The Data Standards Body (DSB) announced the release of a significant report titled “Application of Authentication Frameworks: A Report to the Data Standards Chair,” produced by PwC Indigenous Consulting. The team initiated the report in December 2022 and finalised it in June 2024, assessing the performance of existing authentication frameworks within the Consumer Data Rights (CDR) ecosystem. 

It provides essential guidance to strengthen cybersecurity, safeguard data privacy, and enhance trust within Australia’s public and private sectors. The announcement showcases the CDR’s expansion into emerging sectors such as telecommunications and energy, stressing the critical need for robust data security protocols. The report safeguards the ecosystem from emerging threats by aligning it with international standards and addressing identified risks.

Enhance cybersecurity authentication

Authentication frameworks play a crucial role in cyber security because they ensure that only authorised individuals can access sensitive consumer information. The report says that the current CDR framework, which is in line with Australia’s Trusted Digital Identity Framework (TDIF), builds a strong base, but it needs to be changed to deal with new threats and the rising risks that come with collecting more data. The need for strong and flexible authentication solutions is growing because more and more industries and data-sharing situations are combining. 

New research shows that using only one type of authentication (Credential Level 1) to access data (READ operations) leaves you open to security risks, especially when Accredited Data Recipients (ADRs) combine a lot of data. The report recommends implementing mandatory multi-factor authentication (MFA) for all CDR interactions to reduce the risks of unauthorised access and ensure compliance with international standards, including NIST SP 800-63-3, ISO/IEC 29115:2013, and the European Union’s eIDAS Regulation. MFA enhances assurance levels, significantly reduces the chances of breaches, and boosts consumer confidence in the CDR ecosystem.

Strengthening authentication frameworks

This document outlines five key recommendations to enhance the security, usability, and scalability of authentication frameworks within the CDR ecosystem. These recommendations, backed by real-world examples, emphasise the need to take a proactive approach to reducing risks and protecting consumer data.

1. Risk-based authentication standards

Implement a strategy that prioritises the risk of authentication by customising security protocols based on the sensitivity of accessed data. For example, financial information, including bank account details, requires greater assurance levels than less sensitive information, like energy consumption metrics. By implementing a detailed risk assessment framework, organisations avoid overwhelming consumers with excessive authentication requirements while maintaining strong safeguards for essential data. This strategy enhances safety and user satisfaction, building confidence in the CDR environment.

2. Mandating multi-factor authentication (MFA)

Replace the current single-factor system with multi-factor authentication for all data-sharing interactions. Consumers must use a combination of SMS one-time passwords and biometric verification methods, such as fingerprint or facial recognition, when accessing aggregated data sets. The results show that using MFA greatly lowers the chances of unauthorised access, which is in line with the Australian Cyber Security Centre’s (ACSC) suggestion that internet-accessible services should use it by default. This modification enhances the security of the authentication process, especially for high-risk interactions.

3. Alignment with trusted digital identity framework (TDIF)

Align the CDR’s data standards with TDIF by adopting consistent terminology and standards. Harmonising the definition of “Credential Levels” and revising authentication requirements to align with TDIF’s most recent version, including the incorporation of cryptographic methods for high-security situations, will clarify uncertainties for CDR participants. This alignment simplifies the implementation process for organisations and boosts interoperability with various governments’ digital identity systems.

4. Consumer access in non-digital channels

Improve authentication systems to support offline users. Effective approaches include integrating call centre authentication with voice biometrics and creating unique offline codes sent via postal mail for individuals who lack digital access. Including all types of consumers protects vulnerable groups, boosts CDR adoption, and keeps strong security protocols in place.

5. Improved standards governance

Regularly evaluate the cited standards and authentication criteria. Organisations must align with the latest updates to NIST SP 800-63-3 or TDIF revisions to effectively tackle emerging cybersecurity threats without delay. Consistent updates ensure that authentication strategies remain relevant and effective in a changing digital environment. The integration of these standards into a structured governance framework positions the CDR ecosystem to maintain its status as a worldwide leader in data privacy and security.

The strategic recommendations provide a clear guide to strengthen the CDR’s authentication framework, ensuring the ecosystem stays secure, inclusive, and robust against emerging threats.

Check out: “Enhancing data privacy frameworks for biometrics”

CDR prioritises security

“In an era defined by rapid technological advancements and increasing cyber threats, robust authentication frameworks are vital to safeguarding consumer data and preserving trust,” stated the Data Standards Chair. 

The document presents a strategic plan that enhances cybersecurity in the CDR ecosystem by identifying weaknesses, utilising international best practices, and implementing flexible, risk-oriented approaches. Measures such as multi-factor authentication (MFA), improved alignment with the Trusted Digital Identity Framework (TDIF), and attention to the specific needs of offline consumers will drive the CDR ecosystem towards exceptional security and inclusivity. 

MFA safeguards sensitive data, like financial transactions; customised offline authentication solutions enhance accessibility for underserved communities. Protecting consumer data is essential for compliance and fosters public trust and confidence. These proactive steps are necessary because cyber threats are getting smarter. The CDR ecosystem is now the world’s standard for safe, consumer-focused data sharing.

Improving CDR security

The report’s findings and recommendations hold significant importance for Australia’s public sector, setting a benchmark for secure and scalable digital ecosystems. Improved authentication systems enable government entities to safeguard confidential information, bolster public confidence, and set a standard in the worldwide initiative for secure data management. Enhancing network security within public sector initiatives includes sharing healthcare data and monitoring energy usage. 

Implementing multi-factor authentication and using advanced cryptographic techniques protects patient records and energy usage data from unauthorised access, ensuring compliance with cybersecurity regulations and global standards. Private companies in the CDR ecosystem can use these recommendations to adopt best practices, reduce vulnerability to cyber threats, and enhance consumer trust, alongside the public sector. By adopting adaptive risk-based authentication protocols, organisations create a smooth, secure user experience that boosts engagement in the CDR framework.

The report on “Applications of Authentication Frameworks” emphasises the need for Australia’s Consumer Data Rights ecosystem to adopt adaptive, risk-based authentication frameworks. Adopting important suggestions from the report, such as multi-factor authentication, better alignment with TDIF, and more inclusion for offline consumers, the CDR makes sure that security, scalability, and accessibility are all met for everyone. 

As we move forward, these measures position the CDR as a leader in secure and consumer-focused data sharing worldwide. As Australia’s digital landscape expands, these developments will ensure that both the public and private sectors remain resilient in an increasingly interconnected and vulnerable world.

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