Microsoft under scrutiny for providing FBI with BitLocker recovery keys for encrypted laptops in fraud case tied to pandemic benefits in Guam. Recovery keys stored in Microsoft’s cloud were accessed with valid legal request, allowing law enforcement to decrypt drives. Debate reignited over cloud storage of keys and potential security risks.

Critics warn storing large numbers of recovery keys in centralized cloud system creates hacking risk. While stolen keys alone not enough to access data, concerns raised about unnecessary exposure. Researchers question lack of stronger safeguards or alternative designs. Debate highlights ongoing discussions on user privacy, corporate responsibility, and security vs. lawful access.

Microsoft defends practice, saying it complies with legal requests for recovery keys. Company receives small number of such requests annually. Debate over default cloud storage of keys raises questions about encryption effectiveness. MSFT shares closed at $465.95, up 3.35%, and trading at $465.69 in after hours trading on NasdaqGS.

Read more at Nasdaq: Microsoft’s Handling Of BitLocker Keys Raises New Privacy Concerns