The Cost of Skipping 2FA? Client Trust and Your Reputation

The Cost of Skipping 2FA? Client Trust and Your Reputation

Is Your Firm Sending ATO Correspondence Without 2FA Protection?

The Australian superannuation industry has recently been shaken by a wave of alleged client account hacks—many traced backs to weak security practices by intermediaries. One alarming trend stands out: ATO correspondence being delivered without Two-Factor Authentication (2FA) protection.
If you’re accounting or financial services firm is still sending ATO documents via unencrypted email or relying on redacted TFNs as your “security strategy,” it’s time to urgently reassess your processes. The era of simply attaching sensitive client information to an email is over—and continuing to do so puts both your firm and your clients at serious risk.

The Risks Are Real

ATO correspondence often contains highly sensitive client data—names, addresses, TFNs, financial positions, and compliance details. In the hands of the wrong person, this data can be used to:

  • Access or transfer superannuation balances
  • Lodge false returns
  • Commit identity theft or fraud

In several recent cases, malicious actors gained access to super accounts using information sourced from unsecured ATO correspondence. And while TFNs might be redacted, other details are often enough to build a full identity profile.

2FA: A Minimum Standard, Not a Bonus

Two-Factor Authentication has become a minimum expectation in data protection. Whether you’re sharing ATO documents with clients or granting them access to a document portal, 2FA must be part of your process. It ensures that even if an email account is compromised, the attacker can’t easily gain access to the documents or portals you’ve provided.
If your system doesn’t support 2FA today, it’s not just behind the times—it’s a liability.

Stop Emailing ATO Docs—Seriously

Despite warnings from both the ATO and cyber security bodies, many firms still attach ATO correspondence to standard client emails. This practice:

  • Exposes documents to interception during transmission
  • Makes them vulnerable if the recipient’s inbox is hacked
  • Violates the expectations of the Australian Privacy Principles (APPs)

Redacting a TFN does not make a document “secure” for email transmission. The rest of the document often contains enough personal detail to be dangerous in the wrong hands.

What Firms Should Do Immediately

  • Review Your Current ATO Document Delivery Process: If you’re using email, move to a secure platform that requires 2FA access.
  • Educate Your Team: Make sure staff understand the risks of insecure delivery and the importance of secure client communication.
  • Adopt Secure Portals or Document Delivery Systems: Use technology that supports encrypted document transfer, access logging, and 2FA for clients.
  • Update Client Expectations: Communicate the security changes to your clients—they’ll appreciate your proactive approach to protecting their data.

 Don’t Wait for a Breach

Cyber threats don’t discriminate by firm size. Every firm handling ATO documents must treat security as a priority, not an afterthought. Regulators are watching, and clients are losing trust in providers that cut corners on data protection.

It’s time to raise the bar. If your firm is still sending ATO correspondence without 2FA, the message is simple: change your process before someone else changes it for you.

Ready to Secure Your ATO Correspondence? Let us show you how ATO SmartDocs can lock down your ATO document delivery with ease. Book a LIVE demo today.

 

Ron Drost
Latest posts by Ron Drost (see all)

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