n this age of identity theft even individuals need to be careful when selling, tossing out, or giving away their old computers.

Why? Because even though you may believe that you have reformatted the hard drive to wipe out all information, fraudsters with a bit of technical knowledge can still retrieve it.

Identity theft occurs when criminals steal and use your personal information to assume your identity and make telephone or online purchases or open up credit card accounts and other lines of credit in your name.

Some people have found themselves arrested or financially wiped out through identity theft. Companies have long known that the disposal of their computers poses a security threat for their businesses.

They either take extreme steps to ensure hard disks are wiped out before selling or giving their old computers away. Some may even destroy the entire hard disk to ensure it can never be used again.

Previously individuals were much less circumspect, and didn?t have to take careful measures.

But with the increase in identity theft, and the financial consequences they can impose on an individual, it?s time to be careful. A new identity theft study conducted by leading University of Leicester criminologist Martin Gill found that second-hand computers can be a potential treasure trove of personal information ? putting users at risk of fraud and identity theft. Second hand computers account for one in 12 computers in use worldwide, according to Martin.

He urges personal and business computer users to ensure that all data is removed from their computers prior to disposing of them.

Gill and his team purchased six computers through a mixture of second hand channels. They then conducted a forensic data analysis on each one, using a widely available software programme (they don?t say which one). Half of the computers had in fact not been securely wiped.

In one case there had been no attempt to wipe the contents whatsoever. Worryingly, data retrieved from two of the computers contained information that could be used by an identity thief.

?The fact that we found so much personal information through a focused study indicates the potential for fraud and identity theft from the second hand PC market is huge,? Gill said in his study. ?Simply re-formatting a hard drive is not enough to make data irretrievable.

From one computer Gill managed to retrieve bank account details,correspondence with a bank noting change of email address, membership details for a DVD website including username and password, details of a CV outlining qualifications and where the person studied.

The computer was bought via an Internet auction.

The seller not only said that the computer had been re-formatted but he also noted that 20 more of his clients? old computers were shortly going to be made available for auction.

Internet auction sites therefore represent a good opportunity for identity fraudsters. A second computer contained data on: Full name and details (sort code and account numbers) for eight separate accounts with a major high street bank;username and password for an ISP account; an e-mail from a travel firm confirming details of a new online account ? including password; letters of correspondence confirming the user?s address.

The computer also appears to have been used for business purposes and contained sensitive information.

There was a spreadsheet that contained details of creditors, payroll, the income tax due, the bank overdraft and the VAT due. There were also lists of around 250 names and addresses of past and present customers.

About 60,000 people were victims of identity theft in2005 in the US, a 14 per cent increase over the previous year, according to research published by CIFAS2.

Gill?s advice is to wipe data from a PC using specialist software, such as Encase. Remember that the delete function does not securely erase the data. Much of it will be retrievable.

Reformatting the hard drive does not erase the data.

Always wipe the whole hard drive using a specialist software application before disposing of the computer.

While eBay is one of my favourite sites, I?m now much more afraid of using it after reading a study conducted by Which? magazine. The UK-based consume rmagazine found that about 130 crimes citing eBay are reported in London every month to the police.

eBay does take measures to protect its customers,notes Jessica Ross, the magazine?s editor. All auction pages contain a link to a anti-fraud service. It also uses a secure payment service called PayPal. Which? is calling on eBay to take more proactive measures in fighting fraud.?eBay need to educate people about the dangers of using the site,? she said. ?This 21st century car boot sale attracts more than a few dodgy characters and gangs can earn huge amounts defrauding everyday eBayers.?

Contact Ahmed at Go tofor security updates.