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Cyber security in the spotlight as privacy concerns grow
The importance of appropriate data collection and storage by superannuation funds has come to the forefront, with recent findings that three-quarters of Australians view data breaches as one of the biggest privacy risks today.
Less than half of Australians trust organisations to only collect the information they need, use and share information as they say they will, store information securely, give individuals access to their information and delete information when no longer needed, according to a recent survey by the Office of the Australian Information Commissioner.
“Our survey shows privacy is a significant concern for Australians, especially in areas that have seen recent developments like artificial intelligence and biometrics,” said Angelene Falk, Australian information commissioner and privacy commissioner.
“Australians see data breaches as the biggest privacy risk today, which is not surprising with almost half of those surveyed saying they were affected by a data breach in the prior year.
“There is a strong desire for organisations to do more to advance privacy rights, including minimising the amount of information they collect, taking extra steps to protect it, and deleting it when no longer required.”
The 2023 Australian Community Attitudes to Privacy Survey, which had over 1,900 respondents, tested attitudes on topics such as data practices, privacy legislation, data breaches, biometrics, artificial intelligence and children’s privacy.
Among other findings, it notes that close to half (47 per cent) of respondents were told by an organisation that their personal information was involved in a data breach in the year prior, and three-quarters said they experienced harm because of a data breach.
The survey also finds most Australians place a high level of importance on their privacy when choosing a product or service, with 70 per cent saying it is extremely or very important and another 26 per cent stating it is quite important.
Such findings put the onus on organisations that collect personal information, which includes super funds, to have a comprehensive data strategy on how they collect, manage, use and protect their members’ data to build trust and assuage privacy concerns.
Commissioner Falk said: “Not only is good privacy practice the right thing to do and what the community expects, [but it’s also] a precondition for the success of innovations that rely on personal information.”
This week, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) expressed disappointment in the findings of its joint Retirement Income Covenant thematic review about data collection.
The regulators said they were disappointed by the variability in quality and depth of research, data and member-centricity underpinning the design of some retirement income strategies by super trustees.
ASIC senior executive leader Jane Eccleston noted there was “a bit of confusion” about ASIC’s and APRA’s expectations when it comes to collecting data from members to help inform these strategies.
She said: “Let me be very clear – what we don’t want is trustees collecting endless amounts of member data.
“What we want is trustees considering what data they need to assist them to develop, implement and review their retirement income strategies. This is a decision that each trustee will need to make for themselves – and the type and extent of data required will vary from fund to fund.”
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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