File-sharing technologies are essential for the efficient exchange of information in the digital age. However, a recently resolved class-action lawsuit against the provider of a well-known file-sharing service illustrates the risks these solutions can introduce.
In January, Accellion reached an $8.1 million settlement to resolve lawsuits stemming from a series of data breaches involving approximately 300 organizations worldwide. A zero-day exploit in the company’s file-transfer appliance allowed hackers to steal Social Security numbers, medical records, financial records, academic transcripts, employment contracts and other sensitive data from high-profile victims such as Kroger, Shell Oil, Morgan Stanley, the University of California system and the U.S. Department of Health and Human Services.
In spite of such risks, file-sharing solutions are indispensable today. The ability to share electronic documents, images and other digital media underpins all business collaboration solutions and makes remote work models possible. The question then is not whether to use file sharing but how to do it securely.
The Cloud Advantage
Email once was the most common method of sharing files, but that’s a problematic approach these days. Email has become the most likely source of data breaches, and email attachments are the most common vehicle for malware delivery. What’s more, email size limits often make it impossible to send increasingly large files with high-resolution images and videos.
On-premises file-sharing systems offer greater flexibility and reduce the threat surface, but there are caveats. You’ll have to have the staff and expertise necessary to manage and maintain file servers, and your staff must implement, maintain and update all security measures. Letting a patch or an update slide can result in data leaks or malware infections.
Cloud-based solutions are a better option for companies that don’t want to take on the burden of a dedicated on-premises solution. With online file-sharing services, users can quickly upload very large files (up to 100GB in some cases) to a central repository where they can be accessed and downloaded by other users. One recent study finds that nearly 40 percent of corporate data in the cloud is related to file-sharing services.
Essential Security Features
Security can be an advantage of online file-sharing because much of the burden is shifted to providers. Reputable providers often deliver better protection than in-house IT teams simply because of the scale they work with. Because they provide services to large numbers of customers, it is easier and more economical for providers to implement comprehensive security measures.
As the Accellion breach demonstrates, however, providers aren’t infallible. Organizations must do their due diligence when selecting a cloud-based file-sharing service. At a minimum, find a provider that offers these three security features:
- End-to-end encryption (E2EE). With E2EE, files are encrypted by the sender and can only be decrypted by the intended recipient. This ensures that your files can’t be viewed by external hackers or the service provider.
- Rights management features. This will give you the ability to create different permission settings to ensure that only intended recipients can access and see your files. Leading solutions will also allow you to restrict forwarding, limit viewing time and recall documents after they have been shared.
- Regulatory compliance. Many regulations require some form of encryption for file transfer and storage. Others require stronger features, such as the capability to trace file management and track users in the system.
File sharing has become an imperative for today’s collaborative working models, but the practice most certainly introduces risk. Solutions such as Zix Secure File Sharing minimize that risk with strong security features such as encryption, rights management, file recall and full tracking visibility. Contact us to learn more.
