"Interested in selling tape? We buy used tape and offer top cash for all types of tapes, cartridges, reel tape or whatever type of magnetic media you use."

Such pitches are everywhere on the Internet and ever so tempting. You're looking to upgrade to new storage tapes or disks and figure you might try to defray costs by getting a few bucks back for your old tapes. But those who have bought or sold used tapes warn that doing so can put your confidential data at risk.

Dan Nutter, vice president of distributed storage at KeyBank in Cleveland, found this out firsthand.

Nutter says KeyBank was left with 8,500 old tapes containing customer financial information following a $500,000 media upgrade. The organization considered rewriting over the tapes, but Nutter says that would have taken as long as an hour per tape. So he turned to a reseller to take the tapes off his hands.

The reseller brought in a bulky gadget called a degausser - essentially a super-sized, super-charged magnet in a stainless steel box, to de-magnify the tapes and then resell them.

"We plugged the degaussed tapes back into our library and were still able to read the label on the cartridge, so we degaussed them again and put them back in the library and we were still able to read them," Nutter says.

The reseller returned with a more powerful degausser, which also failed to erase the tapes.

"We told them to have a nice day and we would find a way to get them burned," Nutter says.

Imation, as a maker of tapes, isn't shy spreading the word about what it sees as a sketchy resale market. The company says it bought linear-tape-open tapes from a reseller to find out if stories it had heard about shady tape resellers were true: that these companies were reselling tapes that hadn't been scrubbed clean, even though they were certified to be so.

"When we put them in a tape drive, we found customer data on three of four cartridges," says Tim Bjork, marketing manager for enterprise tape at Imation. "We took some of the data, found readable words, plugged them into a Google search and were able to link back to the company that sold the tapes in the first place.

"Organizations need to understand that if they sell their tapes they are putting their corporate assets at risk," he says.

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