Thousands of Americans export data overseas every day without U.S. government authorizations and don’t even know it. How? By using cloud computing services, ranging from personal services like Gmail to large-scale enterprise data storage solutions. While cloud-based services have become a valuable tool for improving efficiency, outdated government regulation leaves cloud users exposed.

Here’s an example. Imagine you’re an engineer working for a small firm in Indiana that uses a cloud service for data storage. One day you realize the company’s aluminum valves, used only by U.S. customers, could be improved with a redesigned “butterfly” mechanism. You revise the design specifications on your desktop computer and click “save.” Your company’s cloud provider routes your document to its network’s least burdened location — which happens to be in India — for storage.

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