How outdated fax solutions hinder data protection and digitalisation

After the Deutsche Rentenversicherung phased out fax communication, the Deutsche Bundesbank announced that it will no longer be reachable by fax as of 2025. In Austria, a ban on using fax to send health data is expected to take effect from January 2025. Does this mark the end of fax machines in businesses and public authorities?

Cutting fax lines is more than a symbolic decision. It reflects that even traditional institutions recognise fax as an insecure and outdated technology with no place in modern corporate communication. However, many organisations, institutions, and public authorities continue to rely on this technology, which not only hinders efficiency but also holds back digitalisation and competitiveness.

The impact of outdated communication solutions

• Competitive disadvantage:
  The world is rapidly becoming more digital. Companies that still rely on outdated technologies are falling behind. Competitors leveraging digital solutions, such as automated and encrypted data exchange, cloud services, and secure platforms, operate more efficiently, flexibly, and cost-effectively. Fax machines simply cannot compete and quickly become synonymous with backwardness.

• Loss of customers:
  Customer expectations are increasing. Speed, efficiency, and above all, security are crucial factors when choosing business partners. Using fax machines signals that a company is out of touch—a serious drawback, especially in security-critical sectors like healthcare, public administration, or finance.

• Strained partnerships:
  Partners and suppliers are also unwilling to let outdated technologies disrupt digital workflows. Using fax forces partners to interrupt their efficient digital processes, which is not only inefficient but also prone to errors. In the long term, no one will tolerate this.

Is fax communication insecure?

It is now clear: the heyday of the fax machine is over, and fax communication is not compliant with data protection laws. Examining the technology closely reveals its key weaknesses:

• Inadequate security:
  Fax data is transmitted without encryption, which fails basic data protection and IT security requirements. Anyone with access to the telephone network could intercept the transmitted data. This is a significant risk, particularly for sensitive information such as contracts, patient data, certificates, or financial documents. Moreover, physical access to fax machines is often unsecured, meaning anyone near the device could view sensitive information, leading to potential misuse.

• Non-compliance with regulations:
  Fax is fundamentally incompatible with GDPR. Fax machines fail particularly when proof of transmission is required:

  • No traceability: Receipt of a fax cannot be verified definitively.

  • No verification mechanism: It is unclear who actually received the fax.

  • No protection against manipulation: Fax messages can easily be intercepted or altered.

  For industries reliant on compliance—such as healthcare and finance—these shortcomings pose significant risks, potentially leading to legal and financial repercussions. When sensitive personal data is transmitted, the insufficient protection of that data via fax is a clear violation of GDPR.

• Decreasing accessibility—even in emergencies:
  Another major issue is declining accessibility. Increasingly, companies and institutions are disconnecting their fax machines. Businesses that continue to rely on fax will find it harder to communicate reliably with partners.

This problem becomes particularly critical in emergencies. Modern communication solutions are designed to prevent outages and ensure smooth operation during crises. Fax machines, on the other hand, are prone to technical failures, with no automated fallback options. This can have severe consequences in critical moments.

Fax, data security, and digitalisation

Phasing out fax machines symbolises the overdue need for digital transformation. Successful companies show how it’s done:

• Cloud solutions enable fast and secure data exchange.

• Automated workflows save time and eliminate errors.

• End-to-end encryption ensures compliance with data protection regulations and builds trust.

Germany lags in many areas of digitalisation. Abandoning fax is a small yet significant step towards a future-proof economic system.

Fax machines are more than just outdated technology—they symbolise the challenges of digital transformation in Germany. Companies unwilling to let go of old structures risk not only their competitiveness but also their relationships with customers and partners.

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