Businessmen in offshore financial centres who value client-confidentiality should think long and hard before taking laptop computers and other data-storage devices with them on trips to the US, says Washington, DC-based technology consultant Mark Rasch.

There has been a growing number of incidents of travellers having electronic devices seized at US airports by Government agents wanting to access the information stored on them, even if it is password-protected, according to Mr. Rasch, who is a former head of the US Justice Department's computer crime unit, and now specialises in computer crime, computer security, incident response, forensics and privacy matters as managing director of technology for FTI Consulting Inc.

"People, money and information all travel across borders. Internet and computer technologies help facilitate the transfer of both information and money," he told OffshoreAlert. "However, despite the 'borderless' nature of the Internet, real nations maintain real borders. In the US and other countries, border patrol, customs and immigration officials have long maintained the right to inspect luggage coming into and out of the country.

"However, business travelers have recently learned that not only luggage is subject to inspection, but the contents of laptop computers, BlackBerrys, MP3 players, or other digital media are available for inspection."

"Customs agents have been pulling aside travellers, sometimes based upon some "profile," sometimes based upon "suspicion" and sometimes randomly, and inspecting computers for child pornography or other contraband. In addition, government officials reserve the right to copy the entire contents of hard drives, and to use the contents of these hard drives in any way they wish.

"Tax records, financial records, attorney client privileged information, or other personal data may be subject to inspection and use by the government, without any probable cause, warrant, or even suspicion."