MyCRA Specialist Credit Repair Lawyers

Tag: data breaches

  • Privacy Commissioner reports data breaches on the rise

    As part of Privacy Awareness Week 2012, over 180 business leaders met in Sydney this week to discuss the topic of data breaches. Data breaches can occur through lost or stolen laptops, portable storage devices and paper records, or through databases being ‘hacked’ into or organisations mistakenly providing information to the wrong person. The effects of data breaches can be theft of identity and potentially credit fraud leading to bad credit history for the victim. The Privacy Commissioner claims there is in effect one data breach a week in Australia – an increase of 27 per cent from last year.

    This is an excerpt from Privacy Commissioner Timothy Pilgrims statement to the media on Monday on data breaches in Australia:

    “The Office of the Australian Information Commissioner (OAIC) was notified of 56 data breaches in the last financial year, equivalent to a data breach a week. This is up from 44 in the previous year, an increase of 27 per cent,” Mr Pilgrim said.

    However, the Privacy Commissioner also noted that he opened a further 59 investigations into other breaches where he wasn’t notified of the incident.

    “Serious harm can befall people when the security of their personal information is compromised”, Mr Pilgrim said. “It is our view that whenever there is a real risk of serious harm, affected individuals should be notified.”

    …Data breach notification is not a mandatory obligation applying generally to government and business in Australia. However, there is increased pressure on the Government to introduce laws to make it a general legal requirement as it is elsewhere — data breach notification is already a mandatory requirement in Europe, the UK and the United States….

    The Privacy Commissioner warned that in some circumstances, it may be a breach of the Privacy Act not to notify as organisations covered by the Privacy Act must take reasonable steps to protect the information they hold.

    For businesses who would like a reference for guidelines on handling personal information security breaches, the OAIC has released this document:

    Data breach notification: A guide to handling personal information security breaches. It outlines four steps to consider when responding to a breach or suspected breach and also outlines preventative measures that should be taken as part of a comprehensive information security plan.

    Personal information has become a valuable commodity used to commit identity fraud and potentially ruin the victim’s financial future.

    We can’t take lightly the possibility that any company that keeps data on its customers could be exposed to data breaches. Identity theft is becoming more prevalent, and personal information is lucrative for fraudsters.

    Personal information in the wrong hands can lead not only to identity fraud, but the misuse of the victim’s credit file, which can have significant long term consequences.

    Data breaches are difficult for individuals to have any control over, and the only way people can ensure their details are safe are to demand that the companies they deal with have strong IT systems before disclosing that information.

    The Australian Crime Commission’s Identity Crime report advises consumers on ways they can protect their personal information. They advise all individuals to obtain a copy of their credit report annually in order to keep abreast with any changes to their credit file which may point to identity theft.

    This could detect suspicious entries such as new credit enquiries or changes in contact details which would point to an identity theft attempt, allowing steps to be taken before the fraud affects the person’s good credit rating.

    If a person may be vulnerable to identity theft through a data breach, they should check their credit file immediately, and also contact Police who will advise them on the best course of action to take to restore their accounts and potentially their good name. This could include applying for a Victims of Commonwealth Identity Crime Certificate – which covers particular Commonwealth Identity Crime and can aid in recovery.

    If people need help to prepare a case to creditors for default removal following identity theft, it may help to contact a reputable credit repair company.

    Image above: David Castillo Dominici/ FreeDigitalPhotos.net

    MyCRA Credit Rating Repairs is proud to be a partner for Privacy Awareness Week 2012.

  • Fears about data breaches are justified

    Media Release
    22 September 2011

    Australians have every right to be concerned about data breaches and loss of personal details, as personal information has become a valuable commodity used to commit identity fraud and potentially ruin the victim’s financial future, a national credit repairer says.

    Director of MyCRA Credit Repairs, Graham Doessel says a recent survey revealing concerns about data breaches shows we are all worried about where our personal information could be put at risk, and this is not without reason.

    “More and more of my clients have been through the ringer attempting to have black marks removed from their credit file due to identity theft, simply because our education, our legislation and our technology is unable to keep up with fraudsters. People want to know their details are going to be safe when they shop, when they use the internet and with the companies that have their details in their computer systems,” Mr Doessel says.

    This comes as a global survey reveals widespread concern over the security of personal information. A survey conducted online by Harris for US-based identity management specialist SailPoint, showed the majority of adults in the United States, Great Britain and Australia are worried about possible exposure of their personal information, and a large percentage of adults have lost confidence in how companies protect their personal information.

    “The widespread impact of data breaches like Epsilon and Sony PlayStation, where millions of consumers were impacted around the world, is making customers more cautious about conducting business with certain financial institutions and retailers,” said Jackie Gilbert, vice president of marketing and co-founder at SailPoint.

    Mr Doessel says personal information is like gold to identity thieves.

    “Basically, a lot of identity fraud is committed by piecing together enough personal information from different sources in order for criminals to take out credit in the victim’s name. Often victims don’t know about it right away – and that’s where their credit file can be compromised,” he says.

    He says once the victim’s credit rating is damaged due to defaults from this ‘stolen’ credit, they are facing some difficult times repairing their credit rating in order to get their life back on track.

    “These victims often can’t even get a mobile phone in their name. It need not be large-scale fraud to be a massive blow to their financial future – defaults for as little as $100 will stop someone from getting a home loan,” he says.

    Once an unpaid account goes to default stage, the account may be listed by the creditor as a default on a person’s credit file. Under current legislation, defaults remain on the credit file for a 5 year period.

    “What is not widely known is how difficult credit repair following can be – even if the individual has been the victim of identity theft, there is no guarantee the defaults can be removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence” he says.

    Mr Doessel says the best defence an individual can take against identity theft is to get educated on how their personal information can be put at risk.

    “Sites like the Government’s SCAMwatch website, and the Stay smart online website, can give people good practical tips for keeping their information secure,” he says.

    But he also says in the case of data breaches, it comes down to a need to know basis.

    “At best we can minimise the amount of people who hold our personal information. People should always question the need for it to be handed over. If it is not essential, don’t do it.”

    “Unfortunately it seems everywhere we turn some company has been hacked – and it seems every entity with a computer is vulnerable. It is still extremely scary the level of risk our personal information undergoes these days when it is stored online,” he says.

    He says it is important for people to keep up to date with what is on their credit file, to be alerted to any entries which point to a theft of identity.

    Under current legislation a credit file report can be obtained for free every 12 months from the major credit reporting agencies Veda Advantage, Dun and Bradstreet , Tasmanian Collection Service and Experian and is sent to the owner of the credit file within 10 working days.

    For those who are vulnerable to identity theft, they can pay extra with credit reporting agency, Veda Advantage to have their file on an ‘alert’ system, which tracks any changes to their credit file that may occur within a 12 month period.

    Mr Doessel says people who suspect identity theft should report the matter immediately to Police, no matter how insignificant they think the fraud is.

    “This crime is not very widely reported. But it is only through people reporting identity theft that any real statistics get collated on this issue. Likewise, if people want to try and repair their credit rating, the first thing I tell them is to make sure they have a Police report,” he says.

    /ENDS

    Please contact:   Lisa Brewster – Media Relations   Mob: 0450 554 007 media@mycra.com.au
    Graham Doessel  – Director  Ph 07 3124 7133

    www.mycra.com.au www.mycra.com.au/blog

    246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

    Link: SailPoint Survey

    Image: renjith krishnan/ FreeDigitalPhotos.net