Portable storage: Why you should always use encryption!

The looming threat of data theft and malware reminds many Internet users to be careful with their personal information online -- even if the companies and government agencies we expect to use proper security measures also shrug off their responsibilities.

Data theft causes companies millions of dollars each year and thousands of Americans have their personal information stolen on a weekly basis, while the problem only seems to worsen.

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An Intel-commissioned study released last year indicated companies paid an average of $49,246 per notebook related to "value of the enclosed data above the cost of the PC."

There have been a number of high-profile cases dating back more than five years, with the same issues still occurring as many companies, employers and government agencies are too careless with personal information.

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The American Red Cross had three notebooks stolen from a company office in 2006 -- but all information was properly encrypted, so their data was safe. In a more serious 2006 incident, a computer analyst had a notebook stolen with the personal information of more than 26 million U.S. veterans.

As flash drives receive larger storage capacities and portable hard drives get smaller, there is concern of unencrypted information being mistakenly lost and put in the hands of criminals or malicious parties. In early 2009, a used MP3 player purchased at a thrift store by a New Zealand man in Oklahoma yielded documents that included names, Social Security numbers and other sensitive information.

Most recently, a notebook stolen from a Canadian hospital contained names, health card identification numbers, dates of birth, and other personal information of many customers. The information should have been encrypted, but instead it left the hospital as information that could be easily viewed and shared.

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It seems random acts of crime lead most notebook and data theft -- but the files can be later shared, sold, and distributed through peer-to-peer networks, security experts warn.

Some government agencies now only allow people with proper screening to take home information -- and it must be encrypted -- and relevant to work. In the corporate workplace, however, data thefts of unencrypted notebooks and flash drives continue to occur at an alarming rate. Many corporations cognizant of the threats are now implementing mandatory full disk encryption software on all employee computers.

Using file protection helps to set barriers that stifles most criminals from being able to access sensitive information. The use of disk encryption software is all it takes most of the time to prevent files from being accessed by thieves.

Manufacturers are now developing niche high-security flash drives and HDDs, including the Kingston DataTraveler 256-bit AES encryption flash drive. The company behind the Swiss Army knife also recently announced a secure flash drive that includes a self-destruct feature.

But just because your flash drive or portable HDD doesn't come shipped with encryption software is no reason not to use it. Windows offers a built-in EFS (Encrypted File System) solution and free open source alternatives such as TrueCrypt are also available.

The lesson is to always encrypt your portable drives and media, unless you want to lose it and find it in the hands of a stranger with possibly malicious intentions.

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