Beyond Bricks and Mortar: Safeguarding Personal Data in Homeownership Journeys

Current Scenario

In the current housing scenario in Australia, a dynamic blend of increased migration and the lasting impacts of the COVID-19 pandemic has catalysed a significant surge in the real estate market.

This upswing, however, has brought about a set of challenges, including soaring rents and a scarcity of available housing options. With the demand for properties on the rise, most of the people are finding themselves in a competitive race to secure homes.

Data Security and Privacy Risk

As individuals eagerly submit a treasure trove of personal information to mortgage brokers, including sensitive documents such as passports, bank statements, salary slips, and contact details, questions arise about the security and privacy of this extensive data.

Despite regulatory oversight from the Australian Securities and Investments Commission (ASIC) outlining obligations for mortgage brokers, a noticeable gap exists regarding direct responsibilities for safeguarding the personal information collected.

This paves the path for threat actors to use exposed vectors, gaining unauthorised access to open (unhardened) sytems/ personal computers that are riddled with unpatched softwares and vulnerabilities waiting to be exploited. The risk of of unauthorised access, data breaches, or misuse of this personally identifiable information (PII) is all time high.

With the growing prevalence of cyber threats, the need for stringent measures to ensure the confidentiality and integrity of applicants’ personal data throughout the mortgage application process becomes increasingly paramount.

The absence of explicit obligations places the onus on industry stakeholders to proactively address these privacy concerns and fortify the protection of sensitive information in an era where privacy and data security is of utmost importance.

Key Questions

I pose following questions:

·       Who bears the responsibility for safeguarding Australians personal information during the mortgage application process?

·       Is there government oversight on what data can be collected, where it is stored, how it is used, and for how long?

·       How can individuals determine if their information has not been sold on the dark web?

Call to Action

I urge everyone involved to take proactive steps in addressing the challenges of privacy and data protection in this sector. There is a need for open discussions, increased awareness, and the implementation of measures to protect personal information during the mortgage application process. This will encourage collaboration to mitigate risks, ensuring a more secure and privacy-conscious environment for those navigating the property acquisition process.