As a Registered Investment Advisor (RIA) or financial advisory firm, you understand the importance of safeguarding sensitive client data. But what about the tools and processes your team uses every day? If your firm is still relying on the outdated scan-to-folder method for document scanning, you may be exposing your business to unnecessary risks.
Here’s what you need to know about why scan-to-folder is a security liability and how transitioning to scan-to-SharePoint can protect your data while improving efficiency.
The Problem with Scan-to-Folder
Scan-to-folder is a method where documents are scanned directly to a shared folder on a local computer or server. While it’s a familiar process, it’s also inherently insecure. Here are some of the key risks:
- Static Credentials: Scan-to-folder requires creating a dedicated user account with a fixed username and password. These credentials are rarely updated, making them an easy target for cybercriminals.
- Firewall Vulnerabilities: To enable scanning, Windows Firewall is often disabled. This leaves your network exposed, making it easier for hackers to gain access.
- Insecure Connections: The scan-to-folder method typically requires opening SMB sharing ports (e.g., port 445). These ports are often targeted by attackers, especially on older printers that don’t support modern security protocols.
When these vulnerabilities are combined, they create an environment ripe for exploitation—one where a single weak point could lead to a costly data breach.
Why Scan-to-SharePoint Is the Better Option
Fortunately, there’s a more secure way to handle scanned documents: scan-to-SharePoint. This approach integrates with Microsoft SharePoint Online and uses secure, encrypted connections to ensure documents are transmitted safely. Here’s why this method is a game-changer:
- Stronger Security: Scan-to-SharePoint eliminates the need for static credentials and doesn’t require disabling firewalls or opening insecure ports. It uses Microsoft’s secure channels and the latest encryption standards to protect your data.
- Regulatory Compliance: As a financial advisory firm, you’re subject to strict regulatory requirements. Scan-to-SharePoint supports compliance by ensuring that documents are stored and transmitted securely.
- Seamless Integration: SharePoint is already part of many firms’ Microsoft 365 environment. Scanning documents directly into SharePoint makes it easier to organize, access, and share files while maintaining robust security.
Real Risks, Real Consequences
Many firms are unaware of the risks associated with scan-to-folder—until it’s too late. One common issue occurs when a shared folder is configured incorrectly, creating a gap in your network’s security. Hackers can exploit these gaps to infiltrate your system, access sensitive information, or even disable your network.
For RIAs and financial advisory firms, the stakes are high. A single breach could compromise client trust and lead to financial and reputational damage.
Why This Matters for Your Firm
Firms with 5 to 25 employees often operate with limited IT resources, meaning there’s little room for error. By transitioning to scan-to-SharePoint, you’re not only addressing a significant security gap but also investing in a smarter, more efficient way to handle your documents.
Next Steps
If your firm is still using scan-to-folder, it’s time to reevaluate your approach. Switching to scan-to-SharePoint is not only a best practice—it’s a necessity for protecting your clients, your data, and your business.
Need help making the transition? At RIA WorkSpace, we specialize in helping financial advisory firms implement secure, efficient IT solutions tailored to their unique needs. Contact us today to learn more about how scan-to-SharePoint can work for your firm.