Selling old tech? Here’s how to avoid a cybersecurity nightmare

Got an old laptop or a bunch of dusty hard drives sitting around? Thinking about selling them to make a few extra bucks? Smart move!

However… 

Before you offload that old tech, there are a few cybersecurity risks that could come back to bite you.

The ghosts of data past

You’d be surprised how often businesses sell or toss out old hardware without properly wiping their data. That means all those customer details, financial records, and sensitive business files could end up in the wrong hands. Even if you hit “delete,” a sneaky cybercriminal can often recover those files with the right tools. It’s not that expensive or hard - data recovery tools can cost as little as $70 for a lifetime license. 

It’s not just a hypothetical problem. There have been real cases where businesses faced massive data breaches just because they didn’t properly erase their drives before selling them.

In 2022, Morgan Stanley improperly disposed of old hard drives containing unencrypted customer data. Between 2015 and 2020, the firm hired a moving and storage company, which lacked expertise in data destruction, to decommission its outdated hardware. Instead of securely erasing the data, this company sold the drives to third parties, leading to sensitive information from approximately 15 million customers being exposed. Some of these hard drives even appeared on online auction sites with the data still intact. 

As a result, Morgan Stanley agreed to a settlement with the US Securities and Exchange Commission (SEC) for $35 million. The SEC labeled the incident as an "astonishing" failure to protect customer information. You can read more about it ^here .

The hidden costs of selling old tech

Selling old hardware isn’t always as simple as throwing it on eBay, either. Businesses often spend time and money refurbishing, repairing, and testing old devices before they’re sold. That’s hours spent troubleshooting, reinstalling software, and making sure the device is still functional. All of this can add up quickly, and the question is - is it worth it?

If you're a solo entrepreneur or running a small business, that’s valuable time you could be using to grow your business instead of playing tech support.

Selling is still better than trashing - here’s how to do it safely

Despite the risks, selling old gear is still way better than just throwing it away, since it cuts down on e-waste and even helps recoup some costs. But if you want to do it safely, here’s what you need to do:

Properly wipe all data - Don’t just delete files; use data-wiping software to make sure nothing is recoverable.

Physically destroy old drives if you’re unsure - If the device is too old or damaged, shredding or degaussing the hard drive ensures no one can recover the data.

Use a trusted third-party service - There are companies that specialize in securely refurbishing and reselling tech while following strict data protection rules. This saves you time and keeps you compliant with regulations.

The bottom line

Selling old hardware is a great way to cut costs, but don’t let it turn into a cybersecurity disaster. Take the right precautions, use professional services when needed, and keep your business safe from unnecessary risks.

Stay safe, stay smart, and keep crushing it!

Until next time

• Sead from SmallBiz CyberWiz