Cloud Storage Hack: 4 Reasons Why Some Cloud Storage Solutions Aren't Secure Enough for the Boardroom

Nicholas J Price
With the increase of hacking activity around the world, user data has become more valuable and is become a viable form of currency for hackers. The usernames and passwords of many cloud storage solutions when stolen are sold, which creates access to vital information that you happen to be storing. With each hack that does happen, it acts as a reminder why cloud storage and file-sharing service should not be used for storing and sharing sensitive board documents.

However, many users and businesses do rely on cloud storage because of the widespread availability of high-speed network connectivity and the declining cost of storage, moving files and data from local storage to the cloud, which allows files to be viewed and shared in a much easier fashion. Nevertheless, some of the very features that make cloud storage solutions so popular, pose a serious security risk when the service is used to store and share boardroom data.

Cloud Storage Drawbacks and Why Diligent Boards is the Solution

Here are some issues with cloud storage solutions and how they compare to Diligent Boards:

  1. Multiple instances of files. Some cloud storage solutions, by default, creates a duplicate mirror folder on each user's computer, containing all of the files uploaded to the cloud. Once the link between the local and the cloud folder is severed'such as when the user is not connected to the internet' the two folders become separate entities. Diligent Boards does not create multiple instances of files; however, your files are accessible regardless of internet connection, which gives you the ability to work on board books when on the go.
  2. You don't know where your files are. With Cloud storage, users have no way to determine where their "cloud-stored" files are physically stored. Cloud storage services do not disclose this information, nor do they disclose which other companies' files share the same server or servers. According to InfoWorld, "multi-tenancy"'the practice of storing the files of multiple customers on the same server'poses not only the risk of private data accidentally leaking to other tenants, but also that of data theft due to vulnerabilities in other tenants' files. With Diligent Boards, your files are stored on our secure data centers, ensuring accessibility and protection from outside threats.
  3. Data on a stolen laptop can't always be remotely wiped. While some cloud storage solutions provide the ability to remotely wipe files from a stolen laptop or device containing sensitive data, it can only do so if the stolen laptop is connected to the internet. Without internet connection, there would be nothing to prevent an outsider from copying the files from your cloud storage folder. With Diligent Boards, you have world class security on the board portal with remote locking capabilities. In addition to the remote locking capabilities, Diligent Boards also has a remote 'wiping' capability, giving you the ability to protect sensitive information in the off-chance that your device was lost, stolen or compromised.
  4. No control over the encryption/decryption key. Most cloud storage solutions, not the user, holds the encryption/decryption keys for the user's files. If this key falls into the wrong hands (as, according to Symantec, was the case in the Stuxnet malware attack) a company's files may be compromised. With Diligent Boards, your files are encrypted and backed by the world's top security certifications. With ISO-27001 and TRUSTe certifications, your information will always be safe with Diligent.

Why You Should Pay Attention to What Storage Solutions You're Using

Companies can and should do better to protect their sensitive data than rely on one-size-fits-all cloud storage services. Beyond finding the right platform for your company'whether it be a dedicated board portal or a custom system'the challenge lies in educating employees and executives of the perils of sharing sensitive files using the same cloud storage services they use for their own personal files. There's simply too much at risk.
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Nicholas J. Price
Nicholas J. Price is a former Manager at Diligent. He has worked extensively in the governance space, particularly on the key governance technologies that can support leadership with the visibility, data and operating capabilities for more effective decision-making.