A false sense of security

In the world of magic, magnets can conjure up beautiful illusions, making objects seem to levitate under the influence of a mystical force. But in the world of travel, magnets do the very opposite: they destroy a deceptive mirage that the encryption industry has worked hard to create.

It’s the illusion of security.

A growing number of hardware manufacturers and software developers are answering a demand for systems that protect data from thieves. They figure – and rightfully so – that travelers aren’t as concerned about their laptops and PDAs being stolen on the road as they are that the data on those devices could fall into the wrong hands. Information, after all, is power.

But in selling these solutions, which range from programs that scramble information to cards that act as data “keys,” I’m convinced that the suppliers made a serious miscalculation. While they understood their customer concerns very well, they failed to take the thieves into account.

Laptop thefts aren’t an isolated problem; they’re an epidemic.

According to a recent insurance industry survey, insurers paid out claims for 265,000 stolen laptop computers in the United States last year. That’s 725 portables stolen every day at an annual cost of $805 million. The U.S. Chamber of Commerce estimates that together, hardware and data theft set American businesses back by a total of $40 billion a year.

Yes, that’s “billion” with a “b.”

Here’s where it helps to think like a crook. If you were spiriting away someone’s computer, would you do it for the data – or the hardware? Think about it. There are far more effective ways of getting at company secrets than swiping an executive’s Palm Pilot at the airport. The notebook thieves are, in fact, doing it for that multi-gigabyte hard drive, the big color monitor and the superfast modem. They’re not doing it to read your e-mails or browse your latest proposal.

Which is where the magnets come in. If a garden-variety laptop thief just wants the computer, all it takes is the wave of a big magnet and – ka-zap! – a clean hard drive is left, waiting for a new operating system to be installed.

Don’t get me wrong: today’s encryption solutions are impressive. Canada-based Jaws Technologies, for instance, has just released one of the strongest and most affordable encryption software products on the market. Its Jaws L5 Data Encryption uses 4096-bit key encryption strength (which is said to be virtually unbreakable). It works on PCs, handheld devices and networks and sells for about $50.

True, the software won’t stop a magnet from wreaking havoc on your hard drive, says Tej Minhas, vice president of technology and professional services at Jaws Technologies. “But it can assure you that no one will tamper with the information, short of taking a sledgehammer to the computer.”

Equally appealing is the product offered by Sentry Software of Franklin, Tenn. CyberAngel detects unauthorized computer use and calls a security monitoring center via modem, sending out a map of the stolen laptop’s location. Then it locks the modem so that it can’t be used to access online accounts. In some configurations, the keyboard and mouse can be frozen out, too. It costs $85.

It’s also powerless against a magnet.

“There’s no product that protects against a magnet,” insists Brad Lide, support operations manager for CyberAngel. “If someone reformats the hard drive, then CyberAngel will be deleted.”

Even the hardware encryption solutions aren’t all they promise to be. When I think of a hardware alternative, I think the microprocessors must be invulnerable to the forces that rip magnetic storage devices apart. But I’m wrong.

Take the Lynks Privacy Card, a special “key” that fits into your laptop’s card slot and unlocks the scrambled files on your computer. It is available through San Jose, Calif.-based Spyrus. Coupled with a media encryption program called Talisman/DS, the hardware-software solution retails for about $400.

I like the concept behind this encryption system: without a key, the computer won’t work. However, once you wave that big magnet over the whole setup, the card becomes an extraneous plug-in. The notebook is easily reconfigured and resold.

“You can always destroy the data on the machine,” says Spyrus’ engineering director, Duane Linsenbardt. “But this protects the information, so that if someone wants to get to just the data, they won’t be able to.”

I think it’s just a matter of time before an intrepid developer figures out how to render a computer useless to anyone but its intended user, at a price all of us can afford. Until then, the smart traveler shouldn’t get lulled into a false sense of security by talk of unbreakable encryption.

Computers that phone home or scramble data beyond recognition are great, but nothing can ruin your day like a magnet.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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