Australian firms face challenges in consumer data trust

Paul Henaghan, Managing Director of Cohesity for Australia and New Zealand, has provided insights into the challenges facing the Australian cyber security market and regulatory environment.

Henaghan, who returned to the ANZ region after an extensive career in Asia Pacific technology leadership, remarked that Australians have significant concerns about data usage. "Australians rightly have concerns about how their data is used by many organisations, which they interact with daily. This includes retailers, banks, insurance companies and even health organisations," he stated.

He noted that despite the embrace of cloud technology and data-driven analytics by Australian enterprises, data security remains a pressing issue. Cohesity's research indicates that there are urgent shifts in understanding at the board policy level in addressing consumer trust challenges.

Henaghan emphasised the fundamental role of trust in business resilience, noting, "Trust is the cornerstone of any successful business relationship, and this holds especially true in the context of data security. For businesses looking to establish and maintain resilience, securing consumer trust is non-negotiable." He also highlighted a trend where Australians, known for early technology adoption, have faced a decline in trust due to compromised data.

To better understand this trend, Cohesity commissioned a report surveying 6,000 consumers—2,000 from Australia—on their trust concerning data usage. The study revealed that Australians exhibit the lowest trust levels compared to the UK and the US. The report found that 88 per cent of Australians demand consent before their data is included in AI models, and 90 per cent expect companies to vet third-party data handlers.

Henaghan pointed out that Australians' demand for data control and transparency stems from negative experiences, expressing a critical stance towards buying back compromised data. "Our observations reveal that Australia is somewhat behind other regional nations in terms of cyber resilience," he said, attributing this to their deep reliance on digital solutions.

He identified several determinants contributing to Australia's cyber resilience challenges. These include the rapid adoption of cloud and AI technologies, leading to increased consumer data handling. Henaghan acknowledged the challenges posed by cybercriminals exploiting technology, noting, "Every leap in technology use has been associated with crime."

Henaghan outlined two crucial actions needed to rebuild trust. Firstly, he asserted that board consideration on cyber resilience should be strategic rather than solely an IT responsibility. "The Cohesity study shows clearly that cyber resilience is a board level problem for companies," he noted.

Secondly, Henaghan stressed the need for evolving regulatory policies focused on data protection. "Regulatory landscape and policy frameworks in Australia must also continue to evolve," he explained, citing the work done by the Australian Signals Directorate and other regulators as significant strides.

He also highlighted a skills gap in managing cyber threats, advocating for a more diverse and skilled cybersecurity workforce in Australia. Henaghan called for the industry to "prioritize developing a skilled and diverse cybersecurity workforce."

Looking ahead, Henaghan sees security and personal data protection as ongoing critical issues for consumers and organisations. He finds consumer awareness encouraging, suggesting it signals a shift toward a more informed base. "This heightened awareness... signifies a positive shift towards a more informed and vigilant consumer base," he said.

To conclude, Henaghan recommended companies prioritise transparency in data practices to build and maintain trust. "This involves clear communication about how data is collected, stored, and protected," he said, reinforcing that transparency is crucial for fostering consumer trust and ensuring long-term resilience.