Breaches spur data encryption.

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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...