Top 3 risks of online file sharing

We no longer have to drop by a friend's house to share music and photos. Instead, online file sharing has taken the reigns, with a vast array and types of files available at just the click of a button. You can find audio, video, documents, digital books and even computer programmes across the internet - and it's not always legal, either. Pirated movies, software and music have become commonplace in file sharing forums, most of which are known as peer-to-peer (P2P) networks.

Chances are you won't be involved in this kind of illegal activity, but your friends or family might - and even if you stay within the law, file-sharing websites are riddled with risks. Here are three to be concerned about. 

1. Malicious software

P2P networks are systems that let you make certain files available to anyone, anywhere, as long as they have the same file-sharing software. However, the faces behind the files are essentially unknown. The files are moved among thousands or even millions of computers across the globe, with strangers at the helm. This makes them especially susceptible to unscrupulous cyber criminals, who disguise malware in legitimate - or illegitimate, in the case of pirated data - files.

Malware is one of the biggest threats facing internet users, especially those who use online file-sharing software. According to the Australian Consumer Competition Commission, there were 2,556 reported instances of malware and ransomware reported during 20141. Once a user has downloaded an infected file, the virus, spyware or worms can spread quickly and viciously from computer to computer, putting your identity, personal details and wallets at risk. 

2. Identity theft

It's not just the files that put you at risk - the site itself can open you up to all kinds of fraud by other means. In fact, you're not as anonymous as you might think. While infected files can poke holes in your computer's defences, the location of your device - or your IP address - is also on show for other users to view and potentially misuse. This means that attackers can use the information to target your computer specifically to try and gain access to sensitive information. 

To avoid becoming a victim of this kind of hack, only use trustworthy sources if you want to use file-sharing software. Check that the service has the copyright holder owner's permission - there could be serious legal consequences if you download an illegally obtained file, not to mention the risks of downloading unsecured or suspicious files. A legitimate website is more likely to have strong security defences as well. 

3.  Broken fire wall

Some P2P networks may ask you to open certain parts of your fire wall to share the files - in fact, a number of these applications have been designed to skirt around your defences or even adjust your fire wall without your knowledge! Giving the software even the smallest opening could expose you to attacks. Hackers using the site could gain access to your computer, or outside criminals may jump at the opportunity to take advantage of any holes in the sharing software itself.

No matter what kind of file-sharing software you use, it's a good idea to tighten up the nuts and bolts on your computer so that the network can only access the files you want them to see. According to a 2012 Australian Media and Communication Authority survey, 18 per cent of home internet users don't have sufficient protection on their computer to ward off unwanted attacks2 - you don't want to unintentionally leak information, so make sure your defences are up to date!

If you're worried about the risks involved with using file-sharing websites, get in touch with our team at Identity Watch. Our experts have their eyes trained to internet forums where your personal details can be traded illegally, and will let you know what steps to take if the information is found. 

1 Targeting scams: Report of the ACCC on scams activity 2014. Australian Consumer Competition Commission. May 2015. 

2 Malware and harmful software: Consumer views on software threats and use of protections. Australian Media and Communication Authority. October 2013.