How Secure is Microsoft OneDrive for Business? (2024)

In August 2023, it was discovered that Microsoft OneDrive, which holds over half of all sensitive Microsoft Office documents, could be exploited by hackers through a ransomware attack. This exposed a significant security flaw between Windows and security systems, highlighting concerns about the safety of storing sensitive information on cloud services.

As we explore the security features of Microsoft OneDrive, a question arises: Can we trust that our data is truly secure in the cloud, or are we potentially putting ourselves at risk without even realizing it?

Is OneDrive Safe and Secure?

Besides serving as a cloud storage, Microsoft's OneDrive enables users to easily manage their documents, contacts, notes, passwords, and photos across all Windows devices.

Due to this broad integration, Microsoft prioritizes securing your data with AES 256-bit standard for all uploads, downloads, and backups, providing a high level of encryption. Additionally, they offer two-factor authentication to further protect against unauthorized access. To ensure the safety of your information during transmission, OneDrive also implements the SSL/TLS encryption standard.

But the question is, is this enough?

Common Security Concerns in OneDrive

However, OneDrive faces the same security risks as other cloud applications, which can lead to data corruption, loss, or theft. Below are the security concerns related to Microsoft OneDrive categorized into five key areas:

1. Encryption and privacy concerns

  • Lack of end-to-end encryption: A major concern with OneDrive is the absence of end-to-end encryption and a zero-knowledge policy. This situation means Microsoft controls the encryption keys, which could compromise the security of your files. Furthermore, under certain circ*mstances, such as government warrants, Microsoft may be compelled to hand over user data due to the lack of client-side encryption.
  • Privacy policy issues: Microsoft scans and analyzes files stored in OneDrive to improve services and offer personalized features. While this may enhance user experience, it raises privacy concerns, especially under strict privacy laws like the GDPR that require explicit consent for data processing. Microsoft's broad access to data might not fully align with these regulations.

2. Access and authentication risks

  • Weak credential management: Users with simple passwords and without two-factor authentication are at a higher risk of getting hacked. Using weak or commonly used passwords and insecurely storing them on sticky notes can make it easier for attackers to gain unauthorized access.
  • Improper access control: Incorrect file access controls to a private document can lead to the document being unintentionally shared with a larger group than intended.

3. Cybersecurity threats

  • Malware and viruses: Like many cloud services, OneDrive is vulnerable to malware and viruses, which can lead to data loss or theft. If a virus-infected file is uploaded to OneDrive, it could spread to other devices synced with the account. For example, a user may unwittingly upload an infected file, spreading the virus on all connected devices.
  • Insider threats and misconfigurations: Employees with access could intentionally or unintentionally leak sensitive information. Misconfigurations, such as sharing incorrect links, could expose confidential files to the public. DoS attacks involving overloading OneDrive services can make them unavailable, hindering business operations.

Also read: Strac DLP Shields Office 365 Data from Breaches

4. Data management and integrity

  • Data theft risks: The risk of data theft is higher when personal devices are used to replicate data, especially if IT administrators lack control over these devices. Employees could access and copy sensitive data from less secure personal devices.
  • Data loss: The sync feature in OneDrive poses a risk of unintentional deletions or changes across all devices, potentially leading to permanent data loss. An accidental deletion or corruption on one device will replicate across all synced devices.

5. Compliance and system vulnerabilities:

  • Legal and compliance risks: Storing customer data on OneDrive without ensuring GDPR compliance could lead to legal issues, particularly if data is transferred to non-EU servers without the necessary protections, breaching GDPR regulations.
  • System and software integrity: Failing to update software like Windows can lead to vulnerabilities. Unpatched security flaws in Windows could be exploited to access OneDrive files illegally.

Best Practices for Maximizing OneDrive Security in Enterprises

Organizations can implement the best practices below to minimize cyber threats and breaches:

1. Implementing Data Loss Prevention

Implementing Data Loss Prevention (DLP) in OneDrive is essential for protecting sensitive information within your organization. By setting up DLP policies, you can monitor and control the sharing of sensitive data, ensuring compliance with various regulatory requirements.

How Secure is Microsoft OneDrive for Business? (1)

2. Strong authentication practices

  • Use of strong passwords: Businesses must implement a policy requiring passwords to contain a combination of letters, numbers, and special symbols and ensure that passwords are not reused for different services. A password manager can help manage these complex passwords effectively. Additionally, you can password-protect individual OneDrive folders with a strong password for added security.
  • Two-factor authentication (2FA): By implementing 2FA, administrators can customize login protocols based on user roles, geographical locations, or specific activities, ensuring that sensitive information is accessible only to verified individuals. OneDrive for Business MFA provides various authentication options—including text messages, phone calls, and app notifications—allowing users to select the method that best suits their preferences

Implement this by requiring a password and a verification code from an application like Microsoft Authenticator during account logins, including services like OneDrive. The verification code can be delivered via phone call, SMS, or a third-party app, adding an extra layer of security. MFA (Multi-Factor Authentication) significantly improves the protection of login credentials and encourages practices that mitigate the risk of phishing and other cyber threats.

3. Device and data encryption

Ensure all company devices that can access OneDrive are equipped with encryption. This way, if an employee misplaces their phone, the data on OneDrive will stay protected and inaccessible to unauthorized users.

4. Employee awareness and training

Conduct quarterly cybersecurity training for employees that educates them on phishing attack simulations and how to identify, report, and evade phishing. Advise against storing sensitive information like passwords and payment details on OneDrive, particularly within shared folders and stress the importance of vigilance with links and attachments from unfamiliar sources.

5. Software maintenance and updates

Implement a system that automates the deployment of security updates Regularly update operating systems and applications to avoid any security gaps or software vulnerabilities. Enabling the auto-update feature for Windows will ensure that all necessary updates are installed automatically, reducing the risk of any potential issues arising from outdated software.

5. Access management and control

  • Managing access permissions: Regularly review and adjust the file permissions on OneDrive. This is especially important for sensitive files, as you want to limit access to only those employees who need it. Use audit logs to monitor file access and detect any unusual activity. It's also important to assign appropriate permissions for different users and regularly check access logs. Limit access to confidential data by granting necessary permissions only for specific tasks.
  • Network security: To ensure network safety, firewalls block any unnecessary inbound and outbound traffic. This can be done by allowing specific types of traffic, such as OneDrive while blocking known malicious IP addresses. Regularly updating antivirus definitions across the network is crucial for overall protection. Also, properly configuring the firewall can act as a first defense against cyberattacks by closing unused ports and only allowing connections from trusted IP addresses. Employing an antivirus program is also important.

6. Automated security management

The Office 365 admin center implements and enforces security policies that can automatically disable accounts with suspicious activity, such as repeated failed login attempts. This tool is valuable for security administrators who need to manage Office 365 and configure OneDrive security settings. With these measures in place, potential issues and vulnerabilities can be detected and addressed without extensive manual intervention.

7. Backup and recovery solutions

While OneDrive's built-in security tools are not enough to fully protect your data and ensure recoverability, installing a third-party solution will provide the necessary backup and restore capabilities in the event of a disaster or breach. Set up a strong backup system that automatically saves your OneDrive data. This will allow you to recover any lost or compromised information without having to pay a ransom if you experience a ransomware attack.

Introducing Strac OneDrive DLP Solution

Strac OneDrive DLP Solution offers real-time monitoring, automated data classification, redaction capabilities, intelligent alerting system, and compliance management. Strac simplifies compliance management, provides audit trails and reporting features, and offers a user-friendly and customizable interface. One of our clients on G2 stated,

How Secure is Microsoft OneDrive for Business? (2)

Strac One Drive DLP solution protects businesses with the following core features:

1. Real-time monitoring: Stay ahead of data breaches on OneDrive

Strac OneDrive DLP solution keeps track of user activity, identifying and alerting any unauthorized or suspicious access to sensitive information in real time. With real-time monitoring and data classification features, Strac DLP protects confidential information on OneDrive.

How Secure is Microsoft OneDrive for Business? (3)

2. Automated data classification: Simplifying data management on OneDrive

The Strac OneDrive DLP feature automatically categorizes data according to its level of sensitivity and compliance, effectively managing and tagging information to protect sensitive data.

3. Redaction capabilities: Safeguarding sensitive information on OneDrive

With Strac's advanced automated redaction capabilities, you can ensure the security and privacy of your data is well-maintained. This feature lets you easily remove or mask any sensitive information in documents before sharing or downloading them.

How Secure is Microsoft OneDrive for Business? (4)

4. Intelligent alerting system: Proactive notifications on OneDrive

Strac OneDrive DLP provides efficient and reliable alerts for potential data leaks or breaches. It utilizes advanced machine learning algorithms to ensure high accuracy and reduce false positives, avoiding alert fatigue.

5. Compliance management: Ensuring regulatory compliance on OneDrive

Strac OneDrive DLP is a powerful compliance management tool specifically designed to ensure regulatory compliance on the OneDrive platform. Its ability to identify regulated data and enforce regulatory policies simplifies the process of staying compliant. Additionally, it offers useful features such as audit trails and detailed reporting to help demonstrate compliance during audits.

6. User-friendly and customizable: Tailoring Strac to your OneDrive needs

Strac is a highly customizable tool designed to cater to your specific needs on OneDrive. It offers a user-friendly interface with detailed reporting and analysis of all sensitive data stored on OneDrive, including information on shared files and their distribution over time. With Strac, you can easily manage and monitor your OneDrive data in a way that suits you best.

How Secure is Microsoft OneDrive for Business? (2024)

FAQs

How secure is Microsoft OneDrive for business? ›

Due to this broad integration, Microsoft prioritizes securing your data with AES 256-bit standard for all uploads, downloads, and backups, providing a high level of encryption. Additionally, they offer two-factor authentication to further protect against unauthorized access.

What are the disadvantages of OneDrive for Business? ›

The disadvantages of OneDrive are limited sharing options, limited file management, and limited desktop synchronisation settings. Limited Sharing Options: OneDrive's sharing options are limited compared to other cloud storage services, making sharing files with non-Microsoft users difficult.

Is OneDrive for Business good? ›

OneDrive for Business is a powerful tool for collaborating inside and outside your organization. It provides multiple additional utilities such as co-authoring files and advanced control over internal and external sharing, known as Folder Moves.

How confidential is OneDrive? ›

The OneDrive library provided for you is typically protected from public viewing by default. Only you can access personal documents and media files that you store in it unless you explicitly share a folder of documents or a single document with other people in your organization for reviewing or co-editing.

What problems is Microsoft OneDrive for business solving and how is that benefiting you? ›

4 Ways that Microsoft OneDrive Evolves Your Business
  • OneDrive Improves Your File Security. 75.6% of organizations encountered at least one successful cyber attack within the past 12 months. ...
  • OneDrive Grants Anywhere, Anytime File Access. ...
  • OneDrive Allows Collaborative Editing. ...
  • OneDrive Ensures Safe External File Access.
Apr 16, 2021

Is there a difference between OneDrive and OneDrive for Business? ›

Both OneDrive versions support seamless file sharing and collaboration. OneDrive for Business, however, offers more in-depth control over file permissions and integrates with Microsoft Viva for enhanced internal communication.

What are the security vulnerabilities of OneDrive? ›

OneDrive offers strong security measures that compare favorably to other leading cloud storage providers. However, it is still vulnerable to common cloud service security issues, including weak passwords, data breaches, malware and viruses, insider threats, misconfiguration, DoS attacks, and lack of encryption.

Is OneDrive for business private? ›

For example, you can store your private documents by using the new OneDrive for Business option. For collaborative storage, you can use Office 365 Groups and for public documents use SharePoint. You might use OneDrive for Business to start and work on a document privately, such as for a draft sales pitch.

What is the maximum storage for OneDrive for business? ›

Storage up to 25 TB/user is provisioned in OneDrive for Business. Beyond 25 TB, storage is provisioned as 25 TB SharePoint team sites to individual users.

Is Google Drive or OneDrive better? ›

Storing, managing, and organizing files is a breezy experience on both platforms. If Google Drive is known for its clean and intuitive interface (common in Google's ecosystem), OneDrive is preferred for its straightforward file organization and synchronization with Windows File Explorer.

How safe are my files on OneDrive? ›

Content protection: Each file is encrypted at rest with a unique AES256 key. These unique keys are encrypted with a set of master keys that are stored in Azure Key Vault.

How to make OneDrive more secure? ›

Two-Factor Authentication (2FA) in OneDrive
  1. Sign in to OneDrive.com using your Microsoft credentials.
  2. Enable Personal Vault (from Settings choose Personal Vault, then click Enable).
  3. Choose Two-Factor Authentication (2FA). For enhanced security, enabling your OneDrive Personal Vault requires 2FA. ...
  4. Enter your PIN.

How to make sure OneDrive is private? ›

Review and adjust privacy settings for OneDrive files and folders
  1. In the left panel, select My Files.
  2. In the folder list under the heading Sharing, notice that folders or files are either Private or Shared. Private files are only accessible to you. Shared files are accessible to you and others.

How safe is OneDrive for Business? ›

OneDrive for Business encrypts data during transmission and while stored. It utilizes Secure Socket Layer (SSL)/Transport Layer Security (TLS) for data transfer and Advanced Encryption Standard (AES) with 256-bit keys for file storage.

Why is OneDrive for Business so slow? ›

Make sure that your speed isn't limited.

There is a feature in OneDrive that allows you to limit sync speed. If you find your OneDrive syncing is slow, you can try removing the speed limit, the sync slow issue may be resolved. Right-click the OneDrive icon in the taskbar. Select settings from the menu.

Can administrators see my files in my OneDrive for Business? ›

Only you can see your OneDrive files. While a business administrator can see all folders in a business account, your colleagues can't see your documents unless you give them access.

Is OneDrive for Business private? ›

For example, you can store your private documents by using the new OneDrive for Business option. For collaborative storage, you can use Office 365 Groups and for public documents use SharePoint. You might use OneDrive for Business to start and work on a document privately, such as for a draft sales pitch.

How do I encrypt OneDrive for Business? ›

Step-by-Step How To Encrypt OneDrive Folder
  1. Step 1: Evaluate Your Encryption Options. ...
  2. Step 1.5: Enable BitLocker (Windows) or FileVault (Mac) ...
  3. Step 2: Create an Encrypted Container. ...
  4. Step 3: Regularly Update Your Encryption Keys and Passwords.

Which is more secure, OneDrive or SharePoint? ›

Better security and permissions

Unlike OneDrive, there are options for SharePoint to be made accessible offline, which gives you greater peace of mind about single-server security, plus extra control over your accessibility, which is essential for data compliance.

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