald,
6 May 2018:
A massive breach of
Commonweath Bank data exposed last week has raised security fears around a new
national database of Australian bank customers, as Labor pushes for a
delay to part of the scheme's scheduled introduction in less than two months.
The database - set to go
live on July 1 - will include the details of every person who has taken
out a loan or a credit card, along with their repayment history.
The Mandatory
Comprehensive Credit Reporting scheme was a recommendation of the 2014
financial system inquiry and is designed to give lenders access to a
deeper, richer set of data to ensure loans are only being approved for
people who can afford to repay them.
The new requirements
will first apply to the Commonwealth Bank, ANZ Bank, Westpac and National
Australia Bank, given they account for up to 80 per cent of lending to
households.
But the collection of
sensitive data by private companies has raised concerns in the wake of several
high-profile data breaches, including the disappearance of 20 million
customers records from the Commonwealth Bank.
The Financial Rights
Legal Centre and the Consumer Action Law Centre claim the financial
details of millions of Australians will be vulnerable under the new scheme -
which includes positive and negative credit histories.
Financial Rights Legal
Centre policy officer Julia Davis said the development "was a major
intrusion into our financial privacy".
"I don’t think
Australians realise this is about to happen," she said.
The legislation states
all credit reporting bodies must store the information on a cloud service that
has been assessed by the Australian Signals Directorate. It also contains a
provision allowing banks to stop supplying customer data to credit providers
should there be a major security breach.
Ms Davis said the
oversight was welcome but the internal systems of credit reporting bodies
remained "completely opaque."
"Once that data
goes live in the one place you can't put the toothpaste back in the tube,"
she said.
Equifax, one of the
companies which will have access to the data, had its systems in the US hacked
last year, exposing the personal information of 143 million Americans and
triggering to the resignation of its chief executive.
It is also being sued by
consumer watchdog the Australian Competition and Consumer Commission over
allegations it misrepresented its product to consumers by asking them to pay
for their own credit histories which are usually available online for free.
The company's general
manager of external relations, Matthew Strassberg, said Equifax had "only
been a marquee above the door for six months," after the US giant took
over the Australian operation formerly known as Veda.
He said the credit
reporting business would provide "a 360 degree picture."
"A bank will have a
very deep insight into what they know of you," he told Fairfax Media.
Mr Strassberg said he
recognised that Australians were concerned about data security…..
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