The Rising Tide of Digital Identity Theft: How Rental Applications Are Putting Your Data at Risk
Michael, a Victorian schoolteacher, recently experienced a frightening breach of his digital identity. After applying for rental properties online, his mobile number was transferred to an unknown individual who then accessed his bank and superannuation accounts. His case, as reported this week, highlights a growing vulnerability for Australian renters – the over-collection of personal data by rental platforms.
The Rental Application Data Grab
Michael suspects his passport information, submitted through multiple rental applications in November and December, was the key to unlocking his accounts. This isn’t an isolated incident. Analysis of seven rent platforms reveals they could be accessible online without proper authentication, leaving millions of leasing documents exposed. The Australian Housing and Research Institute (Ahuri) recently released a report confirming this risk, stating that renters often have little understanding of where their data goes and how it’s used.
The Ahuri report identified 57 rent tech platforms operating in Australia, with some collecting as many as 50 different data fields per applicant – including details about household composition, pets, and even smoking habits. Dr. Sophia Maalsen, lead author of the report from the University of Sydney, notes a lack of data portability between these platforms, meaning renters are repeatedly submitting the same information.
The Regulatory Landscape and Future Solutions
The Real Estate Institute of Australia (REIA) acknowledges the demand for agents to verify tenant identities, necessitating data collection. Still, REIA president Jacob Caine emphasizes the importance of due diligence in ensuring online platforms comply with privacy obligations. He supports robust regulatory oversight and long-term solutions like the federal government’s digital ID rental pilot, announced last year.
“Less data collected means less data exposed,” Caine states. However, new anti-money laundering reforms coming into effect on July 1st will actually increase the amount of data real estate agents are required to collect and store, potentially exacerbating the problem.
The push for digital ID solutions is gaining momentum, offering a potential pathway to enhance privacy and efficiency. Providers of regulatory technology are entering the market, but Caine stresses the need for strong governance, verified cybersecurity credentials, and a clear understanding of privacy obligations.
Protecting Yourself: A Renter’s Checklist
- Minimize Data Sharing: Only provide essential information on rental applications.
- Review Privacy Policies: Understand how platforms handle your data.
- Employ Strong Passwords: And enable two-factor authentication wherever possible.
- Monitor Your Accounts: Regularly check bank and superannuation statements for unauthorized activity.
- Be Vigilant: Report any suspicious activity to your bank and the police.
