A VDR protects your files under layers of military-grade security and round-the-clock surveillance that can’t be matched by larger, cloud-based solutions intended for the masses. It’s a legitimate concern, and it’s precisely why secure Virtual Data Rooms, or VDRs, exist to enable secure document collaboration and review while strictly controlling user access and permissions. If the company could stay silent on a hack of this magnitude, the reasoning goes, how can they be trusted to keep your documents and account information safe? However, passwords with the hashing function bcrypt (a service that leverages encryption ciphers to create ultra-strong passwords) were likely not accessible to hackers and the Dropbox dump was reportedly not listed on any of the dark web sites that share such data.ĭropbox left a dormant hack that they knew about sitting unaddressed for years while hackers manipulated the data. Security notification service Leakbase discovered the leaked passwords and reported the breach to. However, it wasn’t revealed until 2016 that the Dropbox leak also included passwords. The next incident occurred in 2012, when a hacked Dropbox leaked emails and passwords of more than 68 million users, reported. In 2011, an error allowed anyone to access any Dropbox with only the original user’s email address. But, in its history, Dropbox has been hacked a concerning number of times. Like many websites, Dropbox uses AES 256-bit data encryption for stored data and AES 128-bit encryption for data in transit. But that doesn’t necessarily mean it’s the best choice for your enterprise-level file-sharing needs, especially when it comes to M&A due diligence reports and other proprietary information requiring maximum security.

Certainly, Dropbox is a well-known platform and a market leader in file storage and sharing. If you’re launching the due diligence process for your firm’s next (or first) acquisition, or are tasked with finding ways to share sensitive information within or outside your company, you may be wondering: Is Dropbox secure?Ĭhances are, you’ve evaluated multiple file-sharing platforms.

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