Cell phones spill secrets

Fabris, Palm's director of wireless solutions, said the company may warn customers in an upcoming newsletter about the risks of selling their used phones after AP's inquiries. "It might behoove us to raise this issue," Fabris said.

Dean Olmstead of Fresno, Calif., sold his Treo phone on eBay after using it six months. He didn't know about Palm's instructions to safely delete all his personal information. Now, he's worried.

"I probably should have done that," Olmstead said. "Folks need to know this. I'm hoping my phone goes to a nice person."

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Guy Martin of Albuquerque, N.M., wasn't as concerned someone will snoop on his secrets. He also sold his Treo phone on eBay and didn't delete his information completely.

"I'm not that kind of valuable person, so I'm not really worried," said Martin, who runs the http://www.imusteat.com Web site. "I guarantee that three-quarters of the people who buy these phones don't think about this."

Trust Digital found no evidence thieves or corporate spies are routinely buying used phones to mine them for secrets, Magliato said. "I don't think the bad guys have figured this out yet."

President Bush's former cybersecurity adviser, Howard Schmidt, carried up to four phones and e-mail devices _ and said he was always careful with them. To sanitize his older Blackberry devices, Schmidt would deliberately type his password incorrectly 11 times, which caused data on them to self-destruct.

"People are just not aware how much they're exposing themselves," Schmidt said. "This is more than something you pick up and talk on. This is your identity. There are people really looking to exploit this."

Executives at Trust Digital agreed to review with AP the information extracted from the used phones on the condition AP would not identify the sellers or their employers. They also showed AP receipts from the Internet auctions in which they bought the 10 phones over the summer for prices between $192 and $400 each.

Trust Digital said it intends to return all the phones to their original owners, and said it kept the recovered personal information on a single computer under lock and disconnected from its corporate network at its headquarters in northern Virginia.

Peiter "Mudge" Zatko, a respected computer security expert, said phone owners should decide whether to auction their used equipment for a few hundred dollars — and risk revealing their secrets — or effectively toss their old phones under a large truck to dispose of them.

What about a case like the Lothario whose affair Trust Digital discovered?

"I'd run over the phone," Zatko said. "Maybe give it an acid bath."

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