Liability Briefing on e-Business

Consideration should be given to how to dispose of data held on obsolete computer systems which are to be replaced. Much of the information stored on a computer system is likely to be commercially sensitive and it is therefore important that consultants implement a data destruction policy to avoid data relating to their own and their clients’ affairs coming into the wrong hands.

When disposing of computers, consultants needs to consider:

• What information is stored;
• Whether the information is confidential or sensitive; and
• How best to dispose of the data.

Merely deleting information will not necessarily mean that it has been permanently wiped. A safer approach is to ensure that any disks containing confidential information are formatted. However, it still might be possible to recover files by employing a computer forensic expert. The next level of security is to use a file-wiping utility. Various computer companies produce such software which prevents the reconstruction of deleted files. Click here to find out more.

When installing a new computer system, consultants should seek to place an obligation on their supplier to dispose of their old equipment securely. If this is not possible, then seriously consider physical destruction, as secure wiping is time intensive. Do not just give the old machines away or scrap them without ensuring these measures are taken. Consultants acting for government organisations such as the Ministry of Defence should review their contractual obligations before deleting any files. These may refer to specific data destruction policies which should be carefully followed to avoid contractual breach, breach of duty to hold and dispose of confidential information securely, or possibly also breach of the Official Secrets Act.

Note also that insecure disposal of equipment may lead to a breach of the Data Protection Act. If a consultant is holding personal data on individuals then failure to store that information securely or dispose of it may lead to prosecution by the Information Commissioner.

Click here for Liability and Contracts enquiries contact