Forbes (01/05/10) Greenberg, Andy
Data recovery services account for a large percentage of privacy breaches, in which businesses lose control of personal information relating to employees or customers, according to a study released Jan. 5 by the Ponemon Institute. Data recovery vendors account for as many as 20 percent of data loss incidents at firms that use their services, the report says. Ponemon researchers queried 636 information technology professionals who had relied on data-recovery services or were knowledgeable about them. Eighty-three percent of respondents said their organizations at some point had lost control over their customers' sensitive information, and 19 percent of these said they had encountered a data breach when they brought on a third-party data recovery vendor. "A lot of organizations are focused on firewalls or perimeter controls and ignoring simple issues like these," says Ponemon CEO Larry Ponemon. "You're handing over your company's crown jewels to a stranger, often without assessing what security controls are in place to reduce the risks."