Is Your File-Sharing Platform Putting Sensitive Business Data at Risk?

Is Your File-Sharing Platform Putting Sensitive Business Data at Risk?

WeTransfer's Terms Update: What It Means for Your Business and is this a game changer for who uses it

In July 2025, WeTransfer updated its Terms of Service, triggering a wave of concern among creatives, legal teams, and enterprises alike. At the centre of the controversy? Language suggesting that user-uploaded content could be used to train artificial intelligence models. Though WeTransfer has since walked this back, the incident raises critical questions about how businesses share and protect their most sensitive information.

What's Changed: WeTransfer's Terms of Service

  • Original Concern: Section 6.3 (July 2025) included terms suggesting WeTransfer had rights to use uploaded content to train AI.
  • Backlash: Users raised serious privacy and IP concerns, especially from the creative and enterprise sectors.
  • Revised Terms: After public pressure, WeTransfer removed AI-related language. As of August 8, 2025, the terms state:

"You hereby grant us a royalty‑free license to use your Content for the purposes of operating, developing, and improving the Service, all in accordance with our Privacy & Cookie Policy."

  • WeTransfer's Statement: The company clarified that it does not train AI on user data and reaffirmed it does not sell or commercialize user content.

The Business Risk: Commercially Sensitive Data

While WeTransfer now says it won’t use your files for AI, the remaining terms still give it broad permission to use your content for service improvement. Here’s why that matters:

  1. Legal Ambiguity "Improving the service" is a vague term that could, in theory, involve content analysis. Without more precise contractual limits, companies must rely on trust—not ideal when handling trade secrets, IP, or financial data.
  2. Compliance Concerns Companies bound by GDPR, HIPAA, ISO 27001, or internal data governance policies may find WeTransfer's terms insufficiently clear. Lack of control over file storage location and internal access creates risk.
  3. Reputational Exposure Initial inclusion of AI rights may hint at WeTransfer's long-term strategy. Using such a platform could pose reputational risks if confidential data is ever compromised or questioned.

What Businesses Are Likely To Do:

  • Ambiguous data usage - Avoid using for sensitive projects or IP
  • Regulatory exposure - Replace with compliant alternatives
  • Reputation management - Proactively remove platform from workflows
  • Vendor trust - Conduct internal audits or block WeTransfer access

How to Reduce Risk If You Must Use WeTransfer:

  • Encrypt files before upload (e.g., password-protected ZIPs)
  • Avoid sharing sensitive internal documents or client data
  • Use WeTransfer Pro only if more control over expiration and access is required
  • Monitor for future changes to Terms or Privacy Policy

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Key Takeaway: If your business handles confidential client data, R&D assets, legal contracts, or financial records, WeTransfer may no longer be a suitable platform for secure sharing. The revised terms are a step forward, but they don’t go far enough for compliance-heavy industries. For peace of mind, consider switching to a service built around end-to-end encryption and zero-knowledge architecture.

Want to Know More? Get in contact to discuss your options: http://bit.ly/4cBrPJ4

“Make IT work for you and not you for IT”

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