Sensitive data found on N.J. state computers headed for auction

An audit of New Jersey state computers to be sold at public auction found that the vast majority of the machines' hard drives had not been erased.

A report released Wednesday by the Office of the State Comptroller said officials had discovered computers containing child-abuse reports, health records, Social Security numbers, and a state judge's confidential memoranda and tax returns.

"At a time when identity theft is all too common, the state must take better precautions so it doesn't end up auctioning off taxpayers' Social Security numbers and health records to the highest bidder," State Comptroller Matthew Boxer said in a statement.

State rules require agencies to erase data from decommissioned computers before sending them to other agencies or to be auctioned to the public. The computers examined in the audit came from courts, the Department of Health and Senior Services, the Office of Administrative Law, and the Department of Children and Families.

Employees from an unidentified state agency told auditors that they were reluctant to sweep the hard drives because the necessary equipment was noisy and they feared the magnetic fields it generated.

Until tighter protocols can be instituted, the comptroller's office has ordered agencies to remove the hard drives before sending computers out.

The audit followed the discovery in 2007 that employees at the warehouse where computers were stored before auction were selling parts as scrap and rigging the auctions. Five employees were charged; four have pleaded guilty and were fired.

It is unclear how many computers moved through the warehouse. The comptroller's office said it could identify 2,357 pieces of equipment, including desktop computers, laptops, and other items, that were distributed to other agencies. But it could not say how much equipment the warehouse had auctioned.

"That's part of the problem. The record-keeping is very poor to nonexistent," said Pete McAleer, spokesman for the office.