I'm not sure what makes you think commercial endeavours are less susceptible to human frailty than government.
The problem here is not which type of organisation holds the data; it's the fact that individual humans are involved in using it.
The problem here is not which type of organisation holds the data; it's the fact that individual humans are involved in using it.
Same reason you'd worry more about a 200-pound drunk guy than you would a toddler, if they both came at you with an axe.