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Web-Based Storage Causes Problems For Businesses

March 2003

Companies are exposing themselves to potentially devastating security and liability risks by not managing employee use of personal storage web sites.

Within minutes and without trace, company confidential data, such as financial forecasts or customer databases, can be uploaded onto the web. However, most companies are still unaware of how employees access personal storage sites, which now number nearly 1,000 worldwide.

52 percent of IT professionals from more than 400 companies across Europe did not know if employees in their companies were using personal storage web sites. Furthermore, 71 percent of Internet use policies had no guidelines or reference to staff use of that category of sites.

"Personal storage space is being used more and more by general end users. Employees can transfer information offsite very quickly with a couple of clicks without the knowledge of senior management", said an IT specialist. "The employee might not be acting in a deliberately malicious manner, but it is impossible to keep track of how the data is being used, whether it has been transferred securely, or whether it has been downloaded onto a shared machine."

While personal storage sites were originally created as a business tool for companies or individuals facing data storage issues, they have quickly become a security and liability risk for organisations. The sites are hosted on remote servers and can be accessed either via web browser or by downloading an additional application on to employees' PCs.

"Personal storage sites are a genuine threat to business. The implications of the e-enabled employee being able to store highly sensitive and valuable company data without trace are enormous," said an IT specialist. "Potentially, the information could then be shared with any interested party such as competitors or hackers."

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