How to Protect Corporate Data During Mobile Device Decommissioning

Securing mobile devices while they’re in use is a primary focus for IT teams and individual users, and with good reason. These devices contain a wealth of personal and corporate data, and are usually set up to access sensitive company folders and documents. Keeping them secure is essential to a company’s overall cybersecurity strategy.

But what about after those devices reach their end of life? When a device is no longer in use—and therefore not top of mind—it can be easy to forget that they still contain all of that sensitive data and can still be used to access corporate accounts. This is a stage when the device is potentially even more vulnerable to compromise, as it’s no longer being physically protected by the user.

To ensure that mobile devices remain secure—from first deployment through to last usage and beyond—companies need to prioritize secure decommissioning. This article will explore why, and highlight the risk factors associated with device decommissioning. We’ll then discuss how to decommission your devices securely, and the role that third party services can play.

Device decommissioning: a definition

Device decommissioning is the formal process of retiring IT and mobile devices from active use within an organization, ensuring they are safely and securely handled at the end of their lifecycle.

This process involves a series of steps to prevent unauthorized access to corporate information and files, starting with comprehensive data wiping and often extending to physical destruction, recycling, or selling of the device components.

As we’ll explore below, this process is critical to avoiding security risks from leaving residual data on devices. Responsible disposal and recycling also helps companies meet their environmental, social, and governance (ESG) responsibilities by allowing for safe and sustainable e-waste disposal.

Why secure decommissioning matters in today’s mobile first world

Mobile devices are ubiquitous in today’s interconnected and hybrid work environment. As the company grows, and more employees and locations are added, the volume of devices also increases. And because mobile devices are at the center of business operations, they store and process high volumes of sensitive information, along with having access to internal systems. This creates more and more potential exposure points that can lead to data breaches.

In this environment, end-to-end lifecycle management of those devices—including secure decommissioning—is critical. Without effective decommissioning processes, companies risk exposing sensitive information through residual data or login credentials that are left on mobile devices.

This data can be accessed either through active measures—like hacking—or inadvertently if a consumer purchases a recycled device. In both cases, a failure to properly erase and dispose of data could lead to severe repercussions, depending on how that data is used. If, for example, this leads to a broader data breach within the company, the costs can be catastrophic—topping out as high as $5 million for incidents involving compromised credentials.

As enterprise mobile device fleets grow, so does the need for secure, efficient decommissioning solutions that ensure data protection and uphold industry regulations, providing an essential safeguard in the digital landscape.

The risks associated with device decommissioning

Before we jump into specific ways that data can be stolen during decommissioning, let’s pull back and discuss the high-level risks associated with mobile device end-of-life.

As mentioned, the device decommissioning process presents significant risks for businesses due to the volume of sensitive data they can store, and the fact that the devices may no longer be in the company’s immediate possession.

For example, data left on decommissioned devices, including customer details, authentication credentials, and proprietary files, may fall into unauthorized hands if not properly erased. This can lead to potential breaches, and the accidental violation of regulatory compliance and privacy laws which mandate stringent data handling practices. Breaches and non-compliance can both result in substantial losses for the company and reputational damage if customer information is involved.

Additionally, devices left unsecured can pile up in storage areas, creating logistical issues and further increasing exposure to data theft. Without secure decommissioning protocols, this problem can snowball, resulting in compounding vulnerabilities for the company.

5 ways that data can be stolen during or after decommissioning

To better understand how, in practice, improper decommissioning can lead to security breaches, we’ve created a list of five common ways that data can be stolen during end-of-life management.

1. Data recovery from insufficient data wiping

If a device is not fully, or properly wiped before decommissioning, sensitive data can often be recovered by subsequent users or bad actors who gain access to the device. Tools that recover deleted files or extract data from improperly sanitized devices pose a particular severe risk.

Leftover data is more common than most companies would like to think about. In one study, researchers found that nearly 56% of second-hand routers they purchased contained recoverable corporate data, including client information, credentials, and sensitive documents, all of which could be leveraged for cyberattacks and the need for enterprise-grade data wiping solutions.

2. Theft of SIM cards and associated data

SIM cards can store sensitive contact lists, messages, and other data linked to a device. Without removing or destroying SIM cards during decommissioning, these small yet critical components can be used to retrieve call records, access mobile network services, or even impersonate the former device owner.

A secure decommissioning service will ensure SIM cards are destroyed alongside the device or wiped independently to prevent unauthorized access.

3. Repurposing devices without reconfiguration

Devices that are not reconfigured before being repurposed may retain network and system settings, giving unauthorized users access to internal networks or applications. Unauthorized repurposing of devices with residual data settings increases the risk of network breaches, especially if the devices retain configurations that allow them to bypass standard security measures.

This emphasizes the importance of device reset and configuration controls before repurposing or resale.

4. Selling of devices on the secondhand market

Used devices sold without adequate decommissioning procedures create vulnerabilities, as they may still contain cached credentials, data, or connection keys.

This highlights the need for formal data destruction certifications, ensuring devices sold on secondary markets are clean.

5. Unauthorized access via residual app and system permissions

Applications often store login credentials and access tokens, which remain on devices after basic data clearing. If a decommissioned device retains permissions for apps linked to corporate accounts or cloud services, unauthorized users could access these resources through persistent sessions.

This emphasizes the need for comprehensive decommissioning that includes revoking app permissions and clearing stored credentials from each application before disposal or reassignment.

Together, these risks can result in significant access and data breaches that can spell big problems for the organization in the long term. Secure decommissioning, either in-house or via a third party provider—is the best line of defense against these risks.

How to securely decommission your devices

Now that we’ve highlighted the risks associated with retired mobile devices, let’s talk about best practices for securely decommissioning your devices. Here are five general best practices to follow if you intend to manage device decommissioning in-house.

Maintain a hardware log

The first step in secure decommissioning is to create a hardware log, which ensures that every decommissioned device is accounted for in your records. This log should track essential details like device ID, decommission date, and the disposal or recycling partner involved.

This step not only helps with organization, but also supports compliance by maintaining an audit trail that allows you to track each individual device and its associated data.

Backup data before wiping

Before data wiping or destruction, it is essential to back up any valuable information on the device. Backup protocols should capture configurations, proprietary information, and data that might be required for legal or operational continuity.

This safeguard prevents accidental loss of data that could impact business functions and ensures continuity

Execute a secure data wipe

Once you’ve prepared to remove data from the device, you can move to execution. A thorough data wipe is crucial. While factory resets remove most data, additional steps such as using NIST-certified sanitization software ensure that sensitive information cannot be recovered.

For devices storing sensitive information, enterprise-level wiping tools can offer added assurance. This step should be a mandatory part of any decommissioning protocol.

Remove from endpoint management systems

Next, ensure that each decommissioned device is disconnected from all endpoint management and mobile device management (MDM) systems. This prevents unauthorized access and ensures the device cannot reconnect to corporate systems post-decommissioning.

Physically destroy SIM cards and storage media

Physically destroy all removable storage components, such as SIM cards and SD cards, to eliminate residual data. Destroying these items, often by shredding, prevents the recovery of contact lists, authentication keys, or other data stored on these small but essential components.

Generate compliance documentation

After data wiping and device destruction, generate a compliance report or certificate of sanitization.

This documentation certifies that all data removal steps were completed securely and may be required for regulatory compliance, especially in industries with strict data protection standards like healthcare and finance.

The role of secure decommissioning services

As companies grow, the volume of mobile devices they must manage increases dramatically. This puts strain on internal IT teams, which can hamper secure decommissioning efforts. Third party decommissioning services help companies extend their capabilities, without having to invest significant funds into expanding their IT teams and infrastructure.

Outsourcing mobile device decommissioning offers companies a streamlined, secure approach to handling outdated technology, minimizing risks and conserving internal resources.

Here’s how professional decommissioning services can help:

  • Purpose-built staging facilities. Specialized decommissioning providers maintain secure, scalable facilities specifically designed for data sanitization and device processing. These environments meet regulatory standards and are equipped for high-volume tasks which may be beyond the scope of an internal IT team.
  • Experienced technicians and configuration experts. Professional technicians use industry-grade data sanitization methods to ensure complete data removal. With strict processes for handling SIM card destruction, physical security, and asset tracking, they reduce the likelihood of data leaks and improve compliance with privacy laws, quality control and compliance checks.
  • Multi-location logistics support. These providers manage logistics across multiple sites, tracking each device’s location and processing status. This is crucial for large organizations that decommission devices from numerous facilities and require asset visibility.
  • Seamless device imaging and pre-configuration. Some providers handle device pre-configuration for redeployment. This service ensures that devices are ready for their next use without in-house intervention, thereby enabling quick deployment with minimal downtime.
  • Centralized support management. Decommissioning services often include warranty tracking and disposal documentation, allowing organizations to maintain accurate records for auditing and compliance purposes.
  • Predictable costs and budget control. Outsourcing provides a fixed pricing model, allowing for clearer financial planning. Costs are consolidated into a single licensing agreement, effectively eliminating unpredictable expenses that might arise from in-house management.
  • Scalability and flexibility for future rollouts. As companies grow, decommissioning needs increase. Providers offer scalable services that adjust to fluctuating demands, ensuring consistent support regardless of the device volume.
  • Support for ESG practices and responsibilities. Secure decommissioning providers ensure that devices are disposed of or recycled in an environmentally responsible manner, reducing e-waste and conserving valuable resources. By adhering to sustainability practices, these services help companies meet environmental, social, and governance (ESG) goals while protecting sensitive data.

Most importantly,outsourced decommissioning services free internal IT teams from resource-heavy tasks that take time away from more business-critical tasks, while also providing an overall more effective and secure device disposal process.

How PiiComm enables secure and efficient device decommissioning

When mobile devices become obsolete, they must be securely disposed of to protect the data that’s on them, and to adhere to ESG obligations and regulations. To help, PiiComm offers comprehensive reverse logistics and decommissioning services on an outsourced basis that includes:

  • Safe and secure data wiping, as well as SIM card destruction by trained technicians
  • Certified and eco-friendly recycling or destruction of devices, if needed
  • Maximized value recovery via trade-in, resale or recycling of materials of decommissioned devices

Interested in learning more about PiiComm’s Secure Decommissioning offering? Read more now or contact us today to chat about your options.