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A small business partner recently learned a tough lesson about data security. On a recent trip to Barcelona, his backpack was stolen, and inside was a USB stick on which he had stored not only his personal passwords and banking information, but also confidential business information, such as network access keys, security codes to the building and pending contracts. Now his personal security and financial holdings company are at risk. 

Everything that makes USB flash drives so convenient – ease of use, high capacity, portability and low cost – are exactly what makes them so potentially risky. That’s because they’re also easy to misplace, or to be “borrowed” or stolen.  

High-speed USB is now a standard for modern flash drives, with capacities up to 16GB not uncommon. Now USB 3.0 – being co-developed by HP and scheduled for release in the first half of 2008 – promises transfer speeds of up to 10 times that of USB 2.0 and greater memory capacity.

This poses an even greater security challenge when you lose your USB flash drive or when it is stolen.  

As a result of one stolen USB stick, the financial holdings company had to change all their combinations and reinstall all their locks in an extremely expensive risk-mitigation procedure. Don’t let this happen to you and your business. Take measures to protect the data kept on USB sticks from being misused and abused. 

Separate business from pleasure

Keep business and personal information separate. If you have a USB stick that you use to move personal files, such as music or photos, between computers, think twice before putting confidential business information on the same stick. These files are probably backed up on a home computer. Even if you lose them permanently, you’re not putting your business at risk.

With sensitive business data, such as client information, you should take extra measures to ensure the safety of your information. Instead, have a dedicated business USB stick that you’ll handle with as much care as the sensitive information it contains deserves. 

Protect it with code

Data encryption, or scrambling the data, is still a simple and smart way to protect data. Microsoft recommends creating and encrypting a folder to store the files that need extra protection. All files created or moved to this folder will be automatically encrypted. In Windows® XP and Windows® 2000, right click on the folder and choose Properties. In the General tab, click Advanced and check box “Encrypt contents to secure data.”

Protect it legally

Create a text file warning and load it on all company USB drives. The file should include a legal disclaimer stating that the information on the drive is confidential and protected by law.  

Protect it physically

Many manufacturers are creating USB flash drives that also provide a physical security component. Some now come with biometric fingerprinting for authentication. Others have combination locks like a padlock or shred the data after a certain number of failed password attempts.

Remember, not to leave your USB drive lying around. If the data on it is highly sensitive, lock it in a safe or at least a locked drawer when not being used or transported.    

Access a secured network instead

Another way to reduce the risk of losing USB sticks is not to use them at all. A safer idea may be for companies to allow employees to access the company network remotely through a secure network. This way they do not have to carry confidential files around on a USB stick when they need to work off-site.

Learn from someone else’s mistake and take the extra safety precautions. You and your company may be thankful one day that you did. 

Microsoft and Windows are U. S. registered trademarks of Microsoft Corporation.  Windows Vista is either a registered trademark or trademark of Microsoft Corporation in the United States and/or other countries.
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