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« More Data Retention Tips And Considerations | Main | The Power of Logs: IRS Examiner Sentenced & Fined For Accessing PII Without Authorization »

Laptop Containing PII of 1 Million+ People Sold On eBay for $141

I've been doing a lot of work with data retention and disposal policies and procedures lately, remembering the silly things I have read about with regard to organizations getting rid of their computers, such as selling their computers on eBay when they no longer need them...without removing the information! This is certainly not a phenomenon that is confined to the U.S.

Lo and behold, another situation has happened where an organization sold their old computer on eBay...for a bargain at £77 ($141), and it contained a a huge amount of personally identifiable information (PII), including credit card applications, on what is reported to be as many as over 1 million customers. Here are a few excerpts from the report in Forbes...

"The Royal Bank of Scotland acknowledged that a machine belonging to archiving company Graphic Data and sold "inappropriately to a third party" had information on credit card applications from some RBS customers and data from other banks. The computer contained account numbers, passwords, mobile telephone numbers and signatures."

"A former employee from Graphic Data sold a computer server used by the company on eBay without wiping the internal hard drive, said Nicole Morgan, a spokeswoman for MailSource UK, which now owns Graphic Data.
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The buyer, Andrew Chapman, said he found the data when he looked at the machine's hard disk. "I was appalled when I found the bank account information. That sort of thing shouldn't have been listed on there," he said. "It would have been possibly quite easy to find if you know something about computers."
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The security breach became known when Chapman found the information and contacted authorities."
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"The IT equipment that appeared on eBay was neither planned nor instructed by the company to be disposed" she said. "This incident is extremely regrettable and we're taking every possible step to retrieve the data and ensure this is an isolated incident."

There are so many things that appear could be wrong, missing and vulnerable in this situation. Just a few of the possibilities...

  • The insider threat; an employee (ex now) taking it upon his or herself to sell an old laptop
  • Possibly no policies for data disposal, laptop security, PII controls, computer retirement, and so many other possibilities
  • The lack of controls within a vendor/contractor; looks as though the Royal Bank of Scotland (RBS) outsourced work to Graphic Data, who caused the incident
  • Lack of data inventory and data tracking; RBS and Graphic Data would never have known the data was on the sold computer unless the buyer had contacted them! Just think of all the malicious things the buyer could have done with the PII of over 1 million people!

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Rebecca Herold's Bio:

Rebecca Herold,CISSP, CIPP, CISM, CISA, FLMI, has been providing information security, privacy and regulatory assistance and services to organizations from a wide range of industries for over 18 years. Rebecca was instrumental in building the information security and privacy program while at Principal Financial Group, which was awarded the CSI Information Security Program of the Year Award in 1998. IT Security ranked Rebecca as one of the top 59 IT security influencers, and Computerworld put Rebecca their list of the 25 top privacy experts and on their list of the 9 best privacy consulting firms. Rebecca has been CPO for two consulting organizations, and has had her own information privacy, security and compliance business since 2004. Rebecca has written chapters for several books, dozens of articles, and has been writing a monthly privacy column for the CSI Alert newsletter since the beginning of 2001, and is working on her 11th book. Some of her other books include The Privacy Papers, Managing an Information Security and Privacy Awareness and Training Program, The Definitive Guide to Security Inside the Perimeter (Realtime Publishers), The Shortcut Guide to Improving IT Service Support through ITIL (Realtime Publishers), and The Practical Guide to HIPAA Privacy and Security Compliance. In addition, Rebecca is the leader of The Realtime IT Compliance Community where she posts to her IT Compliance weblog. You can contact Rebecca at: rebecca_herold@realtimepublishers.net.