A more efficient solution would be to mark on the cover of the magazine that this publication contains modified images. After all, it's only the packet of cigarettes that has the cancer warnings, not each individual cigarette.
Besides, will this stop anorexia among readers, or increase anorexia among models, as without photo manipulation, they will actually have to be a size zero.
On a related note, I think I read about the recent London fashion week where a designer used a size 12 model on the catwalk and one of the stylists there walked off in disgust.
So losing sensitive data "last year" is only being reported now as a problem!?
I hope that between losing the material and reporting it (several months later), some action has already been taken to minimise the potential for blackmail.
(I would say that I hope action has already been taken to prevent this from happening again, but I'm not that naive)
There is very little future in being right when your boss is wrong.