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Recent data breaches and cyber attacks have exposed vulnerabilities in how personal information is managed in Australia. In some cases, millions of consumers’ private details, from passports and home addresses to driver’s licence details and government ID numbers, have been compromised.
These breaches raise a critical question: Do companies need to request and store so much information from their clients?
Consider the rental market. Traditionally, renting requires a significant number of documents and information from renters, even during the selection process.
With the current market situation, where many tenants must apply to several properties to secure one, the volume of data changing hands has become an even bigger burden on both agents and renters.
For agents, this means collecting, managing, securing and holding increasing volumes of private data. This raises their IT costs and increases the risk of a severe financial and reputational problem in case of an attack.
It’s not a small issue, with the Real Estate Institute of Australia warning that increasing privacy obligations or potential leaks could put some companies, especially smaller ones, out of business.
What can I do?
Data minimisation is one of the best ways to mitigate the risks and impact of cyber attacks without compromising on a high security standard at onboarding. This principle involves collecting, processing and storing as little customer information as possible.
As an agent, you should focus only on the essential data to make decisions, such as the tenant’s identity, ability to pay rent, and information about their rental background and history.
Data minimisation also involves deleting unnecessary information, like unsuccessful tenancy applications, and retaining information only as long as necessary. Companies should periodically review their archives and delete everything they don’t need.
You can also avoid collecting and storing information even when it’s essential for your business. By adopting solutions like ConnectID, you can validate customer details directly with a trusted source, like a bank or government institution, eliminating the need to store unnecessary sensitive data. For example, validating that a potential tenant is in fact over 18 without needing to store their date of birth.
Fewer costs, more time
Data minimisation can significantly reduce the costs of managing, storing and securing information. It’s not only about the money directly invested in IT systems and training, but also about the time teams spend on the administration processes and proper handling of personal information.
Tapping into existing trusted sources to confirm information can speed up and simplify approvals and verification, increasing overall productivity. It also reduces the risk of having private customer information attacked and stolen. A breach can have a significant financial impact and an even worse effect on the business’s reputation.
For renters, these innovations mean improved privacy and greater control over their data. This approach can simplify the rental application process, reduce the need to fill out multiple forms manually, and provide peace of mind by ensuring that their personal information is handled securely and responsibly.
Maintaining high standards of security is always a priority, and leveraging data minimisation using trusted sources can instil further trust and confidence. Ultimately, this will help reduce the volume of data our businesses collect and store in avoiding breaches and cyber attacks happening so frequently in Australia. It’s a way in which all companies, small and large, can contribute to making our information safer.
Andrew Black is the managing director of ConnectID.
