Identity Protection - concerned

Discussion in 'Money Management & Banking' started by Millie, 22nd Sep, 2020.

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  1. Millie

    Millie Well-Known Member

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    Australia
    It is common knowledge that certain physical documents are valuable and need to be protected from theft.

    However increasingly we need to identify ourselves over the phone - to bank, ATO etc.

    Most of the phone calls requiring thorough identification procedures are recorded.

    I had a recent experience with the bank, and admittedly I was transferring money, so it is reasonable to expect a thorough questioning. By the end of the process I had provided my passport number, Medicare number, drivers license number, which the bank used to generate the next batch of additional questions.

    So the bank has access to all of my identity documents - and I know they did the 100 point check to set up my account, but do they have the right to retain/access this information in perpetuity?

    As this conversation was recorded, and with the potential for this to be hacked, I feel uncomfortable with the increasing level of identification required and wonder how this will progress in future.

    As an aside, I actually went to the branch in the first instance to make the transfer, but was told (incorrectly) they couldn’t do it, and I needed to do it over the phone.

    In the end, I couldn’t be adequately identified over the phone, and you guessed it - needed to go back to the branch!
     
    Terry_w likes this.
  2. inertia

    inertia Well-Known Member

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    Newcastle, NSW
    There are rules around the retention of personal information (see data retention act, privacy act, PCIDSS compliance, etc), plus all banks have policy statements available regarding how the collect, use, and store personal information. Institutions will have statement regarding what security and privacy standards they are compliant with, which requires external auditing to be able to meet compliance.
    Of course, all of that is moot in the case of a data breach.

    The branch may actually need to take copies of your identity documents and include them with the file - not sure if that will satisfy your concerns...

    cheers,
    Inertia.
     
  3. The Y-man

    The Y-man Moderator Staff Member

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    Wait till you travel to SE Asia - most hotels take a photocopy of your passport, take a swipe of your credit card (and won't accept debit cards o_O)

    The Y-man
     
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  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Simple answer here is yes, they need to keep this on file for a significant period of time after they have concluded your business with them. Think in terms of your home loan is potentially active for 30 years, then they have to maintain their records for another 10 years beyond that.

    Keep in mind that one of the ongoing criticisms is around money laundering. This goes hand in hand with identity verification, which leads to privacy. All this stuff is a very significant ongoing priority for everyone in finance. The banks do a huge amount to protect your identity and your accounts.

    Also understand that there are many links in the security chain. In many cases it's the individual that is the weak link, not the bank.