How to Properly Vet an Online Transcription Company for Security Risks

Choosing an online transcription company isn’t just about accuracy and pricing—it’s about protecting sensitive data. If the company lacks strong security controls, your files could be at risk.

How do you know if a transcription company is truly secure? The best way is to start by asking the right questions. Below is a step-by-step vetting checklist that helps ensure your provider meets the highest security and confidentiality standards.

1. Do They Have Independent Security Certifications?

✔️ SOC-2 Certification: Proves they follow strict data security standards audited by third-party firms.
✔️ HIPAA Compliance: Required for medical transcription and protecting patient data.
✔️ GDPR Compliance: If you work with European clients, they must follow EU privacy regulations.

📌 Red Flag: If they claim to be secure but have no certified documentation, they likely don’t have the policies, procedures and controls in place to protect your data.

Many transcription companies claim to be secure but offer no proof. →

2. Who Will Handle Your Transcription?

✔️ Are the transcriptionists U.S.-based? If not, your files may be sent overseas, where U.S. privacy laws don’t apply - important if your data is confidential and generated in the U.S.
✔️ Have the transcribers been vetted? Proof of identity and location are critical, as many global freelance "gig" workers collect transcription work from global network transcription companies and sub it out again to their own teams. 
✔️ Do they sign confidentiality agreements (NDAs)? Every transcriptionist should be legally bound to confidentiality.

📌 Red Flag: If they do not clearly state who handles your files and where they are, assume they may use global freelancers without security controls.

3. What Encryption Measures Do They Use?

✔️ Encrypted file transfers: Ensures files are protected in transit and at rest.
✔️ Secure access control: Only authorized personnel should be able to access transcripts.
✔️ Data retention policies: Files should not be stored indefinitely unless required for compliance.

📌 Red Flag: A lack of encryption remains the top reason for data loss for almost 33% of the respondents in a study conducted by Fortanix Inc. and Enterprise Strategy Group (ESG). ​securitymagazine.com

4. Do They Have Cyber Liability Insurance?

✔️ Cyber liability coverage: Helps protect against financial losses in case of a breach.
✔️ Legal protection: Covers lawsuits and compliance fines if data is exposed.

📌 Red Flag: No insurance? No accountability. If they lack cyber liability coverage, they may not be prepared for security incidents.

5. Do They Use AI or Machine Learning for Transcription?

✔️ Insist on human transcription only: AI can store and repurpose sensitive files.
✔️ No AI training policies: Files should not be used to train machine learning models.

📌 Red Flag: If they don’t disclose whether or not AI is used, assume your data could be stored indefinitely for AI training.

Even if a company follows security protocols, that doesn’t mean they keep your data confidential. Here’s how to tell the difference. →

Final Thoughts: If They Can’t Answer These Questions, Walk Away.

An online transcription company that is truly secure will have third-party security certifications, U.S.-based transcriptionists (for U.S.-based data), encryption policies, and cyber liability insurance.

If they hesitate or provide vague answers, that’s a warning sign that they may not be as secure as they claim.

🔹 Next Steps: Use this checklist to vet your current transcription provider. If they can’t provide clear answers, it may be time to switch to a secure transcription service that prioritizes confidentiality, compliance, and security.

Want to see what successful results from a vetted transcription company look like? Contact us, and we’ll share everything with you.