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At Black Hat Europe 2013, a researcher demonstrated 'DropSmack,' a technique that abused Dropbox sync to slip malware past corporate firewalls and quietly exfiltrate company files.

Security Incidents & Data BreachesPrivacy & Encryption Concerns
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At USENIX WOOT 2013, Dhiru Kholia and Przemyslaw Wegrzyn unpacked and decompiled Dropbox's obfuscated-Python desktop client, demonstrated SSL interception via code injection, and described a way to hijack accounts and bypass two-factor authentication.

Security Incidents & Data BreachesPrivacy & Encryption Concerns
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Among the classified NSA PRISM documents leaked by Edward Snowden, Dropbox appeared as a provider the surveillance program planned to add, listed as 'coming soon' — placing the company squarely inside the post-Snowden surveillance debate.

Privacy & Encryption Concerns
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3 sources
High0–249 national-security requests reported for 2013

National Security Letters and FISA orders: demands Dropbox can barely acknowledge

Dropbox is subject to National Security Letters and FISA orders that arrive with gag provisions barring it from disclosing even that it received them; the most it can publish is a band such as '0–249' national-security requests.

Privacy & Encryption ConcernsGovernment Access & Surveillance
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Q-CERT researchers found that because Dropbox did not verify email addresses at signup, an attacker who already had a victim's password could register a near-duplicate email, enable 2FA on it, and use the resulting emergency code to switch off the real account's two-step verification.

Security Incidents & Data Breaches
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Dropbox has published a biannual Transparency Report since 2012, and its own figures document a steady, long-run climb in government and law-enforcement demands for user data — including reporting periods where US legal-process requests jumped by roughly a third.

Privacy & Encryption ConcernsGovernment Access & Surveillance
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4 sources
Critical68,648,009, per Troy Hunt's independent count (Dropbox described it as 'roughly 68 million')

The 2012 breach: 68 million user credentials stolen via a reused password

An attacker used a Dropbox employee's reused password to steal a file containing roughly 68 million users' email addresses and hashed passwords — a theft whose full scale only became public in 2016.

Security Incidents & Data BreachesPrivacy & Encryption Concerns
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Researcher Derek Newton showed that Dropbox's desktop client stored an unencrypted authentication token (host_id) in a local config.db file — copy that one value to another machine and you owned the victim's account, with no password and no notification.

Security Incidents & Data BreachesPrivacy & Encryption Concerns
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A July 2011 terms-of-service and privacy-policy update used broad licensing language that many users read as Dropbox asserting ownership-like rights over their files, forcing the company to publicly clarify and walk back the wording.

Privacy & Encryption ConcernsLegal Actions & Lawsuits
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Dropbox splits files into blocks, hashes each with SHA-256, and stores only one copy of any block it already holds — a cost-saving design that researcher Christopher Soghoian warned could leak whether a given file already exists on Dropbox's servers.

Privacy & Encryption Concerns
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Dropbox encrypts files at rest, but the encryption keys belong to Dropbox, not the user. This server-side model — chosen to enable deduplication, previews, and search — means the company can read user files, the root cause critics return to again and again.

Privacy & Encryption Concerns
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Security researcher Christopher Soghoian filed a complaint with the U.S. Federal Trade Commission alleging that Dropbox made deceptive claims about its encryption, because Dropbox employees could in fact access users' files.

Security Incidents & Data BreachesPrivacy & Encryption ConcernsLegal Actions & Lawsuits
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