Why is Data Protection So Important?
In today’s hyperconnected world, our personal data has become one of our most valuable commodities. From online banking and social media to shopping and government services, the amount of personal information we share daily has never been greater. The recent personal data breach at Coinbase, one of the world’s largest cryptocurrency platforms, is a sobering reminder of why data protection matters now more than ever.
What Is Data Protection?
Data protection is the set of policies, practices, and technologies designed to safeguard personal information from unauthorised access, use, disclosure, disruption, modification, or destruction. This includes names, addresses, emails, phone numbers, identification documents, bank details, and other sensitive information.
Why Does Data Protection Matter?
Cybercriminals thrive on personal data. With just a few key details—like your name, date of birth, and email address—they can impersonate you, access your bank accounts, or carry out identity fraud. In 2023 alone, Australia saw a surge in cyber attacks, with the Australian Cyber Security Centre (ACSC) receiving over 94,000 reports—that’s one every six minutes.
The impacts of data breaches aren’t limited to dollars and cents. Victims often face stress, confusion, and a long, painful process of recovering their identities. According to IDCARE, Australia’s national identity and cyber support service, victims spend an average of 23 hours resolving identity theft incidents.
When organisations fail to protect user data, they risk not only legal consequences but also long-term reputational damage. For individuals, it undermines trust in digital services and institutions that we rely on every day.
What Happened at Coinbase?
Last week (May 2025), Coinbase experienced a significant data breach after a sophisticated cyberattack targeted one of its third-party service providers. Hackers exploited a vulnerability to access a large set of user data including; names, addresses, phone numbers, emails. Masked Social Security (last 4 digits only) Masked bank‑account numbers and some bank account identifiers, Government‑ID images (e.g., driver’s license, passport), account data (balance snapshots and transaction history) and corporate data (including documents, training material, and communications available to support agents).
The breach also resulted in some cases of immediate financial loss for affected users, which further highlighted the systemic risks tied to third-party providers, and the effects one weak link can have on global data security.
How Can I Protect My Data?
Don’t wait for a breach to start thinking about your personal security. Use strong, unique passwords, enable two-factor authentication, and stay informed about the latest scams and phishing tactics.
Organisations that handle your data have a legal and ethical duty to protect it. In Australia, the Privacy Act 1988 outlines how businesses must manage personal information. If a company fails to do this, you have the right to lodge a complaint with the Office of the Australian Information Commissioner (OAIC).
Crypto is exciting, but it can also be high-risk. Make sure any platform you use is regulated, has strong security protocols, and responds swiftly to incidents. The Coinbase breach is a stark reminder that even the biggest names can be vulnerable.
Here at the GLOSS Vault, we have made it our mission to help as many people like you across Australia and New Zealand feel in control of your money and ensure you’re getting the most out of it. To find out more about us and what we do click here. If you’d like to see our app in action for yourself head here!