It should be a criminal offence to have top secret national information or 3rd party personal information stored in an unencrypted format.

Even the much-hated Lotus Notes was encrypting databases back in the 1980s.

http://www.ibm.com/developerworks/lotus/library/ls-NDHistory...

It seems like it is going to take some monumental cock-up before governments prosecute people for not encrypting data. Mind you, since no-one lost their job after the monumental cock-up that was 9/11, maybe I'm just naive.