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On the Carbonite web site, they claim to encrypt your data, so in theory, it is protected against being snooped while in transit (between your PC and theirs). But what about the reliability and integrity of their employees? Are they liable if one of their people abuse your trust? I'd be cautious about what kind of information I entrusted with a stranger. This doesn't even broach the subject of whether online backups are a good idea in the first place.
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