When the Alarm Sounds: Legal Readiness in the Age of Data Breaches

Data breaches are no longer rare or exceptional. They are becoming routine, and the legal consequences are growing just as fast as the risks. ASIC has previously informed businesses that they should act as if they expect to suffer a cyber-attack.

The latest example? Qantas. One of Australia’s most recognisable brands confirmed that a cyberattack exposed the personal information of up to six (6) million customers, after a third-party service provider was compromised. While the airline has taken steps to contain the breach, the incident highlights a broader truth: businesses are only as strong as their weakest link, and trust can evaporate in an instant.

Data breaches often demand structured, rapid, and compliant responses.

Why Legal Readiness Matters More Than Ever

Data privacy and cybersecurity are no longer the sole domain of IT teams. With OAIC notification obligations, potential class actions, and serious reputational fallout, the legal team must be prepared to lead, not just react.

Key legal risks include:

• Failing to notify regulators and affected parties within prescribed timeframes.
• Loss of client confidentiality.
• Inadequate contractual protections with vendors and third-party providers.
• Regulatory scrutiny and investigation by OAIC, ASIC or APRA.
• Brand and reputational damage impacting shareholder and client trust.
   

Lessons from the Qantas Breach

1. Third-Party Risk Is Your Risk

Qantas didn’t get hacked directly. Their service provider did. Legal due diligence and data-sharing agreements must reflect this risk with enforceable obligations, audit rights and indemnities.

2. Speed Saves Trust

Every minute counts. Businesses that delay legal notification or client communication risk compounding the damage. A prepared breach response framework should be ready and rehearsed.

3. Data Governance Is Not Enough Without Practical Frameworks

Internal privacy processes must be appropriate, practical, tested against current laws, and capable of withstanding scrutiny in court or before a regulator. Having a policy isn’t enough if your staff don’t understand or follow it.

Qantas’s processes might have limited the exposure. Qantas has reported that credit card numbers, financial information, login details, and passport details are stored in a separate system from the system that suffered the data breach, and thus have not been exposed.

What You Should Do Now

If you manage client or customer data, ensure you implement preventive measures against breaches and establish a solid action plan.

We assist businesses across Australia to:

• Review and strengthen supplier contracts.
• Draft and review privacy policies.
• Train boards, management teams and front-line teams on legal breach obligations.
• Map and prioritise data flows for regulatory compliance.
• Implement response protocols that preserve information and trust.

Through our established partnerships with leading cybersecurity, risk and forensic specialists, we deliver not only legal strategy but coordinated response frameworks that are proactive, practical and built for real-world threat scenarios.

Book a Breach Readiness Assessment

Our Privacy & Data Team is led by experienced lawyers and a Partner who sits on the NSW Law Society Privacy & Data Law committee. We combine legal precision with technical experts to build compliance systems that are tested, tailored and resilient.

Don’t wait until you’re the next headline.

Contact us today to assess your breach response capability and secure your compliance readiness.

Useful Links

• Qantas – Customer Information on Cyber Incident Official updates from Qantas regarding the recent data breach, including FAQs, support options and information for affected customers.
• Qantas support line number is 1800 971 541 or 02 8028 0534.
• OAIC – Notifiable Data Breaches SchemeUnderstand your legal obligations to report serious data breaches under Australian law.
• Australian Signals Directorate – Essential Eight Maturity Model Recommended strategies to mitigate cybersecurity incidents in Australian organisations.
• OAIC Guide to Securing Personal InformationPractical guide on how to meet legal privacy obligations when storing or handling data.
• ASIC – Cyber Resilience Good Practices Insights into the standards ASIC expects of boards and business leaders in managing cyber risks.
• Stay Smart Online (by the Australian Cyber Security Centre)A resource for keeping businesses and individuals informed about current cyber threats.

This article is provided for general informational purposes only and does not constitute legal advice. While every effort is made to ensure the accuracy of the information provided, Madison Marcus Law Firm makes no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the content. Readers are advised to seek professional legal advice tailored to their specific circumstances before taking any action based on this information. Madison Marcus Law Firm accepts no liability for any loss or damage incurred as a result of reliance on the information presented herein.