Privacy Liability:

In 2001, two federal privacy laws came into effect, and apply to virtually all businesses - requiring them to protect financial and medical information of employees and customers from cradle to grave. The four new laws are the Patriots Act 2002, ITAR, Gramm-Leach-Bliley Act, and HIPAA.

Security Liability:

The potential for corporate espionage from old computers is significant. If a discarded computer falls into the hands of computer hackers, they would have all the time in the world to uncover confidential company data. Typical types of proprietary corporate data that can be compromised if they are unwittingly distributed include client lists and contact information, proprietary financial information such as budgets, company strategic business plans, and more. Also, Homeland Security can be compromised if municipal, state and federal agencies do not protect old computers with sensitive data on them.

Software Piracy Liability:

The Business Software Alliance (BSA) is a powerful organization comprised of a consortium of major software vendors, including Microsoft. The BSA has many functions, but the association, in the past few years, has embarked on an aggressive anti-piracy program. The BSA actively seeks out and prosecutes software pirates, and the fines levied against companies who pirate software is significant, i.e. in the six figures.

Identity Theft Liability:

Identity theft is one of the fastest growing crimes in America and costs consumers and businesses millions of dollars each year. Companies that don't protect the data on old computers are contributing to identity theft by leaking everything from employee and customer social security numbers to credit card accounts, retirement plans and more.

Insurance Liability:

Virtually every company, from small to large, carries some type of liability insurance. Increasingly, insurance companies that process claims for lawsuits relating to security or privacy breaches are taking a harder, closer look at a company's practices relating to the handling of data in general. Companies that cannot prove compliance with various clearly stated federal laws are finding their liability insurance is being cancelled and claims for damages and lawsuits are not being honored, if it clear that there's a history of mishandling sensitive data.

Corporate Governance Liability:

Public companies, in particular, are held to a certain standard of corporate governance, meaning that senior staff and board-level managers are expected to manage financial resources, intellectual property and financial data with discretion and plain common sense. Improper handling of obsolete computers and the data on them can lead to violations of corporate governance.

Professional Codes of Ethics Liability:

Many industries, such as law, engineering and CPAs, hold professional codes of standards that sometimes are more rigorous than laws. Professionals working in these areas would be wise to review their respective industry or association codes of ethics to determine the standards for maintaining client or project confidentiality. Mishandling of old computers and data can compromise adherence to codes of ethics about client confidentiality.

Environmental Liability:

The handling and proper disposal of obsolete electronics poses one of the largest environmental issues of our time, as "mountains" of old electronics comprised of plastic, glass, metal and hazardous materials such as lead and cadmium continue to grow. In addition to the hazardous materials properties of old electronics, these old systems are bulky and pose huge solid waste problems as well.