Morgan Stanley Faces Record Fine for Poor ITAD Practices – CyberCrunch November Newsletter

Joe ConnorsUncategorized

Earlier this month, U.S. banking regulators announced a record fine stemming from the Morgan Stanley data breach. What lessons do all businesses and ITAD companies need to learn from this announcement? In this newsletter, read CyberCrunch President Serdar Bankaci’s lessons on data destruction, accountability and recordkeeping from the incident.

Also: Do you know why and how to properly dispose of lithium ion batteries? Though less toxic than other battery types, they still require special handling to be disposed of safely. Find out more in our article below.

Morgan Stanley Fined $60M for Years-Old Data Breach

On October 8, the Office of the Comptroller of the Currency (OCC), part of the U.S. Treasury Department that regulates the banking industry, announced that it would fine Morgan Stanley $60 million for “failure to exercise proper oversight of the 2016 decommissioning of two Wealth Management business data centers.” Additionally, the OCC found that Morgan Stanley failed to exercise due diligence in assessing the risks associated with the decommissioning and failing to properly vet the subcontractors used for the work.

When the news broke, CyberCrunch President Serdar Bankaci was invited to comment on the fine by E-Scrap News, an ITAD and electronics recycling trade publication. He stated, “frankly, it was only a matter of time before something like this happened to a major enterprise organization.” Bankaci cited two key areas where ITAD can go awry and lead to a data breach: process and documentation.

In the ITAD process, tools, knowledge and training are key, especially when dealing with the latest technologies like solid state drives (SSDs). “I see companies drilling through SSDs and completely missing the circuit board, or using outdated wiping processes that are not approved for SSDs,” he says. Poor processes can leave data behind, leading to a data breach when devices are disposed of or resold.

As for documentation, Bankaci says, “data destruction is only half the process — the other half is the documentation. The documentation is just as important as the actual destruction.” Especially in highly regulated industries like banking, proper documentation and recordkeeping is vital to protecting your company from liabilities and fines.

You can read Serdar’s full statement on the Morgan Stanley data breach here.

Don’t get caught by poor ITAD processes or incomplete documentation. Choose an ITAD provider who is trusted and certified to protect your company from lawsuits and fines. Contact CyberCrunch today to find out more about our NAID AAA certified electronics recycling and data destruction services.

Know Your Hardware: Lithium Ion Batteries

Lithium ion (Li-Ion) batteries represent the latest evolution in battery technology. Compared to older compositions like nickel-cadmium (NiCd), nickel metal hydride (NiMH) or sealed lead-acid (SLA), Li-ion batteries are smaller and lighter, have higher energy density, and can last for many more charge cycles.

Because Li-ion batteries don’t contain as many toxic heavy metals like cadmium, lead or nickel, some have felt that it’s not necessary to recycle them. This is reflected in the fact that only about 5% of Li-ion batteries are recycled worldwide. But there are several good reasons that Li-ion batteries should be properly disposed of and recycled.

First, Li-ion batteries can be extremely flammable. If lithium battery cells are punctured, damaged or incinerated, it can result in a serious fire or explosion. Second, even though they contain less toxic material than other batteries, they still contain metals like cobalt, as well as plastics and other materials that shouldn’t enter the environment.

Recycling lithium ion batteries can be a challenge. They can be manufactured in a wide variety of shapes and sizes, and they can last for hundreds or thousands of discharge cycles. This has encouraged manufacturers to integrate Li-ion batteries directly into devices, making removal and recycling extremely difficult in many cases. Disassembling these devices and safely removing the batteries requires specialized tools and skills.

Don’t let your Li-ion batteries end up in a landfill and polluting the environment. Contact CyberCrunch today to find out more about our landfill-free, environmentally responsible electronics recycling services. Our process is R2 certified to help your business protect the environment while staying compliant with all state and federal e-waste laws.

Contact us today for a free quote.