Dangerous Security Gaps in Transcription Companies—Even in the U.S.

Many organizations assume that choosing a US-based transcription company guarantees security. But even domestic providers can have security gaps that put confidential data at risk.

No matter the size of the company, even well-known providers have vulnerabilities that compromise security and compliance. If your transcription service can’t prove they have the proper security and confidentiality controls in place, your confidential files may be exposed.

Here’s what to look for—and how to ensure your transcription service meets the highest security standards.

“Trust Us” Isn’t a Security Policy

Some transcription companies rely on generic confidentiality claims instead of proven, documented security measures. These red flags indicate security risks:

✔️ No third-party security certifications. A secure transcription service should be able to provide independent verification documentation, such as SOC-2, NIST, ISO certifications, and GDPR and HIPAA compliance documentation. If they can’t, their security claims may be empty promises.

✔️ No transparency about workforce security. If a company doesn’t disclose whether they use U.S.-based transcriptionists or a global network of freelance “gig” workers, assume your files can be accessed from anywhere.

✔️ Unclear data retention policies. Some transcription companies store transcriptions indefinitely or fail to encrypt data, increasing the risk of exposure in a breach.

✔️ No cyber liability insurance. A secure transcription company should carry cyber liability insurance to cover potential damages in the event of a data breach.

If your transcription provider can’t clearly explain how they protect your data, they likely aren’t taking security seriously.

The Risks of Working with a Transcription Company That Lacks Security Standards

Security failures in transcription services aren’t just theoretical—they happen more often than you’d think.

1. Use of Global Freelance Workpools

Some US-based transcription companies quietly outsource work to global freelance marketplaces, meaning your files could be accessed by unvetted individuals worldwide. This means:

If your secure transcription service relies on a freelancer workpool, you may not have full control over who sees your data.

2. Unsecured File Transfers and Storage

Many transcription companies fail to use encrypted file-sharing methods, exposing your files to potential breaches.

• A recent study highlighted that 33% of organizations identified a lack of encryption as the primary cause of sensitive data loss, marking an increase from previous years. ​securitymagazine.com
• Companies that use unencrypted email attachments or store files without proper encryption increase the risk of unauthorized access.

3. Non-Compliance with Industry Regulations

If your transcription provider works in healthcare, marketing, academia, or law enforcement, they should follow industry security standards like:

• HIPAA (Health Insurance Portability and Accountability Act) for safeguarding protected health information (PHI)
• SOC-2, NIST or ISO certification for secure data handling and access control.
• GDPR compliance for any transcription work involving European clients.

A failure to meet industry regulations can lead to legal penalties, financial losses, and reputational damage.

Some transcription companies have already made critical security mistakes that led to major data breaches →

How to Choose a Transcription Company That Takes Security Seriously

Before trusting a transcription company with your confidential files, verify that they:

✔️ Have independent security certifications. Look for certifications such as SOC-2, NIST, ISO and HIPAA compliance.

✔️ Use U.S.-based transcriptionists (if the data is from the U.S.). This ensures legal accountability and compliance with U.S. privacy laws.

✔️ Encrypt files in transit and at rest. A secure transcription service should use end-to-end encryption for all data transfers.

✔️ Have clear data retention policies. Transcriptions should not be stored indefinitely unless necessary for compliance reasons.

✔️ Carry cyber liability insurance. A transcription company that prioritizes security will be insured against potential data breaches.

Even some US-based transcription companies fall short of proper security measures. That’s why vetting your provider is essential →

Final Thoughts: Don’t Assume Security—Verify It

Even if a transcription company is based in the U.S., that doesn’t mean it meets high-security standards. Weak file security, a lack of staff training, and proper security controls will put your confidential data at risk.

Before choosing a provider, ask for proof of compliance, encryption policies, and workforce security. 

🔹 Next Steps: Review your current transcription provider’s security policies. If they can’t demonstrate clear security measures, it may be time to switch to a secure transcription service that prioritizes data protection, compliance, and confidentiality.

To see how we avoid security gaps and keep your data safe, drop us a quick note here.