In order to promote targeted data sharing between telecommunications companies and banks, Australia proposed consumer privacy measures.

Following a significant data breach at Optus, the second-largest mobile operator in the nation, Australia on Thursday suggested a revision to consumer privacy regulations that will make it easier for targeted data sharing between banks and telecom companies.

One of Australia's largest data breaches occurred last month when Optus, a company owned by Singapore Telecommunications Ltd (Singtel), was the target of a cyberattack. Up to 10 million customers' personal information, including home addresses, driver's licence numbers, and passport numbers, were compromised.

With the new rules, telcos will be able to provide banks with copies of government-issued identification documents so that banks can adopt improved monitoring for customers who are affected by data breaches.

In a press conference, Treasurer Jim Chalmers said, 'They've been carefully developed with strong privacy and security measures to ensure that only limited information can be made temporarily available to prevent and respond to cyber security problems, fraud, scams, and related activities.'

He stated that the government will suggest changing the privacy laws to the governor-general.

Through already in place industry reporting mechanisms, like fraud information exchanges, the proposed reforms will also enable enhanced fraud detection in the larger financial services sector.

Due to data security concerns, Chalmers stated that the government would withhold information about the financial institutions that get data from Optus.

The information must only be used to prevent or respond to cyber security incidents, fraud, scam activity, or identity theft, the treasurer said, and banks must destroy the information they get when they no longer need it.

Since the Optus cyberattack,Australia's telecommunications, financial, and government sectors have been on high alert and have suggested modifications to privacy laws to assist banks in acting quickly to stop fraudulent transactions.

The company was criticised by the Australian government for characterising the attack as sophisticated and for delaying informing affected customers. The government believes the Optus breach was caused by a basic security flaw.