5 Data Privacy Factors to Consider When Buying an LMS

EDITOR’S NOTE: Because extended enterprise learning involves multiple disciplines and perspectives, we sometimes invite experts from other organizations to share their insights. Today, Zachary Amos, Features Editor at ReHack Magazine, explores critical data privacy concerns to keep in mind when selecting a learning platform.

Choosing an enterprise learning management system (LMS) isn’t as simple as it may seem. Many LMS buyers focus on their business case and requirements, so they can more easily compare features and pricing across various platforms. This makes sense. But data privacy deserves serious attention, too.

Why is privacy so important?

By definition, learning systems process a massive amount of information about users. To avoid adding unnecessary risk, you’ll want to be sure you don’t expose any of that data before, during or after you implement a new system.

Most organizations have established software security standards to protect data. But today’s digital business environment is fluid, and the consequences of any misstep can be devastating. So, you’ll want to be especially careful about how you ensure LMS data privacy. Here are 5 key considerations:

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5 Data Privacy Concerns for LMS Buyers

1. RFP Security Disclosures

One of the most important items to include in your request for proposal (RFP) is a section for data security disclosures. Some vendors don’t publicly disclose the steps they take to protect data or list their digital security certifications. That’s why you should clarify this information upfront.

Specifically, your RFP should ask vendors to verify compliance with applicable government regulations. Keep in mind that data security regulations vary widely and change often. Case in point: In 2024 alone, at least 7 U.S. states passed this kind of legislation. Your LMS could be subject to these laws now or in the near future.

Also keep in mind that these laws may apply to other vendors in your software supply chain. Therefore, it’s important to ensure compliance before, during and after you invest in a new or improved learning system.

This means your RFP should ask LMS providers to define how they manage data privacy and cybersecurity. Look for details in their replies, paying special attention to industry certifications like ISO 27001 and NIST 800-53.

2. Sandbox Testing Environments

Secure testing environments are also essential in evaluating LMS data privacy measures. Asking for a sandbox version of the software is important because you can experiment with the platform without exposing any real-world information. Here’s why this matters:

It doesn’t take long for a system vulnerability to put an organization at risk. Several years ago, a single bug in the popular online game, Fortnite, created a data breach that gave cybercriminals access to over 200 million accounts.

In another case, a misconfigured Duolingo API made it possible for malicious actors to scrape 2.6 million user names, email addresses and other sensitive account details that were subsequently listed for sale on a dark web hacking forum.

These are just two of many recent stories that underscore how easy it is for one flaw to cause massive damage. Given these risks, you won’t want to connect any sandbox or prototype to real-world systems or data until you’re confident about digital security.

In other words, it’s wise to treat LMS sandbox testing not just as a recommended precaution, but as a critical step in the purchasing process. Trial versions of any system should include dummy data, so you can try the software without exposing your valuable information assets. Also, you can check security features during this trial phase and test them for bugs.

If your data security concerns are particularly strong — or the downside business consequences are significant — you’ll want to hire an external software penetration testing firm to ensure this phase of the evaluation process is thorough and unbiased.

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3. Compatibility With Existing Software

When comparing LMS solutions, you’ll also want to keep interoperability in mind. The typical organization today uses 110 software-as-a-service apps, so there’s a lot of room for data silos and compatibility issues to arise. These barriers not only inhibit efficiency but also pose security problems.

The most crucial thing to look for is compatibility with the cybersecurity software your team uses. If an LMS doesn’t support your existing network security tools or works only with limited capabilities, the risk is too high to justify. The same goes for workflow-related privacy controls, such as mandated multi-factor authentication (MFA) or zero-trust architecture.

Remember, interoperability is a double-edged sword. Your LMS should be compatible with your current IT stack — especially your existing security solutions. However, you don’t want access permissions to get out of hand. To minimize the threat of lateral movement, make sure you can restrict the learning platform’s connections to other systems or enforce zero-trust policies, if needed.

4. User Awareness and Ease of Use

Another often-overlooked LMS privacy consideration is ease of use. Gartner estimates that, by the end of 2025, half of all cybersecurity incidents will start with human error or a lack of skills. This means usability issues are likely to exacerbate insider-related data security issues.

You can begin to address this concern during the sandbox trial. Pay attention to how intuitive an LMS feels. Carefully consider how easy it is to make a mistake that jeopardizes privacy, such as granting another party access to user data or turning off features like multi-factor authentication.

Also keep in mind that secure systems notify users about data concerns and best practices. Look for red flags like these:

• A lack of built-in alerts or warnings when users adjust data privacy settings;
• Minimal visibility into how the platform collects and uses data;
• Unclear instructions, user training and reference materials.

5. Secure Default Settings 

Any LMS you choose should be secure by default. Many solutions offer strong data privacy, but only if users activate certain settings or use them in a specific way. A solution that enables these settings by default leaves less room for unsafe usage and unintended consequences. This is always the preferred route.

Here are several examples of useful data privacy default features:

• Multi-Factor Authentication – Mandatory MFA ensures that users will be operating in a secure environment, which increases their trust and confidence in the system.
• Data Encryption – Built-in encryption ensures the confidentiality and integrity of data, whether it is stored in an LMS or being transmitted across networks to or from other applications.
• Automatic Updates – With automated software updates, you can ensure that vulnerabilities and weaknesses are fixed as soon as a patch or enhancement is available.
• Data Sharing Restrictions – Requiring users to take extra steps when they want to access and share sensitive data means they’re less likely to misuse these capabilities.

Individually, each of these settings may seem insignificant, but that’s the point. When not enabled by default, they’re easy to overlook, which can lead to serious privacy gaps. But when they’re always operating the background, risk decreases dramatically. For example, when MFA alone is working, a system is 99% less likely to be hacked.

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Why Focus on Data Privacy When Choosing an LMS?

A secure data ecosystem is only as strong as its weakest link. And, as an increasing number of companies have learned, the consequences of weak software security can be devastating. But all too often, data privacy tools and processes are lacking.

Smart learning leaders know how important it is to bridge this gap. So, follow their lead. Don’t wait to think about data privacy until you’re testing an LMS, migrating data or deploying a platform. Instead, start planning your moves the moment you begin thinking about replacing a learning system or adding a new solution to your tech stack.

By prioritizing the 5 factors outlined above, you can find the best LMS for your organization without compromising valuable data.

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