It's just like "deleting" a file off of your desktop PC; it's unlinked, but the data is still physically present on the drive platters until it happens to be overwritten, unless you make a special effort to overwrite it -- and most applications don't do that.
I'm not sure that it's really a flaw in the copier design, because they're not intentionally retaining the images any more than your PC is intentionally designed to retain Word documents that you "delete" without overwriting.
The problem is that many users are unaware that a modern photocopier even contains a hard drive ... they are probably oblivious of the fact that modern copiers have little in common with the traditional photostatic machines they grew up with, except that they're faster and don't smell as much. Manufacturers need to better educate buyers (or lessees) about the machines they're using, and perhaps make hard drives more accessible so that when they're sold, they can have the drives removed and destroyed first.
Once you get the HDD out it's easily treated like any other drive. Most of the documents will be deleted (there is often a buffer of non-deleted documents) but recovering them is pretty trivial. Some of the newer ones do actually scrub data at intervals now.
"using a forensic software program available for free on the Internet, he ran a scan - downloading tens of thousands of documents in less than 12 hours."
Since he had to use special software to extract the files, it looks like the software deletes the files, but not securely. Basically, it uses 'rm' instead of 'scrub'.
As explained below, storing scanned pages temporarily is good when photocopying (or faxing) multiple pages.
Also, the creator of the software mentioned (securely wipes photocopier harddrives) is a very smart marketer. The article is basically an advertisement for his software, "INFOSWEEP," and he's the one who showed the journalist this vulnerability in the first place.
They also have fairly small drives - the companies are out to make money - so at somewhere like kinkos your job would be overwritten multiple times by the end of the day. It's only an issue if the system fails and the drive needs to be replaced - but anywhere operating under any sort of security regs would destroy the drive before it went off site.
We used to destroy them along with any waste explosive/munitions. Then health and safety stopped us and we had to buy a super monster shredder - which is a lot scarier than explosives but it can shred drives/entire files/interns etc.
Maybe it needs a drive anyway for some other reason (like the software that runs it lives there instead of on a CF card or something), so it ends up being cheaper and easier that way?
Or you buy a $40 ATA drive and connect it to your embedded processor's built-in interface.
I mean, OK, hard drives are cheap, so maybe copier manufacturers just said "eh, even if they run huge jobs, they can come back and repeat them later. Only costs us a couple more bucks." But dang - they gotta address this.
EDIT: Hmmmm. I guess I just forgot how freaking big hard drives ARE these days. Discussion below about how a "small" 20GB drive could store so many documents at such-and-such size... oh yeah. It's startling to remember how gigantic 20GB sounded 10 years ago.
the answer is also necessary to figure out how many images are probably being stored. if the copier is just keeping them for debugging reasons (which would explain why nobody knows they're there), then they could very well be highly compressed 72dpi images.