Blancco Report Reveals Stolen Devices Are a Greater Contributor to Data Loss Than Stolen Credentials or Ransomware – Intelligent CISO

A recent survey of IT leaders reveals that advancements in artificial intelligence (AI) and the tightening of regulations are significantly transforming enterprise data disposal practices, resulting in a notable average increase of 46% in compliance investments.

Blancco Technology Group’s latest research highlights the impact of regulatory demands, AI integration, and environmental, social, and governance (ESG) objectives on how organizations manage their end-of-life data. This comprehensive analysis, based on insights from 2,000 cybersecurity, IT, and sustainability leaders across North America, Europe, and the Asia-Pacific region, unravels the evolving landscape of data management in large enterprises.

The report indicates that physical theft of devices and drives is now a more prevalent source of data loss than traditionally recognized threats such as ransomware or credential theft. Alarmingly, 86% of enterprises reported experiencing a data breach within the past three years, with 73% noting incidents of data leaks. Phishing attacks were the primary culprit for 54% of those breaches, followed by improper network configurations at 46% and the theft of devices housing sensitive information at 41%. In stark contrast, fewer enterprises cited weak credentials or ransomware as contributing factors, at 36% and 32%, respectively.

This rising threat landscape prompts organizations to limit their data retention, yet rapid technological advancements present challenges. One-quarter of survey participants indicated that AI has led to an increase in redundant data, with over 20% asserting that AI complicates compliance efforts. However, a significant majority are leveraging AI for effective data management, with more than half employing it to define data retention and sanitization processes clearly.

The intricate web of data protection regulations, cybersecurity frameworks, and best practices for data destruction poses substantial challenges for organizations striving to maintain compliance. In response, over half of the businesses surveyed are ramping up their investment in compliance measures, which aligns with the reported 46% average increase in funding. Furthermore, a significant portion of companies (55%) already has data disposition policies in place, while 42% are actively developing or rolling out such policies.

However, the urgency to meet compliance obligations paradoxically contributes to increasing electronic waste. Functional devices are often decommissioned prematurely to safeguard sensitive data. According to respondents, up to 47% of devices destroyed for security reasons still function at the time of disposal. Additionally, a significant percentage of laptops and desktops (25%) and data center assets (19%) are refurbished without certified data erasure, heightening the potential for data exposure. Alarmingly, among those who have faced breaches or leaks, 17% reported that data compromises occurred due to the redeployment of devices containing residual sensitive information.

Despite these complexities, the importance of sustainability remains at the forefront for most survey participants. A robust 90% indicated that sustainability considerations have a moderate to significant impact on data disposal practices, with 77% noting collaborative efforts between IT and sustainability teams in managing data and erasure tools in alignment with environmental goals.

“Improper data disposal is often an underappreciated risk that requires more attention,” stated Lou DiFruscio, CEO of Blancco. He emphasized that IT leaders must fully grasp their compliance responsibilities and implement best practices to safeguard data throughout its lifecycle. The findings from the State of Data Sanitization Report provide critical insights for compliance, IT, and ESG teams, detailing current challenges and their implications for end-of-life data management.

This research further reveals concerning gaps in awareness regarding data sanitization standards. Only 37% of enterprises reported familiarity with NIST 800-88, the standard for data sanitization in place since 2014, while just 36% acknowledged IEEE 2883-2022, the latest standard addressing modern technologies, including those that facilitate AI applications. Such gaps could lead to suboptimal data destruction practices, jeopardizing data security at the end of device and asset life cycles.

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