CBA data breach explanation 'utter bulls--t': Greens spokesperson
Commonwealth Bank's explanation that it didn't tell customers it had lost almost 20 million account records because there was no evidence their privacy had been compromised has been labelled "utter bulls--t" by Greens treasury spokesperson Peter Whish-Wilson.
“CommBank are saying that the potential loss of 20 million account details isn't that bad because there isn’t enough detail in the data for anyone to access your bank account," Senator Whish-Wilson said. "This is utter bulls--t. For all we know, the details of every transaction of millions of accounts could have potentially fallen into the hands of organised crime. The bottom line is, they can't guarantee where this data ended up."
Australia's biggest bank lost back-up data for more than 15 years of customer statements in 2016. It was meant to be destroyed, but the bank has no proof the data was destroyed; though it said it probably was.
The bank has said there is no evidence of suspicious activity in the 20 million affected accounts and no action was required by customers to change account details or PIN numbers.
"The tapes contained customer names, addresses, account numbers and transaction details from 2000 to early 2016. The tapes did not contain passwords, PINs or other data which could be used to enable account fraud," a CBA statement to the ASX said.
The relevant regulators were informed in 2016 but the bank decided it was not necessary to alert customers after discussion with the Office of the Australian Information Commissioner. Since February, privacy laws have been strengthened so that customers must be informed of data breaches that are likely to result in "serious harm".
Shadow treasurer Chris Bowen said the data breach was "extremely concerning" and suggested the government's lengthy prevarication over the implementation of Labor's privacy laws could be to blame.
'What did the Turnbull government and information commissioner know about the breach?," Mr Bowen said. "Why has it taken years - and a media report - for people to find out? The government and the information commissioner need to make full statements today on their knowledge and actions in 2016."
Labor's finance spokesperson, Jim Chalmers, linked the latest scandal to beset a big bank to the government's proposed company tax cuts, of which CBA would be biggest single beneficiary.
"With all the damning revelations out of the royal commission, everything we now
know about the Commonwealth Bank ... [Prime Minister Malcolm] Turnbull wants to reward the big banks with $17 billion of taxpayer money," he said.
Finance minister Mathias Cormann said the government's response was in the hands of Attorney-General Christian Porter, who would "make a comment in due course".