The perils of exposed files: Why external file sharing needs security

In challenging economic times, where layoffs can introduce new data security risks, prioritizing external file-sharing security is more critical than ever. This not only safeguards sensitive data, ensures compliance, and protects your competitive advantage against growing AI threats, but also mitigates potential internal vulnerabilities.

The offboarding process, if not carefully managed, can unintentionally trigger unauthorized file sharing, underscoring that file security is an ongoing process and a crucial element of data loss prevention, rather than a singular event.

By implementing robust access measures and fostering a culture of data awareness, both enterprises and growing companies alike can collaborate securely and confidently in today’s changing digital landscape.

Most organizations today rely heavily on external file sharing to exchange information with clients, vendors and partners. Files and permissions are shared without a second thought in the haste in hitting deadlines in a 24/7 world, but this can have devastating consequences when left to time. 

Recent incidents like the Mizuno USA breach, the UK Ministry of Defence breach, which exposed the data of 270,000 individuals, and the growing amount of data breaches in US education space serve as stark reminders. Let’s review the dangers of lax external file-sharing practices and why organizations of all sizes need to take data governance seriously.

Security vulnerabilities

Uncontrolled external file sharing creates vulnerabilities in your organization’s security posture. If proper access controls aren’t implemented, sensitive data like employee records, financial information, and intellectual property becomes accessible to unauthorized individuals. Hackers and AI threats can exploit this to gain a foothold in your network, steal valuable data, or disrupt operations.

Data breaches and leaks

Accidental exposure is a significant threat. Employees might share files with the wrong recipients due to human error or misconfigured permissions. Studies found that 20% of the sensitive files a company holds are open to every employee (Varonis/Silicon Angle). Malicious insiders could also intentionally leak data for personal gain. These breaches can lead to financial losses, reputational damage, and regulatory fines.

Compliance issues

Many industries have strict regulations regarding data privacy and security. Failing to secure externally shared files can lead to non-compliance with regulations like GDPR (General Data Protection Regulation) or HIPAA (Health Insurance Portability and Accountability Act). This can result in hefty fines and legal repercussions.

Loss of competitive advantage

Sensitive information like business plans, marketing strategies, or product roadmaps falling into the wrong hands can give competitors a significant edge. This can cripple your innovation efforts and impact your bottom line.

Combating the threat

Here’s how enterprises can mitigate the risks associated with external file sharing:

• Implement secure file sharing solutions: Utilize platforms that offer features like granular access controls at the file/folder level, encryption, and audit trails.
• Educate employees: Train employees on secure file-sharing practices, identifying phishing attempts, and understanding the importance of data security.
• Enforce Data Loss Prevention (DLP): Implement DLP solutions to prevent sensitive data from being accidentally or intentionally shared externally.
• Monitor and audit activity: Regularly monitor file access and sharing activity to identify suspicious behavior and potential breaches.

Don’t let one exposed file be your downfall

By prioritizing external file-sharing security, enterprises can safeguard sensitive data, ensure compliance, and protect their competitive advantage. Remember, data security is an ongoing process that requires pruning and not a one-time fix. By implementing robust security measures and fostering a culture of data awareness, orgs of all sizes can continue to collaborate securely and confidently while still hitting their work goals. 

If your organization leverages Google Workspace for file collaboration, start your 14 day free trial of BetterCloud File Governance and bulk control your file security solution today with automation.