Grim prediction for odds of superannuation hack

The admissions came at the Australian Institute of Superannuation Trustees Conference of Major Superannuation Funds (CMSF) in Melbourne on Wednesday.

Deputy chief executive of GROW Inc superannuation fund Adam Gee said more checks and balances needed to be put in place to negate any potential cyber attacks.

“So often we do give ourselves a bit of a pat on the back, but that’s not to say that we are completely immune to cyber attacks,” he said.

“I think that unfortunately there will be a time when a superannuation fund is the subject of an attack, but what is critical I think is our that our base can work very closely with their administrators.

“I think the challenge we might have had over the many years is that most trustees just outsource that risk to their administrator. Most trustees have just taken the view that it’s the administrator’s responsibility.”

A superannuation trustee is a person or company appointed to manage a super fund on its members’ behalf.

Late last year, millions of Australians had their privacy breached in cyber attacks on Optus and Medibank.

Cybercriminals stole sensitive health and financial data that was put up for sale on the black market.

Mr Gee went on to say how funds should put measures in place to avoid information becoming targeted and in what way this should be handled in the event of a breach.

“Regulatory standards and prudential standards really do show that the responsibility sits firmly and squarely on the trustee,” he said.

“So certainly not the expectation that you will understand the entire technology stack that your administrator offers and where the threats necessarily are, from a very detailed level, but absolutely at a high level, you should be engaging very closely with your administrator to get a good understanding of where they sit, where those potential risks are, and how to work closely together to minimise those risks as far as possible.

“Also, having a good plan in place when something does happen is absolutely critical as well.”

Mr Gee’s comments come a day after federal Treasurer Jim Chalmers addressed the conference and gave insight into how Australia’s soaring rate of inflation would pan out as millions continue to grapple with cost of living pressures.

Mr Chalmers said while the rate of inflation was believed to have peaked around Christmas 2022, Australians would continue to feel the pinch with living expenses.

“As well as being optimistic. I’m also realistic about some of the difficulties that we’ll need to navigate together over the course of the next year or two,” he said.

“Interest rate rises are really tightening the screws on a lot of families and small businesses right around the country. Combine that with a fair bit of global uncertainty that we’re seeing right now, whether it’s in the financial system, or in the major economies around the world.”

Mr Chalmers said these factors would result in a slowdown for Australia’s economy as a whole.

“You can see why Treasury, the Reserve Bank and others, including a number of you in the room there, are expecting our economy to slow considerably through the course of the next little while,” he said.

“So we’ve got a lot coming at us, from around the world, but we’ve got a lot going for us as well.”