In the worlds of cybersecurity, there’s much focus given to protecting sensitive data against loss or exposure. However, many organizations fail to acknowledge that the data they manage is also at risk during the process of transfer. This is typically the case when data is shared with customers and partners, or with business associates.

Management of confidential data exchange is crucial to preventing data breaches and maintaining confidence with stakeholders, customers and business partners. The reality is that security breaches that expose sensitive information cause irreparable damage brand reputation and customer confidence. This is especially true for the healthcare industry and the healthcare industry, where HIPAA stipulates use of digital data rooms for trials that healthcare facilities must are able to share patient data electronically.

This is also true for other industries. Retailers and ecommerce sites must ensure the security of the personal information of their customers when they purchase products online. Schools are required to protect student records to avoid identity theft. And, the financial sector must ensure that sensitive documents are secured when sharing documents to business associates.

While protecting specific locations on servers, systems and in the cloud is an important aspect of handling confidential data, this approach can be not flexible for businesses that frequently collaborate with third-party companies and need to share confidential documents. Alternatively, businesses can rely on encrypted software solutions like those from Anjuna, CanaryBit, CYSEC, Decentriq and others that use encryption and zero-knowledge proofs to allow for confidentiality-preserving sharing.