Get Smart about Business Spending
Exiting workers taking confidential data with them
As layoffs continue apace, a survey released on Monday shows what many companies fear--exiting workers are taking a lot more with them than just their personal plants and paperweights.
Of about 950 people who said they had lost or left their jobs during the last 12 months, nearly 60 percent admitted to taking confidential company information with them, including customer contact lists and other data that could potentially end up in the hands of a competitor for the employee's next job stint.
"I don't think these people see themselves as being thieves or as stealing," said Larry Ponemon, founder of the Ponemon Institute, which conducted the online survey last month. "They feel they have a right to the information because they created it or it is useful to them and not useful to the employer."
The survey also found a correlation between people who took data they shouldn't have taken and their attitude towards the company they are leaving. More than 60 percent of those who stole confidential data also reported having an unfavorable view of the company. And nearly 80 percent said they took it without the employer's permission.
Most of the data takers (53 percent) said they downloaded the information onto a CD or DVD, while 42 percent put it on a USB drive and 38 percent sent it as attachments via e-mail, according to the survey.
The survey also found that many companies seem to be lax in protecting against data theft during layoffs. Eighty-two percent of the respondents said their employers did not perform an audit or review of documents before the employee headed out the door and 24 percent said they still had access to the corporate network after leaving the building.
The survey was commissioned by Symantec, which offers software that helps companies protect against data loss by indexing database and monitoring for patterns of word combinations that might be used by exiting employees to steal data. The Symantec software also can monitor outbound e-mail for confidential data and alert IT if large amounts of certain types of data, such as Social Security numbers, are being copied to removable storage devices.
Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor. 
A 2 year non-compete clause?
Reason #5435436565634543 why America is going down the toilet.
No sir, just not worth the heat.
Fact is, if you handle sensitive data, odds are good that you have to sign a Non-Disclosure Agreement before starting work with any competent organization. It is a contract (which you can negotiate or modify before signing it). Violating a contract is still actionable. If you're dumb enough to swipe sensitive information while shouting "up the man!", don't come crying if your former employer decides to sue you (and your new employer) anyway.
You know? I once worked for a corp that had a very simple and effective way of dealing with corporate espionage and misuse of someone else's sensitive information: They fire the SOB and then call the affected competitor and (if warranted) the FBI. Why? Because they don't want to end up eating a massive lawsuit and crippling themselves just because some donut-head thought it would be cute and try to stick it to a former employer. Even worse, if it involves personal contact or ID info, it can easily become a federal crime.
I for one don't blame 'em... the last thing I'd want if I were a CEO is to watch a boatload of profits evaporate in a puff of legal vapor (and worse, having to explain it to the shareholders), and/or do the perp walk to Club Fed, just because of the actions of an unethical idiot.
If you can't see your way to man-up and act like a professional, then don't expect any sympathy from the industry at large the next time you go looking for a job.
/P
In the case where someone is terminated for compromising confidential data like that with another company is definitely one you'd want to keep both companies informed- especially if that information has any real value to that second company. Once they are alerted as to the source of that information, they can't act on it or use it in any way without running afoul of the law. I agree with that action totally.
I've had to sign my share of NDA's and non-compete clauses. I've had my background checked by the FBI for several jobs including time with a police department. There are times when you simply do not talk about your job to outsiders.
How do you reconcile with the fact that these employees actually need the said data to perform their daily jobs? If they're really crooked, you don't have to wait till layoff time to find gigs of confidential data sitting in their homes. Even if you disallow USB drives, they could simply email customer lists and docs to their personal account.
I call BS. There is no way that .60*.53=31.8% of laid off workers know how to burn a CD.
I call BS. There is no way that .60*.53=31.8% of laid off workers know how to burn a CD.
What and who is stopping a CEO or CIO or executive level person to leave one job and influence his list of contacts to do business with his new company or with his new gig ? Or even leverage secrets of his past business.
This is a sales pitch from symantec to sell its product. As stated, "this study was done by symantec", and not by a independent 3rd party.
If one employee takes a bunch of partner/customer information then its all hell, however, when one CIO or CEO jumps ship or kicked out and then starts to influence his list of contacts to do business with his new venture ..... then where is symantec ? Just look out, industry is full of such executive level people.
And please ..... stop making a poor employee subject of all this. Things are already tough.
- by EDunigan March 6, 2009 7:59 AM PST
- I am not surprised that a greater percentage of those individuals who took data had a negative view of their employer. It is important for companies to create positive work environmnets as well as have procedures in place to prevent data theft in good and bad times.
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(19 Comments)I wonder how many of these businesses were using a database to store information vs. excel spreadsheets. If databases were used, were permissions set up accurately? I wrote a recent post on the five ways databases help protect data (user permissions, etc.). In addition to having procedures in place for data security, it is also important to have the appropriate tools in place.
http://www.trackvia.com/blog/2009/03/06/five-ways-database-protects-data/