Why selling or repairing smartphones and laptops has become a major data security risk—and how users can protect themselves.
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| Experts warn that improper factory resets and logged-in accounts expose users to fraud and identity theft. Image: CH |
Tech Desk — January 14, 2026
Why a routine phone repair or laptop resale can turn into a serious privacy breach is becoming an urgent question in the digital age. As smartphones, laptops and tablets increasingly function as personal vaults—storing financial data, private conversations and access to online services—the moment they leave their owner’s hands has become a critical security flashpoint.
Consumer habits have not fully caught up with this reality. Many users assume that a single factory reset is enough to erase personal information before selling or repairing a device. Cybersecurity specialists say this belief is dangerously outdated. While resets remove visible files, fragments of data can persist in storage systems, especially if devices are resold quickly or handled by third parties with technical expertise.
The scale of potential exposure is significant. Modern devices routinely store personal photos, scanned documents, online banking credentials, transaction histories and auto-saved passwords. If recovered, such information can be exploited for financial fraud, identity theft or blackmail. Analysts note that second-hand electronics have increasingly been linked to downstream cybercrime, often because users skipped basic data hygiene steps.
Backing up data is widely seen as the first line of defense. Saving files to external storage such as hard drives or pen drives ensures that valuable information is preserved before deletion begins. Experts stress that this step should be paired with a manual review of the device, removing sensitive documents, cached images and download folders that users may overlook.
Encryption has emerged as another critical safeguard. Encrypting a device’s hard drive before performing a factory reset makes any remaining data unreadable, even if technically recoverable. Once considered an advanced option, encryption is now built into most modern operating systems and is increasingly recommended for everyday consumers.
Account access presents another hidden risk. Smartphones and laptops often remain logged into social media platforms, messaging apps, online wallets and email services. Auto-save password features can silently retain credentials, giving the next user unintended access. Logging out of all accounts and deleting saved passwords before a reset is now considered essential.
The growing role of devices as controllers for Internet of Things (IoT) systems adds another layer of concern. Smart home devices, wearables and security systems are often linked to a primary phone or laptop. Failing to disconnect these links can expose users to surveillance or unauthorized control long after a device has changed hands.
Data-wiping software is increasingly used to address these risks, but experts warn that not all tools are reliable. Poorly designed or malicious software can fail to erase data—or create new vulnerabilities. Verification through trusted, professional-grade tools is key to ensuring that data removal is both complete and secure.
Ultimately, the rise of digital fraud has transformed device resale and repair from a casual transaction into a moment of heightened risk. As technology embeds itself deeper into personal and financial life, protecting data before handing over a device is no longer optional. It is a necessary act of digital self-protection in an increasingly connected world.