Australia’s Cybersecurity Bill 2024: What Financial Firms Need to Know

In response to escalating cyber threats, Australia has introduced the Cybersecurity Bill 2024, a comprehensive piece of legislation impacting both public and private sectors.

Financial and accounting firms, known for handling large volumes of sensitive client and financial data, will find significant implications in this Bill.

With stricter standards for data protection, reporting obligations, and oversight, finance firms need to understand these new requirements and prepare accordingly.

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Overview of the Cybersecurity Bill’s Impact on Financial and Accounting Firms

The Cybersecurity Bill 2024 builds on previous regulations, such as the Security of Critical Infrastructure Act 2018, but extends protections and requirements to sectors like finance and accounting, which manage sensitive financial information.

This Bill introduces enhanced data security measures and reporting obligations, aligning with guidelines from the Australian Securities and Investments Commission (ASIC) to ensure the safety of financial data and bolster the overall resilience of firms against cyber threats.

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1. New Data Protection Compliance Standards

The Cybersecurity Bill 2024 outlines specific standards for safeguarding sensitive financial data. This includes personal and financial information about clients, which, if compromised, could lead to severe privacy violations.

Firms are now required to implement robust encryption for data storage, utilise multi-factor authentication (MFA) for secure access to sensitive information, and regularly update security software to guard against emerging threats.

Additionally, finance firms' third-party software providers and platforms must meet these new data protection standards to ensure end-to-end security.

Given the sensitive nature of financial data, establishing secure data transfer protocols and restricting access to authorised personnel are essential to avoid breaches and maintain client trust.

In summary, financial advisory services of all kinds should consider implementing:

• Access Controls: Restrict data access to authorised roles only.
• Multi-Factor Authentication (MFA): Adds a layer of security, requiring multiple credentials for access.
• Data Encryption and Logging: Automatically encrypt sensitive data and regularly review access logs.

For streamlined compliance management, investing in software to help achieve compliance is highly recommended. Microsoft Purview offers solutions for conducting automated assessments, managing audits, and identifying insider threats. Microsoft Intune can centralise device management, applying critical security patches as soon as they’re available, while Microsoft Defender provides proactive threat detection, supporting timely responses to potential risks.

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2. Reporting Obligations for Cybersecurity Incidents and Ransomware

The Bill introduces stringent ransomware reporting obligations, requiring financial firms to report ransomware payments to the Australian Signals Directorate (ASD) within 72 hours of the payment. This swift reporting requirement enables better incident tracking and faster support from authorities.

Finance and accounting firms can utilise the government’s online portal for routine cyber incident reporting, but direct contact is advised for urgent situations.

Firms should establish internal processes to ensure reporting is both efficient and compliant with the required timelines.

For cases involving immediate threats to life or potential harm, call 000. Urgent cyber reports can also be made via 1300CYBER1 (1300 292 371).

Firms should establish a 72-hour breach reporting system, which could include:

• A process for using the government’s online portal or direct contacts for urgent cases.
• Assigning a compliance officer or team member to handle and streamline reporting processes.
• Training employees on recognising and escalating ransomware incidents promptly.

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3. Voluntary Reporting for Significant Incidents

In addition to mandatory reporting, the Bill encourages voluntary reporting for significant cyber incidents, allowing firms to share information that could benefit sector-wide threat awareness without risking regulatory penalties. This information is safeguarded from legal use in proceedings against the reporting entity, creating a more transparent and cooperative approach to cybersecurity.

Voluntary reporting can support proactive data security by:

• Enabling collaboration with the Australian Cyber Security Centre (ACSC).
• Allowing firms to preemptively manage and address vulnerabilities.
• Building a more comprehensive cybersecurity posture across the industry.

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4. Role of the Cyber Incident Review Board

The Cyber Incident Review Board (CIRB) is another key aspect of the Bill, with powers to review significant cyber incidents and issue recommendations aimed at improving industry resilience.

The CIRB operates as an advisory board, so while it doesn’t penalise firms, it can provide guidance on how firms can improve their security practices.

Firms can expect CIRB to recommend best practices following cyber incidents, including:

• Access Control Enhancements: Strengthening data security by limiting access.
• Regular Audits and Compliance Checks: Identifying and addressing potential security gaps.
• Guidance on Data Encryption: Encouraging firms to protect sensitive client data with strong encryption.

Financial firms may benefit from appointing a compliance officer to handle CIRB communications, oversee responses to incident reviews, and ensure ongoing alignment with recommended practices.

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How Firms Can Prepare for Evolving Threats

As noted, the Cybersecurity Bill calls for urgent actions to ensure compliance and secure data protection.

Essential measures, as previously mentioned, may include setting up access controls , implementing Multi-Factor Authentication (MFA), performing regular data log reviews to detect unusual activity, and enabling automatic data encryption for added protection.

Microsoft solutions like Microsoft Purview streamline compliance management, while Microsoft Defender provides proactive threat detection to address risks effectively.

Every business will need a tailored approach to these changes, making it advisable to work with a reputable IT Security and Compliance firm.

Such firms can conduct a thorough audit and provide actionable steps to align with Australia’s cybersecurity standards. In the meantime, here are some immediate actions we recommend:

Key Immediate Steps

• Establish a breach reporting system that meets the 72-hour timeline.
• Enforce strict access controls and regularly review device security standards.
• Train employees on cybersecurity best practices to minimise human error.
• Conduct regular audits and compliance checks to prepare for potential CIRB reviews.

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How Superior IT Can Help Financial Firms Achieve Compliance

With the Cybersecurity Bill 2024 introducing complex new requirements, finance and accounting firms may need expert support to navigate these changes. Superior IT offers tailored services to help firms enhance their cybersecurity posture, comply with the Bill, and protect their data effectively.

Whether your firm needs vulnerability assessments, incident response planning, or ongoing IT support, Superior IT is here to ensure compliance and support secure operations in the face of new cyber threats.

For more information on the new Cybersecurity Bill 2024, you can refer to the Australian Cyber Security Centre’s official guidelines for detailed compliance requirements and reporting obligations.

Contact Superior IT today to discuss how we can help your firm stay secure and compliant in an evolving digital landscape.

If you are interested in reading about the requirements for mining recruitment and resourcing firms, read our blog on How Mining Recruitment Companies Can Stay Cyber Secure Under the New Cybersecurity Bill in Australia.