Data security and privacy have become critical concerns for conveyancers. Not a week goes by without stories of data breaches – both attempted and successful. In fact, the Office of the Australian Information Commissioner (OAIC) reported 483 Notifiable Data Breaches in the second half of 2023, 30% of which were simply due to human error, as well as 121 secondary data breach notifications.
As trusted professionals handling sensitive client information, including identity documents, the need for conveyancers to comply with various stringent regulations to protect this data from breaches has never been more important. In this blog, we’ll look at some of the things conveyancers must consider to ensure compliance with the Model Participation Rules (MPR) and other regulations and ultimately safeguard their client’s data against potential risks.
The Importance of Data Security in Conveyancing
Yes, data security is a regulatory requirement. But more than this, it’s a fundamental aspect of maintaining client trust. After all, as conveyancers, you’re dealing with what is likely to be your clients’ biggest assets. Your clients expect that they can trust you will safeguard their data.
The digital age has brought about new challenges, including the risk of identity fraud and unauthorised access to sensitive information, making robust data security practices more critical than ever. The Model Participation Rules (MPR) require conveyancers to take “reasonable steps” to verify the identities of their clients and securely store all related documentation for a minimum of seven years.
Legal Obligations Under the Model Participation Rules
The MPR outlines specific obligations for conveyancers regarding data security and identity verification. According to the MPR and associated Guidance Notes #2 & #5, conveyancers must:
- Take Reasonable Steps: Ensure that the identity of clients and agents is verified through a robust process that reduces the risk of identity fraud (MPR Guidance Note #2, Section 5.1)
- Secure Storage: Per MPR Guidance Note #5, evidence should be accessible, legible, and safely and securely stored, whether in physical or electronic form.
- Retention Period: The evidence must be stored for at least seven years from the date of lodgement, ensuring it can be produced if required for legal purposes (MPR Guidance Note #2, Section 5.7).
Risks of Traditional Methods
Traditional methods of retaining client identification documents, such as photocopying or scanning IDs, pose significant security risks. Scanners, photocopies and multi-function devices often store images on internal hard drives, which can be accessed by unauthorised individuals, leading to potential data breaches.
Stop for a moment and consider whether your business applies the same level of security to your multi-function printer as you do to your PCs. For many, it is a weak spot that is often overlooked.
The Australian Cyber Security Centre (ACSC) reported a 23% increase in cybercrime reports in 2023. Small and medium-sized enterprises (SMEs) are particularly vulnerable. Conveyancing practitioners, often handling sensitive client data, are prime targets. Conveyancers must be aware of these risks and adopt safer alternatives that comply with both the MPR and Australian privacy laws.
The growing concern among consumers for their privacy should also not be ignored. The rise of large-scale data breaches has caused consumers to question how and where their data is being held. The survey by the OAIC found that 62% of Australians consider protecting their personal information a major concern in their life.
The Role Digital Solutions Can Play
To mitigate these risks, address consumer concerns and ensure compliance with regulatory obligations, conveyancers increasingly turn to digital solutions like Scantek’s VOI solution. Scantek’s platform offers a secure, compliant, and efficient way to verify client identities without the need for storing physical copies of sensitive documents or using unsecure devices to capture the evidence required to be stored.
Our system uses advanced biometric verification and comprehensive, back-to-source checks, ensuring that all data is securely encrypted and stored, significantly reducing the risk of unauthorised access and taking the burden off of conveyancers to understand.
Compliance with Australian Privacy Laws
In addition to the MPR, conveyancers must also comply with the Australian Privacy Act 1988, which outlines how personal information should be handled. The Act requires that personal data be stored securely and only used for the purpose for which it was collected. Scantek’s technology aligns with these requirements by ensuring that all client data is handled with the highest level of security and privacy protection, supported by our ISO 27001 accreditation.
Taking Action to Strengthen Your Data Security Measures
In an industry where data security and privacy are paramount and consumer expectations are evolving, adopting modern, compliant solutions like Scantek’s VOI technology is not just beneficial. It’s essential. By integrating such technology into your practice, you can enhance the security of your client’s information, ensure compliance with the MPR and Australian privacy laws, and ultimately build greater trust with your clients.
For more information on how Scantek can help you safeguard your client’s data, contact us today.