Hidden Risks Of Data Rooms And Online Document Sharing Platforms

Secure data rooms and online document-sharing platforms have become increasingly popular for their convenience and efficiency in managing and sharing sensitive information. However, despite their widespread use, these platforms often exhibit vulnerabilities that can compromise document protection. Here we delve into the reasons why secure data rooms and online document-sharing platforms provide weak document protection across various themes, including limited control over data encryption, vulnerabilities in access controls, data leakage and insider threats, vulnerabilities in third-party integrations, challenges in secure data room management, and legal and compliance considerations.

Data rooms and encryption

One of the fundamental aspects of document protection is encryption, which ensures that data remains unreadable to unauthorized individuals. However, secure data rooms and online document-sharing platforms may have limitations in terms of data encryption control. In most cases, encryption keys are managed by the platform provider, which raises several concerns. The first surrounds the provider's access to confidential information. This lack of control and visibility over encryption keys creates a potential vulnerability, as it introduces the risk of unauthorized access by the platform provider or a malicious insider.

It is also difficult for customers to verify that encryption keys are being stored securely and secure encryption algorithms are being used. When a provider does claim to use a strong encryption type, it’s important to note that encryption may not be implemented consistently across all data, leaving certain documents vulnerable to unauthorized access. Additionally, the provider may leave unencrypted files behind after the encryption process. Generally, insufficient control over data encryption increases the risk of data breaches and compromises the security of sensitive information. 

Document controls

Access controls are essential for ensuring authorized individuals can access confidential documents. Another important aspect is the use of features like a confidential watermark on documents to deter unauthorized sharing and copying. However, secure data rooms and online document-sharing platforms may have vulnerabilities in their access control mechanisms. Weak passwords, improper user permissions, and the user of JavaScript to enforce controls in the browser make it easier for unauthorized individuals to gain access to sensitive information.

Weak passwords are highly susceptible to easy guessing or cracking, providing unauthorized users access to confidential documents. Granting excessive privileges, failing to revoke access promptly, or other improper user permissions can also result in unauthorized individuals being able to view or modify records. Insufficient authentication processes, such as non-multi-factor authentication, can further weaken access controls, while sharing login credentials or inadequate user management can further exacerbate these vulnerabilities, allowing unauthorized individuals to exploit access control weaknesses.

Finally, as JavaScript executes primarily on the client side, users can often use the developer mode in their browser to bypass print, copy-paste, and download controls, creating unprotected, unwatermarked copies of documents that can be shared at will.

The inside threat

Data leakage and insider threats pose significant risks to document protection within secure data rooms and online document-sharing platforms. Insider threats can occur when authorized individuals misuse their access privileges to intentionally or inadvertently disclose confidential information—often due to negligence, lack of awareness, or malicious intent. For example, an employee might share sensitive documents with unauthorized parties or accidentally send confidential information to the wrong recipient. Additionally, data leakage can occur due to technical vulnerabilities within the platform or through external attacks, leading to the unauthorized exposure of sensitive documents.

These risks mean companies must implement stringent monitoring, auditing, and user behavior analysis to detect and prevent data leakage and insider threats. Regular security assessments, reliable access logs, and data loss prevention measures are crucial for mitigating these risks.

The risks of third-party integration

Secure data rooms and online document-sharing platforms often integrate with various third-party applications and services to enhance functionality and collaboration. However, these integrations can introduce vulnerabilities and weaken document protection. Third-party applications may have security flaws or insufficient encryption measures, often exposing sensitive information when transferring data between systems. Integration points between the platform and third-party applications can become entry points for attackers if not properly secured. The challenge lies in ensuring that all integrated components maintain robust security measures and adhere to strict data protection standards to prevent vulnerabilities in the overall system. Thorough vetting, regular security assessments, and secure integration protocols are essential for minimizing these vulnerabilities, but they will always remain a risk.

Management complexity

The effective management of secure data rooms is crucial for maintaining document protection. However, managing these platforms can be complex, particularly in large organizations with numerous users and varying authorization levels. Ensuring proper user access control, permission management, and document versioning can be challenging, leading to errors and potential security gaps. Furthermore, secure data room management requires meticulous attention to detail, especially when handling document lifecycle management, including secure document sharing, storage, and disposal. Failure to address these challenges adequately can result in data exposure, unauthorized access, or retention of outdated and unnecessary documents. Streamlining secure data room management processes, implementing clear policies and procedures, and providing comprehensive training is essential for overcoming these challenges and maintaining robust document protection.

Compliance

Document protection within secure data rooms and online document-sharing platforms must adhere to legal and compliance requirements. Organizations operating in various industries and geographic locations may be subject to data protection regulations, which include the
General Data Protection Regulation (GDPR) or industry-specific regulations like the Health Insurance Portability and Accountability Act (HIPAA). Non-compliance with these regulations can result in severe penalties and reputational damage. Secure data rooms must have mechanisms in place to ensure compliance, including features like data encryption, data access controls, audit logs, and data breach notification protocols. Regular compliance audits and staying updated on evolving legal requirements are essential to minimize legal and regulatory risks associated with document protection.

Closing words

Despite their widespread use, secure data rooms and online document-sharing platforms exhibit weaknesses in document protection. Limited control over data encryption, vulnerabilities in access controls, data leakage and insider threats, vulnerabilities in third-party integrations, challenges in secure data room management, and legal and compliance considerations all contribute to weak document protection in these platforms. Recognizing these vulnerabilities and implementing robust security measures, continuous monitoring, and adherence to legal and compliance requirements are good steps toward strengthening document protection.

However, due to the numerous flaws in data room protection, organizations should also be considering additional solutions such as PDF DRM.  Digital rights management software can be used to create secure PDF documents before they are uploaded to a data room to prevent unauthorised sharing, printing, editing, and access while ensuring that businesses are not relying on cloud providers for encryption. Trying to mitigate the flaws of data rooms without employing additional document protection will only get organizations so far.