Protecting PII in Financial Services: Why Redaction Matters, even for Archived Documents

In today’s regulatory environment, financial services institutions (FSIs) are under increasing pressure to safeguard personally identifiable information (PII) across all their operations. The stakes are high: failure to protect PII can result in hefty fines, reputational damage, and risks that organizations don't need. As compliance requirements tighten and audits become more rigorous, FSIs must adopt robust solutions to ensure sensitive data is properly redacted—both in archived documents and in all future workflows.

The PII Challenge in Financial Services

Why PII Protection Is Critical

PII includes any data that can identify an individual, such as names, account numbers, addresses, and financial details. In the financial sector, the volume and sensitivity of this data make it a prime target for both cybercriminals and regulatory scrutiny. Mishandling PII—whether through accidental disclosure, improper sharing, or inadequate redaction—can have severe consequences.

Why Archived Documents Must Be Redacted

Old documents are not immune to modern threats. Many FSIs have vast archives—sometimes stretching back decades—filled with scanned contracts, statements, and correspondence. These legacy documents often contain unredacted PII, such as account numbers, tax file numbers, client names, addresses, and transaction details. If left unprotected, these archives become a goldmine for cybercriminals and a significant compliance risk.

Regulations such as the Australian Privacy Act and New Zealand’s Privacy Act require organizations to protect all personal data they hold, regardless of when it was collected. If a breach exposes PII from archived documents, the organization is still liable for penalties and must notify affected individuals. In fact, the Office of the Australian Information Commissioner (OAIC) reported a 19% increase in data breaches in the second half of 2023 compared to the previous six months, with the finance sector being one of the most affected industries.

The Rising Threat of Data Breaches

Data breaches are becoming more frequent and costly. According to IBM’s 2023 Cost of a Data Breach Report, the global average cost of a data breach reached $4.45 million, the highest on record. In Australia, the average cost of a data breach was reported at AUD 3.35 million. The OAIC’s Notifiable Data Breaches Report for July–December 2024 also found that 82% of breaches involved contact information, and 44% involved financial details.

For individuals, the consequences of a data breach can be long-lasting. The Australian Competition and Consumer Commission (ACCC) reported that Australians lost over $2 billion to scams in 2024, with identity theft and financial fraud being major contributors.

Best Practices for PII Protection and Redaction

To address these challenges, FSIs should adopt a multi-layered approach:

1. Automate Redaction: Use AI-powered tools to identify and redact PII in both new and archived documents, reducing human error and ensuring consistency.
2. Establish Clear Policies: Define what data must be redacted and regularly update policies to reflect evolving regulations.
3. Train Staff: Ensure employees understand the importance of PII protection and what to do with any PII information they interact with in their roles. Ensure all staff are following guidelines for protecting access to organizational systems.
4. Maintain Audit Trails: Track all redaction activities for accountability and audit readiness.
5. Secure Data Sharing: Implement encryption and access controls when sharing documents externally.

How Tungsten Automation Solutions Address PII Compliance

Tungsten Automation solutions provide a comprehensive suite of capabilities tailored to the unique needs of FSIs:

• Automated Redaction: Leveraging artificial intelligence, Tungsten Automation solutions can automatically detect and redact sensitive information from both historical and new documents, ensuring consistent PII protection and reducing the risk of human error.
• Document Conversion and Editing: These solutions enable organisations to convert scanned documents into searchable, editable files, making it possible to address compliance risks in legacy data stores and streamline the redaction process across various document types.
• End-to-End Compliance Automation: Tungsten Automation solutions integrate seamlessly with existing document workflows, providing end-to-end automation for compliance, audit readiness, and data protection. Features such as audit trails, access controls, and real-time monitoring ensure that FSIs can demonstrate compliance at any time.

Conclusion

As regulatory scrutiny intensifies and the volume of sensitive data grows, FSIs in Australia and New Zealand cannot afford to take chances with PII protection. Automated redaction—applied both retrospectively to archived documents and proactively to new data—is essential for compliance, operational efficiency, and customer trust. Tungsten Automation’s suite of intelligent solutions empowers financial organizations to meet these challenges head-on, ensuring that sensitive information stays protected and compliance risks are minimized.

Don’t wait for the next audit or data breach to take action. Explore how Tungsten Automation solutions can help your organization safeguard PII and stay ahead of regulatory demands. For more information visit our Banking & Financial Services page.