Let’s get straight to the point about something that often gets overlooked —data security. If you’re thinking, “I’ll deal with that when my business is a bit bigger,” you might be setting yourself up for a huge mistake. As brokers, you have got enough on our plates without worrying about cyber threats, but ignoring data security can lead to bigger headaches down the track.
The Risks of Waiting
1. Data Breaches Aren’t Just ‘What Ifs’
You might think that data breaches are something that only happens to big companies or other people—wrong. In 2022 alone, cyberattacks on financial services shot up by 32%. Now, imagine getting a call at 3 AM that your client data has been hacked. It’s not just the financial hit you’d take; it’s your reputation on the line. Clients trust us with their most sensitive information, and if we let them down, it’s a long road to earning that trust back.
Example: Brokers who thought they were safe because they were “too small to be a target.” Then one day, a hacker slipped through their outdated security, and suddenly, they were dealing with angry clients and legal nightmares. It’s a situation no one wants to find themselves in.
What You Can Do: Don’t wait for a breach to wake you up. Start by investing in robust security software that covers all bases—firewalls, encryption, and regular updates. Partner with a cybersecurity expert who understands the specific needs of mortgage brokers and gets ahead of the game.
2. Client Trust is Fragile
Our clients trust us with their financial futures, but that trust can evaporate in an instant if their data isn’t secure. One breach, and your clients could be out the door, straight to your competitors who they believe can keep their information safer.
Example: Imagine being a broker who had a solid client base—until a breach happened. Even though it wasn’t entirely your fault, the damage was done. Clients started pulling out, questioning whether their info was safe, and it took years to rebuild.
What You Can Do: Make data security a core part of your business culture. Train your team regularly on the importance of data security—everything from spotting phishing emails to using strong, unique passwords. It’s all about creating a culture where security isn’t just an afterthought, but a priority.
3. Fines Are More Than Just a Slap on the Wrist
Australia’s data protection laws are pretty tough, and for good reason. If you’re not taking reasonable steps to secure personal data, you’re not just risking a slap on the wrist—you could be facing serious fines, legal headaches, and mandatory audits. Trust me, none of these are experiences you want to go through.
Example: A broker thought they could save a few bucks by cutting corners on data security. It worked—until it didn’t. When a breach happened, they were hit with fines that put a serious dent in their finances, not to mention the time and resources they had to pour into legal battles.
What You Can Do: Don’t treat data security like a one-time task. It’s something you need to revisit regularly. Stay updated on new threats and adjust your security measures accordingly. Think of it as a necessary part of doing business—not an optional extra.
The Real Cost of Delay
Sure, skipping data security might seem like a way to save some cash in the short term, but let’s be honest—the long-term costs are huge. From the financial impact of breaches to the loss of clients and regulatory fines, the risks are too big to ignore. By taking action now, you’re not just protecting your business—you’re securing its future.
Key Takeaway
- Start with strong security software.
- Keep your team educated.
- Regularly update your security policies.
Don’t wait for disaster to strike—protect your business and your clients today. We’re in this business to help people secure their futures; let’s make sure we’re doing everything we can to secure ours too.
About Sherlok
In today’s digital age, securing client data is more crucial than ever. Sherlok, Australia’s first AI-powered retention and refinance platform, helps mortgage brokers not only grow their loan books but also protect their clients’ sensitive information. With predictive loan book churn insights and single-click repricing and refinancing, Sherlok keeps your clients engaged while prioritizing data security. Don’t wait for a breach to take action—get in touch today to learn how Sherlok can help safeguard your business and retain your clients for the long term.
