Holiday data disasters

The holiday season is a busy time for everyone—especially for businesses. You’re juggling year-end sales, managing seasonal staff, and maybe even upgrading your office tech to hit the ground running in 2025. But here’s a question: when was the last time you thought about what happens to all those old laptops, routers, or hard drives you’re replacing?

If the answer is “not recently,” you’re not alone. However, improperly disposing of old devices can open up your business to some serious data risks. Here are three real-life stories that show why securely managing your old technology is just as important as hitting your year-end goals.

A financial giant’s $60 million mistake (2020)

Picture this: You’re a major financial institution, trusted by millions of customers to protect their sensitive information. But when you upgrade your systems, you rely on a vendor to dispose of your old hardware. Months later, you find out those old hard drives—with unencrypted customer data—ended up being sold at public auctions. Sound far-fetched? That’s exactly what happened to a large U.S. financial services company in 2020, leading to a $60 million fine. If it can happen to a big player like them, it can happen to any business.

A school district’s auction oversight (2022)

Now, let’s zoom in on a more familiar scenario. A school district, much like the ones here in South Dakota, auctions off old computers to make space for new ones. What they didn’t realize was that some of the devices still had sensitive student and staff data on them. In 2022, this very mistake occurred when a Texas school district sold over 3,500 devices. At least 11 of them were later found to contain personal information, leaving the district scrambling to address the fallout.

Small businesses selling their secrets (2023)

Think this only happens to big organizations? Think again. Earlier this year, cybersecurity researchers bought used routers from small businesses that had recycled them. More than half of those routers still contained sensitive data—think corporate login details, VPN credentials, and even encryption keys. These small businesses likely thought they were being responsible by selling their old tech, but in reality, they put themselves at risk for a major data breach.

Why the holidays are prime time for data slip-ups

It’s easy to overlook proper device disposal, especially during the hectic holiday season. But this is exactly when your business is most vulnerable. Here’s why:

• Year-end upgrades: It’s common to refresh your tech before the new year. But what happens to your old computers, hard drives, and routers? If they’re not wiped or destroyed, sensitive data could be left behind.
• Temporary staff: Many businesses bring on extra help during the holidays. If these seasonal workers are using devices that aren’t properly tracked or securely wiped afterward, it’s a recipe for trouble.
• Trusting the wrong vendor: Handing off your old tech to a vendor might seem convenient, but not all vendors follow strict data security protocols. As the financial giant’s example shows, not all third-party vendors can be trusted to handle sensitive information properly.

How to protect your business

Before you toss out your old devices or hand them over to someone else, here’s what you can do to protect your business:

• Partner with certified providers: Make sure the company handling your old tech follows strict standards for wiping or destroying data. Look for certifications like NAD AAA, R2 and/or e-Stewards, these show they take data security seriously.
• Create a disposal plan: Have a policy in place for securely disposing of old devices. Don’t wait until year-end when things get hectic and mistakes are more likely to happen.
• Audit your inventory: Know what devices your business uses and where they’re going when they’re no longer needed. It’s easier to prevent data breaches if you keep track of your technology.

The holiday season should be a time to celebrate your business’s successes, not worry about the possibility of a costly data breach. By staying proactive and ensuring your old devices are securely disposed of, you can protect your business and start the new year on the right foot.