Stolen devices now a top cause of data loss, Blancco finds

Stolen devices have become a bigger cause of data loss than ransomware or weak credentials, according to new research from Blancco Technology Group. The company’s 2025 State of Data Sanitization Report highlights how AI, sustainability goals, and regulatory pressure are changing how organizations manage data at the end of its lifecycle. The study, which surveyed 2,000 IT, cybersecurity, and sustainability leaders across North America, Europe and APAC, revealed that 41% of data losses stem from stolen devices or drives. That figure surpasses losses from ransomware (32%) or compromised credentials (36%). Phishing and misconfigured networks were also cited as frequent causes of breaches.

AI is both help and hindrance

AI adoption is widespread, with 83% of companies deploying it in some form. While over 50% of respondents say AI supports better data retention and sanitization, nearly a quarter note it increases redundant data and over a fifth say it complicates compliance. Additionally, nearly all enterprises using AI are upgrading devices to keep pace—raising risks related to hardware disposal.

Compliance pushes up spending

In response to tightening data privacy laws and complex standards like NIST 800-88 and IEEE 2883-2022, businesses have boosted their compliance budgets by an average of 46%. Still, awareness of these standards remains low. Only 36–37% of respondents knew of them.

Functional assets still being destroyed

Despite ESG commitments, the report finds that up to 47% of data center devices are destroyed while still functional. Some 25% of laptops and desktops are refurbished without certified data erasure, creating unnecessary risk. For 17% of companies, redeployed hardware was the source of a breach.

Sustainability and IT teams unite

Sustainability remains a driving force. About 90% say it impacts data disposal decisions and 77% report stronger collaboration between IT and ESG teams. However, balancing compliance, security, and environmental targets remains a complex challenge.