Data Breach - End of Privacy?

When the Optus data breach hit headlines in September 2022, it was impossible to ignore. Over 10 million Australians, myself included, found ourselves caught in the crossfire of one of the country's largest privacy scandals. Sensitive data like driver's licenses and Medicare card details were exposed to cybercriminals, sparking a wave of class actions, media outrage, and questions about the future of cybersecurity.

I was among those affected, left navigating a sea of legal jargon, class action invitations, and security measures that felt both inadequate and maddening. Yet here we are, years later, and the issue that once dominated headlines has faded into obscurity. The Optus breach wasn't the first, nor will it be the last, in a concerning trend driven by fragile systems, profit-driven monopolies, and ineffective regulation. Let's unpack how we got here, and what—we hope—we can do to fix it.

Fragility in Legacy Systems

Behind every major data breach lies a common enemy: legacy systems. Many companies today run on patched infrastructures that layer new technology over antiquated systems. These organizations, often early adopters of digital transformation, became unwitting crash-test dummies for poorly understood advancements in technology.

This isn't just a bug here or a glitch there; it’s tech debt on a massive scale. Each patchwork fix creates new seams for potential cyberattacks, turning organizational infrastructures into labyrinths of inefficiency and vulnerability.

Take mergers and acquisitions, for instance. When companies amalgamate, they don’t rebuild their tech stack from scratch. Instead, they pile one system onto another, compounding existing flaws. What you get is a Frankenstein's monster of IT infrastructure, full of entry points for cybercriminals. No wonder breaches seem almost inevitable. The Optus breach exemplified this when their outdated systems failed to safeguard their users' most critical data.

Monopolistic Giants Prioritize Profits

What makes the fragility of legacy systems even more alarming is the role of monopolistic corporations. Companies like Equifax, the world's largest collector of personal information, and CDK Global often function as monopolies. Their approach to cybersecurity is less about resilience and more about cost-cutting.

Mergers and acquisitions amplify these vulnerabilities. The focus isn’t on innovation or security; it’s on consolidating market share. These companies become “too big to fail,” comfortably coasting on the knowledge that their size makes them indispensable. But as their profits soar, their accountability sinks.

Take Equifax, for example. Despite a massive breach in 2017 that exposed over 140 million users' information, the company continues to generate billions annually. Regulators issued fines, but the financial penalty barely scratched the company's bottom line. The message was clear: security failures are a cost of doing business, not a cause for meaningful reform.

Examples of monopolistic giants profiting from the sale of users' personal information:

• Equifax (2017 Data Breach): Equifax suffered a massive data breach in 2017, exposing the personal information of over 140 million individuals, including Social Security numbers and financial details. Despite the breach, Equifax continued to earn substantial profits, with minimal long-term financial impact from regulatory fines and lawsuits, highlighting the lack of accountability.
• Facebook (Cambridge Analytica Scandal): In 2018, Facebook faced backlash after it was revealed that Cambridge Analytica improperly accessed data from up to 87 million users to influence political campaigns. While Facebook was fined $5 billion by the FTC, the company’s financial performance and user base remained largely unaffected, continuing to profit significantly.
• Marriott (2018 Data Breach): The Marriott International data breach exposed the personal information of up to 500 million guests over several years. While the company faced fines and lawsuits, it remains a dominant player in the hospitality industry, raising concerns about whether penalties truly incentivize better security practices..

Capitalizing on Your Data

The misuse of personal data adds another layer to an already unsettling reality. While companies claim to safeguard user information, they simultaneously profit from it by selling data to advertisers and other third parties. Essentially, your data is their product. Yet these same organizations often leave the door open for cybercriminals to steal sensitive information.

When breaches occur, the fallout for businesses is minimal. Regulatory consequences, if any, tend to be lackluster. Financial penalties are absorbed as the "cost of doing business," and companies often issue little more than a public apology. Meanwhile, individuals whose data is stolen deal with the long-term impact on their privacy, security, and trust.

The Optus breach taught us this the hard way. While the telecommunications giant did issue an apology, the substantive accountability and reform customers expected never materialized. Instead, we were left with class actions that dragged on for years, yielding little in terms of resolution or justice.

The Failure of Regulation

Regulators’ inadequacy in holding businesses accountable is perhaps the most frustrating aspect of the data breach epidemic. Existing laws often fail to keep pace with rapid advancements in technology. Companies continue to treat compliance as a checkbox rather than an ongoing obligation.

While some high-profile cases have led to fines or settlements, these actions rarely go far enough to prompt meaningful behavioral changes. For instance, GDPR and similar frameworks aim to ensure data protection, yet enforcement mechanisms remain weak. Companies pay their fines and move on, leaving users exposed to future security failures.

Change requires regulators to act boldly. This might include:

• Mandating penalties that scale with the size and revenue of offending corporations.
• Requiring regular third-party security audits for businesses handling sensitive data.
• Proactively investigating companies that show signs of increased vulnerability, rather than waiting for breaches to happen.
• It’s not enough to react to crises after the fact. Instead, we need preventive measures that prioritize user security over corporate convenience.

Redefining the Future of Data Security

If the Optus breach and similar incidents have shown us anything, it’s that maintaining the status quo isn’t sustainable. We need fundamental changes in how companies and regulators handle data security.

Here’s what that could look like:

Technological Overhauls: Organizations must commit to replacing outdated systems instead of endlessly patching them. While expensive initially, this investment will save companies and consumers alike from catastrophic breaches in the long run.

True Accountability: Fines for noncompliance must increase significantly so that lax security practices genuinely hurt a company’s profitability. Regular, transparent reporting on security measures should be mandated.

Enhanced Regulation: Governments must tighten regulations around cybersecurity, ensuring companies take proactive steps to protect user data. This could include mandating cybersecurity certifications for organizations managing critical data or imposing stricter penalties for breaches.

Cultural Shifts: Businesses must adopt a culture of cybersecurity, embedding it into their DNA rather than treating it as an afterthought. Success in today’s digital world relies on trust, and trust begins with accountability.

For individuals, staying informed is key. Understand how your information is being used and stored. Demand transparency from the companies you entrust with your data. Support legislative initiatives that seek to strengthen protections at a systemic level.

It won’t be easy. But much like the early adopters of digital technology, we must start somewhere. The aftermath of the Optus breach should serve as a wake-up call—not just for corporations, but for all of us.

Truly Yours,

Narghiza Ergashova

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Narghiza Ergashova is a highly skilled finance executive based in Australia with extensive experience across industries like property, mining, chemicals, and infrastructure. She is recognized for her expertise in managing complex portfolios, building strong stakeholder relationships, and driving exceptional business performance.

As a thought leader, Narghiza regularly shares valuable insights on leadership, innovation, and personal growth. Through her Medium articles, she covers key topics such as employee engagement, effective leadership strategies, and overcoming business challenges. Her work resonates with professionals looking for actionable advice and inspiration to succeed in both their careers and personal lives.

To learn more about Narghiza Ergashova, you can explore her work on the Blogger, STCK.com or visit her Medium.com profile. Discover her expert insights and strategies for leadership, business growth, and navigating challenges in today’s fast-paced industries.

In May 2025 Narghiza Ergashova released her debut autobiography called Curly Clix Convictions . The book delves into Narghiza's journey as a professional, entrepreneur, and wife and a mother. You can visit her biography by clicking the link below.