Data Security Litigation Ensnares Canadian Government

The Canadian government will soon have to answer some pointed questions regarding its data security solutions following the filing of a new class-action lawsuit seeking $600 million in collective compensation for individuals potentially affected by a missing portable hard drive.

According to CTV-Edmonton, Human Resources and Skills Development Canada came forward last month to reveal that it had lost track of an external storage device containing personally identifiable information on more than 583,000 citizens who had taken out student loans between 2000 and 2006.

"My information was lost by the federal government. They lost my SIN (social insurance number), my first name, last name, birth date, my address and how much money my federal student loan was worth," Edmonton native Angie McConnell told the news source. "It's gone. They don't know why, they don't know where, they don't know if it was stolen, they don't know if somebody misplaced the drive, but it's gone."

McConnell went on to express her dissatisfaction with the government office's decision to withhold news of the data security breach for two months, as well as the depth of information that has been provided to potentially affected individuals. According to CTV, the one saving grace in this instance is that no banking records or health histories were contained in the compromised data.

A discouraging trend
Such cases have been an unfortunately common occurrence for federal officials in recent months. According to the Canadian Press, the blockbuster, $600 million suit is actually the third filed this year. While investigating the loss of one hard drive from a Quebec office late last year, government officials also uncovered a second USB-based breach that could have compromised the records of more than 5,000 citizens.

In accordance with standard operating procedures, government officials have not responded to requests for comment related to ongoing litigation. However, a toll-free hotline has been set up to inform and advise citizens who believe their personal data may be at risk.

For public and private sector enterprises that insist on using external storage devices, such as flash drives, out of habit or convenience, data encryption software is a crucial safeguard to employ. While data security managers should do everything in their power to keep comprehensive control over their storage inventory, encryption offers a valuable contingency plan. If and when records go off the grid, those translated into ciphertext stand a far greater chance of avoiding exploitation by unauthorized viewers.