China’s logistics companies leaking customer data; One express sheet could be sold for 0.3 to 0.5 yuan (US$0.06-$0.16). A box containing 1,000 sheets could get 300 to 500 yuan (US$50-$80)

China’s logistics companies leaking customer data

Staff Reporter

2013-11-14

Single’s Day, which fell on Nov. 11, was a major shopping holiday for China’s e-commerce marketplaces and consumers, marking a peak season for express deliveries. Before the day arrived, Shanghai-based YTO Express, a major logistics company, had to apologize to its clients for privacy breaches leading to leaked personal data general chaos, according to the Guangzhou-based 21st Century Business Herald.This reportedly was not the only case of personal information being leaked.

The privacy leaks faced by YTO’s clients have led to growing concern about similar incidents among other express delivery companies, said an employee of a private express delivery agency.

The data leakage occurred partly as a result of couriers selling express sheets for additional income.

Private express delivery firms, their franchisees, and workers play different roles in selling express sheets filled with clients’ personal information, said the report.

A courier identified as Xiao Wang overheard a few senior workers talking about selling express sheets while working for a private express delivery company. It was the first time he became aware that express sheets could earn him extra cash.

He then began to collect express sheets and a senior worker sold the receipts for him. One express sheet could be sold for 0.3 to 0.5 yuan (US$0.06-$0.16). A box containing 1,000 sheets could get 300 to 500 yuan (US$50-$80)

Xiao Wang never knew who bought the personal data since he was only responsible for collecting the papers.

With the exposure of YTO’s data leaks, couriers that profit from the sale of personal records have decided to keep a low profile with their “business” now that their companies have become stricter about retrieving the receipts.

But this practice has not effectively stopped the illegal activity.

Xiao Wang’s friend, who works for another private express delivery company, said that couriers take photos of the private data on these sheets and then sell the information. The digital file prevents any risk of losing the hardcopy.

In addition, the franchisees of parent express delivery companies sell a large number of delivery sheets to recycling stations, which also leads to data leakage.

For the franchisees, the best way to control these leaks is to destroy the paper. However, the cost of destroying so many documents is expensive, so many of the franchisees end up selling the paper to recycling stations.

As a result, the poor management of these franchisees has also led to the leakage of client data.