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Disk Encryption Software: ICO Finds Burglaries And Theft Biggest Security Risk

According to a press release by the UK's Information Commissioner's Office, the biggest security risks come from theft and burglary.  Based on what I'm reading, I would assume that the use of data encryption prevent many information security breach instances occurring from theft.

Some Figures

By law, companies in the UK who have experienced a data breach must report them to the Information Commissioner.  The ICO has been receiving such notices ever since CDs with the information of 25 million child benefit records went missing.  Of the notices compiled over two years:

  • A total of 711 organizations have reported a breach to date
  • 231 of the breaches involved theft (laptops, USB memory sticks, external hard disks)
  • 200 private companies and 209 NHS trusts have experienced breaches.

As mentioned earlier, theft of digital devices (I take it this does not include losses of devices, but outright physical intention to steal) was the main driver of announced breaches.

ICO Will Gain Powers in 2010

The ICO currently doesn't have the ability to do anything about such reported breaches because they lack the required legislative power.  However, this power will be soon in coming.  Starting in 2010, the ICO gains the ability to imposing fines for data breaches.

As of yet, it's not know how big a monetary penalty can be imposed.

Disk Encryption Can Help

One of the ways a company can protect itself from such fines is via the use of encryption software.  As far as I know, there are no legal requirements for companies to encrypt sensitive data.

However, there is a legal requirement for companies to protect sensitive data.  Case after case seems to show that the use of encryption fulfills that legal requirement.

In instances where encrypted devices are lost or stolen, the organization seems to get a slap on the wrist (and with good reason, too.  Encryption goes a long way towards protecting information if a laptop computer is stolen).

In the event that encryption was not used, many affected organizations will agree to a formal Undertaking to beef up security. I have always seen a clause to use encryption on any laptops and other portable media devices that carry sensitive or personal data in those Undertakings.


Related Articles and Sites:
http://www.ico.gov.uk/upload/documents/pressreleases/2009/nadpo_111109.pdf
http://www.databreaches.net/?p=8210

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About sang_lee

Sang Lee is a Senior Account Manager and Security Analyst with AlertBoot, Inc., the leading provider of managed endpoint security services, based in Las Vegas, NV. Mr. Lee helps with the deployment and ongoing support of the AlertBoot disk encryption managed service. Prior to working at AlertBoot, Mr. Lee served in the South Korean Navy. He holds both a B.S. and an M.S. from Tufts University in Medford, Massachusetts, U.S.A.