The Australian Securities and Investments Commission (ASIC) has launched proceedings today within the Federal Court of Australia. These proceedings are against RI Advice Group Pty Ltd, and it’s claimed that the firm had failed to implement adequate cybersecurity systems.
Alleged Cyber Breaches All Over The Place
The action against the firm by ASIC comes as a result of a number of alleged cyber breach incidents at specific authorized representatives (ARs) of RI. This includes an alleged cyber breach incident recorded that occurred at Frontier Financial Group Pty Ltd. This firm served as a trustee for The Frontier Trust (Frontier), and the alleged breaches occurred during December of 2017 to May of 2018.
Massive Data exposure
It’s alleged by ASIC that Frontier saw itself subjected to a “brute force” attack. This attack leads to a malicious actor managing to successfully gain remote access to the server of Frontier, and managed to spend over 155 hours logged in this server. This server contained sensitive client information, however, including that of identification documents as well.
ASIC is claiming that RI had failed to implement adequate systems, policies, and resources that were reasonably appropriate in order to manage risk regarding cyber resilience and cybersecurity. This includes its ARs, as well.
The Charges In Question
As a result of this, ASIC is seeking a number of things. The first of which is that RI pays a civil penalty, one set to be determined as an appropriate amount by the Court. Second, ASIC is seeking a declaration that RI had contravened provisions within the Corporations act. In particular, Sections 912A(1)(a), (b), (c), (d), as well as (h) and (5A). Lastly, it’s seeking a compliance order to mandate RI to implement systems that are reasonably appropriate in order to adequately manage the risk regarding cyber resilience and cybersecurity. Furthermore, ASIC is demanding that a report must be given by a suitably qualified independent entity that is an expert in the matter, one that says that these systems have been implemented.
Until the 1st of October, 2018, RI had been a wholly-owned subsidiary of Australia and New Zealand Banking Group Limited. However, as of the 1st of October, 2018, the company had become a wholly-owned subsidiary of one IOOF Holdings Limited, or IOOF.
It remains to be seen what will happen in the future, but with luck, everything can happen smoothly, and justice will be capable of being done to its fullest extent, wherever it’s needed.