Practical tip: Always send these documents encrypted

Electronic business communication via emails or cloud services has become an integral part of the workplace – and it is growing rapidly. Employees send numerous important work documents containing highly sensitive data daily. Yet, few pay attention to security standards. This not only puts companies at risk of data falling into the wrong hands but also breaches 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.

Drastic increase in cyber attacks and industrial espionage

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.

Hackers targeted sensitive digital data in one in five surveyed companies. Nearly half of the affected organisations reported stolen communication data, such as emails. One in four experienced breaches of financial, employee, or customer data, while one in eight reported the theft of critical business information, such as market analyses or pricing strategies.

Risks of sending sensitive data unencrypted

Despite these risks, many companies continue to send confidential and business-critical information unencrypted via email. It is quick and convenient, usually from within familiar environments. For larger amounts of data, many turn to insecure cloud services. However, the unencrypted transmission of sensitive work documents poses 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.

Employees need increased awareness of security

Companies must take action here. Raise the awareness of your staff about security practices to ensure proper handling of sensitive data. Not every email needs to be encrypted, but employees must develop a sense of responsibility when dealing with confidential business information. As a small guide, the following provides an overview of documents that particularly need protection.

Typical work documents with highly sensitive data by department

• Human resources: HR professionals work almost exclusively with sensitive personal data that require special protection. This includes documents such as employment contracts, personnel files, payroll statements, social security records, application documents, terminations, severance agreements, and references. The GDPR already sets high standards here, but no company wants its salary structures disclosed to competitors.

• Sales: The sales department manages all data regarding existing customers and potential leads. Key documents include customer data, detailed customer communications, internal pricing structures, quotes, special conditions, revenue development by segment, and sales targets. If these data fall into the hands of competitors, they could adjust their strategies, undercut prices in tenders, or poach key clients.

• Marketing: Marketing departments handle a treasure trove of documents relating to image, advertising, and product positioning. Important documents include customer, market, and competitor analyses, marketing plans for new product launches, documents for new advertising strategies, image campaigns, and product presentations. Handling personal data is also critical here, such as contact lists shared with service providers for direct marketing campaigns.

• Finance and accounting: These departments generate highly sensitive data that offer detailed insights into a company’s financial health and profitability. Key documents include annual reports, quarterly statements, balance sheets, profit and loss accounts, budget plans, financial projections, and management statistics. These data are regularly shared with company leadership, internal departments, tax consultants, and financial authorities.

• Research and development: R&D departments are the backbone of a company’s future success. They produce innovations that help differentiate companies from competitors and gain market advantages. Documents such as research results, design papers, or patent applications must not fall into the wrong hands. This area is a prime target for industrial espionage.

• Executive management: The executive team operates the command centre of a company. Communication at this level almost exclusively involves highly confidential strategic information, trade secrets, and sensitive business data. This communication must always be encrypted.

Conclusion

Sending confidential documents unencrypted is a significant risk. However, implementing secure, simple, and cost-effective solutions is relatively easy. Companies that take appropriate security measures and raise employees’ awareness of handling sensitive business data can only benefit.