I’ve been using the free service of Dropbox.  I’m wondering what happens to my files while Dropbox is storing them for me. I understand that Dropbox uses the Cloud technology. How does the Cloud work? Can the people administering and managing the Cloud access and read my files?
Will The Cloud Really Replace Physical Storage?
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Once a file is added to your Dropbox, it is synced to Dropbox's secure online servers. All files stored online by Dropbox are encrypted and are securely stored on Amazon's S3 in a number of data centers in the United States.
Dropbox claimed that your files are actually safer while stored in your Dropbox than on your computer because they use the same secure methods as that of banks. They said that they are using the best engineering technology and tools available. They have highly qualified people making sure that Dropbox remain secure. Your files are password protected, backed-up and securely stored.
Yes, the people administering Dropbox can see your files but they not allowed to view the content of the files you store in your Dropbox account. They are only allowed to view file metadata. Although, they have a small number of employees who can access user data for the reasons stated in their privacy policy such as when they are legally required to do so. But according to them, that’s a rare exception. It is not the rule. They have strict policy and technical access controls that prohibit employee from accessing the files. They also employ several security measures to protect user information from unauthorized access.