The federal government has not done enough to protect its smartphones from interception, leaving Canadians' personal information vulnerable, Canada's privacy commissioner warns.

In the Office of the Privacy Commissioner of Canada's annual report to Parliament, privacy commissioner Jennifer Stoddart said none of the five federal agencies she had audited had "fully assessed the threats and risks inherent in wireless communications."

The report also specifically singled out pin-to-pin messaging between smartphones – which is popular among government staffers – as vulnerable to interception.

"They are using the pin-to-pin messaging . . . in which the messages are not encrypted, only scrambled," Stoddart told CTV News Channel. "This means they are more susceptible to interception with easy-to-get off-the-shelf devices."

Stoddart said in her office the pin-to-pin capacity of employees' phones is disabled, except for a handful of officials who would be able to use it if their main server crashed.

Stoddart also noted government practices for disposing of paper documents and unneeded computers were similarly putting Canadians' private information at risk.

"Our audits turned up some disturbing gaps in the privacy policies and practices of government institutions," Stoddart said in the report. "Whether they're using a BlackBerry, shredding old papers or disposing of outdated computer equipment, public servants need to know that the security of people's personal data is a top priority."

However, the commissioner's report is focused more on the potential risks than on privacy incidents that have already occurred.

"Considering the vast amounts of personal information on Canadians that the government holds, problems are relatively rare," Stoddart acknowledged.

The privacy commissioner argues because of the sensitivity of the information the federal government has access to -- such as taxation, income support, the correctional system and international travel information -- the report requires serious action.

"When it comes to safeguarding the personal information entrusted to it, the government of Canada must always be held to the very highest standards of account," the report said.

Other report highlights:

• An audit found that 90 per cent of a sample of donated government computers to a recycling program for schools had not had their hard drives wiped – leaving some data behind that was confidential and even classified.
• Unauthorized access to tax records by Canadian Revenue Agency officials has led to new measures. The report notes one agency worker put the tax records of a professional athlete online.
• The report raised concerns about the disclosure of personal information by administrative tribunals and other quasi-judicial bodies.