The many risks are evident. Private information of all kinds—personal, financial, medical—resides on the computers of nearly every business. Hackers and identity thieves increasingly are compromising system vulnerabilities, seeking to break in and exploit the details.

Hacking has been generating high-profile news lately. Citigroup warned 360,000 credit card customers that some account data was compromised. AT&T apologized to 114,000 new iPad owners, including celebrities, after hackers leaked their email addresses to an online gossip site. Privacy breaches, both accidental and criminal, are increasing steadily, along with their costs.

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