Communications watchdog suing Optus over data breach

Australia’s second largest telecommunications company, Optus, says it will defend Federal Court action brought by the communications watchdog over a September 2022 data breach in which about 10 million current and former customers had their personal data stolen in one of the worst cyberattacks in the nation’s history.

The Australian Communications and Media Authority (ACMA) alleges Optus breached the law when it failed to protect its customers’ personally identifiable information – including driver’s licences, passport numbers, home addresses and dates of birth – from hackers.

microsoft, communications watchdog suing optus over data breach

Former Optus chief executive Kelly Bayer Rosmarin during a Senate hearing last year. She resigned three days later.

About 40 per cent of the population are Optus customers and many couldn’t use their phone or internet services on the day of the breach, when hackers demanded a $1.5 million ransom to stop the data from being sold online. A few hours later the thieves deleted the ransom notice and apologised.

The Optus breach led to tougher penalties for serious or repeated breaches of customer data; organisations that fail to adequately protect people’s data now face fines of $50 million or more.

Optus’ then-chief executive Kelly Bayer Rosmarin resigned in November 2023 after presiding over the data breach and then a subsequent mass outage just over a year later. Current NBN Co chief executive Stephen Rue is set to take the top job at Optus in November.

“At this stage, Optus Mobile is not able to determine the quantum of penalties, if any, that could arise,” Optus’ parent company Singtel said in a statement to investors.

“Optus has previously apologised to its customers and has taken significant steps, including working with the police and other authorities, to protect them. Optus Mobile intends to defend these proceedings.

“As the matter is now before the Australian courts, Optus Mobile will not be commenting further at this time.”

ACMA declined to comment.

Optus is currently also embroiled in an ongoing legal fight to prevent a report into the data breach from being released publicly, as part of a class action lawsuit from Slater and Gordon.

microsoft, communications watchdog suing optus over data breach

Ranish Kromodoyo and Anya Absalom struggle to make a call outside an Optus store.

The telco posted its half-year financial results on Thursday, with operating revenue down 1.1 per cent year-on-year amid lower revenues for its enterprise unit, though mobile service revenues climbed higher. The company added 116,000 mobile customers for the full-year ending March 31, 2024, primarily from its low-cost Amaysim brand.

Operating revenue was flat over the 12 months to March 31 at $8 billion, with operating expenses also flat at $6 billion.

“Optus is working hard to rebuild the trust of customers after a challenging 18 months and these results demonstrate we are on the right track,” Optus interim chief executive Michael Venter said.

“We’re listening to our customers and in the year ahead we’ll be continuing to prioritise what we know is important to them – a resilient network that delivers seamless connectivity, great value products and services, and simple, efficient customer service.”

Parent company Singtel has also flagged a strategy refresh for Optus’ enterprise unit, which has faced pressures from macroeconomic headwinds, increased competition and structural declines as large business customers increasingly move away from fixed voice products and switch to cheaper cloud-based options from the likes of Microsoft.

It said it will streamline its product catalogue from more than 250 to fewer than 100 products, slash its vendor portfolio from more than 100 to 16 partners, and “exit unprofitable businesses”. Optus employs about 7500 people nationally.

“Essentially what’s happening is that the way customers are using enterprise products has shifted,” Venter said. “I don’t know about you, but I don’t have a fixed-line phone on my desk, and I haven’t for a long time. That was a high-margin business and it’s just a structural shift that’s occurred that means those margins are no longer what they were.”

Telstra this week cited its underperforming enterprise unit as a key driver behind a decision to cut up to 2800 jobs, with 9 per cent of its workforce to depart the company this calendar year.

Venter added that Optus had reduced its overall head count by about 10 per cent over the past year amid the falling enterprise revenue, alongside damage from the data breach and subsequent outage.

“It’s been a difficult 18 months for Optus but the business is bouncing back and we’re seeing green shoots. We understand that regaining customer trust takes time, it will be brick by brick and step by step.”

Get the day’s breaking news, entertainment ideas and a long read to enjoy. Sign up to receive our Evening Edition newsletter.

OTHER NEWS

30 minutes ago

'Custody For 90 Days Will Ruin Lives': NCP (SP) Leader Jitendra Awhad On New Criminal Laws

30 minutes ago

Indian Documentaries Ride Global Wave as Local Funding and Distribution Concerns Remain

30 minutes ago

Jarrett Stidham may be current leader in Denver Broncos' QB race

30 minutes ago

Francoise Hardy, French singer and 60s pop icon, dies aged 80

30 minutes ago

Dodgers face injury attrition as ace leaves with triceps tightness

30 minutes ago

Steelers GM Omar Khan discusses team's relationship with RB Najee Harris

30 minutes ago

Struggling Hailie Deegan may not be ready for bright lights of NASCAR

34 minutes ago

Chinese premier promises more pandas and urges Australia to put aside differences

35 minutes ago

Hajj 2024: Saudi Arabia implements advanced cooling techniques in holy sites amid scorching heat

35 minutes ago

Italy 2-1 Albania: Player ratings as holders begin Euro 2024 with comeback victory

35 minutes ago

Toni Kroos' lack of arrogance and calmness hailed after 'really powerful' team talk

35 minutes ago

Government: Labour’s manifesto contains tax rises, not cuts

35 minutes ago

AFL kiss between TV host and footy legend sparks furore: 'It is a first'

35 minutes ago

Video: Kim Kardashian shows off her curves in a fitted outfit as daughter North West sports custom pajamas while celebrating her 11th birthday in NYC

35 minutes ago

Video: Pregnant Hailey Bieber cradles her baby bump in a gray crop top as she celebrates '2 years of Rhode' skincare

43 minutes ago

Top 5 Animal Frights

43 minutes ago

Montenegro, Millwall goalkeeper Matija Sarkic dies at age 26

43 minutes ago

Derelict Enniscorthy farmhouse with 2.5 acres of land on market for €285,000

44 minutes ago

John Stones issues Euro 2024 rallying cry after overcoming double scare in major boost for England

44 minutes ago

'Everyone gives us no chance', says Poland boss Probierz

44 minutes ago

The Property Brothers' Biggest Advice For First-Time Homebuyers

44 minutes ago

Pilgrims commence the final rites of Hajj as Muslims celebrate Eid al-Adha

45 minutes ago

American comedy legend Jerry Seinfeld is all smiles as he greets fans while exploring Perth ahead of Australian stand-up comedy tour

47 minutes ago

No Messi, no problem! Inter Miami have to cope without absent star and have two men sent off... but STILL manage to score a last-minute winner to beat MLS rivals Philadelphia Union

47 minutes ago

Murdered mom-of-five's boyfriend breaks his silence after ILLEGAL migrant was finally charged with raping and killing her - as cops reveal stunning breakthrough on her birthday and offer stern message to Joe Biden

47 minutes ago

Serial celeb harasser 'Crackhead Barney' calls Quentin Tarantino a 'Zionist piece of s***' after troll previously screamed at Alec Baldwin

47 minutes ago

Madonna, 65, tries to keep a low-profile in NYC in all-black outfit after her lawyers SLAMMED concert delay lawsuit as a 'harassment campaign' from fans

48 minutes ago

Bryson DeChambeau takes control of US Open with glorious 67 as Rory McIlroy rues late bogeys

48 minutes ago

Kariega cemeteries severely damaged by floods

48 minutes ago

Labour candidate cancels local hustings due to ‘constant trolling’

48 minutes ago

Alexander-Arnold can be special in England’s midfield, insists Southgate

48 minutes ago

Everything You Need to Know About the 6th House in Astrology

48 minutes ago

RBA likely to hold rates as price pressures loiter

52 minutes ago

The city Aussies are fleeing in droves - and the new location they are calling home

54 minutes ago

Southgate and Kane look ahead to Serbia match

54 minutes ago

Brian Masaba on Uganda's 9-wicket hammering by New Zealand

54 minutes ago

He once rode in the Titan submersible but didn't realize how close he came to death until a year after its fatal dive

54 minutes ago

Johns backs Moses-Walker pairing to level Origin series

54 minutes ago

The Requiem For Methuselah Scene Star Trek's DeForest Kelley Refused To Film

54 minutes ago

Should There Be A Cause For Concern Following Boston's 38 Point Loss?