If Your Laptop is Stolen, Will Your Identity be Stolen?
Posted by: Ken Harthun
We frequently hear news of a laptop holding sensitive information having been stolen. Bad in itself, but the reports often note that the information was unencrypted. Doubly bad. The news rarely focuses on personal laptop thefts, however because there’s no news value in reporting the loss of Joe Citizen’s personal files; nothing of value there, they think. But Joe’s entire life savings may soon be wiped out if he has ever used that laptop for online banking or other financial transactions.
Recently, a friend of mine (who shall remain nameless for security reasons) had his laptop stolen out of his car. Fortunately, he had just purchased it and there was nothing of value on it, but there could have been–he’s an oil company executive. Modern thieves know that if they can get their hands on a computer holding sensitive information — particularly bank or credit card information — they can sell that computer for tens or hundreds of times the value of the hardware. The hardware is virtually worthless to them. From the thief’s point of view, any laptop sitting on the seat or floor of a decent car or a desktop PC in a middle class home office could belong to someone who has access to valuable information.
But, if the data is encrypted, the thief is out of luck.
I’ll cover physical security later. For now, I present Maxim #7:
If you store sensitive information on a PC or laptop, even if it’s only personal information, encrypt the folders or drives where the information is stored and use an unguessable passphrase as the encryption key.

One of the clients I service has information that falls under HIPPA. Prior to last week, all of the data was stored on a server located behind a strong firewall in a building with good physical security. Last week, however, this organization decided to deploy laptops for their field operatives. Major security problem. Full-drive encryption was my first thought.The good thing is that there was nothing on the laptops except for the OS–they were brand new. Nobody had seen them except me. I was able to encrypt the hard drive before any data had been written, thus insuring that no remnants of unencrypted data exist. Every future write to the hard drive will be encrypted.
