Data sharing is vital for business operations and personal interactions. Whether it’s sharing customer information, collaborating with partners, or using cloud services, data is always in motion. However, this convenience brings the responsibility to ensure data is shared securely and responsibly.

In data protection terms there are two considerations which need to be addressed:

1. Whether there are adequate legal safeguards in place to allow the transfer to take place; and
2. Whether there are adequate organisational and technical measures in place to protect the data being shared

In this blog, we focus on the second more technical consideration.

Many organisations and individuals fall into common traps when it comes to sharing sensitive data. In this post, we’ll explore these pitfalls and offer tips on how to avoid them, protecting your data while maintaining trust and compliance.

1. Lack of Data Encryption

One of the most critical mistakes organisations make when sharing data is failing to encrypt it properly. Encryption ensures that even if data is intercepted, it cannot be accessed without the decryption key. Without encryption, sensitive data is vulnerable to cyberattacks, unauthorised access, and data breaches.

How to avoid it:

• Always use end-to-end encryption for data transfers.
• Use secure methods such as HTTPS or SFTP to ensure the integrity of the data during transit.
• For stored data, employ encryption protocols like AES (Advanced Encryption Standard) to protect it at rest.

2. Failure to Define Access Permissions

When sharing data with third parties, organisations often fail to clearly define who can access specific pieces of information. This opens the door for data to be misused, either accidentally or intentionally. Sometimes, too many people or systems are given access to sensitive information, creating unnecessary risks.

How to avoid it:

• Implement strict access controls based on the principle of least privilege (POLP). Only give access to individuals who absolutely need it to perform their duties.
• Regularly review and update access permissions to ensure that outdated or unnecessary access is revoked.
• Use role-based access control (RBAC) systems to define and restrict access levels based on roles.

3. Not Auditing Data Sharing Practices

Data sharing is not a “set it and forget it” practice. Organisations should regularly audit how and with whom their data is being shared. This includes tracking data flow, checking who has access to what data, and identifying potential vulnerabilities. Without regular audits, it’s easy for risky behaviours or unauthorised access to go unnoticed.

How to avoid it:

• Set up automated logging and monitoring tools that track data access and sharing activities.
• Perform periodic audits to ensure compliance with internal policies and external regulations like GDPR, CCPA, or HIPAA.
• Address any anomalies or gaps in your audit logs immediately.

4. Neglecting Legal and Compliance Obligations

Different countries and industries have varying legal frameworks surrounding data privacy and sharing. Neglecting to account for these laws can lead to costly fines, lawsuits, and reputational damage. Regulations like GDPR in the EU mandate how data should be handled, shared, and protected.

How to avoid it:

• Familiarise yourself with the relevant data protection laws in your jurisdiction and industry.
• Ensure that any third parties you share data with are also compliant with applicable regulations.
• If sharing data across borders, ensure that international data transfer agreements, like the Standard Contractual Clauses (SCCs) under GDPR, are in place.

5. Over Reliance on Third-Party Providers

While third-party services like cloud providers or data processors can offer convenience and scalability, relying too heavily on them can expose you to risks. A third-party vendor may not implement the same level of security protocols, or worse, they may be a target for cybercriminals. Data breaches that occur within third-party systems can directly affect your organisation.

How to avoid it:

• Perform due diligence before choosing any third-party vendor. Ensure that they follow industry best practices for data security and have a clear data protection policy.
• Regularly review the security measures and compliance status of any third-party service providers.
• Consider a contract that outlines data protection obligations, breach notifications, and audit rights.

6. Inadequate User Education and Training

A significant portion of data breaches stems from human error—whether it’s employees falling for phishing attacks, improperly handling data, or mistakenly sharing information with unauthorised parties. The best technology won’t be effective if the people using it aren’t properly trained.

How to avoid it:

• Implement a continuous education program that trains employees on data security best practices, phishing awareness, and proper data handling procedures.
• Run regular security drills and simulated phishing attacks to test employee readiness.
• Make data privacy and security a core component of your organisation’s culture.

7. Ignoring the Risks of Shadow IT

Shadow IT refers to the use of unauthorised devices, applications, or services to store or share data, often without the knowledge or approval of IT departments. It’s an increasing issue in modern workplaces, where employees may bypass official tools to streamline their work or avoid red tape. Unfortunately, shadow IT can create significant vulnerabilities, especially when sensitive data is involved.

How to avoid it:

• Implement a clear and easy-to-follow data-sharing policy that encourages employees to use approved tools and systems.
• Use software that detects and flags unapproved applications or cloud services being used on your network.
• Educate employees on the risks of shadow IT and the importance of compliance with company data policies.

8. Over-Sharing or Under-Sharing Data

Another common pitfall is sharing too much or too little data. Over-sharing can lead to privacy violations, regulatory breaches, and unintended exposure of sensitive information. On the other hand, under-sharing can create operational inefficiencies and may hinder collaboration.

How to avoid it:

• Assess the needs of the recipient and share only the data necessary for the task or project at hand.
• Use data masking or anonymisation techniques when sharing sensitive information that doesn’t require full disclosure.
• Communicate clearly with recipients about the data being shared and any limitations or restrictions associated with its use.

Conclusion: Prioritise Security, Responsibility, and Awareness

As we continue to generate and share vast amounts of data daily, the risks associated with improper data sharing will only grow. But by being proactive about implementing secure sharing practices, defining access controls, and adhering to legal obligations, we can significantly reduce the risk of data breaches and privacy violations.

Ultimately, protecting data is not just a technical challenge but a cultural one. Ensuring that all stakeholders—from employees to third-party vendors—understand the risks and responsibilities surrounding data sharing is key to safeguarding sensitive information in an increasingly complex digital landscape.

By avoiding these common pitfalls and fostering a culture of awareness and responsibility, organisations can protect their data and maintain the trust of their partners, customers, and employees.

Get in touch to see how the ProvePrivacy platform can assist in avoiding these pitfalls.