Businesses that store information on websites such as social networks need to consider how much data they want to make public.
According to accountancy firm KPMG, companies need to avoid giving away "too much" about their operations on the internet.
This, it said, is because it can be extremely damaging if sensitive data is accessed or misappropriated by unauthorized individuals.
George Thompson, director of information protection at KPMG, commented: "The implications are vast, as social media now has a place not only in the private, but also in the business world."
He noted that concerns about the possibility of a data breach are prompting many companies to avoid engaging with social networking sites, such as Twitter and Facebook.
Mr Thompson warned that any manipulation of sensitive information could be "potentially damaging" for businesses.
Firms have been encouraged to check the privacy settings on any social networking site accounts they currently have in place and to take precautionary steps such as regularly changing passwords.
Posted by Richard Jones