Send sensitive data securely – always encrypt these documents

Electronic business communication via email or cloud services has become an integral part of everyday working life, and it is growing rapidly. Employees send numerous important work documents containing highly sensitive data every day. Yet very few pay attention to security standards for secure data transfer. As a result, companies not only risk this data falling into the wrong hands, they also breach laws such as the GDPR.

On average, 26 emails are received daily in every professional inbox in Germany, according to a survey by the digital association Bitkom. The rise in remote working due to the pandemic has further intensified this trend.

TL;DR – the most important points at a glance

• Cybercrime costs €103 billion a year: Hacking attacks and industrial espionage cost the German economy enormous sums each year according to Bitkom, with e-mails stolen at almost every second affected organisation.

• Unencrypted sending breaches GDPR: Anyone sending sensitive documents unprotected by e-mail or via an insecure cloud service risks not only data loss but also legal consequences.

• These documents need special protection: From personnel files and payslips to customer data, financial reports, research findings and board communications – highly sensitive data arises everywhere and must be transmitted encrypted.

Sharp rise in cyber attacks: why secure data transfer is becoming essential

At the same time, criminal attacks on companies have increased dramatically. According to Bitkom, sabotage, data theft, and espionage cost the German economy an estimated €103 billion annually.

One in five companies surveyed said attackers had targeted sensitive digital data. Nearly half of the affected companies had communication data such as emails stolen. One in four lost financial data, employee data and customer data through digital attacks, and one in eight lost critical business information such as market analyses or pricing.

Risks of transferring sensitive data without encryption

Despite this, many companies still send confidential and business-critical information unencrypted by email. It's quick and convenient, and usually done from a familiar environment. For larger volumes of data, many turn to insecure cloud services rather than relying on secure file transfer. Yet sending sensitive work documents unencrypted carries significant risks.

Cyber attacks or industrial espionage not only cost companies significant money and revenue but also damage their reputation and trustworthiness. Additionally, increasing regulations around data exchange, particularly the widely discussed GDPR, further highlight the need for secure communication.

Building security awareness: sharing files securely in everyday work

This is where companies need to take action. Raise your staff's security awareness. This is how the right approach to sensitive data is achieved, and how files can be shared securely. Not every email is so important that it needs to be protected via email encryption. But employees also need to be sensitive to the careful handling of confidential business information. As a short guide, below is an overview of documents that deserve particular protection.

Typical work documents containing highly sensitive data, by department

Human resources

HR staff work almost exclusively with sensitive personal data that requires special protection. This includes documents such as:

• Employment contracts

• Personnel files

• Payroll and salary statements

• Social security records

• Job application documents

• Termination notices

• Settlement agreements

• References

The GDPR already sets high standards here. But beyond that, no company wants the salary structure of its specialists and managers made public or handed to competitors.

Sales

The sales department brings together all the data on existing customers and potential new business. The following documents play a particularly important role:

• Customer data

• Detailed customer communications

• Internal pricing

• Quotes and proposals

• Special terms and conditions

• Revenue development by segment

• Sales targets

If this confidential data ends up with competitors, they can adjust their sales and pricing strategies accordingly, undercut prices more easily in tenders, or specifically poach desirable customers with better terms.

Marketing

When it comes to image, advertising and product positioning, marketing departments hold a real treasure trove of documents, including:

• Customer, market and competitor analyses

• Marketing plans for new product launches

• Documents on new advertising strategies

• Image campaigns shaping products and pricing

• Product presentations

Personal data also comes into play here, for example when contact and address lists are emailed to mailing service providers, agencies or printers for direct marketing campaigns.

Corporate accounting and finance

This is where highly sensitive data arises, giving detailed insight into a company's profitability and financial strength. Important work documents include:

• Annual financial statements

• Quarterly reports

• Balance sheets

• Profit and loss statements

• Financial plans and budgets

• Budget-versus-actual comparisons

• Business statistics

This data is regularly exchanged with company leadership and other internal departments, as well as with tax advisors and tax authorities.

Research and development

R&D departments lay the foundation for a company's future success. This is where innovations emerge that help firms differentiate themselves from competitors and gain a market edge, covering areas such as:

• Inventions

• Improvement and development of new products and services

• Improvement and development of production processes

• Research and development findings

• Design documents

• Patent applications

Naturally, these work documents must never fall into competitors' hands. This area is a prime target for industrial espionage.

Executive board / management

The executive board and management form a company's control centre. In communication with other board or management members, key internal executives, major suppliers, customers, business consultants and investors, almost exclusively confidential content is exchanged, including:

• Strategic information

• Trade secrets

• Sensitive business data

For this reason, communication of any kind at this level should always be encrypted without exception.

In short: whether HR, sales, marketing, finance, R&D or management – every department handles highly sensitive data that requires encrypted data transfer and secure data transmission.

Conclusion

Sending confidential documents unencrypted is a significant risk. Yet it's relatively straightforward to rely on secure and simple solutions instead, such as the FTAPI data exchange platform. Companies that take appropriate security measures and raise employees’ awareness of handling sensitive business data can only benefit.