{"id":23139,"date":"2023-11-18T12:53:50","date_gmt":"2023-11-18T07:23:50","guid":{"rendered":"https:\/\/www.stellarinfo.co.in\/blog\/?p=23139"},"modified":"2023-12-11T10:32:23","modified_gmt":"2023-12-11T05:02:23","slug":"the-risk-of-inadequate-data-erasure-real-life-consequences-and-case-studies","status":"publish","type":"post","link":"https:\/\/www.stellarinfo.co.in\/blog\/the-risk-of-inadequate-data-erasure-real-life\/","title":{"rendered":"The Risk of Inadequate Data Erasure: Real-Life Consequences and Case Studies"},"content":{"rendered":"<table>\n<tbody>\n<tr>\n<th style=\"background-color: #eee; text-align: justify;\"><strong>Summary:<\/strong> Inadequate data erasure poses significant risks. It can lead to privacy breaches, financial penalties, and reputational damage. In this blog, we use real-life cases to highlight the consequences of a security breach. Further,\u00a0 we emphasize the need for robust solutions like Bitraser for secure data disposal and compliance.<\/th>\n<\/tr>\n<tr>\n<th>\n<p style=\"text-align: center;\"><a class=\"btn btn-lg btn-primary mr-sm-2\" href=\"https:\/\/www.stellarinfo.co.in\/bitraser\/ppc\/drive-erasure.php?utm_source=Blog-Post&amp;utm_medium=Request-A-Callback&amp;utm_campaign=Blog-Post-BitRaser\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Request A Call Back<\/a><\/p>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Cybercrime is on a terrifying rampage. It is poised to cost companies an astounding <\/span><a href=\"https:\/\/www.globenewswire.com\/news-release\/2020\/11\/18\/2129432\/0\/en\/Cybercrime-To-Cost-The-World-10-5-Trillion-Annually-By-2025.html#:~:text=Every%20U.S.%20business%20is%20under%20cyberattack&amp;text=18%2C%202020%20(GLOBE%20NEWSWIRE),%243%20trillion%20USD%20in%202015.\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">$10.5 trillion<\/span><\/a><span style=\"font-weight: 400;\"> annually by 2025. That is up from a mere $3 trillion in 2015.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What\u2019s worse is that it takes companies an average of <\/span><a href=\"https:\/\/www.ibm.com\/security\/digital-assets\/cost-data-breach-report\/#\/\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">197 days<\/span><\/a><span style=\"font-weight: 400;\"> to identify such instances. And another 67 days to contain the damages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover,\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A staggering <\/span><a href=\"https:\/\/cpl.thalesgroup.com\/en-gb\/data-threat-report#download-popup\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">45% of companies in the United States<\/span><\/a><span style=\"font-weight: 400;\"> have fallen victim to <\/span><b>data breaches<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Companies that encounter a breach witness a significant drop in performance. They are seen lagging behind the market by over <\/span><a href=\"https:\/\/www.comparitech.com\/blog\/information-security\/data-breach-share-price-analysis\/\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">15% after a span of three years<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Small businesses were the target of <\/span><a href=\"https:\/\/enterprise.verizon.com\/resources\/reports\/dbir\/2020\/summary-of-findings\/\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">28% of <\/span><b>data breaches<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The silver lining is that companies are taking data privacy and cybercrime seriously. Findings from Gartner reveal a global surge in data security expenditure. It soared by <\/span><a href=\"https:\/\/www.gartner.com\/en\/newsroom\/press-releases\/2021-05-17-gartner-forecasts-worldwide-security-and-risk-managem\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">17.5% from 2020 to 2021<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But imagine if you also face <\/span><b>data breach risks<\/b><span style=\"font-weight: 400;\"> from the devices that have been discarded.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yes, that\u2019s possible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As per <\/span><a href=\"https:\/\/thebusinessjournal.com\/column-improper-disposal-of-hard-drives-can-lead-to-health-records-breaches\/\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">The HIPAA Journal<\/span><\/a><span style=\"font-weight: 400;\">, 16 instances of improper device disposal were reported in 2020. These occurrences potentially exposed nearly 600,000 records.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you sell your old devices or drop them off at dumpsters, what happens to the valuable data they once housed?<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">We deleted the data before disposing of the device!<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Well, that\u2019s not enough.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even after you press delete, the information that can be retrieved. By anyone with just the right software and a little bit of expertise.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What you need is thorough data erasure.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not convinced?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take 3 real-life examples and see how inadequate data erasure led to grave consequences.\u00a0<\/span><\/p>\n<h2>Disaster From The Dumpster: Real-Life Consequences Of Inadequate Data Erasure<\/h2>\n<p><strong>Data Breach Example 1: The HealthReach Data Breach<\/strong><\/p>\n<p><b>Who was involved<\/b><span style=\"font-weight: 400;\">: HealthReach Community Health Centers<\/span><\/p>\n<p><b>The data:\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/apps.web.maine.gov\/online\/aeviewer\/ME\/40\/aa904682-5a4f-45fb-bd4d-79095854623d.shtml\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">breach involved the sensitive and personal information of 101,395 Maine residents<\/span><\/a><span style=\"font-weight: 400;\">. This\u00a0 included:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Patient names,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Social Security numbers (SSNs),\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dates of birth,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial account numbers,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lab\/test results,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insurance details,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Passwords,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Security codes, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">PINs.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To compound the situation, 15,503 individuals from other states were also affected.<\/span><\/p>\n<p><b>What happened:\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">HealthReach Community Health Center is a healthcare organization based in Waterville, Maine. On September 9, 2021, they found themselves at the center of a massive potential <\/span><b>data breach<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The breach originated from a mishandling of data storage devices. Instead of being securely wiped and shredded as per industry standards, several hard drives containing the aforementioned sensitive data were improperly disposed of by an employee at a third-party storage facility. This resulted in a goldmine of personal information falling into the wrong hands.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Upon discovering the breach, HealthReach immediately notified the affected individuals. And they took steps to mitigate the damage. Patients were urged to monitor their accounts and credit reports for suspicious activities. There was no concrete evidence of fraudulent use of the compromised data at that time. But the potential risk was evident.<\/span><\/p>\n<p><b>The consequences:\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">HealthReach offered a year of credit monitoring, dark web monitoring, and identity theft protection services to the affected consumers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally,<\/span><a href=\"https:\/\/www.doj.nh.gov\/consumer\/security-breaches\/documents\/healthreach-community-health-centers-20210913.pdf\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\"> a $1 million reimbursement insurance policy<\/span><\/a><span style=\"font-weight: 400;\"> was provided through IDX\/Transunion. This was to provide some financial protection in the event of identity theft or other issues caused by the <\/span><b>data leak<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><b>How could this breach have been avoided?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Properly erasing data from storage devices using a certified data erasure tool like <\/span><a href=\"https:\/\/www.stellarinfo.co.in\/bitraser\/drive-eraser-software.php\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">BitRaser Drive Eraser<\/span><\/a><span style=\"font-weight: 400;\"> could have easily prevented this breach.<\/span><\/p>\n<p><strong>Data Breach Example 2: Morgan Stanley&#8217;s Costly Oversight<\/strong><\/p>\n<p><b>Who was involved<\/b><span style=\"font-weight: 400;\">: Morgan Stanley Wealth Management (formerly Morgan Stanley Smith Barney)<\/span><\/p>\n<p><b>The data: <\/b><span style=\"font-weight: 400;\">Personal identifying information of millions of its customers.<\/span><\/p>\n<p><b>What happened:\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Morgan Stanley Wealth Management (MSSB) discovered the consequences of <\/span><a href=\"https:\/\/www.sec.gov\/news\/press-release\/2022-168\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">inadequate oversight in data disposal<\/span><\/a><span style=\"font-weight: 400;\">. It occurred between 2015 to 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MSSB had a plan to shut down its data centers in 2016 and enlisted vendors to manage the task. Although a moving firm and IT Corp A jointly applied to take on the project, only the moving firm received official approval.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The agreement between MSSB and this firm specified that IT Corp A would erase or degauss the devices before they were sold again, with MSSB slated to receive between 60% and 70% of the resale profits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regrettably, the actual decommissioning deviated from what was agreed upon. The moving firm did collect the hardware and briefly took them to IT Corp A&#8217;s location.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While IT Corp A did catalog the devices and even had a trackable database, the promised degaussing was skipped. Several devices were put up in the resale market with vital customer data still on them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MSSB neglected to oversee this database or maintain any form of direct communication with IT Corp A to confirm the devices were being managed correctly. Moreover, MSSB never claimed the resale profits from the moving firm as was outlined in the contract.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The shortcomings in this scenario were several:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The agreed-upon degaussing, a vital method for data erasure, was overlooked.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MSSB failed to keep an eye on the database or establish any direct liaison with IT Corp A to ensure the contract&#8217;s terms were met.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No personnel at MSSB checked whether the devices had been adequately wiped before being put back on the market, resulting in the exposure of confidential client data.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To their credit, Morgan Stanley attempted to recover some of these devices. But most of the devices, with thousands of instances of unencrypted customer data, remained unrecovered.<\/span><\/p>\n<p><b>The consequences:\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The US Securities and Exchange Commission (SEC) required Morgan Stanley Wealth Management to <\/span><a href=\"https:\/\/www.sec.gov\/news\/press-release\/2022-168\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">pay $35 million to settle claims<\/span><\/a><span style=\"font-weight: 400;\"> related to the improper disposal of customer data.<\/span><\/li>\n<\/ul>\n<p><b>How could this breach have been avoided?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Hiring a <\/span><a href=\"https:\/\/www.stellarinfo.co.in\/services\/data-wiping-service.php\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">specialized data erasure service<\/span><\/a><span style=\"font-weight: 400;\"> with expertise in secure data destruction could have averted this breach.<\/span><\/p>\n<p><strong>Data Breach Example 3: Oklahoma State Agencies&#8217; Unsecured Data Resurfaces<\/strong><\/p>\n<p><b>Who was involved<\/b><span style=\"font-weight: 400;\">: Oklahoma Corporation Commission<\/span><\/p>\n<p><b>The data: <\/b><span style=\"font-weight: 400;\">Names and Social Security numbers of 5000 residents stored on a server.\u00a0<\/span><\/p>\n<p><b>What happened:\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/eu.oklahoman.com\/story\/news\/2008\/05\/21\/secret-data-released-with-state-auction\/61590422007\/\" target=\"_blank\" rel=\"noopener nofollow\"><span style=\"font-weight: 400;\">story unfolded<\/span><\/a><span style=\"font-weight: 400;\"> when in 2008 Oklahoma City resident Joe Sills purchased surplus state computer equipment at an auction.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sills stumbled upon a file containing over 5,000 Social Security numbers. The data had not been properly erased, leaving sensitive information vulnerable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The server in question had a history of use by the State Tax Commission. And, more recently, was used by the Corporation Commission. The Social Security numbers were likely associated with trucking industry data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sills&#8217; discovery ignited outrage. He rightly feared the potential misuse of the exposed sensitive data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In response to the incident, the Corporation Commission took swift action. To prevent similar occurrences, they decided to remove hard drives from all surplus computer equipment before sending them to state auctions.\u00a0<\/span><\/p>\n<p><b>The consequences:\u00a0<\/b><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Details about specific penalties or fines aren&#8217;t available.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">However, the reputational damage and potential legal consequences could have been significant.<\/span><\/li>\n<\/ul>\n<p><b>How could this breach have been avoided?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Implementing a standard protocol for data erasure before decommissioning hardware could have prevented this incident. With a reliable <strong>data erasure tool like <\/strong><\/span><strong>BitRaser<\/strong><span style=\"font-weight: 400;\">, this task could have been easily performed in-house.\u00a0<\/span><\/p>\n<h2><strong>Avoiding Dumpster Disasters With Bitraser<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The lack of proper data erasure led to significant <\/span><b>privacy breaches<\/b><span style=\"font-weight: 400;\">. And result in financial penalties, legal repercussions, and reputational damage.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, these disasters could have been averted. How? Through the implementation of robust data erasure practices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A reliable data erasure solution like Bitraser could have played a pivotal role in preventing such incidents.\u00a0<\/span><\/p>\n<p><strong>Bitraser: Your Solution for Secure Data Erasure<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Bitraser is an advanced data erasure software. It is designed to ensure complete and irreversible destruction of data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By utilizing Bitraser&#8217;s powerful features, organizations (and individuals!) can mitigate the risks associated with <\/span><b>data breaches<\/b><span style=\"font-weight: 400;\"> resulting from improper data disposal.\u00a0<\/span><\/p>\n<h2>How to use BitRaser?<\/h2>\n<p><b>Some features of BitRaser include:<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bitraser follows industry-standard erasure algorithms. This provides certified data erasure that complies with data protection regulations.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Even for devices not under the organization&#8217;s immediate control, Bitraser allows remote erasure. This avoids <\/span>security breaches<span style=\"font-weight: 400;\"> even from devices beyond physical possession.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bitraser&#8217;s data verification feature confirms the successful erasure of data. This provides an audit trail that proves compliance with data disposal policies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bitraser generates detailed reports of the erasure process. This offers transparency and documentation for compliance audits and legal requirements.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">As demonstrated in the case studies, the investment in proper data erasure today can prevent tomorrow&#8217;s <\/span><b>data breach risk<\/b><span style=\"font-weight: 400;\">. So don\u2019t wait, invest in the right data erasure software and avoid any <\/span><b>data leaks<\/b><span style=\"font-weight: 400;\"> or <\/span><b>privacy breaches<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Summary: Inadequate data erasure poses significant risks. It can lead to privacy breaches, financial penalties, and reputational damage. In this blog, we use real-life cases to highlight the consequences of a security breach. Further,\u00a0 we emphasize the need for robust solutions like Bitraser for secure data disposal and compliance. Request A Call Back Cybercrime is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23280,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-23139","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-erasure","has_thumb"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Data Breach Risk Due to Inadequate Data Erasure<\/title>\n<meta name=\"description\" content=\"Discover real-world cases illustrating the dangers of poor data erasure. 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