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What is File Security and What Does It Mean for Your Business? 

It’s estimated that almost 50% of working professionals will continue working remotely post COVID-19. The new normal with remote and hybrid work environments has altered how companies use technology to facilitate day-to-day operations.

Remote workers regularly access cloud-based systems and internal servers across multiple platforms and devices to communicate and collaborate with their coworkers, regardless of their physical location. In addition, 70% of organizations report allowing their remote workers to access corporate assets from personal devices.

As a result of this shift from in-person work environments to remote workplaces, organizations are now more vulnerable than ever to heightened cybersecurity risks. It is estimated that cybercrimes will cost companies worldwide nearly $10.5 trillion annually by 2025.

Some of these cybersecurity risks include data breaches or data loss due to phishing, ransomware, and other attacks that can prove catastrophic to a company’s bottom line and public reputation. According to IBM, the average cost of an organizational data breach is $4.35 million.

By simply practicing proper file security, businesses can thwart these cyberthreats and avoid the legal and financial consequences that are associated with improper cybersecurity practices.

In this article, we will explore what file security is, why it’s essential for organizations, and best practices. We will also detail how poor file security exposes businesses to cyberattacks, as well as how to use tools like WinZip® Enterprise to enhance your organization’s file security practices.

What is File Security?

You can think of file security this way: Database, network, and endpoint security is like a bank vault. File security is like having a secure lockbox stored within the vault. Even if someone breaks through the vault door, they can’t get to what’s inside the lockbox. Most organizations have data protection plans in place that are solely focused on overall database, network, or endpoint security. Although these are important factors to consider, vulnerabilities can still be exploited if someone is able to access the network or a connected device.

If unauthorized persons gain access to a business’s storage infrastructure, all the information stored within is at their fingertips. Without file-level security provisions, they can then open files and folders and retrieve sensitive company information.

The goal of these file security provisions is to protect each individual file within a company’s inventory, instead of granting authorized users access to an entire database at once. This practice makes it much more difficult for malicious third parties and other unauthorized individuals to gain access to critical business-related information.

Why Proper File Security is Essential for Organizations

From physical theft to unauthorized access, phishing attacks, and more, there are many ways in which security is compromised and data loss occurs. When data is not sufficiently protected, it can result in revenue loss, ransomware attacks, reputational damage, and other legal and financial consequences.

While every business professional needs file security, it is especially vital in heavily regulated industries that handle sensitive data. For example, healthcare companies and financial organizations hold high-value data that makes them a key target for malicious actors. This sensitive information includes items such as:

  • Cardholder data
  • Protected health information (PHI)
  • Personally identifiable information (PII)
  • Social security numbers
  • Financial records

Modern privacy regulations are growing, and Gartner predicts that by 2023, 63% of the world will have their personal information protected by some sort of privacy law. Proper file security is key to compliance with applicable compliance provisions.

Examples of regulations that impact companies that handle sensitive data include:

  • Health Insurance Portability and Accountability Act (HIPAA). HIPAA is concerned with privacy and security of protected health information (PHI). Healthcare entities and their business associates must use best practices such as encryption to ensure the safe use and access of sensitive data.

  • Gramm-Leach-Bliley Act (GLBA). The GLBA requires financial institutions (including those who provide financial products or services) to encrypt data at rest and in transit on external networks. File security provisions safeguard nonpublic personal information (NPI), which is financial data that could be used to identify an individual.

  • Federal Financial Institutions Council (FFIEC). The FFIEC guidelines require data at rest to be encrypted when the company’s risk assessment indicates that such protective services are necessary.

  • Payment Card Industry Data Security Standard (PCI DSS). The PCI DSS security standard identifies 12 compliance requirements, including data encryption, for organizations that handle cardholder data.

  • Federal Information Processing Standards (FIPS). FIPS applies to all non-military government agencies and contractors, including anyone who handles sensitive but unclassified (SBU) information. FIPS 140-2, for example, identifies the security requirements for cryptographic modules to ensure that sensitive data is properly protected.

  • Federal Information Security Modernization Act (FISMA). FISMA requires federal agencies (as well as government contractors) to implement information security practices that reduce the risk of unauthorized data access. This includes the creation of a comprehensive system security plan with best practices such as data encryption.

File Security Best Practices to Follow

Prioritizing file security is the best way to ensure that your company’s important business information remains safe in the event of a data breach. Follow these best practices to keep your organization’s sensitive information secure and the integrity of your company intact:

Enforce File-Level Encryption Across Your Organization

File-level encryption secures your data across its lifecycle, including when it is in transit or at rest. This is a more targeted type of security than full-disk encryption, which prevents unauthorized access at the device level.

Data is considered “at rest” when it is not actively moving between devices and networks, such as when it is stored in a device or database. The data state is easily accessible without the proper security protections in place, making data at rest a popular target for malicious cybercriminals.

For instance, if files and folders that exist on employee devices are not properly encrypted, then the data they contain can be easily accessed by unauthorized users if the device falls into the wrong hands.

Data in-transit is also susceptible to cyberattacks if not properly encrypted. Malicious actors will often intercept data during cloud-based or internet file transfers. For example, cybercriminals can access company networks through unsecure Wi-Fi routers, stealing sensitive data in a matter of moments.

Leveraging file encryption helps companies reduce the risk of insider and third-party threats by ensuring that only authorized users can access organizational files and folders that hold sensitive data. This is because encrypted files can only be decrypted with the right password or key, rendering them unreadable to unauthorized individuals.

Manage User Access and Permissions

It is reported that 61% of all data breaches involve credentials that are either stolen via social engineering schemes or hacked by cybercriminals. By managing user access privileges and leveraging permissions-based user roles, companies can control who has access to what data, significantly increasing file security.

Organizations with robust data security plans utilize the principle of least privilege (POLP) to minimize the areas in which data exfiltration can occur. The POLP limits user access rights to only what is necessary to carry out assigned workplace tasks. With custom controls in place, system administrators can also immediately revoke user access to designated files directly after task completion.

Often, unintentional employee errors and intentional insider attacks occur when POLP is not properly managed. Because of this, businesses should regularly audit their access controls to determine if POLP still applies. Use audit logs to properly identify company file accessing and sharing history to detect potential breaches in file security.

Require Multi-Factor Authentication for User Accounts

In addition to managing user access privileges and leveraging permissions-based user roles, companies should also require their employees to use multi-factor authentication (MFA).

Multi-factor authentication is a layered approach used to secure sensitive data. It requires a combination of at least two credentials to verify a user’s identity.

Multifactor authentication credentials may include:

  • A knowledge factor such as a password, personal identification number (PIN), or passphrase.

  • An inherent factor such as a fingerprint or facial features detected by facial recognition software.

  • A possession factor such as a security token or smartcard.

Enabling MFA ensures that even if a cyberhacker were to uncover your account password, they would not be able to break into your account without a second method of authentication. Remember, it only takes one compromised account to result in a data breach for an entire organization.

How Poor File Security Exposes Businesses to Cyberattacks

With the influx of businesses shifting to remote and hybrid working environments comes a stampede of cyber attackers ready to infiltrate company computer systems with one common goal: to steal or tamper with sensitive information.

Poor organizational file security practices only further this agenda, leaving important company files exposed to a wide variety of cyberthreats. As of June 2022, 34.9 million records have been compromised by data breaches. Here are two examples:

  • In April 2022, the Yuma Regional Medical Center (YRMC) disclosed that it fell victim to a ransomware attack that exposed the PHI of 737,448 individuals. Although the medical facility’s daily services were mostly unaffected, a subsequent investigation found that the attacker gained access to some of YRMC’s external systems and removed files containing sensitive information. The stolen data affects current and former patients and includes names, medical information, social security numbers, and health insurance information.

The number of credential stuffing incidents that occur is on the rise, which is not surprising considering that 67% of all Americans use the same password for different online accounts.

Weak password protocols threaten file security, and businesses that employ security practices like multi-factor authentication are better protected against credential stuffing attacks. Although this practice is encouraged by security experts, only 11% of organizations require their employees to use multi-factor authentication to authenticate their login attempts.

How WinZip Enterprise Enhances File Security for Businesses

To mitigate the risk of data breaches, many organizations utilize business-level file encryption and compression services such as WinZip Enterprise. This solution features extensive file security capabilities including Advanced Encryption Standard (AES) encryption that ensures data protection, no matter if the data is in-use, in-transit, or at-rest.

WinZip Enterprise’s military-grade encryption services also help businesses comply with federal data protection regulations including the Defense Federal Acquisition Regulation Supplement (DFARS) and the Federal Information Protection Standards (FIPS).

WinZip Enterprise also enables users to compress their business files and encrypt them at the same time, reducing file transmission time and maximizing storage space. With WinZip Enterprise, users can even add password protection to their encrypted ZIP files, adding an extra safeguard to an organization’s file security plan.

Explore how WinZip Enterprise can help your organization set up and improve file security.

On-premises file sharing solutions and why your enterprise may need one

When it comes to file sharing and storage, the two most common solutions are on-premises and cloud-based services and infrastructure. Today, 60% of all corporate data resides in the cloud (compared to just 30% in 2015).

As cloud adoption accelerates, 54% of enterprises continue to rely on on-premises infrastructure to store and share files. So how do companies decide between the cloud, on-premises servers, or even a hybrid of both? The right solution depends on your unique business needs, as well as how you handle data security.

In this article, we will explore reasons why you might need an on-premises file sharing solution, the downsides of such solutions, and how to enhance file sharing security with WinZip® Enterprise.

Why use on-premises file sharing and storage?

On-premises data centers rely on the infrastructure at your company’s physical location to store and share files. These in-house, on-site resources are owned by the organization and available to its internal end users through a local network.

Purchasing, installing, and maintaining equipment falls to your internal IT department. This also includes creating a security system to protect your physical assets and network. Because the data center is physically connected to the local network, IT teams can monitor and ensure that only approved users and devices can access and share files.

Here are a few reasons why a business might consider on-premises file sharing solutions:

  • Security. Around half of IT decision-makers who store and share files on-premises instead of the cloud do so to protect critical data. You have complete control over security measures, including how, when, and why a user can access the network or hardware.

  • Regulatory compliance. Organizations that handle sensitive data are subject to various regulatory requirements relating to how data is accessed, used, and stored. On-premises solutions can meet specific security provisions that a cloud solution might not provide.

Downsides of on-premises file sharing solutions

For all the benefits, there are disadvantages when it comes to using an on-premises solution to share and store files. They include:

  • File accessibility and mobility
  • Security risks
  • Costs and scalability

File accessibility and mobility

One key downside, accessibility, became all too apparent in the early days of the COVID-19 pandemic.

Because on-premises data centers rely on a physical connection to the corporate network, the files are inaccessible to the distributed workforce.

When stay-at-home orders were first issued in March 2020, companies had little time to consider how to adapt the network to accommodate remote work. This significantly impacted business continuity as organizations shifted to cloud adoption in record numbers. For example:

  • Remote workers experienced connectivity issues as businesses exceeded cloud infrastructure capacities. For example, if there weren’t enough licenses for every user, some users would be unable to connect to the virtual desktop infrastructure (VDI).

  • Firewall problems also hindered remote file sharing. This is because the process of remote access relies on Remote Desktop Protocol (RDP) tools, which are blocked by many public networks and corporate firewalls.

Today, 55% of businesses worldwide offer some form of remote or hybrid work. To meet the needs of an evolving workforce, organizations need to enable digital access for off-premises file sharing. This typically requires a third-party solution such as VDI). VDI is a virtualization technology that delivers virtual desktops and applications over a network to end users. This enables offsite employees to access the operating system and its apps as though they were running locally.

Security risks

Security is a double-edged sword when it comes to on-premises solutions. While organizations have more control over the network and physical infrastructure, employees spend valuable working time installing updates, creating data backups, and maintaining the servers.

With a current global shortage of cybersecurity professionals, many organizations cannot adequately staff their IT teams. The 2021 Cybersecurity Workforce Study found that staff shortages have significant impacts on data security. Survey respondents attributed the following consequences to inadequate IT staff:

  • System misconfigurations
  • Inadequate risk assessment and management
  • System patching delays
  • Process and procedure oversights
  • Reduced awareness of network threats
  • Rushed deployments

    • Cost and scalability

    The total cost of ownership is another drawback of on-premises file sharing solutions. On average, an organization can spend $10–25 million a year on a large data center. The hardware needed to run on-premises solutions is complex and cost-intensive, which also makes it hard to scale as data needs grow.

    On-premises file sharing solutions have a fixed resource capacity. If companies need more resources, they have to purchase more servers. At an enterprise level, these hard drives can cost thousands of dollars. Should resource demands decrease, the additional storage capacity won’t be utilized.

    To better manage cost concerns, many organizations are no longer building new data center infrastructure. Instead, 62% of companies plan to increase rack density to meet resource requirements. Increasing the density of racks allocates more computing power without expanding the physical space of the on-premises data center.

    Is a hybrid solution right for your business?

    When it comes to modernizing file sharing and storage, many companies treat the cloud and on-premises solutions as a case of one or the other. However, there’s another option: leveraging the best of both solutions in a hybrid approach.

    A hybrid file sharing solution is one that combines elements of cloud-based and on-premises services. This creates a single environment containing on-premises, private, and public cloud resources. By 2025, Gartner predicts that 85% of infrastructure strategies will integrate on-premises and cloud options.

    However, migrating to the cloud is not always a straightforward process. For example, many organizations rely on legacy systems. These systems are outdated, expensive to run, but are also critical to supporting business operations and may be highly customized to meet an organization’s specific needs.

    Even though legacy systems are considered obsolete technology, their predictability and familiarity keep them in use in a variety of businesses and industries. For example:

    • Retail and commercial operations. Retail organizations rely on legacy software in sales terminals and other critical business functions, spending 58% of their IT budget on system maintenance.

    Modernizing a legacy system is no small feat—you either invest the time and money in building new software or replacing it with a cloud solution. The more complex and outdated a legacy system is, the greater the possibility of migration challenges.

    Hybrid solutions give businesses greater control over how and where data is stored and accessed. You can allocate resources on a few factors, such as data sensitivity or regulatory compliance.

    Files containing highly sensitive data, such as personally identifiable information (PII), can be stored on a server on-premises. Less critical resources, for example, public website content, can be routed to the cloud.

    Enhance your file sharing security with WinZip Enterprise

    No matter if your solutions are on-premises or in the cloud, you must protect your data against unauthorized access and loss. As files are shared between the server and an end-user’s device, they are vulnerable to attacks.

    While an on-premises solution shares files only to those on the corporate network, employees could introduce risks through shadow IT. Shadow IT is the use of unauthorized tools that are not provided by the company. Most employees (80%) admit to using unapproved solutions.

    On-premises file sharing can be made even more secure with WinZip Enterprise. With this highly customizable solution, your IT team has granular control over how files are shared and stored. This makes it easy to implement and enforce policies related to file security, sharing, and backups.

    Learn how WinZip Enterprise enhances your organization’s on-premises file sharing solutions.

Discover enterprise data storage solutions and how they keep your organization’s data secure 

Businesses rely on technology to keep operations and workflows running smoothly. One such technology is data storage, which is how companies house and safeguard their information.

There’s no one way to store data. Some businesses leverage on-premises servers, while others store data in the cloud or removable storage devices. At the enterprise level, with potentially thousands of employees spread across multiple locations, companies require more advanced solutions.

In this article, we will explain the importance of determining the right type of data storage for your organization’s data security. We will cover the differences between various data storage solutions, as well as best practices to avoid cybersecurity risks associated with storing data.

Cybersecurity considerations for data storage

Stored data is considered at rest when it is not actively being accessed or used. Data at rest is a popular target for cyber-attacks because a single attack vector can yield massive amounts of information.

At the enterprise level, companies experience a 63% growth in data volumes on average per month. This large volume of business-critical data must be properly protected against various cyber threats:

  • Internal threat actors. Employees, contractors, and third-party vendors are responsible for more than 40% of serious data security incidents. For example, while working at a hospital, an employee with authorized access downloaded files to a USB stick before quitting the next day. The files contained sensitive data such as patient names and test results and impacted more than 40,000 individuals.

  • Unintentional internal errors. While internal actors are responsible for 43% of data loss, half of those incidents are accidental. Unintentional errors often stem from a lack of awareness of proper security controls. For example, an IT technician with inadequate training accidentally deleted 20.68 terabytes of Dallas police data. The loss of these 8.7 million files occurred because the employee deleted them from storage without validating that the transfer was complete.

  • External threat actors. Outside parties account for just under 60% of serious data security incidents. A common technique to gain unauthorized access is phishing, which is when attackers impersonate a reputable person or entity to trick their victims. For example, Twitter staff were targeted in a phishing attack that allowed malicious actors to access the accounts and messages of high-profile users. By tweeting from the compromised accounts, the hackers stole approximately $118,000 in a Bitcoin scam.

Data storage best practices

Comprehensive data security starts by knowing what kinds of sensitive data you have stored and where. This is why data classification is an important component of an enterprise-level storage solution. This process groups data sets according to the level of sensitivity, which in turn impacts the risk you face if the data is lost or compromised.

For example, internal information such as revenue projections and business strategies should be accessible only by company employees. While it needs protection, you wouldn’t need to allocate high-level security resources like data masking and encryption for this type of data.

Highly sensitive data, however, requires additional resources to prevent unauthorized access. This type of information is often restricted or confidential, so its loss or compromise could be devasting to the organization.

Best practices to secure enterprise data storage solutions include:

  • Access controls. Because more than 40% of data incidents are caused by internal actors, it is important to carefully monitor and control your storage access privileges. For example, permission-based user roles grant an individual user access to only what data is necessary for their job functions. This also enables data monitoring, in which your IT admins can review user activity to pinpoint unusual or unsafe behavior.

  • Encryption. File-level encryption ensures that only authorized users can access and use data. Data storage typically uses logical structures to hold information, which makes it an easier target than data moving through a network. Advanced encryption capabilities protect files and folders, even if the end device is stolen or compromised.

  • Data minimization. Data minimization is the processes of collecting and retaining the minimum amount of information needed to provide a service or product. This has several benefits, such as reducing storage costs, limiting cybersecurity risks, and enhancing regulatory compliance. Enterprise-level tools have functionalities that reduce your overall storage volume, such as finding and flagging duplicate files.

  • Endpoint security. Even a secure data storage solution can be compromised by devices that connect to network resources. From laptops to servers, mobile devices, routers, and more, cybercriminals target endpoints to access data stored on them and to infiltrate the company’s network. They must be secured with functionalities such as encryption, antivirus protection, and application controls.

Risks of improper data storage

Data is typically stored in the cloud or an on-premises datacenter. An on-premises datacenter is where physical assets such as servers, operating systems, and other hardware are kept on company property.

Cloud storage uses a global network of remote servers, providing on-demand access to files and data. Currently, more than 60% of corporate data is stored in the cloud. Cloud environments can be public, private, or a combination of both.

In a public cloud platform, multiple users share virtual resources that are provisioned by third-party vendors. A private cloud is a single-tenant environment, which means the entire computing infrastructure is dedicated to a single organization. There are two primary forms of private cloud: one that is hosted in a remote private cloud and one whose infrastructure is located on-premises.

A hybrid cloud uses components of both public and private clouds, giving organizations greater control over their data management. For example, you can use the on-premises private cloud to store highly sensitive data. Less sensitive, non-critical data can be stored in the public cloud. Thanks to this flexibility with storage options based on data classification, 87% of enterprises leverage a hybrid cloud strategy.

Whether on-premises, in the cloud, or a hybrid environment, the right type of data storage is essential for proper data security. However, not following data storage best practices can open the door to cybersecurity attacks.

For example, in 2021, a cybersecurity analytics firm stored data in an unsecured database that lacked the proper authentication protocols. The exposed database provided open access to more than 5 billion records containing sensitive information such as names, email addresses, and passwords.

The stored data was part of the firm’s cyber intelligence services, which collects information from previous data breaches. If a client’s information appeared in the database, the firm would alert them of a potential data compromise.

However, in this instance, it was the database containing breach data that was exposed. Cyber attackers exploited the lack of password or multi-factor authentication requirements, which allowed for unrestricted access to anyone with an internet connection.

How WinZip Enterprise enhances data storage security

WinZip® Enterprise is a comprehensive solution for maintaining proper data security. It combines industry-leading data encryption, sharing, management, and file compression with centralized IT control. This enables you to customize the user experience, including encryption methods, access controls, and other security provisions.

Thanks to native integration with leading enterprise data storage providers, WinZip Enterprise makes it easy to securely store and share data across services such as One Drive, Microsoft Teams, SharePoint, and more.

Discover how WinZip Enterprise fits into a successful enterprise data storage solution strategy.

Cloud-based file sharing and data security: what you need to know 

Since the pandemic, file-sharing practices among large corporations have shifted from on-premises to cloud-based file sharing solutions. This is due to the sharp increase in employers who allow their staff to work from home. It is estimated that 40.7 million American professionals will be fully remote within the next five years. within the next five years.

Cloud-based file sharing is the practice of sharing files from any internet-capable device over the cloud. Rather than only being able to access information directly from an on-premises server, cloud sharing facilitates on-the-go access regardless of an end user’s physical location. On average, companies report that 41% of their workloads are already in the cloud.

File sharing is a key aspect of any business’s daily operations. By sharing company files, authorized employees are able to access the information they need to complete their tasks and assignments.

With cloud file sharing, organizations that allow their employees to work remotely or in hybrid working environments can easily share files with each other, regardless of their location. Sharing files over the cloud also protects your organization’s sensitive data from being destroyed in the case of a flood, fire, or other natural disaster. Not to mention, cloud services like data storage are typically more scalable and affordable than traditional on-premises data storage and sharing. than traditional on-premises data storage and sharing.

It is reported by Gartner that worldwide end-user spending on public cloud services is forecasted to grow by 20.4% in 2022, totaling $494.7 billion. However, the growing popularity of cloud-based file sharing among corporations has also opened a gateway for a wide variety of challenges, such as internet dependency issues and lack of resources regarding cloud spending and governance.

Data breaches conducted by malicious cyber attackers are also a growing concern for organizations that use cloud-based file sharing services. Since 80% of organizations use the cloud to store sensitive data, the cloud makes a perfect target for cybercriminals who seek to steal or tamper with the sensitive information of large corporations.

This article highlights the advantages and disadvantages of using cloud-based file sharing solutions, how organizations can benefit from cloud-based file sharing, and common data security issues associated with cloud-based file sharing and how to mitigate them. At the end of this article, we will also explore how to use tools like WinZip® Enterprise to help your organization protect its sensitive data while sharing files in the cloud.

Advantages and disadvantages of cloud-based file sharing for large organizations

Before selecting a cloud-based file sharing solution for your organization, be sure to consider the following advantages and disadvantages of sharing company files using the cloud.

Advantages of cloud-based file sharing include:

  • Accessibility. With a cloud-based file sharing option, businesses can store their data remotely and allow their employees to access company files from nearly anywhere. For teams that travel often or work in different time zones, storing and sharing files in the cloud helps them to collaborate on documents without having to meet in person or go into the office.

  • Data recovery. It is reported that 94% of companies that experience severe data loss do not recover financially. Cloud-based file sharing systems mitigate this potential problem because they automatically store and back up data in an external location, minimizing the chance that your important company files will be lost in the case of a natural disaster or system failure.

  • Scalability. On-premises file sharing solutions come with a number of challenges, including the hassle of dealing with the limitations of physical data storage and server maintenance. Most cloud-based file sharing services only require businesses to pay for the data storage they need. This ensures that as a business grows, they won’t be held back by limited file storage and sharing options.

Disadvantages of cloud-based file sharing

  • Security concerns. By switching to a cloud-based file sharing solution, companies are handing over the duty of file security management to their cloud provider. This is risky because organizations tend to lack the necessary insights as to how their cloud service provider is storing and securing their data.

    According to a 2021 IDC cloud security study, it is estimated that 98% of enterprises have contended with at least one cloud security breach in the last 18 months.

  • Internet dependency. Cloud-based file sharing solutions store data in an off-site location that can only be accessed through the internet. If a remote employee’s internet connection were to fail, they would be unable to access the important company information necessary to fulfill their job duties.

    In addition, a slow internet connection can also decrease the productivity of employees, as they would have to deal with slow file sharing load times.

  • Difficulty managing cloud spending. It’s estimated that business owners typically waste about 30% of their cloud spending budget. Companies that are new to cloud services often lack the expertise necessary to purchase the type of cloud services their organization needs. Often, businesses overspend on cloud services, purchasing additional features and large amounts of storage that they simply do not need.

Use cases for cloud-based file sharing

The bottom line of any business can almost always be equated back to the efficiency and effectiveness of its daily operations. Cloud services help businesses empower their employees to access, store, share, and collaborate on company files in a cost-effective, efficient manner.

Here are a few common ways that businesses choose to use cloud-based file storing and sharing solutions within their organization:

  • File sharing. With the popularity of remote work comes a need for employees to share files with their colleagues in an efficient manner. Cloud-based file sharing services enable employees to share files with their coworkers in a matter of moments, streamlining collaborative workflows. Most cloud services also enable users to work on documents simultaneously from any location with internet access, improving productivity among teams and departments.

  • Data security. The 2022 Netwrix Cloud Data Security Report states that 53% of organizations reported that their top goal of cloud adoption was to improve file security. With cloud-based services, the burden of ensuring data security often falls in the hands of the cloud-service provider. Due to this, most cloud systems use file encryption while data is in-transit and at-rest. This ensures that company data stays secure in the cloud. Typically, cloud storage providers use 256-bit AES encryption to protect sensitive company data from brute force attacks.

  • File archiving. Typically, when company files are stored in on-premises solutions, only the most updated version of the file is stored. By practicing file archiving in the cloud, companies can ensure that not only the most recent, but all versions of company files are saved.

  • File backup. Cyberattacks, natural disasters, system failures, and other unexpected events are bound to happen, no matter how secure your company files may be. By backing up organizational files in the cloud, businesses can effectively mitigate data loss.

  • Data storage. Cloud-based service providers enable multiple authorized users to store and access company data. This way, data can be easily accessed by authorized persons regardless of their physical location. This empowers teams to retrieve the data they need when they need it.

Common issues with cloud-based file sharing and how to mitigate them

Cybersecurity threats are one of the most pressing issues that have plagued cloud-based file sharing services. It’s estimated that 30% of organizations host sensitive data in the cloud without the proper security controls in place.

Without the appropriate security measures in place, organizations often fall victim to cybercrimes such as data breaches, which can result in reputational, legal, and financial consequences. In 2022 alone, organizations who faced cybersecurity compliance fines more than doubled from 11% to 25%.

Here are a few common issues with cloud-based file sharing and how your organization can mitigate them appropriately:

Account hijacking

Account hijacking occurs in the cloud when malicious cyber attackers manage to gain access to an employee’s cloud-based services account. In 2021, 86% of IT leaders stated that account hijacking cost them more than $500,000 in revenue.

Cloud-based accounts are typically hijacked using one of the following methods:

  • Using a trial-and-error approach (otherwise known as brute force)
  • Purchasing stolen user login data from the Dark Web
  • Manipulating the configuration of applications
  • Phishing attacks
  • Using malware to steal user credentials

Just as cyber attackers use a variety of methods to hack user accounts from the cloud, users can also take certain actions to protect their login credentials from malicious cyberhackers.

Multi-factor authentication (MFA) is a user login security mechanism that requires account users to submit at least two versions of user credentials before they can access their account. Typically, these credentials include a knowledge factor (what the user knows), an inherent factor (what the user is), and a possession factor (what the user has).

For instance, if an account user wanted to access their account using multi-factor authentication, then they would submit a knowledge factor such as a password into the system and then an inherent factor or possession factor such as a fingerprint or security token.

By using multi-factor authentication, even if a cyberhacker has gained access to one set of your login credentials, they would have to access at least one additional set of login credentials to gain full access to your account.

Unfortunately, nearly 48% of organizations do not have multi-factor authentication enabled for administrative accounts within cloud-native environments. This lack of security while using cloud-based services is exactly why cybersecurity threats are one of the main concerns of organizations today.

Unauthorized account access

According to IBM, stolen or compromised account credentials were responsible for 19% of data breaches in 2021. Companies can mitigate this cybersecurity risk in the cloud by leveraging permission-based user roles. By doing so, organizations will be able to control exactly who has access to what data.

For example, role-based access control (RBAC) is a security measure that restricts system access to only the authorized users. In other words, employee access to company data is linked to the position and responsibilities they hold within the organization.

With RBAC, account users are assigned a title—either an administrator, specialist, or an end-user. Depending on their account designation, users are granted limited access to specific company resources. Although this user access management technique can complicate permission administration for IT departments, it does enable organizations to quickly adapt to organizational changes while keeping sensitive data secure.

Another user access management technique that can be used to avoid the risk of unauthorized account access is the principle of least privilege (POLP). POLP limits users’ access rights to only what data is needed to fulfill that individual’s workplace duties.

Unlike RBAC, POLP is not based on user roles, but rather user needs. By using custom access controls, IT system administrators will be able to revoke and grant access to important company data as they see fit, limiting the risk of unauthorized access.

Unencrypted files

According to a report by the Ponemon Institute, 55% of respondents stated that their organizations transfer sensitive or confidential data to the cloud whether it is encrypted or not. This lack of file-level encryption leaves sensitive organizational data open to cyber attackers who seek to steal it, tamper with it, or destroy it altogether.

To properly mitigate this threat, large organizations should practice proper file-level encryption when both storing data and sharing files on cloud-based services. File-level encryption maintains the security of the sensitive data of company files by making them inaccessible to unauthorized users on an individual basis.

Encryption-encoded files using a specific key make them accessible to the keyholder and the keyholder alone. Therefore, a cybercriminal would have to possess a file’s decryption key to be able to access the information the file holds. Without the decryption key, even if a cyber attacker gained access to an organization’s database, the files within the database would be unreadable.

How to use WinZip Enterprise to secure your company’s cloud file sharing practices

WinZip Enterprise natively integrates with top cloud storage providers, ensuring that your organization’s files stay secure from unauthorized access regardless of the platform they reside on. Using AES encryption, WinZip Enterprise secures company files on the cloud, both at-rest and in-transit. This type of encryption is commonly used by financial institutions, government agencies, and healthcare institutions to secure files that contain sensitive data.

With WinZip Enterprise, large organizations are able to protect their critical data in the cloud by enforcing access controls, encrypting company files, and even implementing multi-factor authentication on company accounts.

Find out how WinZip Enterprise makes your cloud-based file sharing solutions more secure.

What is the main benefit of cloud-based file sharing? Accessibility  

Cloud-based file sharing describes a variety of services that enable users to store, synchronize, and share files in the cloud. It gives end-users the ability to access files at any time and location—all they need is an internet-capable device, such as a smartphone, laptop, or tablet.

People are increasingly turning to cloud-based sharing as our workplaces become more and more digitized. For example, over 90% of midsize organizations plan to adopt a hybrid work structure, which changes how people work and collaborate. Specifically, it requires digital access to enable off-premises file sharing.

This article highlights the benefits of cloud-based file sharing and best practices to keep your data secure. We will also look at common issues with cloud file sharing and explain how to balance accessibility and security with WinZip® Enterprise.

Benefits of Cloud-Based File Sharing

Cloud-based solutions have many benefits over traditional physical storage methods:

  • Lower costs. Files shared through the cloud travel through a cloud computing system rather than on-premises data infrastructure. This eliminates the need for physical file storage, such as hard drives and servers. An enterprise-level hard drive can cost hundreds of dollars, and a single server can cost anywhere from $3,500 to over $12,000.

  • Secure backup and recovery.With cloud-based file sharing, you can automate scheduling for data backups. Files that are regularly backed up in another location can be retrieved following the loss, corruption, or destruction of your original files.

  • Data and user accountability. Cloud-based file sharing gives your IT team administrative controls over factors such as password protocols, encryption levels, and file tracking. This increases data accountability and limits user access to only what’s necessary for their specific job role and responsibilities.

  • Accessibility. The most tangible benefit of cloud-based file sharing is that you can access files from anywhere using your preferred device. This makes it ideal not only for remote workers and hybrid work environments, but also facilitates secure file sharing with external stakeholders, such as contractors, third parties, or business partners.

Best Practices for Cloud-Based File Sharing

While 94% of enterprise organizations already use cloud services, a lack of comprehensive security measures puts cloud-based data at risk of loss, theft, or compromise.

A common misconception with cloud-based file sharing is that the cloud service provider (CSP) alone is responsible for security. This incorrect assumption could contribute to the fact that 83% of businesses don’t encrypt files in the cloud, making them prime targets for cyberattacks.

In fact, cloud security is a shared responsibility between the user and provider. Your organization’s data is your responsibility, including how it is stored and who can access it. While CSPs use several standard practices to secure the cloud, additional action is needed on your part.

Use the following best practices to keep your company’s data safe:

Manage Configuration Settings

Your configuration settings are what give you control over the cloud operating environment. While these environments are secure by default, you can manually change the permissions settings. However, oversights, errors, and poor decision-making can all lead to misconfigurations.

For example, your IT team is trying to streamline workflows and simplify internal processes. They change the permission settings to grant file access to anyone in the company with the proper credentials.

This new level of exposure increases the attack surface for data breaches and other cyberattacks, because a greater number of individuals can access the data. Whether through simple human error or a hacker stealing a user’s login credentials, the risk of data compromise increases as access permission settings are lowered.

According to security researchers, around 70% of all cloud security issues arise from misconfigurations, and 90% of companies have misconfigurations that make them vulnerable. Develop clear standards and policies for how files are secured to prevent such errors and oversights.

Encrypt Your Files

Unencrypted data can be accessed and read by anyone who intercepts it. Many CSPs use end-to-end encryption, but this only secures the data as it is shared from one end system or device to another. File-level encryption works to safeguard individual files for more granular security controls.

File encryption makes data unusable to anyone without the correct password or decryption key. This keeps data secure as it travels between users, devices, and systems. However, 83% of companies do not use encryption, and around 40% of employees access organizational data using unsecured personal applications.

If compromised files are not properly encrypted, your organization could face legal and professional consequences. From lost revenue to customer turnover and compliance violations, unencrypted files can be catastrophic in the event of a data breach.

Monitor File-Sharing Activity

Monitoring the movement of files and data helps IT administrators detect and remediate behaviors that could indicate malicious cyberactivity. Use an access control list to ensure that users are not accessing data irrelevant to their job role or function.

For example, over 50% of organizations have 1,000 or more sensitive, unencrypted files that can be accessed by all employees. By giving full access to all business data, organizations are four times as likely to experience a data breach.

Maintaining the principle of least privilege (POLP) with user access permissions helps your organization reduce the opportunity for data theft. The principle of least privilege is the process of limiting data access to only what is necessary for a user’s specific job role or functions. Around 43% of data loss is caused by intentional or accidental insider action, and permission-based user roles help you track unusual or risky behavior.

It is also important to conduct regular access control reviews. Because permission-based user roles are based on factors relevant to a job role or project assignment, access needs can change over time. If a user no longer needs access to certain files or systems, reviewing access controls ensures you switch off unneeded credentials.

WinZip Enterprise Secures Cloud-Based File Sharing

WinZip Enterprise uses powerful AES encryption that safeguards data at the file level. It integrates with leading cloud storage providers, giving you the ability to securely share files across multiple supported services.

For example, WinZip Enterprise works directly with Microsoft Teams. This streamlines cloud-based file sharing between colleagues and clients, no matter their location. With native integration across numerous cloud services, you can share files securely without impeding ease of access to the cloud.

WinZip Enterprise is also highly customizable, giving IT administrators more control over included features and platforms. IT teams can set password and encryption standards for users, as well as protocols for the movement of files and data. They can also create a sandbox of approved sharing services, ensuring that files cannot be shared via unauthorized platforms.

Learn how WinZip Enterprise helps make cloud-based file sharing more secure while maintaining accessibility.

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