The Qantas hack is not just a wake-up call for airlines. It is a warning for any company that thinks outsourcing technology or customer data will keep them safe. Australia’s top financial regulator now wants the nation’s finance sector to tighten up before another major breach happens.
ASIC’s message is clear. Offshoring will not protect you from data breaches.
After a malicious actor broke into Qantas systems and leaked customer information onto the dark web, the Australian Securities and Investments Commission has put finance companies on notice. ASIC’s latest review found big holes in the way banks, wealth managers, and advisers use offshore service providers. The regulator says poor oversight and weak risk management are putting consumers and investors in harm’s way.
“Advice licensees and responsible entities can outsource services but they cannot outsource their fundamental obligations,” ASIC Commissioner Alan Kirkland said. “When licensees neglect their responsibilities, consumers, investors and financial services businesses can be exposed to harm, such as exposure of personal information through cyber incidents.”
