It’s a fact that computer recycling helps protect business owners from massive liabilities. Back in 2001, there were two federal privacy laws that went into effect that apply to most businesses in the U.S. These laws require business owners to protect financial and medical information from “cradle to grave”. But, that’s not all these laws establish.
Corporate hacking and corporate espionage is a real thing. It happens all the time. If a discarded computer falls into the wrong hands, that person would have all the time they needed to find confidential information. Computer recycling can assist in protecting the business. The type of information that criminals find useful includes anything from personal contact information, social security numbers, proprietary financial information, etc. Computers discarded from government agencies can potentially reveal a lot more sensitive data.
Back in 2011, there were many companies that suffered malicious intrusions or employee negligence that affected their businesses. In April 2011, computer hackers broke into the Sony PlayStation Network and gained access to the personal and financial information of roughly 77 million PSN users. Sony has since spent at least tens of millions of dollars to effectively address this breach and the money keeps flowing since their commercial insurer has been seeking to avoid coverage by arguing that their policy didn’t cover data breaches of this nature
The TJX Companies got hacked and experts think that will cost the company between $4 billion and $8 billion in fines, legal fees, notification expenses and brand impairment. In this case, the retail group reported that 45.6 million credit and debit card numbers were stolen from one of its systems from July 2005 to January 2007.
Of course, big businesses are not the only entities that are vulnerable to hackers. It’s been reported that around half of all companies that have experienced data breaches have fewer than 1,000 employees.
A recent study found that 95% of the security breaches were caused by either hackers, disgruntled employees or lost equipment. For the most part, the information stolen consisted of personal identification information including name, address, email address, telephone number, social security number and credit card information or personal health information.
While almost every company, regardless of size, carries some type of liability insurance, carriers are taking a closer look at the claims for lawsuits relating to security or privacy breaches. They are particularly looking at the company’s practices relating to the handling data in general. Companies that cannot prove compliance with various clearly stated federal laws are finding their liability insurance is being cancelled and claims for damages and lawsuits are not being honored if it clear that there’s a history of mishandling sensitive data. Ensuring an effective computer recycling program guards against unwanted outcomes.
Intonu specializes in computer recycling all around the Southeast and Atlanta area.