Identity Theft: Organizations Putting Private Information at Risk

Identity theft continues to plague Americans at an estimated cost of over $50 billion annually. While lawmakers and businesses seek to implement safeguards and to better inform the public, one significant threat remains largely unaddressed: the data stored on hard drives inside of digital copiers. Digital Copier Security Inc. (DCSI), a California based company, uses forensic data recovery tools to prove that used copiers sold into domestic and foreign resale markets often contain highly sensitive data. DCSI has tested machines previously used by insurance companies,investment firms, medical service providers, schools and even a police department. Copiers from all of these sectors contained private information."These machines can be like do-it-yourself identity theft kits. They often contain names, addresses, social security numbers, tax returns, medical records. Sometimes it's company business and sometimes it's personal information that employees have printed, scanned or faxed," says Bill Feigles,the company's Chief Executive Officer.

"We exist because of a data security breach by a large title insurance company," says John Juntunen, DCSI's Founder and Chief Operating Officer, "I was working on a used copier that I purchased when it was returned at the end of its lease and, with the push of a couple of buttons, out popped a customer's entire loan package. It was that incident that led us to develop security solutions specifically for copiers."

When is this data at greatest risk? "No doubt, the greatest risk is when the copier leaves the control of its current user. We buy these used machines from wholesalers who will sell them to anyone on the resale market," says Feigles. More shocking is the fact that wholesalers ship a high percentage of the less desirable units overseas. "I've watched them pack shipping containers two layers deep with machines to be shipped overseas. Most of those copiers have hard drives just full of sensitive information. People have to start taking this threat seriously!" adds Juntunen.