Sensitive Client Data: It’s More Than Just Bank Statements

 If someone asked you to list the types of client information your firm considers “sensitive,” chances are you’d think of the obvious stuff—tax returns, ID scans, or banking details. But in 2025, sensitive data goes far beyond financial records. And if your firm isn’t treating all personal information with the same level of caution, you could be leaving yourself open to risk, from both cyber threats and compliance penalties. 

The Expanding Definition of Sensitive Information 

With privacy regulations like GDPR, HIPAA, and PCI DSS influencing global best practices, the definition of sensitive data has expanded significantly. Today, it includes anything that can directly, or indirectly, identify an individual or expose private details. That means your firm could be holding on to data like: 

• Home addresses 

• Dates of birth 

• Employment contracts 

• Payslips and invoices 

• Utility bills 

• Client correspondence 

• Even text notes with personal identifiers 

  

If it reveals something personal, financial, or legal, it’s sensitive. And if it lands in the wrong hands, even by mistake, it becomes a problem. 

Why Professional Services Firms Need to Pay Attention 

Firms like accountants, legal advisors, estate agents, and financial consultants sit on a goldmine of personal data. And often, it’s stored across inboxes, local drives, shared folders, and message threads. 

This isn’t just bad practice—it’s a ticking time bomb. In fact, 60% of small and mid-size businesses go out of business within 6 months of a serious data breach. And even minor breaches can result in lost trust, regulatory headaches, or damaged client relationships. 

The Real Risk Isn’t What You Store—It’s How You Collect It 

Most data risk doesn’t start with storage—it starts with collection. 

• Asking clients to email documents? Risk. 

• Using cloud links with no expiry? Risk. 

• Leaving sensitive details in chat threads or shared folders? Definitely a risk. 

The truth is, most professional services firms are still collecting sensitive data like it’s 2011. And in today’s AI-powered, regulation-heavy world, that’s no longer good enough. 

What a Modern, Client-Friendly Data Process Looks Like Imagine sending your client a branded request that: 

• Clearly lists what you need 

• Works on mobile or desktop 

• Encrypts their data the moment they upload it 

• Expires automatically and doesn’t require a login 

  

That’s what tools like Key&Box are built for - giving small firms big security without needing to look like an IT company. 

Why It’s Time to Rethink “Sensitive” 

The bottom line? If your firm collects personal information, of any kind, it’s your responsibility to handle it securely, professionally, and in a way your clients can trust. It’s not just about protecting data. It’s about protecting relationships. 

📘 Want a clearer picture of what counts as sensitive data—and how to collect it securely? 
Download our free guide: Sensitive Data in an AI World