Liability for data misappropriated from stolen laptops

There have been a number of judgments overseas that highlight the risks that companies face if laptops containing confidential information are stolen and misappropriated. These risks are not just related to the value of the information lost and the costs incurred in recovering that information but also the risks of litigation if that information is used to spoof identities, commit fraud and theft or other forms of misconduct.

A common challenge facing companies is how to make information available to users who require them on an ongoing basis. A solution is to require them to access the information remotely from the company’s servers (presumably through secure channels) but this can be impractical if users don’t have adequate connectivity when they need it. It may become necessary to permit sensitive information to be stored on laptops if users are going to remain productive when not connected to the office network. In this case users must take steps to protect that information and there are a few ways to achieve this. One of the most effective ways is to make use of software that is built in to the operating system itself (both Mac OS X and Windows XP have this capability) to encrypt the information. Other advisable protection measures include using a strong password (one comprising special characters, numbers and letters) to login to the laptop and using a password to access the laptop after it has been in screensaver mode.

Liability for losses suffered due to the negligence of another person is well established in our law and a failure to do something when it was reasonable to expect that action to be taken could result in litigation and significant damages. As a company it is a good idea to require that such steps be taken in an information security policy. In fact, it is a good idea that all information on computers be protected as it is not just laptops that are stolen and their data sold.

(Source: Charged South Africa)

Tags: information security, data protection, encryption, passwords, liability, stolen data, stolen laptops, stolen computers, windows xp, mac osx