http://www.cbsnews.com/stories/2006/07/08/tech/main1786484.shtml

Why Is Sensitive ID Data On Laptops?
ID Theft Could Be Curbed If Records Were Kept In Secure Locations

BOSTON, July 8, 2006
(CBS/AP)

Quote

“It's pure laziness. There's actually no excuse for it. There's no good 
business reason for it.”
Avivah Litan, security analyst

(AP) Every month seems to bring another episode of sensitive personal 
information escaping into the wild because a corporate or government 
laptop computer is lost or stolen. A common response is a lot of 
hand-wringing over how the data should have been encrypted.

But some key questions usually go unanswered. Why is so much private 
data allowed to be on laptops to begin with? What do people do all day 
that compels them to tote around records on, say, 26 million Americans, 
the staggering number seen in the recent Veterans Affairs case?

“It's pure laziness. There's actually no excuse for it,” said Avivah 
Litan, a security analyst for Gartner Inc. “There's no good business 
reason for it.”

Litan advocates a few simple steps: Organizations should keep sensitive 
information only on secure, centralized servers. Workers can access the 
data from PCs in the office or over private Internet connections, but 
can't store the records on their own machines to fiddle with them offline.

If they absolutely need to analyze data out of the office, the employees 
should run programs that replace live credit card or Social Security 
numbers with random “dummy” figures whenever possible, since the actual 
numbers aren't always relevant.

Following such rules would have prevented the scare that resulted when a 
laptop with veterans' data was burgled from an analyst's home May 3 (it 
was later recovered with the information apparently unaccessed). The VA 
inspector general told Congress that the staffer had been bringing data 
home for policy analysis since 2003.

It's true that encrypting data — scrambling them with private codes — 
can make whatever is found on a laptop almost impossible to read. But 
encryption often isn't turned on by users who think it degrades computer 
performance.

Consider the case of the ING Financial Services adviser who had Social 
Security numbers and other personal data for 13,000 District of Columbia 
employees on his laptop — until the computer was stolen from his home 
last month. ING administers pensions for the district.

The adviser had broken ING rules by not having the data encrypted. ING 
responded by recalling all employees' laptops to ensure that encryption 
software was turned on and couldn't be switched off.

But the fact that the information was out of the office was not itself a 
violation.

ING officials said the adviser had the records because they corresponded 
to older pension plan participants who were more likely to call him for 
assistance. The adviser also wanted the data on hand for potential 
marketing efforts, such as to help decide whom to invite to a finance 
seminar.

Now, in light of the laptop episode, ING is reconsidering whether 
sensitive data should be allowed to leave the nest at all, even if it is 
encrypted.

Steve Van Wyk, ING's chief information officer, believes the emergence 
of ubiquitous broadband connections and secure Web-based business 
software have made it unnecessary for employees to store private data on 
portable devices. Not only is that data diaspora a security risk, but it 
also can be costlier for the company to make sure back-office files and 
mobile data are in sync, he said.

“The ability to control it and protect it may be best if it's 
centralized,” he said. “Why even go through the vulnerability?”

To a large degree, the problem of personal data floating away with 
laptops stems from companies' tardiness in accepting just how valuable 
the information is. Otherwise such records would have long been treated 
like product designs, market intelligence and other business secrets 
that aren't allowed to leave secure central computers.

But it's not clear this problem will ever go away.

Many mobile workers want to keep information “locally” on their laptops 
so they can work efficiently while traveling, meeting with clients or 
pounding away in other settings where they can't connect to a network. 
That's why they're often allowed — even encouraged — to take laptops home.

That was the case for an employee of investment adviser Ameriprise 
Financial Inc. who had 158,000 clients' account information on a laptop 
stolen in January.

Ameriprise spokesman Steven Connolly said the worker was one of “very 
few people” in the company allowed to keep that kind of personal data on 
his own machine. Connolly would not explain what the man — a 
corporate-level staffer who did not interact with clients — did that 
required such intimate access.

In February, a similar theft hit an Ernst & Young consultant, who lost 
names, addresses and credit card information on 243,000 Hotels.com 
customers.

Ernst & Young spokesman Charlie Perkins would not say why the consultant 
needed to hold so much live personal information. Perkins said the firm 
was confident, however, that its policy of encrypting all 30,000 of its 
consultants' laptops — a step that was being implemented when the theft 
occurred — would prevent future incidents while preserving the staff's 
mobility.

Even if employees technically aren't supposed to walk out the door with 
computers, many will quietly transfer business files to iPods, “thumb” 
drives and other capacious storage devices, said Sunil Jain, senior 
consultant for Sprint Enterprise Mobility Inc., the services arm of 
Sprint Nextel Corp.

“It's much faster to download the data and then do the reports offline,” 
Jain said. “It's just human nature.”

Jain finds that even though he knows his company's central servers are 
supposed to back up key files every night, he does the same on his 
laptop just in case. He expects that's a common move, especially since 
many companies — including his — tend to give increasingly storage-rich 
laptops to employees whether they really need them or not.

Iron Mountain Inc., a data-management vendor, believes it offers a 
middle ground: software that can make sensitive information on a laptop 
shred itself if the computer is lost or stolen. The self-destruct 
mechanism is triggered if the computer hasn't logged into the home 
office for a while, or if a thief tries to connect the machine to some 
other network.

“There's some powerful forces working against (data) centralization,” 
said John Clancy, an executive vice president at Iron Mountain. With the 
rise of telecommuting and other out-of-the-office productivity 
enhancers, “the genie's already out of the bottle. The information is 
already out there... The challenge now is, the stakes are getting higher.”



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