A Note on Digital Security

How safe is digital bookkeeping?  Legitimate question.  You are transmitting and storing very sensitive financial data over the internet.  How secure is it?

This is going to sound counter-intuitive but your data is safer in the cloud than sitting there on your computer.  Let me explain.

The major services that provide data storage and file transferring have huge security budgets.  Often, we're talking 24-hour surveillance by an IT security team.  Big budgets also mean a continued flow of security updates in terms of firewalls, encryption and other security measures.  Data-farms of sufficient size also mandate bank level physical security for their facilities.

Now, think about how tenuous your files are sitting on a single office computer.  Laptops risk being easily stolen and all electronics can become victims of fire, flood, electrical surge or just simple wear-and-tear.  Cloud-based services allow for the easy retrieval of data.  

Second, consider your single computer's vulnerability to hackers, viruses and malware.  Is all of your software up-to-date?   How often is it updated?  Do you still feel secure?

My favorite online services, Dropbox and Google Drive, both feature file encryption and ongoing tech support.  If you're the paranoid type--more admiration than judgement here--you should look into the increased security of Sharevault and QuickBooks Online.

In truth, the biggest security vulnerability isn't the software or system you choose to use.  It's you, the user.  Careless users are the number one cause of data breaches.  

You can easily reduce your risk in the following ways:

• Use a unique, complex and difficult to deduce password.
• Consider a password manager software.
• Never reveal your passwords.  Anyone asking for your password is up to something.
• Use personal laptops and computers rather than public equipment.
• Avoid doing sensitive work on public wifi networks.  You can avoid the risk by tethering your PC to your phone's connection.