Bank loses tapes with data on 4.5M clients

It's happened again. Backup tapes containing private data for (this time) 4.5 million customers were lost by a bank. Bank of New York Mellon - rather their backup outsourcer - Archive America lost the tapes while they were in transit. Once again, they were not encrypted. This time, the loss was not even reported to customers for three months. The case shows - again - that, while companies can outsource key functions, they cannot outsource the responsibility that goes with them. They need to have strong monitoring and management processes for their outsourced activities. Also, the case again demonstrates the need for data encryption for data in transit - something that should be considered for every corporate security policy. Bank loses tapes with data on 4.5M clients