The encryption stimulus plan

Source: creditloan.com

A fellow employee once asked me, “Why isn’t it illegal for companies to use non-encrypted drives in business computers?”

Set aside the logistical issues, and that’s a really good question. Day after day we read about exposed personal data, both lost and stolen. Beyond the personal intrusion, data loss is very expensive for companies.  According to  the Identity Theft Resources Center in San Diego:

• Documented data breaches have risen by over 40% a year since 2006
• It can cost a business $90,000 or more to recover from a lost laptop and its data 
• Lost or stolen equipment account for more of these breaches than any other cause – about 20%

Jon Oltsik at CNET proposes a mandate for 100% encrypted disk drives in all Government equipment. He makes a compelling argument!

But why stop there?  Mandating encryption for all business data would increase investment in the technology sector as the encrypted infrastructure is built out. Companies would drastically reduce their exposure to the costs and risks related to being front page news due to exposed customer data.  More jobs, more efficient companies, technological advances, all that good stuff.

Not to mention we would all feel safer.

The Government could get the ball rolling with loans or other help to defer the upfront costs for some businesses.  The initial investment would pay for itself over time in reduced costs for businesses to protect ever more sensitive data from theft or loss – not to mention the costs of cleaning up the mess after data is compromised.   

Can you think of a better way for the Government to use their influence on our industry to create technology jobs, enhance the information infrastructure and reduce business costs? I’m all ears.