Australian super funds compromised after data breach as hackers use stolen passwords

Importance Score: 75 / 100 🔴


Cyber Attacks Target Australian Superannuation Funds, Member Data Potentially Compromised

Australian superannuation funds have been the target of cyber attacks this week, according to the industry’s leading body, with several funds reporting that member data may have been accessed. The Association of Superannuation Funds of Australia (ASFA), the peak body for the retirement savings sector, confirmed that the attempted breaches occurred last weekend, highlighting the growing threat of data breaches and the importance of robust cyber security measures within the Australian superannuation system.

Industry Body Confirms Widespread Cyber Incidents

ASFA stated on Friday that multiple superannuation funds experienced attempts to infiltrate their cyber defenses in recent days. While the majority of these attacks were successfully thwarted, a number of organizations confirmed that they were impacted. The industry association refrained from naming specific funds, but indicated that affected institutions are currently contacting members whose data might have been compromised.

Specific Super Funds Affected by Cyber Breaches

Several individual funds have acknowledged being affected by these cyberattacks, providing varying levels of detail regarding the scope and impact. Key details from affected funds include:

Rest Superannuation

Rest superannuation fund disclosed that approximately 8,000 of its members were affected by unauthorized access attempts. In most instances, the exposed personal information was limited to first names, email addresses, and Rest member numbers. However, the fund acknowledged a potential risk that more sensitive data—including full names, residential addresses, account beneficiaries, and account balances—could have been accessed for fewer than 20 members.

Vicki Doyle, Chief Executive of Rest, expressed regret over the incident, stating, “Due to our incident response protocols, the impact has been contained to less than 1% of our members. Nevertheless, this will be very concerning for the members who have been impacted, and we sincerely apologize for this occurrence.” She further clarified that member funds remained secure, with no unauthorized transfers occurring.

AustralianSuper

AustralianSuper has also verified that it was a target, with hackers successfully obtaining passwords belonging to 600 members. These stolen credentials were then used to attempt fraudulent activity on member accounts.

Rose Kerlin, AustralianSuper’s Chief Member Officer, noted an increase in suspicious activity across their member portal and mobile application over the past week. “We are urging members to take preventative measures to safeguard themselves online,” Kerlin advised. “Whilst immediate action was taken to secure the compromised accounts and notify the affected members, proactive steps by members are crucial for online protection.”

AustralianSuper has recommended that members log in to their accounts to verify the accuracy of their bank and contact information and to ensure they are utilizing strong, unique passwords for their accounts.

Australian Ethical

Australian Ethical has conducted an initial analysis that suggests the fund remained unaffected by the recent wave of attacks. However, the fund noted that the broader issue has been “exacerbated by the reuse of passwords that have been compromised in previous data breaches.”

According to Australian Ethical, “While the reported attacks appear to involve the reuse of passwords exposed in earlier data breaches, we are not being complacent.” The fund emphasized its existing security measures, including multi-factor authentication for all members and internal controls designed to protect members under such circumstances.

“Credential Stuffing” Attacks on the Rise

Alastair MacGibbon, Chief Strategy Officer at CyberCX, a prominent cybersecurity firm, highlighted the increasing prevalence of “credential stuffing,” the technique employed by the hackers in these recent attacks.

Credential stuffing is a growing threat to both organizations and individuals, and CyberCX has observed a surge in these types of attacks,” MacGibbon stated. He explained that with “nearly every Australian adult” having been affected by a prior data breach, criminals are exploiting these breaches, often through automated scripts, to execute credential stuffing attacks on a large scale.

Recommendations for Enhanced Cyber Security

MacGibbon advised individuals to adopt robust password practices, emphasizing the importance of strong, unique passwords for each online account. He also urged organizations to implement multi-factor authentication and conduct thorough data exposure assessments to identify instances where their credentials might be vulnerable on the dark web.

Industry Collaboration to Strengthen Defenses

ASFA emphasized that the superannuation industry is actively collaborating to enhance system-wide defenses against cybercrime. Collaborative initiatives include establishing a direct communication channel, or hotline, between the sector and relevant government agencies, improving the sharing of threat intelligence, and developing comprehensive frameworks to effectively combat both financial and cybercrime.


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