"A data breach involving the Canada-based transcription service VIQ Solutions has affected at least 146 Australian court matters, leading to a privacy complaint filed in Canada."
Key Events and Timeline
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February Investigation: An ABC investigation reported that VIQ Solutions had subcontracted transcription work to e24 Technologies, based in Chennai, India, without notifying the courts and in breach of its Commonwealth contract.
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March 16: Administrators McGrathNicol were appointed to assess VIQ Solutions' viability.
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Senate Estimates Hearing: David Pringle, CEO of the Federal Circuit and Family Court, stated that VIQ Solutions provided varying figures on affected cases—initially around 170 files, later revised to 136 family court files. He noted that verification was not possible as VIQ Solutions had not provided detailed reports despite repeated requests. The Federal Court reported at least 10 matters in its portal were believed to have been transcribed offshore.
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Contract Amendment: The Federal Court extended its contract with VIQ Solutions by $5.3 million, despite the company being under administration and the contract having expired on June 30. The amendment was belatedly listed on the Australian Tenders website; Federal Court representative Cara Lawson attributed the delay to "administrative oversights or errors," including an incorrect start date and supplier name.
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Separate Contract: The Federal Court listed a separate $451,000 contract with Nous Group Pty Ltd for court recording and transcription services program management support, announced shortly before the Senate estimates hearing.
Data Access and Subcontracting
VIQ Solutions subcontracted transcription work to e24 Technologies in Chennai, India, without notifying the courts and in violation of its Commonwealth contract. Internal VIQ documents indicated that thousands of court files were accessed by staff at e24 Technologies with Indian email addresses. A job advertisement from e24 sought staff for legal document transcription, requiring proficiency in 'Australian English' for a 'remote' location.
Australian VIQ staff had raised concerns with management about offshore transcribers months prior to the public revelations. Staff reported that e24 employees were accessing court files outside Australian business hours and completing transcripts at an unsustainably fast rate, leading to significant errors. VIQ management reportedly dismissed these concerns, stating that e24 resources were based in Sydney, and directed staff to cease spreading 'rumours.' A VIQ vice-president of Legal, Compliance and Human Relations stated that questions regarding offshore typists and transcript quality were 'not relevant' to employees' daily responsibilities.
Nature of Compromised Data
Court cases handled by the Federal Circuit and Family Court include matters involving domestic violence, child abuse allegations, migration, and property settlements. Federal Court cases cover human rights issues, industrial relations disputes, taxation law, and matters involving large corporations.
Additional allegations from anonymous VIQ contractors included claims that unvetted overseas staff accessed sensitive matters, potentially including protocols of the Australian Border Force and police, and identities of witnesses and covert operatives. Another contractor claimed that identities and locations of protected persons were left in transcripts produced by e24 for the West Australian Department of Justice. The WA Department of Justice is currently investigating these claims.
Official Responses and Investigations
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VIQ Solutions: Following inquiries, VIQ reviewed its processes and identified compliance issues with e24. CEO Larry Taylor stated that strict standards are implemented for contractors to ensure privacy, confidentiality, and security of sensitive customer data, and that all customer data for Australian clients is stored in Australia in accordance with the Privacy Act 1988 (Cth).
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Federal Court of Australia: CEO Sia Lagos confirmed during the Senate estimates hearing that VIQ Solutions was prohibited from offshoring court data and using AI-based software, and that the court had not been informed about e24 Technologies. A court spokesperson stated that the entity managing the contract is seriously addressing compliance matters and is conducting inquiries.
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Greens Senator David Shoebridge: Shoebridge stated that the numbers provided by both courts were unreliable and criticized the handling of the contract. He called for an independent audit and the urgent termination of the contract with VIQ Solutions, citing multiple whistleblowers.
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Privacy Complaint: A formal complaint has been filed with the Privacy Commissioner in Canada regarding the breach.
Jurisdictional Responses
- The Federal Circuit and Family Court referred inquiries to the estimates hearing, the Federal Court entity, VIQ Solutions, and the administrator.
- The Attorney-General's department referred inquiries to the Federal Court.
- The Federal Court referred inquiries back to the estimates hearing, VIQ Solutions, or the administrator.