The year 2023 was a rough time for data breaches, with 3,205 major data compromises impacting 353,027,892 victims. That’s a whopping 2,600% increase from 2018.
Virtual addresses are rapidly growing in popularity, especially among small businesses and startups that might otherwise have to rely on a home address. But virtual mailboxes and virtual addresses are inherently digital, cloud-based services. And that means people (rightly) have security concerns.
What’s the truth here? Is using a virtual address risky, or is this established technology safe? Here’s what you need to know.
A virtual address is a real street address that a business can use in place of its actual address. In addition to a physical address, the virtual business address provider also offers virtual mailbox services, replacing your physical mailbox or mail center with a digital approach.
Services typically include postal mail receiving, mail processing (opening and scanning), mail forwarding, digital mail management, shredding, and junk mail and spam filtering.
Businesses can use a virtual address as their official business location for correspondence and marketing purposes, as well as for business registration. You can even use a virtual address to open a business bank account. It’s an attractive option for mobile businesses, startups, solo entrepreneurs, and home-based businesses.
Virtual addresses for businesses also offer more capabilities and flexibility compared to traditional post office boxes or simple mail forwarding services. For one, you can’t register a business using a P.O. Box. You also don’t gain the professional image that comes from having an address in a well-known business district or office park.
Despite the benefits of virtual addresses, some business owners still have concerns regarding privacy and security. The idea of someone else physically opening up your mail, scanning it, and then forwarding whatever you select may seem invasive and risky.
Let’s examine these common concerns and how reputable providers mitigate potential risks.
Even though many people use virtual addresses for added privacy, some still have concerns. What if your virtual mail handler mishandles your incoming mail or even steals customer information? Or what happens if your provider suffers a security breach and your customer information is exposed?
However, willful privacy violations aren’t a serious concern as long as you choose a virtual mailbox service with a strong reputation. The same can be said for the cybersecurity angle — yes, this is a risk, but no more so than the risk you’re already taking on through your own digital assets.
As long as you select a provider that has secure facilities and takes privacy seriously, you’re as protected as you can realistically be.
Mail theft, loss, and destruction are all concerns when you add a third party to the mix. But again, the businesses that offer this service stake their entire reputation and business model on providing a positive customer experience.
As long as your provider is following best practices for secure mail handling, the risks are actually lower than they would be with an internal mailroom or personal mailbox. In fact, there were 38,500 occurrences of mail theft from USPS receptacles in 2022 — and over 25,000 in the first half of 2023 alone.
When you convert physical mail into a digital format, you’re creating new digital data — some of which could be personal or sensitive information. It’s vital to safeguard this data just as you would any other business documents stored in the cloud.
Much of this comes down to the security of your team’s own account credentials rather than concerns with the provider. But you still want to be sure your provider is following cybersecurity best practices and has a strong track record of data protection.
Misuse of a business’s address can lead to identity theft, which, at the business level, could lead to massive reputational harm, not to mention legal issues.
The good news is that, while it does exist, the risk of identity theft is no higher with a virtual address provider than without one. There’s nothing about having a virtual address that makes you any more vulnerable to identity theft.
Some business owners are also rightfully concerned about running into compliance issues. If you’re in a regulated industry and subject to HIPAA, SOC 2, or other industry-specific regulations, you’ll need to make sure your virtual address provider is also compliant with these regulations.
Not all providers are equal in this regard, and some will leave you unprotected or non-compliant.
We’ve already touched on how you can avoid several of the common security concerns prospective customers have about using a virtual mailbox address. Now let’s look deeper into specific security features you should require of your virtual mail provider.
First, evaluate the procedures a provider uses for mail handling, including any protocols or checks and balances that promote or ensure secure handling. This includes the obvious — humans opening and handling your mail — but also encompasses digital best practices for storing and transmitting digital mail.
It’s worth mentioning that some virtual address providers don’t actually handle mail themselves. Instead, they outsource that to the third-party locations they work with (like local and chain shipping stores).
Other virtual mailbox providers, like Stable, handle everything on-site at their own facilities. This approach makes it much easier to maintain and enforce secure mail-handling procedures.
A first-party provider can actually enforce its policies. Third-party providers are at the mercy of their large, often overextended network of local storefronts.
It’s a good idea to examine the digital side of the provider’s approach and ask these questions:
It may be difficult to get clear answers to some of these questions from certain providers, but if you ask us, that should be your first red flag.
Today’s big tech firms have gotten a bit of a bad reputation for their privacy policies and how they use consumers’ data in sometimes surprising and unethical ways. But this is, in a sense, inevitable.
For the most part, this isn’t the case among virtual address providers, but you’ll still want to be sure of what you’re buying — and that you are indeed the customer and not the product.
Look for clear, comprehensive privacy policies that explain how your information will and won’t be used, along with what your provider is doing to protect that data.
So we’ve seen that using a virtual mailbox and virtual address can be quite safe — but the truth is, just like with any other digital service, it’s only as safe as you make it.
Follow these tips and best practices for keeping your business information safe no matter how you receive your mail.
When using a virtual mailbox, be sure to check your mail regularly. This might sound like a no-brainer and something you have to do anyway to keep your business running, but that isn’t necessarily the case for everyone.
For businesses that don’t rely on mail for income or as a primary customer interface, using a virtual mailbox can create an out-of-sight, out-of-mind situation. If you’re not looking for it, you might miss unusual activity or unauthorized use.
So, even if your physical mail is a low priority, make sure you’re regularly checking and monitoring your virtual mailbox. Investigate any suspicious activity or signs of unauthorized use right away.
Any digital account should use a strong password and other authentication factors. In addition, you should always keep your devices and operating systems up to date to ensure you’re using the latest security protocols.
So be sure to create a secure, unique password for your virtual mailbox and, if your provider offers it, turn on two-factor or multi-factor authentication (2FA or MFA). Check out any other additional security features offered by the provider as well.
This recommendation is crucial: you’ll also want to verify whether the virtual address provider you’re considering complies with industry standards relevant to your business. This includes any needed certifications.
For example, if you work in or around the medical field and are subject in any way to HIPAA, you’ll want to choose a virtual address provider that’s HIPAA-certified. Not all of them are, and making a mistake here could open you up to serious fines.
Similarly, many businesses today need to comply with SOC 2 (Service Organization Control 2), particularly those that handle sensitive customer information. Which means that if you’re in SaaS or cloud services, financial services, ecommerce, or healthcare, you’ll need an SOC 2-compliant virtual address service.
Fortunately, Stable is both HIPAA and SOC 2-compliant — learn more about our compliance and certification credentials.
One consistent theme in today’s digital ecosystem is that no system is fully protected from its own users. Most cyberattacks happen because of credential compromise or phishing, not sophisticated hacking. So once you move your business mail into the virtual space, you’re incurring that same kind of human error risk.
You likely already train your employees to recognize phishing schemes and other digital threats. So make sure to train anyone with access to your virtual mailbox on best practices for mail security and data protection.
And remember, you’re an employee too! If you regularly manage your digital mailbox, make sure you include yourself in this training and set a good example for the rest of your team.
With data breaches constantly increasing in frequency and impact, it makes sense to be concerned about security. But with the right mail services provider, you can rest easy. Strong privacy policies and security best practices from your provider mean a low risk profile for you.
With Stable, you can enjoy all the benefits of a virtual mailing address and the assurance that you’re working with a partner serious about security and compliance. Stable is both HIPAA and SOC 2-compliant, and our company has a strong reputation for privacy and reliability.
If your business is ready to make the switch to a virtual address from a safe, trustworthy provider, then it’s time for Stable. Get started with Stable today.
