23nd February 2026 Cyber Update: Australian Court Data Exposed in Major Third-Party Breach

Cyber News Centre's cyber update for 23rd February 2026: VIQ Solutions, a Canadian transcription services provider, has confirmed a significant security incident that exposed highly sensitive Australian court data after it subcontracted work to an Indian technology firm in breach of its government contracts.

VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. The company is publicly traded on the TSX Venture Exchange (TSXV: VQS) and provides transcription services for courts and tribunals across Australia and internationally.

The Update and Why It Matters

Update: Canadian transcription services firm VIQ Solutions has confirmed a major data security incident after it subcontracted work to an Indian-based technology company, e24 Technologies, in direct violation of its Commonwealth contracts. The breach exposed thousands of highly sensitive Australian court files, including documents from the Federal Circuit and Family Court, which handles cases involving domestic violence and child abuse, as well as the Federal Court, which hears national security and major corporate cases.

An investigation by ABC News, which broke the story on February 16, revealed that VIQ staff had raised concerns about the offshoring of data as early as August 2025 but were dismissed by management. Internal documents showed e24 staff with Indian email addresses accessing the files. VIQ Solutions issued a press release on February 20 acknowledging the "data privacy incidents" and stating it had launched an internal investigation with a leading cybersecurity firm.

The company admitted the incident is "reasonably likely to have a material impact" on its financial condition, as its Australian operations represent a significant portion of its revenue. The breach affects courts in NSW, Victoria, Queensland, WA, and SA.

Why it Matters: This matters on several fronts. For the courts, it exposes a critical failure in vendor oversight and raises immediate questions about whether contracts with VIQ should be terminated, given the national security implications and the potential exposure of witnesses, covert officers and vulnerable families. For Canberra, it underscores the fragility of “set and forget” outsourcing: a private operator’s quiet decision to chase low-cost offshore capacity has effectively exported some of the country’s most sensitive judicial data beyond the protection of Australian law.

Access to state and federal court cases by foreign entities is a "national security risk", according to Greens senator David Shoebridge.

"Incredibly sensitive evidence from organisations like ASIO, the Australian Federal Police, is given in private court because it could be addressing links to international criminal organisations, potential foreign interference in the country," he said.

For VIQ, it is a governance and trust crisis in one, combining possible contractual penalties, incident-response and legal costs, and reputational damage that could jeopardise its position in court and government transcription markets worldwide

The failure of VIQ Solutions to adhere to its contractual obligations against offshoring data, and its initial dismissal of employee concerns, highlights a significant governance failure that undermines trust in the justice system's ability to protect its most sensitive information.

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