Although more reliable and secure than regular USB drives, the Xkey Drive does not prevent employees from using other tools to move data out the front door. That's why, says Reichenberg, M-Systems developed a client-server software solution, called Xkey Shield. Xkey Shield gives storage admins the ability to enforce policies on the use of removable devices.

"Using Xkey Shield, you can block the use of unauthorized devices and prevent burning information to CDs, DVDs, or floppy disks," explains Reichenberg, noting that a combination of Xkey Drive and Xkey Shield can effectively protect company data while keeping track of where it's stored.

M-Systems isn't the only vendor offering products to reduce the risk of personal storage devices. I recently spoke to Vladimir Chernavsky, CEO of SmartLine, a company that in November released DeviceLock Plug-and-Play Auditor. This application allows administrators to know how many users are uploading or downloading data to personal storage devices.

Expect to see more products in this area, and in the meantime, start tackling the issue in your own company. Protecting your tape drives -- as I've suggested in previous columns -- is important, but it won't stop data theft by a potential enemy inside your company.