Human error sparks high number of data-breach notifications in Australia

Risk managers need to focus as much on people as machines when working out how to prevent data breaches, because human error is the second-highest overall source of the problem – and in some sectors the highest – according to the second quarterly report into notifiable data breaches, issued by the Office of the Australian Information Commissioner (OAIC). The commissioner received 242 notifications in the second quarter up to the end of June. This took the total since the notifiable data breaches (NDB) scheme began on 22 February to 305. That compares with only 114 notifications in the 12 months before the scheme was launched. The OAIC reports that some 36% of total breaches in the quarter were caused by human error, 59% were caused by malicious or criminal attacks and only 5% were caused by system errors. Gerry Power, national head of sales for cyber specialist underwriting agency Emergence Insurance, said the statistics send a strong message: “Think twice before you hit the send button.” Mr Power said education is the key to preventing human-error breaches. “Your employees are your last line of defence. Give them the risk management tools to protect your business,” he advised. Mr Power said human-error breaches included sending personal information to the wrong recipient, mainly via email or mail, and unintended release or publication of personal information. Financial information breaches accounted for 42% of NDBs. The insurer warned that litigation for financial loss was likely to follow such breaches. Loss of storage devices hit large numbers of people in the quarter, averaging 1,199 affected individuals per breach. Failing to use the ‘blind carbon copy’ (BCC) function when sending group emails impacted, on average, 571 people per data breach. The health service providers sector experienced the highest number of NDBs, and some 59% resulted from human error. In the finance sector, human error caused 50% of notifications. Malicious or criminal attacks were the largest source of NDBs. But Mr Power said many cyber incidents exploited human vulnerabilities, for example, clicking on phishing emails or disclosing passwords. The high rate of notifications and the continual rise month on month highlights the need for cyber insurance, according to the insurer. “Emergence’s cyber policy gives insureds 24/7 access to an incident response team of experts who understand the importance of immediately mitigating potential threats to insureds’ businesses,” Mr Power said. “A cyber policy is part of every successful business’s risk management framework. Cyber insurance is not the first line of defence; it is designed to protect a business when its IT security, policies and procedures fail to stop an attack,” Mr Power added. The insurer suggested that organisations could reduce the potential for data breaches through risk management practices such as: Restricting administration privileges Conducting daily backups Continuously patching operating systems and software Implementing multi-factor authentication Employee training – including strong password-protection strategies and raising awareness about the importance of protecting personal information.

Human error sparks high number of data-breach notifications in Australia

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