How to Keep Your Business Documents Safe

1. Move Beyond the “Shed” Strategy: Modern Document Management

A study by Cleardata revealed a shocking reality: 17% of businesses admit to storing sensitive paperwork in sheds, and 16% use garages. Even those using filing cabinets are often wasting money on an inefficient, insecure system.

Why Paper is a Liability

• The Breach Factor: In the U.S., 98% of data breaches in one government division involved paper records. Physical paper is significantly harder to track and easier to lose.

• The Financial Drain: Managing paper documents costs U.S. businesses an estimated $8 billion annually in storage and labor.

The Digital Solution

The first step to security is digitization. Moving to a digital document management system allows you to index files for easy access, set automated destruction dates for old client data, and slash storage costs. You aren’t just saving space; you’re gaining control.

2. Eliminate Fraud with PKI-Backed Digital Signatures

A signature is often the only thing standing between a valid contract and a legal nightmare.

Consider a recent case in Canada where a couple stopped making lease payments on a BMW and claimed the dealership had forged their signatures. While the dealership eventually won, they were forced into a costly, drawn-out court battle to prove the “ink” was real.

Electronic vs. Digital: Know the Difference

Many people use “electronic” signatures (like an image of a scrawl), but these are easily falsified. Digital Signatures provide a much higher level of protection:

• Unique Digital Fingerprints: Using a Certificate Authority, your identity is bound to a PKI-based Digital Certificate.

• Tamper-Evidence: Tools like Secured Signing ensure that if even a single comma is changed after signing, the signature becomes invalid.

• The Audit Trail: Every action is recorded, providing a “digital breadcrumb” that is virtually impossible to dispute in court.

3. Implement Basic Access Controls and Encryption

The Federal Trade Commission (FTC) emphasizes that simple barriers are often enough to deter opportunistic hackers. Security doesn’t have to be complex to be effective.

Simple Steps for Daily Files

For documents living in Microsoft Word or Excel, use the built-in encryption features:

1. Click File > Info

2. Select Protect Document

3. Choose Encrypt with Password

The Principle of Least Privilege

Not every employee needs access to every file. By introducing different access levels, you ensure that sensitive client information is only visible to those who absolutely need it to perform their jobs. This limits your “internal” risk—one of the most common sources of data leaks.