Dropbox has faced many questions about the privacy of the data held on their service after modified links were shown to successfully connect to private portions of accounts as well as their ability to hand over all your content in readable form to authorities. While for many the lack of encryption is not much of a concern, businesses cannot afford to be so lax with potentially valuable client data stored on Dropbox. This use of Dropbox by businesses is far more common than you may think and may expand with the announcement of Dropbox for Business and the expanded services available for this new service.
For those with security concerns about storing unencrypted data on Dropbox it would seem that the recommendation is to use third party client side encryption software. That does mean that the new search features will not work as Dropbox will be unable to index files as they pointed out to The Inquirer and other media. Dropbox does have a decent reputation for protecting the data they store but for those intending to store proprietary data on the cloud the balance between ease of use and privacy should be considered before moving to any cloud storage provider.
"DROPBOX HAS DEFENDED its record on privacy following allegations by NSA whistleblower Edward Snowden that it is "hostile to privacy"."
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