6 Security Risks of Enterprises Using Cloud Storage and File Sharing Apps (and how FileCloud can help!)

Increasingly companies—specifically enterprises—are turning to the cloud to resolve struggles with data storage and file sharing, which has proven costly to manage on internal servers. This is especially true for enterprises in highly regulated industries that have to think about compliance, efficiency, and security.

However, there can be security risks involved in using the cloud, which we’ll go over below. The good news is, with a top-notch cloud storage and sharing system like FileCloud, these security risks can be addressed.

1.    Employees Using Unapproved File Sharing Systems

One big risk when enterprises use cloud storage and file sharing apps comes up if there’s no one approved system or app. In this case, employees—often trying to remain secure—might use free file sharing/cloud storage systems available like Dropbox or Google Drive.

While these systems definitely have their benefits, the free versions that employees are likely to use don’t usually have the security and retention policies needed for enterprises. This can cause major problems due to the security risk of shared/stored files in a public cloud.

That’s why enterprise IT managers need to find a hyper-secure cloud storage and file sharing system that will meet their varied and specific needs.

FileCloud’s Hyper Secure Cloud Storage and File Sharing System:

Thankfully, FileCloud is a hyper-secure cloud storage and file sharing system that is used by many enterprises, including Toyota, NASA, Deloitte, and more.

FileCloud is easy to use and learn, with hyper-security tools and features needed by enterprises such as two-factor authentication, SSO login integration, advanced encryption standards, comprehensive audit logs, and more.

2.    Lack of Data Control

When enterprises start using the cloud, one security risk can be a lack of control over their data. Enterprise data must follow certain compliance and governance regulations. Without a robust but easy-to-use retention policy in place, it can be difficult for admins to maintain compliance.

How FileCloud Can Help You Keep Control of Your Data

FileCloud has a compliance center (which we’ll learn about in more detail below) but it also has robust retention policies in place to help keep data under your control. These policies include five different types of retention:

  • Admin Hold
  • Legal Hold
  • Archival
  • Retention
  • Trash Retention

These policies are hierarchical and can be adjusted as needed to reflect the right retention and disposition for your files.

3.    Lack of Data Privacy

Another security risk for enterprises can be a lack of data privacy. After all, when it enters the cloud, there are more ways for it to be accessed and shared with unauthorized users. Many compliance and governance regulations that enterprises have to comply with (such as HIPAA or GDPR) have strict regulations regarding data privacy. Violating these regulations can cost enterprises large amounts of money, lawsuits, and even criminal suits.

How FileCloud Keeps Your Data Private

FileCloud is all about keeping your data private and secure. That’s why we have advanced sharing features along with robust DRM. Our sharing features including options for shares that can be made public/private/password-protected, with limited viewing and editing capabilities, as well as user limits with granular folder and sub-folder permissions. In addition, shares can be sent with limits on screenshots/printing/copying with the option for shares to be revoked at any time, even after they’ve been sent.

4.    Weak or Nonexistent Governance/Compliance Tools

As mentioned above, enterprises often have to comply with complicated regulations regarding how data is stored and shared. When enterprises are sharing large amounts of data, compliance becomes even more complicated. It can be a major security risk if an enterprise is using a file sharing system that doesn’t have compliance tools in place.

FileCloud’s Governance and Compliance Tools

FileCloud’s Compliance Center is a tool that simplifies compliance instantly, with separate tabs for common regulations such as GDPR, HIPAA, and ITAR. The Compliance Center connects FileCloud’s security and privacy options with each regulation, making compliance easier than ever.

5.    Lack of Employee Training

One of the biggest security risks for cloud storage and sharing is employees, mostly due to a lack of training. Employees can be resistant to new tools, especially if they’re complicated to learn or difficult to use. Employees that aren’t trained can share sensitive files incorrectly, leading to huge problems of compliance and security.

FileCloud Makes Training Employees Easy

FileCloud is an easy-to-use system that employees can begin using in minutes. Its seamless UI and drag-and-drop options make it easy to upload and edit files. In addition, it has multiple integrations with common tools like Teams, Office365, and Google Docs, so employees don’t have to stop using the tools they love. In addition, users can learn more about FileCloud through our FileCloud University page and other end user training videos.

6.    Not Having Proper Password Protection

The last big security risk enterprises must contend with is passwords. This risk again involves employees, particularly when users employ common phrases or even the same passwords across their systems. When accounts use the same passwords for indefinite periods of time, this can also introduce weakness to an entire network. Collectively, these practices can lead to a major data breach, loss of trust with clients, and compliance issues.

FileCloud’s Advanced Password Protections

There are some simple solutions to password protections, and FileCloud has them. To start with, admins can enable two-factor authentication (2FA) at any time. This means that users must enter two types of information in order to log in, so even if a password is lost or stolen, a malicious user still can’t access the system.

In addition, FileCloud has single-sign-on (SSO) which allows users to have one username/password to access the system, which can help prevent the need for multiple passwords that can get lost or stolen.

Lastly, admins can enforce password strength requirements, including disallowing common phrases and setting password age limits. These policies encourage stronger passwords and close security gaps by routinely changing passwords.


All told, there are security risks when enterprises store and share files via the cloud, however, there are ways to avoid these risks, and the advantage of having all your data in one convenient place that can be accessed at any time is worth the risk, especially if enterprises use a hyper-secure system like FileCloud.