Mobile Phone Data Breach and The Risks of Handling Used Devices

Mobile phone data breach risk is a serious concern. The market for used mobile phones grew by 10% in 2018, with 140 million devices sold worldwide. For retailers, that creates a clear opportunity. Professionally refurbished phones sourced from the public can often deliver stronger margins than new devices bought directly from manufacturers.

However, used devices also create real risks. Recyclers cannot simply buy a handset and sell it on. People now use smartphones for more and more of their daily lives. As a result, the average phone can hold social media access, shopping data, personal photos, emails and other sensitive information.

That is the main challenge for retailers expanding into refurbished devices. Consumers are far less likely to trust a business that has exposed personal or financial data. Therefore, it pays to carry out proper due diligence on recycled phone stock. Only robust data erasure tools can fully reduce these risks. Anything less may leave your business exposed to a mobile phone data breach.

Reputation Damage

Data breaches attract serious public attention. Large companies such as Facebook and Google have already faced criticism over the way they handled personal data. At the same time, the public has become more aware of its rights and of the value of personal information.

Because of that, a data breach can cause major damage to a company’s reputation. After the latest accusations around data handling, Facebook launched a large national advertising campaign to repair trust.

Most businesses do not have the resources of Facebook or Google. So, if incorrectly wiped devices expose customer details or confidential company information, the damage can be far more severe for a smaller retailer.

Compliance Breaches

The introduction of GDPR raised expectations around secure data erasure. Recyclers and other businesses handling used devices now need to take that responsibility seriously.

Regulators are also imposing stronger financial penalties for failures in this area. These rules exist for a reason. They protect consumers from unlawful sharing and misuse of personal data.

A simple factory reset is not enough. If you buy a device and sell it on without using a GDPR-approved mobile erasure tool, you are not handling personal data in a compliant way. As a result, your business could face a substantial fine.

Data Security Breaches

The biggest risk is a direct data security breach. That may happen because a device was never wiped properly. It may also happen because someone recovered data from a device that was thought to be wiped. Either way, the outcome is the same. Information trusted to your organisation has become exposed to public or criminal access.

GDPR sets out the scale of financial penalties for non-compliance, depending on the seriousness of the breach:

• Up to £10 million or 2% of annual global turnover, whichever is greater
• Up to £20 million or 4% of annual global turnover, whichever is greater

These figures are significant even for large organisations. Therefore, businesses need to handle mobile phone erasure properly and securely. For that, they need a GDPR-compliant, ADISA-approved mobile erasure tool.

Find Out More

Large and medium-sized organisations need to reduce the risks created by poor data erasure practices. MobiCode has worked since 2011 to build solutions for businesses in the second-hand mobile phone industry. We understand what used devices require before they can be safely prepared for re-use. Contact MobiCode today for a free consultation and to learn how we can help.