Is online data storage the secret to eliminating many data breaches?

Posted by Joe on May 6th, 2008

We cover many different types of service providers at NextAdvisor which gives us a unique insight into how some of them may intersect to provide even more consumer value than an individual service may provide as a standalone product. One such trend may be the use of online file storage to help prevent the impact of data breaches and identity theft.

There is an alarming trend in the data breaches of personal information that we cover. A significant portion of these data breaches are caused by the loss of some sort of computer storage device, whether it is a USB drive or a laptop hard drive.

We have previously written about the many benefits of online file storage for backing up important files on your computer. We are now starting to wonder whether or not online file storage could be a major step that consumers and corporations could take to prevent the impact of data breaches involving the loss of laptops or other offline file storage devices.

The primary function of online backup services such as Mozy or Carbonite is to securely store a copy of important files you also store on your computer. However, these services also provide direct access over the Internet to files that are stored secure on these services. It would be possible for an individual to store all of their sensitive files, such as those that contain personally identifiable information, remotely and only access files from the Internet as they need them.

This would likely prevent many of the issues associated with losing a laptop or a portable file storage device because it would eliminate the need to store large amounts of personal data or financial data locally on your hard drive or storage device.

There are some logistical issues, such as the fact that you would need to be connected to the Internet in order to access files. However, it seems like there may be something to this given advances in online storage technology coupled with the increasing risks of identity theft.

Have any thoughts on the use of online file storage to help prevent identity theft? Let us know in the comments below.