As of 22nd February 2018, companies with more than $3 million in revenue or in the healthcare industry are forced to report notifiable data breaches immediately. A targeted company has 30 days to investigate and report on the breach in greater detail. Failure to do so attracts a $360,000 fine for the directors and $1.8 million for the company itself.
What is the Notifiable Data Breaches scheme?
The passage of the Privacy Amendment (Notifiable Data Breaches) Act 2017 established the Notifiable Data Breaches (NDB) scheme in Australia. The NDB scheme applies to all agencies and organisations with existing personal information security obligations under the Australian Privacy Act 1988 (Privacy Act) from 22 February 2018.
The NDB scheme introduced an obligation to notify individuals whose personal information is involved in a data breach that is likely to result in serious harm. This notification must include recommendations about the steps individuals should take in response to the breach. The Australian Information Commissioner (Commissioner) must also be notified of eligible data breaches.
Agencies and organisations can lodge their statement about an eligible data breach to the Commissioner through the Notifiable Data Breach statement — Form.
Agencies and organisations must be prepared to conduct a quick assessment of a suspected data breach to determine whether it is likely to result in serious harm, and as a result require notification.
Which data breaches require notification?
An ‘eligible data breach’, which triggers notification obligations, is a data breach that is likely to result in serious harm to any of the individuals to whom the information relates.
A data breach occurs when personal information held by an organisation is lost or subjected to unauthorised access or disclosure.
Examples of a data breach include when:
- a device containing customers’ personal information is lost or stolen
- a database containing personal information is hacked
- personal information is mistakenly provided to the wrong person.
Source: https://www.oaic.gov.au/ndb