Breaches spur data encryption.

With reports of security breaches and data losses occurring on an almost weekly basis, companies are increasingly adopting data encryption technology that many previously avoided, according to Enterprise Strategy Group, a storage market research firm.

In the past, companies considered data encryption of backup tapes to be too costly and technologically challenging.

The report found that only 6 percent of financial service companies and 7 percent of other businesses encrypt their backup tapes. Most companies create backup tapes of computer data and store it with a third party in the event of a disaster.

There are no existing laws that require companies to encrypt data on backup tapes, but Rep. Ed Markey (D-Mass.) has spoken in support of amending the Gramm-Leach Bliley Act to require encryption. After experiencing large data breaches, Time Warner and CitiFinancial have each pledged to adopt data encryption technology, and Bank of America has opted to eliminate backup tapes where possible and transition to computer-to-computer data transfer.