


When closing deals, managing due diligence, or sharing confidential documents, document security isn't optional, it's mission-critical.
With the file sharing market projected to reach $541.32 billion by 2035 and 2 billion people using Google Drive globally, secure document management has never been more important. Yet despite its massive adoption, Google Drive holds 47.4% of the cloud storage market, the platform wasn't built for high-stakes M&A transactions or fundraising rounds where every view, download, and forward matters.
For founders raising capital in an ecosystem where global VC funding hit $101 billion in Q2 2025 alone, and M&A professionals managing deals among 5.4 million active startups worldwide, understanding Google Drive's security gaps isn't just smart, it's essential. In this guide, we'll break down Google Drive's shared responsibility model, identify critical security risks when sharing externally, and show how Orangedox transforms Google Drive into a professional-grade, secure document sharing platform.
Using Google Drive to store and share confidential data falls under what’s called a Shared Responsibility Model. This means that while Google provides the basic security infrastructure to ensure hackers can access your account, including encryption, two-factor authentication, and continuous security patches. As the user, you’re responsible for managing access you give to others, including file and folder access to people inside and outside your organization.
In other words, Google does its part, but protecting the integrity of your information is also your responsibility. This is why founders and M&A professionals must adopt best practices for securing sensitive data they share using Google Drive.
It’s important to start with what Google Drive does well. At the infrastructure level, Google Drive is one of the most secure cloud storage platforms available. Google protects your data with AES 256-bit encryption at rest and TLS encryption in transit, meaning your files are strongly protected from external threats while stored on Google’s servers. Google Drive also benefits from Google’s world-class security team, which monitors for threats around the clock and deploys continuous security patches. Additional built-in protections include:
For internal storage and team collaboration, Google Drive is a strong and reliable choice. The security challenges arise not from how Google stores your files, but from how those files are shared externally, and that’s where the shared responsibility falls on you.
Whether you are fundraising, running an M&A deal, or simply managing your confidential information, sharing files securely is a top priority. Google Drive offers great access controls when sharing confidential files internally within an organization, but what it lacks are the security features when sharing these confidential files outside the organization.
It’s important to note that sharing files externally using a Google Drive share link is not a secure way of sharing. These links can be easily forwarded and given to others without your permission, plus given there’s no built in document tracking using Google Drive you’ll also have no idea if they have been shared.
Although you can share a document externally using Google Drive, there is a lack of insight and detailed analytics on who viewed what, when, and where. This leaves you in the dark when it comes to who’s viewing your confidential documents or even knowing if there has been a potential data breach.
Google Drive allows you to share documents directly with recipients, however it’s very easy to forget which documents you’ve given permission to. This is especially true when you’re sharing individual documents buried within hundreds of sub folders. Forgetting to clean up these permissions poses a huge security risk, especially when documents are updated or confidential files are added to a previously shared folder.
By default, Google Drive allows you to download shared files. This means that your documents can be saved or copied and then later redistributed without you ever knowing. Allowing for files to be downloaded opens up your confidential information to potential leaks.
For those looking to maintain tighter control, such as founders sharing confidential data or M&A professionals handling confidential documents, it’s wise to use a third-party document security tool like Orangedox. These tools provide enhanced document security measures, including access tracking and secure document sharing technology to ensure that your shared documents remain private and secure.
Orangedox employs secure document-sharing technology that helps prevent your confidential documents from being forwarded or accessed by anyone other than the intended recipient. Instead of simply sharing a link to the document, Orangedox will verify the recipient's device before allowing access, even for non-Google accounts. Allowing you to share documents without having to worry that they can be forwarded to others.
Using Orangedox you’ll be able to gain insights into exactly which recipient viewed your shared files. You’ll also be able to see which files were viewed (or downloaded) by each of those recipients right down to the pages they’ve viewed and for how long. This gives you the insights you need to fully understand who’s most interested in your shared material.
Unlike Google Drive, Orangedox provides a hub where you can see all your externally shared documents and data rooms, allowing you to easily clean up access. Giving you peace of mind that you haven’t accidentally left some of your confidential documents, or worse confidential folders, shared forever.
Orangedox can prevent your shared files, like PDF’s, Word Docs, Powerpoint, Google Docs, Slides, Sheets etc.. from being downloaded. Recipients will be able to preview your confidential documents and files online without being able to download and share them without your explicit permission.
For those looking to maintain tighter control of their confidential data, it’s wise to use a third-party document security tool like Orangedox. These tools provide enhanced security measures, including access tracking and secure file-sharing technology that ensures that your confidential documents remain confidential. Follow our guide on how to create a virtual data room to reap the benefits.
If you suspect you might be compromised, immediately change your Google password and enable two-factor authentication. Then, check Google Drive under “Recent Activity” for any suspicious activity on your account, and log out of all devices just in case.
There is always a possibility of that happening, but it is highly unlikely. What would need to happen is for hackers to conduct a very sophisticated phishing or ransomware attack targeted directly at Google employees or infra.
Although Google Drive hasn’t been hacked to date, a recent vulnerability allowed for potential phishing risks where users could be tricked into downloading malware.
For founders or M&A professionals handling sensitive information, using tools like Orangedox to track and control access to documents provides an additional security layer, helping you monitor any unauthorized document views.
The short answer is no, you are not able to individually password-protect files or folders in Google Drive.
For confidential documents consider using a secure document-sharing provider, like Orangedox, which will offer more granular control over access permissions and prevent unauthorized document sharing.
Yes, Google Drive for Business (Google Workspace) meets industry standards for security, including data encryption and compliance with GDPR. However, if you’re handling sensitive documents, using Orangedox for enhanced control and tracking can further secure your data and meet compliance needs.
By enabling Two-factor authentication, doing an occasional review of your logged sessions, changing your password every 90 days, using unique passwords, avoiding accessing sensitive files on public Wi-Fi networks, and integrating with Orangedox to monitor and control document access comprehensively.
Yes, they can. But it depends.
If they’ve shared the file using a document tracking plugin for Google Drive like Orangedox then they’ll be able to see whenever someone previews or downloads that file. Plus they’ll be able to tell who the person was. If they haven’t shared the file but rather opened it on a computer that has access to the synced Google Drive folder, then no you won’t be able to know it was opened.
Yes, if the owner uses a document tracking plugin like Orangedox. They’ll be able to track whenever their shared folders are accessed by recipients like you. They will be able to see what files you’ve downloaded or viewed, plus they can disable document downloading if it’s something sensitive and disable access at any time.
If you’re both in the same organization and you are using Google Drive for Business then all files shared with internal employees are audited with the Google Drive Audit log
Yes it is. Using a document tracking plug-in for Google Drive like Orangedox you’ll be able to track the number of times your file was downloaded and previewed. Plus you’ll be able to track when each recipient of your file downloaded or previewed the file and revoke access at any time.
Yes. But not out of the box. Google doesn’t let you track when someone views your shared Google Docs, instead, you’ll need to use a third-party plugin like Orangedox which will let you track whenever someone views your shared Google Docs. Plus you’ll also be able to see who the person is who viewed the document, allowing you to capture their email so they become not so anonymous.
Yes there is. If the Google Doc was shared, or access was changed, within your organization then your Google admin can use the audit tool (Drive log events) to check when it was shared or the access changed. However, if you want to know who forwarded your Google Doc when shared outside your organization then you’ll need to use a plugin like Orangedox. You’ll be able to see how many people the Google Doc was shared with and you can limit the document to be only accessible by the intended recipients, especially helpful if it’s something secure you're sharing.
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Orangedox provides one-click create virtual data rooms that are directly synced with your Google Drive folders.

















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