Best Practices for Sharing Sensitive Data and Files

What is sensitive data?
Sensitive data is information organizations prefer to keep confidential due to the potential harm its unauthorized disclosure could cause. When sensitive data is exchanged between organizations, special considerations should be taken to keep these external collaborations secure.

External collaborations, the process in which independent organizations such as businesses work together on a shared project or goal, frequently require an exchange of sensitive information between organizations.

Organizations collaborate with external stakeholders to bridge internal resource gaps and achieve strategic goals. These collaborations can be as fundamental as generating revenue through customer sales, or involve leveraging specialized expertise, technology, or market access from partners, combining strengths through joint ventures, strategic alliances, or R&D partnerships, etc.  

When sharing sensitive data with external stakeholders, trust is paramount. Trust fosters transparency, allowing clear communication about data usage and security measures. It also mitigates concerns about data misuse or breaches, which can have severe legal and reputational consequences. In this article, we discuss the best practices for sharing sensitive data and files in order to ensure security before, during, and after the exchange.

Best practices for sharing sensitive data and files

Before sensitive data is shared

• Classification and Assessment: Before sharing anything, classify the data according to its sensitivity. This helps determine the level of protection required. Legal and compliance requirements should also be considered. Conducting a data sensitivity assessment can reveal potential risks associated with sharing specific data points.
• Contractual Agreements: In some cases, a formal Data Sharing Agreement (DSA) should be established between both parties. This agreement outlines the specific data being shared, its permitted uses, data security measures, data retention timelines, and consequences of breaches.
• Secure Transfer Methods: Identify secure methods for data transfer. Public file-sharing services or email attachments are not recommended for sensitive data. Platforms with robust access controls are more suitable options.

During sensitive data exchange

• Access Controls: Implement granular access controls on the shared data. This ensures only authorized individuals within the collaborating organization can access the information, and only to the specific extent needed for their role in the project.
• Data Minimization: The principle of data minimization dictates sharing only the absolute minimum data necessary for the collaboration's goals. This reduces the attack surface and potential damage in case of a breach.
• Audit activity: Monitor access and activity. This allows for early detection of suspicious behavior and potential breaches.

After sensitive data is shared

• Data Return or Destruction: Establish a clear process for what happens to the data after the collaboration ends. Depending on the agreement, the data may need to be securely returned or permanently destroyed according to data disposal policies.
• Post-Collaboration Review: Conduct a review to assess the effectiveness of the implemented security measures and identify any areas for improvement in future external collaborations.
• Maintain Communication: Maintain open communication channels with the collaborating organization regarding any data security concerns or incidents. This fosters trust and strengthens the collaborative relationship.

Don’t use email to share sensitive data

Though it may seem convenient, using email to share sensitive data during external collaborations creates a number of security risks. For example, depending on your recipient's security practices, sensitive attachments may not be encrypted in transit, leaving them vulnerable to unauthorized interception and compromising the confidentiality and integrity of the data. Once the documents reach the recipient’s inbox, they can be forwarded to any party (including unauthorized parties). Moreover, there’s always the risk of misdirected emails—or when emails are sent to another party by accident—which is a major cause of accidental data disclosures. For these reasons, it's critical to consider more secure channels for sharing sensitive information during external collaborations.

It’s also worth considering what happens to all that sensitive data after the work is complete. Most organizations struggle with files and attachments that linger (forever)  in email inboxes, spawning so-called data graveyards. These unmanaged digital repositories—stuffed with data that is no longer in use—can be a source of data breaches and cyberattacks. For instance, if cyber attackers gain unauthorized access to these accounts, they can exploit the sensitive files and documents to pull off Business Email Compromise (BEC) scams. In these scams, cybercriminals impersonate legitimate contacts to trick recipients into transferring funds or sharing even more confidential information. The potential damage from a BEC attack can be significant, highlighting the importance of email alternatives, secure data transfer methods, and proper data disposal practices to minimize risks in external collaborations.

An external collaboration tool can help

External collaboration tools like TakeTurns address the security vulnerabilities inherent in traditional methods like email by offering a more secure environment for sharing sensitive data. Here's how TakeTurns helps:

• Secure File Sharing: TakeTurns encrypts data both in transit and at rest. 
• Verified Participants: TakeTurns verifies the identity of each collaboration participant, limiting exposure only to authorized personnel within the collaborating organizations.
• Audit Trails: TakeTurns maintains a comprehensive audit trail that tracks what data has been shared, as well as edits and revisions to the shared files. This transparency ensures accountability within the collaboration process.
• Data Minimization: TakeTurns promotes data minimization by allowing you to share only specific files or folders relevant to the collaboration, reducing the overall attack surface and potential damage from a security breach.
• Ephemeral Storage: TakeTurns offers ephemeral storage. This means the sensitive data is automatically deleted from the platform after a predefined time period, further reducing the risk of exposure in case of a security breach or unauthorized access.

With these features, TakeTurns provides a secure platform for external collaboration, fostering trust and mitigating the risks associated with sharing sensitive data and files.