Cell Phone Recycling Poses Security Risks
by John Laumer, Philadelphia 
on 08.31.06
Forbes On-Line reports that: “Selling your old phone, once you upgrade to a fancier model, can be like handing over your diaries.” Maybe that’s why those guys at the cell phone recycle center are always smiling? More from Forbes: - “A popular practice among sellers, resetting the phone, often means sensitive information appears to have been erased. But it can be resurrected using specialized yet inexpensive software found on the Internet...Trust Digital of McLean, Va., tested 10 different used phones and…recovered information was equal to 27,000 pages - a stack of printouts 8 feet high”. If you’ve sold a phone on eBay or given one away to someone you really don’t know that well, the article will probably give you that sinking feeling. Although the analysis focused mainly on the re-selling of high-end devices by frequent upgraders, the risk obviously extends to recycling more basic models as well. Perhaps there is a business opportunity for entrepreneurs who can, for a minor fee, lobotomize used electronics before a trip to the recycling center or simply prep them for shipping to a donator-named third party.
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I heard a local radio station report on this and the representative from Trust Digital was quoted as saying "before you dispose of your cellphone, run over it with a truck". Not much of a hugger, IMHO. Kind-of reduces the possibility of reuse, not to mention nasty leaking battery problems. I'm sure he meant "kindly flatten it with a Prius after removing the battery."
do i really care if someone (a stranger) finds all the numbers i've ever dialed and all my text messages? no, i don't.
=== author's response follows ===
Many people are in the habit of using their cell as universal device: to tell the time, record one's bank account numbers, etc.
I know of a tool that 'sanitises' computers, so don't think it will be long until they figure out a way to do that to your phone. surely, if you copy stuff to it until it's memory is full, you would have to overwrite all the data that had previously been somewhat-erased? I believe that's how a disk sanitiser works, but not sure of the technical info.
As for keeping sensitive data on a device that is commonly stolen or lost, I don't know how clever that would be anyway. i'm usually fairly careful to store only password hints anyway, like 'an.....' so it hints to me, but people would have to guess part of it... but i admit to storing more info than i maybe should...