When a business suspects data theft or prepares for litigation, attention often goes to obvious places: work laptops, company email accounts, and direct downloads to USB drives. But in today’s work environment, there’s another space where sensitive data quietly travels, often without anyone noticing.
We’re talking about cloud folders and shared drives.
Services like Dropbox, Google Drive, OneDrive, and even shared folders in Microsoft Teams or Slack are incredibly convenient. They help teams collaborate, especially in hybrid or remote environments. But they also create blind spots, ones that are frequently missed until it’s too late.
In our digital investigations, we sometimes find that the most valuable data wasn’t copied to a flash drive or sent in an email. It was quietly syncing to a cloud account the entire time.
Why Cloud Folders Are Easy to Miss
Unlike USB use or email forwarding, cloud folder activity may leave few visible signs on a company’s devices, especially when the sync tools involved are personal.
For example:
- An employee logs into their personal Dropbox on a work laptop just once, and it continues syncing selected folders in the background.
- Files stored in a company’s cloud workspace are shared externally without IT being alerted.
- A departing employee retains access to a shared folder they set up, or was never removed from.
Unless someone is actively monitoring sync activity, these small leaks can go unnoticed until key clients, documents, or strategies show up where they shouldn’t.
Common Scenarios We See
“I just needed to work from home”
Employees sometimes sync confidential files to their personal cloud accounts for convenience, planning to delete them later. But those files often persist, sometimes for years, and become discoverable if litigation arises.
Ghost access after departure
Cloud folders shared with employees aren’t always unshared when they leave. That means a former staff member could still be receiving updates in real time, without touching a company-issued device.
Misuse masked as collaboration
We’ve seen cases where employees used legitimate file-sharing tools like SharePoint or Google Drive to “collaborate” with outside parties… who turned out to be competitors or future partners.
Risks to Legal and Business Outcomes
Cloud-based data mishandling often surfaces after something goes wrong, when:
- A former employee starts a competing business,
- Clients mysteriously change course, or
- Internal versions of proprietary documents appear outside the organization.
From a legal perspective, cloud folders and sync apps can introduce complications in:
- Proving where the data went,
- Showing that it left the organization without permission,
- Determining whether company policies were followed or ignored.
In IP theft investigations, cloud sync tools are often the missing link.
How to Respond If You Suspect Cloud-Based Data Loss
1. Preserve the device immediately
Even if sync logs are cloud-based, devices often hold traces, like cached files, authentication tokens, or folder structures, that show what was accessed and when. These artifacts often contribute to a complete digital timeline of evidence.
2. Review account and permission logs
Many cloud services (Microsoft 365, Google Workspace, etc.) keep logs showing who accessed what, when, and from where.
3. Deactivate sharing links and audit permissions
When someone leaves, check more than just email and CRM access. Review any lingering shared folders, especially those created by the employee.
4. Consult legal early
If litigation is a possibility, your legal team can advise on how to approach cloud content discovery while avoiding spoliation or overlooked evidence.
Preventive Steps for the Future
- Set clear policies on personal cloud use
Ensure employees understand they’re not to use personal Dropbox, iCloud, or Google Drive for company data, even temporarily. - Implement automated offboarding procedures
Remove users from shared drives and revoke third-party access as part of your exit checklist. (Also see: employee exit log best practices). - Use centralized file management when possible
Keeping documents within managed platforms (like SharePoint or Teams) gives you better visibility and control. - Train managers to ask the right questions at offboarding
It’s not just about turning in a laptop, it’s about understanding where data may have gone while they had access.
Cloud tools are here to stay, and for good reason. They make collaboration fast and seamless. But that same ease can quietly open the door to data theft, especially when employees are preparing to leave.
By being aware of how file shares and sync folders work, and knowing what to check when concerns arise, you’ll be far better equipped to respond quickly, protect what matters, and stay ahead of preventable risks.
About Swailes Computer Forensics
Swailes Computer Forensics provides expert digital forensic services to law firms, corporations, and organizations nationwide. Our work includes investigations into intellectual property theft, employee misconduct, data breaches, and more. With decades of experience and a commitment to integrity and clarity, we help clients uncover critical evidence and take informed action.
If you’re facing a potential case of employee data theft or have concerns about unauthorized activity, contact us for a confidential consultation.