But some company's data will get out, Gold predicts. "I have no doubt that, with all these portable memory devices in the workplace, there will be a federal privacy compliance breach in the next year. And it could be a huge liability."

Alexander is a freelance writer in Edina, Minn. Contact him at s_j_alexander@rocketmail.com.

SIDEBAR

How to stop the leaks

First line of defense: Establish a portable-device policy and educate users about it. Few companies ban the devices outright; 15 percent to 20 percent have usage polices.