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Why Dumping Sensitive Data on Network Shares is a Liability

Posted on June 23, 2025 by Dissent

Kathryn M. Rattigan and Jim Merrifield of Robinson + Cole LLP write:

Are you storing sensitive data on a shared network drive? If so, your organization could be at serious risk of a data breach or privacy lawsuit. Shared drives, like the common “S:\ drive,” are often used to store documents, spreadsheets, customer information, financial records, and even scanned IDs. But here’s the problem: these network shares are rarely encrypted, lack clear data governance policies, and are accessible to dozens—or even hundreds—of employees across different departments. Without proper oversight, unsecured network drives become a data security nightmare.

Don’t let poor information governance put your business at risk; take the time to learn why securing sensitive data on shared drives is critical for avoiding data breaches, maintaining compliance with privacy laws, and safeguarding your company’s reputation.

In today’s environment of rapidly expanding state consumer privacy laws and data breach notification statutes, companies that fail to control where sensitive data lives are sitting on serious legal and reputational risk. Here’s what you need to know—and why unsecured network shares are no longer just an IT headache. It’s a legal liability.

Read more at The National Law Review.

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