ITAD firms weigh in on bank’s $60M data mismanagement fine

by Jared Paben

The U.S. Treasury Department has issued a major fine to Morgan Stanley for improper management of drives. Executives in the electronics recovery sector say the case reaffirms the warnings they have been giving to corporate partners for years.

In a statement to E-Scrap News, Bob Johnson, CEO of the National Association for Information Destruction (NAID), said the fine “has corporate risk managers shaking in their boots.”

“The improper disposal that resulted in this sanction goes back four years and is a reminder that historical bad practices eventually come home to roost,” wrote Johnson, who also authored a blog post about the case. “It is also likely that clients’ professional liability underwriters are paying close attention, and that clients will be required to demonstrate intense vendor selection due diligence in order to maintain their insurance coverages.”

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