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You can find the current article at its original source at https://www.theguardian.com/australia-news/2018/may/03/coalition-berates-commonwealth-bank-over-failure-to-notify-customers-after-data-breach
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| Coalition berates Commonwealth Bank over failure to notify customers after data breach | Coalition berates Commonwealth Bank over failure to notify customers after data breach |
| (7 months later) | |
| Christian Porter has lambasted the Commonwealth Bank (CBA) for failing to notify its customers of a data breach in which it lost backup tapes with details of almost 20 million accounts spanning 15 years. | Christian Porter has lambasted the Commonwealth Bank (CBA) for failing to notify its customers of a data breach in which it lost backup tapes with details of almost 20 million accounts spanning 15 years. |
| Although the incident occurred in 2016, before new laws that require mandatory reporting for serious breaches, the attorney general told Sky News on Thursday that he and other customers of the bank would expect to have been notified. | Although the incident occurred in 2016, before new laws that require mandatory reporting for serious breaches, the attorney general told Sky News on Thursday that he and other customers of the bank would expect to have been notified. |
| Porter said the data breach was “very, very disappointing” and “very serious [and] of great concern to me, the government and my office”. | Porter said the data breach was “very, very disappointing” and “very serious [and] of great concern to me, the government and my office”. |
| The Coalition has toughened its line against the banks after first refusing to apologise for attempting to prevent a financial industry royal commission and now recognising it made an error of judgment as revelations have generated weeks of shocking coverage for the banks. | The Coalition has toughened its line against the banks after first refusing to apologise for attempting to prevent a financial industry royal commission and now recognising it made an error of judgment as revelations have generated weeks of shocking coverage for the banks. |
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| On Tuesday the Australian Prudential Regulation Authority released a damning report on CBA, accusing it of lacking accountability among senior executives and a complacent culture that is dismissive of regulators. | On Tuesday the Australian Prudential Regulation Authority released a damning report on CBA, accusing it of lacking accountability among senior executives and a complacent culture that is dismissive of regulators. |
| Porter noted the Apra report and said the data breach was an “obvious case in point” of CBA failing to understand its non-financial requirements. | Porter noted the Apra report and said the data breach was an “obvious case in point” of CBA failing to understand its non-financial requirements. |
| The attorney general noted the regime in 2016 was different and reporting had not been mandatory at the time but argued it was “due and proper” regardless. | The attorney general noted the regime in 2016 was different and reporting had not been mandatory at the time but argued it was “due and proper” regardless. |
| “Notification should flow up to government and down to customers as quickly as possible,” he said. Reporting this type of breach is now mandatory with serious penalties that apply for failures, he said. | “Notification should flow up to government and down to customers as quickly as possible,” he said. Reporting this type of breach is now mandatory with serious penalties that apply for failures, he said. |
| CBA notified affected customers after Buzzfeed first reported the breach on Wednesday but said they should not be concerned, citing the fact there is “no evidence” of suspicious activity on the accounts and no Pins were included. The bank believes the data was most likely destroyed but cannot confirm that is the case. | CBA notified affected customers after Buzzfeed first reported the breach on Wednesday but said they should not be concerned, citing the fact there is “no evidence” of suspicious activity on the accounts and no Pins were included. The bank believes the data was most likely destroyed but cannot confirm that is the case. |
| “The obvious question arises: why couldn’t they have notified their customers of that back in 2016?” Porter said. He noted he was a CBA customer and had now received a notification. | “The obvious question arises: why couldn’t they have notified their customers of that back in 2016?” Porter said. He noted he was a CBA customer and had now received a notification. |
| Porter said he would investigate whether the information commissioner should have advised the bank to voluntarily disclose the breach and whether the government was warned. | Porter said he would investigate whether the information commissioner should have advised the bank to voluntarily disclose the breach and whether the government was warned. |
| Asked if there is any penalty that could apply to the CBA, Porter said it was a “complicated legal question” but a penalty would be “more likely” if the same occurred again under the new regime. | Asked if there is any penalty that could apply to the CBA, Porter said it was a “complicated legal question” but a penalty would be “more likely” if the same occurred again under the new regime. |
| “Of course, as we become aware of all of the details around the breach, we’ll be looking at any avenues in which we might be able to pursue it.” | “Of course, as we become aware of all of the details around the breach, we’ll be looking at any avenues in which we might be able to pursue it.” |
| Porter said it was “unquestionable” that the banks’ reputation had suffered after revelations in the royal commission including charging fees for services not provided. | Porter said it was “unquestionable” that the banks’ reputation had suffered after revelations in the royal commission including charging fees for services not provided. |
| Commonwealth Bank admits it lost backup data for 20m accounts | |
| “As the royal commission has gathered pace it seems that sharp practices and, frankly, unethical practices, and in some cases quite despicable practices, seem to have permeated a variety of different business models inside the banks including the provision of financial advice.” | “As the royal commission has gathered pace it seems that sharp practices and, frankly, unethical practices, and in some cases quite despicable practices, seem to have permeated a variety of different business models inside the banks including the provision of financial advice.” |
| At a doorstop in Nowra, Malcolm Turnbull said the CBA data breach was “an extraordinary blunder” and it was “hard to imagine how so much data could be lost in this way”. | At a doorstop in Nowra, Malcolm Turnbull said the CBA data breach was “an extraordinary blunder” and it was “hard to imagine how so much data could be lost in this way”. |
| “Maintaining data security is of vital importance for everybody, whether it’s the private sector or governments, and if there is a serious data breach or loss the people affected should be advised so they can take steps to protect themselves,” he said. | “Maintaining data security is of vital importance for everybody, whether it’s the private sector or governments, and if there is a serious data breach or loss the people affected should be advised so they can take steps to protect themselves,” he said. |
| Asked about the banking royal commission, Turnbull said that executives and leaders had to take responsibility for their organisations, and noted a number of resignations at AMP. | Asked about the banking royal commission, Turnbull said that executives and leaders had to take responsibility for their organisations, and noted a number of resignations at AMP. |
| “It’s vitally important that those who have done the wrong thing are held to account and we are doing everything to ensure that these wrongs, this injustice that has occurred will not happen again,” he said. “That’s my commitment.” | “It’s vitally important that those who have done the wrong thing are held to account and we are doing everything to ensure that these wrongs, this injustice that has occurred will not happen again,” he said. “That’s my commitment.” |
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