There have been over 70 known data breaches in Australia since January 2024. The number of user accounts compromised in Q1 represented a 388% increase compared to the final quarter of 2023. Australia is one of the most targeted nations.
Some of these incidents are high profile, like the ‘NSW Clubs’ data breach which focussed attention on the way in which club patrons are identified using traditional methods that are not fit for purpose. Digital ID advocate Victor Dominello commented said:
Using paper and plastic credentials that were designed for last century in a digital age is clearly not fit for purpose. We need to be smarter in the way we deal with our personal information via digital ID. Plastic cards and paper birth certificates were never meant to be an identity document. What we need to build is a true digital identity that protects the privacy of sub-credentials.
Victor Dominello, Sky News, May 2024
The list of security breaches in 2024 so far include ASX-listed MotorCycle Holdings which distributes the Sherco and Lambretta branded motorcycles. According to the company, ‘malicious code was inserted into the websites which “may have resulted in the exposure of some customer personal information, including names, addresses, email addresses and phone numbers. The hackers also gained access to a server “which stored customer responses to webforms from the Websites.”
Other companies that have been targeted in 2024 include the big – Shell, QANTAS, MacDonalds and American Express, and the small, including the Architects Accreditation Council of Australia (AACA).
AutoSettle – A Better Way
These incidents are preventable. The use of Digital ID is one element of the solution. AutoSettle recently announced a partnership with Yoti to protect consumer data while buying and selling cars.
Traditional methods of ID verification store personal information in one centralised place. If that location is breached, the damage can be significant.
Digital ID is different. Instead of a single point of storage, digital IDs rely on a decentralised system. Data is broken into pieces, encrypted and distributed across multiple servers, making it much harder for hackers to steal. Furthermore, digital IDs often use strong multi-factor authentication. This means you don’t just need a password to log in; you might also need your fingerprint, a scan of your face or a one-time code sent to a secure device like your phone.
The surge in data breaches in Australia highlights the urgent need for more robust security measures. Traditional identification methods are increasingly proving inadequate in the digital age, as evidenced by high-profile incidents. Innovations in Digital ID as demonstrated by the AutoSettle Yoti partnership illustrate practical steps toward safeguarding personal data. By transitioning to systems based on digital identities, we can significantly reduce the risk of data breaches and better protect individuals’ private information.