Real-Life E-Disaster Story: The High Cost of Deleting the Wrong E-Mail

In 2002, eight U.S. brokerage firms were fined $8 million for failing to retain and/or produce e-mail according to SEC regulatory guidelines.

-Nancy Flynn
ePolicy Institute Executive Director

Real-Life E-Disaster Story: Not Backing up Can Be Costly

In a 2002 case, the court was asked to compel the production of e-mail messages from backup tapes, at an estimated cost of $395,944 for eight storage tapes and $9.75 million for all the backup tapes. Confronted with the possibility and enormous cost of searching huge volumes of e-mail messages, the defendant argued that the company printed out the important e-mail communications, eliminating the need to produce e-mail backup tapes. In rejecting that contention, the court noted, “The defendants did not show any policy that defined what e-mail should be reduced to hard copy because of its importance.” Would the court have rejected the opposition’s request for e-mail if the defendant had produced a policy instructing employees how, when, where, and why to retain e-mail in paper form? We’ll never know.

-Nancy Flynn
ePolicy Institute Executive Director


When transferring personal files and sensitive information using the Internet, protection is always our prime concern. We maintain security in every aspect of our service. Data-Coffer has taken substantial precautions to ensure the security of your data not only while in transit to the data center, but also while stored at the data center. We have implemented a broad spectrum of security features designed to give you the confidence to entrust us with important and private information.

Physical Security

  • Our data centers have 24x7 monitoring
  • Data is copied to off-site location to insure safety from geographical disasters
  • All power is UPS protected and back up generators are in place
  • All access to computer equipment is restricted and logged

Personal Protection

  • All back ups are converted to a 128-bit encryption before leaving your computer
  • Data is stored using 128-bit encryption at data center
  • 128-bit encryption has never been compromised because your password is the only thing that can decrypt your sensitive information
  • Accessing your account is limited to our support technicians and all changes are reviewed and logged

Internet Protection

  • A firewall network appliance protects our network
  • All internet activity is limited to a single TCP port
  • All connections are authenticated by valid account name and password
  • Failed access attempts are reviewed and logged
  • Only software necessary to provide the service is running

Conclusion

Data-Coffer is a safer and more secure method of protecting your data. Traditional backup systems do not store your data with any level of encryption. Someone can easily read a zip drive, CD, or tape. The security and integrity of our customer's information is our business.