Last week I commented how, if you have the basis for all your company assets on seven laptops, it makes sense to invest in a data security measure like laptop encryption software from AlertBoot.

The comment was based on a story where an unnamed auditing firm had lost seven laptops with customer information from the Borrego Springs Bank.  Obviously, a lack of data protection software would mean that there is an increased risk of a data breach leading to more tangible crimes.

It turns out, as I had assumed, that the laptop computers lost by the auditing firm were not the bank's.  The accounting firm of Vavrinek, Trine, Day and Co. lost the laptops in a burglary, according to bizjournals.com.  More importantly, it was revealed that the computers did not make use of encryption, just password protection.

Uh-oh.

Password Protection Is Not Really Protection

There is a reason to be concerned.  Password protection does not really afford you protection for your data.  If you have sensitive data residing on a laptop computer, only encryption software can ensure that thieves won't gain access to that computer's contents.

What's the difference between laptop encryption software and password protection? As described here,  the former ensures that only the correct key or password will allow access to the protected content.

Password protection, on the other hand, merely requires some hot-wiring.  There is no guessing or estimating or analysis involved.  All you have to do is pull some components and rewire them or pop them into the right slot.

Of course, one cannot claim that all laptop thefts will lead to more significant crimes such as ID theft, even if the computer contained financial information.  However, we must make note of the fact that the thieves probably knew they were stealing from an accounting firm.  Despite similar crimes being perpetrated in the area, I'd bet that thieves would make note of the fact that they're stealing a laptop computer from an accounting firm, as opposed to, say, a bakery, and take "appropriate" action, if you get my drift.