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The Hidden Dangers of Unverified Transcription Services

Written by Rob Foley | Mar 11, 2025 2:04:27 PM

In today's data-driven world, a confidential transcription service is essential for organizations in fields such as marketing research, academic studies, healthcare, and law enforcement. However, not all transcription services uphold the same standards of security and confidentiality. Entrusting sensitive information to an unverified provider can expose you to significant transcription security risks.

The Illusion of Security: Why Claims On a Website Aren’t Enough

Many transcription services advertise on their websites that they follow strict confidentiality policies to ensure "security at every step.” However, without third-party verification and real documentation, these statements are meaningless.

Common warning signs of unverified security practices include:

✔️ No Documentation – A confidential transcription service will have documented security standards, such as SOC-2, ISO, and/or NIST certifications, HIPAA compliance for work that contains protected health information (PHI), GDPR, CITI for academic research, or numerous other security credentials that document accountability.

✔️ No Clear Data Protection Policies – A reliable provider will be transparent about how they will handle your files, where they will be stored, and what encryption methods they use. If their security policies aren’t clearly outlined - and available upon request - that is cause for concern.

✔️ Reliance on Non-US-Based Workers to Offer Below-Market Wages – Many outsourced transcription companies auction off jobs through global freelance work pools, where security measures are inconsistent, unenforced, or nonexistent. If a company does not explicitly state that all work is handled in a US-environment, your data may be at risk (if your work is based in the US).

✔️ No Signed Confidentiality Agreements (NDAs) – A confidential transcription service can readily provide confidentiality agreements upon request. If they hesitate or don’t have these agreements, they probably don’t have any real accountability to protect your data.

✔️ Do not carry cyber liability insurance: This insurance covers costs associated with data breaches, including legal fees and notification expenses. 

The Risks of Choosing an Unverified Transcription Service

Partnering with an unverified transcription service can lead to:

1. Data Breaches and Unauthorized Access

A 2024 report revealed that 61% of companies experienced a third-party data breach or security incident in the last 12 months, a 49% increase from the previous year (​prevalent.net). Transcription companies without proper security standards leave your files vulnerable to unauthorized access. 

2. Compliance Violations and Legal Liabilities

Organizations in the fields of healthcare, academia, and law enforcement must adhere to strict data protection regulations. Utilizing a transcription service that fails to follow security standards such as SOC-2, NIST, and HIPAA can result in legal penalties, hefty fines, and loss of client trust.​

3. Offshore Transcription Without Your Knowledge

Some companies outsource transcription work overseas, where data protection laws may be less stringent (or nonexistent). This practice can lead to:​

  • Increased risk of data breaches: Offshore vendors may not implement robust security measures.​
  • Cyber extortion: An attacker steals sensitive data and demands money in exchange for not sharing it with the public (among other things).
  • Limited legal recourse: Holding responsible parties accountable for a data breach outside the U.S. is difficult - if those persons can even be found. ​

How to Verify a Transcription Service’s Security Practices

To ensure your data's safety, consider the following when looking for a confidential transcription service provider:

  • Request proof of security certifications: Confirm that the company holds relevant certifications like SOC-2, NIST, ISO, GDPR, HIPAA.
  • Inquire about insurance coverage: A secure transcription service should have cyber liability insurance to cover potential data breach costs.
  • Understand their data handling protocols: Ask if they use encryption for data storage and transmission and have clear data retention and deletion policies (they should be able to send you this documentation).​
  • Clarify their workforce structure: Look for a transcription service with US-based transcriptionists who have been vetted and are bound by confidentiality agreements (NDAs).​

Here’s how to separate a secure transcription company from an unverified one →

Final Thoughts: Prioritize Security When Choosing a Transcription Company

Your data's confidentiality is essential. Partnering with an unverified transcription company can expose you to significant risks, including data breaches and legal liabilities. Always verify a provider's security credentials, insurance coverage, and data handling practices to ensure your information remains protected.

Next Steps: Review your current transcription service's security measures and insurance coverage. If they lack verifiable protections, consider a more secure provider.

Contact us to learn about Research Transcriptions’ unmatched transcription security credentials and how we keep your data safe.