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Storage Security: How To Ensure Confidentiality of Data Stored By Service Providers?

Question: 
Banks often share confidential information with other companies that provide them with services such as law firms. What technical safeguards can be implemented to best ensure that information stored electronically by service providers remains confidential?
Answer: 

The best method to ensure confidentiality of stored data is to encrypt the information stored on backup tapes. Banks should recommend that their service providers encrypt their backup tapes because this ensures that stored information will remain protected regardless of where the backup tapes are kept.

First published on 10/18/2004

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