The Star has an excellent article on the security risk of high-tech copy machines. According to the article, many modern xerox type machines have hard drives that store images of data that is photocopied.
The problem is that when the copying is complete it appears that the data on the drive is not deleted and can be retrieved. According to Victor Beitner, a security expert who reconfigures photocopy machines for re-sale, these copiers are computers. They can be accessed remotely just like any computer and the data can be retrieved from the drive.
But that is not all, when the machines are removed from service, the data is still on the internal drive. Government offices, defense contractors, even medical offices need to be made aware of this.
If your company is using a photocopier with an internal hard drive, make sure that the data is erased before the machine is junked or resold. Your photocopy technician or the system manufacturer should be able to assist you in this task.