15 June 2010

Missing passports

Australian passports are of interest as official mechanisms that facilitate travel and government assistance and serve as primary identity documents in public/private interactions within Australia for people who do not have a driver licence (eg in renting a video or meeting '100 Points' identity verification requirements in opening a bank account.

It is thus interesting to see a 25 page report [PDF] by the Commonwealth Ombudsman on the handling, or mishandling, of missing passports.

The Ombudsman indicates that -
More than a million passports are sent through the Australian post each year. Most commonly these are new passports issued by the Department of Foreign Affairs and Trade (DFAT) and passports sent to and from diplomatic missions for visa purposes. Australia Post carries the majority of these passports.

The Postal Industry Ombudsman noted an increase in complaints about passports going missing in the post, from 1.2% of total complaints about Australia Post in 2007–08 to 2.2% in 2008–09. Although these complaints comprise only a small overall percentage of complaints to our office, we consider that the security and financial implications involved in the loss of a passport warrant treating this kind of complaint seriously.

The most frequent passport-related postal complaints brought to this office are first, that a passport has been lost, and second, that the amount of compensation offered by Australia Post for the loss of the passport is inadequate. In investigating Australia Post processes and practices relating to its handling of complaints about lost passports we considered: how Australia Post deals with complaints of this nature the postal services used by passport holders and the compensation arrangements available in case of loss.
The Ombudsman sought information from DFAT, as a bulk sender of passports and the agency responsible for issuing passports and dealing with reports of their loss. It goes on to report that -
As a result of our investigation, we have concluded that there are measures that both Australia Post and DFAT could put in place to capture better data about lost passports. This would enable more useful analysis of patterns of loss and expose possible systematic stealing of passports.

We have also concluded that Australia Post should redraft its terms and conditions and other information it makes available to the public about how to send passports through the post, and the compensation payable if a passport is lost. Updated versions could clarify the postal services available to customers and the protections for customers against the direct costs of loss of a passport.

Generally speaking, we do not consider it unreasonable for Australia Post to exclude payment of compensation for consequential loss (such as loss of income related to time off work) from its terms of service. Customers should be made aware of this, and should make passport and visa arrangements in ample time to deal with matters if a passport is lost. If that is not possible, customers should consider alternative arrangements that avoid the risk of loss in the course of carriage.

This report deals mostly with the inconvenience and damage encountered by members of the public when a passport is lost in the post. There are, of course, other considerations that make it important to minimise the risk of lost passports. Chief among these is the need to safeguard the integrity of the Australian passport system and reduce the risk for individuals that their personal information will be obtained by a third party. The danger of identity theft is a prominent concern within government. The recommendations in this report could go some way to reducing those and other risks.