On 22 October 2022, the Attorney General of Australia announced a privacy policy reform to drastically increase penalties for serious and repeated privacy breaches. Among the more significant amendments to the upcoming Privacy Legislation Amendment (Enforcement and Other Measures) Bill 2022 are:
- A massive increase in the maximum fine cap from $2.2 million to $50 million
- Extended extraterritorial reach akin to the UK’s GDPR that will affect off-shore third-party compliance
- Increased disclosure obligations, as determined by the Office of the Australian Information Commissioner (OAIC)
It’s no coincidence that this was announced after back-to-back breaches of two of Australia’s largest telcos, which highlight the growing risk of major security breaches across the region.
As regulations tighten, businesses that operate in the digital landscape and which deal heavily in sensitive personal data—including those in the fintech, ecommerce, travel, logistics, and healthcare industries—need to pay closer attention to their security vulnerabilities.
The real cost of a data breach is higher than you may realise
It’s estimated that 30% of all Australian businesses will suffer a data breach at least once, with the average cost per breach totalling $3.35 million—a figure that is projected to grow at 9.8% year on year. New Zealand businesses, too, have seen a marked rise in cybersecurity incidents over the last couple of years, with almost $17 million in direct financial losses reported in 2021 alone. But beyond the fiscal consequences and punitive fines, organisations are at risk of losing something much more valuable: customer trust.
It’s clear that the digitally savvy and data-aware customers of today are highly sensitive to how businesses and brands handle their personal information. Around 88% of people say they would not purchase products or use the services of organisations they distrust, while 39% have already lost trust in a company before due to a data breach or reports of misuse of data. Around 43% of Australian consumers say they will stop spending at a business for several months following a data breach, while another 43% say they will cut ties and never return at all.
The compounded and long-term ripple effects of a single cybersecurity incident can have potentially devastating consequences, making it mission critical that businesses take proactive steps to bolster security processes now if they wish to win customer trust.
Narrowing the security gap with the help of communication APIs
As part of their multi-prong strategy to beef up their cybersecurity processes, businesses should consider the use of communication APIs to stay on the front foot and help strengthen data security while keeping up with evolving privacy regulations.
Conduct multi-factor authentications
Two-factor authentication (2FA) has been proven to protect against some of the most common types of cyber-attacks, including automated bots, bulk phishing attacks, and targeted attacks.
Automated one-time passwords (OTPs) can be sent via SMS or voice message, with APIs providing an easy-to-implement and highly customisable solution for companies and teams of all sizes.
For additional security and flexibility many organisations are turning to a multi-cloud security strategy. By deploying across multiple clouds, organisations benefit from added resilience and business continuity, while utilising individual provider specialisation.
Learn more about how to add security and authentication features to your web and mobile apps with the help of 8×8’s solutions.
Conduct remote KYC with video
Make customer verification and Know Your Customer (KYC) processes as seamless as tapping a button on your web or mobile app. A solution like 8×8’s Video Interaction API allows businesses to connect directly with their customers via video call from their own platform, which enhances both security and customer experience. Video Interaction can be used as an additional layer of security, giving agents real-time tools to ensure they are communicating with the correct individuals. This is especially crucial for highly regulated industries such as insurance, healthcare, and financial services.
Keep data private with call masking
Have you ever felt uncomfortable with the fact that a delivery person or a ridesharing app driver has unfettered access to your personal contact information, including your name, address, and phone number? Well, that’s how your customers feel.
This is why call masking has been rising in popularity as a means to protect customer information while still allowing for direct vendor-to-customer or customer-to-customer engagements. It works by generating a virtual number instead, and making sure that all voice calls are made via your platform only for better security and control.
Learn more about 8×8’s Call Masking API and how it helps reinforce data privacy measures.
Send transaction alerts with SMS
90% of SMS messages are opened and read within three minutes of being sent. This makes it one of the most ideal channels for sending urgent or time-sensitive notifications, including transaction alerts and requests for verification. Be sure to let customers know how they can quickly report unauthorised transactions, whether it’s a dedicated hotline to call or a simple reply to the message thread.
Because of its low barrier to entry and extremely wide user base, SMS is already being used by many companies to strengthen security, increase trust, and improve customer satisfaction.
Global businesses trust 8×8 APIs to keep their data safe
While it’s easy to think that technology is the silver bullet to all your cybersecurity woes, the reality is it’s much more complex. That being said, finding the right digital tools and partner can go a long way to helping fill in the gaps. In addition to scrutinising the solution itself, it’s also essential to take a look at who is developing the APIs that handle your sensitive customer data. Always ask your technology partners and service providers what their security measures are—just because you outsource the solution, doesn’t mean you outsource the responsibility.
Security is at the core of all of 8×8’s products and solutions. Our APIs have multiple layers of security baked into them, and come supported with a strong security culture, a highly trained and dedicated team of cybersecurity experts, and third-party certifications to ensure that your data always remains protected. With always-on, built-in security, you’ll drastically reduce your risks of data loss and theft.
Schedule a demo today or find out more about how to use 8×8 Communication APIs to strengthen data privacy measures for improved security and customer trust.
