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PostHog Security & Privacy Assessment

PostHog Security & Privacy Assessment

Summary

Bottom Line Up Front

PostHog can be implemented safely for our B2B SaaS application, but requires careful configuration to protect sensitive customer data (SSN/DOB). The key risks are manageable with proper implementation.


Compliance Standards Summary Table


Framework

Status

Geographic Coverage

Enforcement Authority

Requirements

SOC 2 Type II

✅ Certified (May 2024)

Global

AICPA Auditors

External audit of security controls

HIPAA/BAA

✅ Available

United States

HHS OCR

Business Associate Agreement required

GDPR Compliance

✅ Active

EU/EEA

EU DPAs

EU server hosting available

CCPA Compliance

✅ Active

California, US

California AG

US server hosting available

EU-U.S. DPF

✅ Certified (2023)

European Union

FTC (US) + EU DPAs

Cross-border data transfer

UK Extension DPF

✅ Certified (2023)

United Kingdom, Gibraltar

ICO (UK)

Post-Brexit compliance

Swiss-U.S. DPF

✅ Certified (2023)

Switzerland

Swiss FDPIC

Swiss data protection

Standard Contractual Clauses

✅ Active

Global (EU-approved)

Local DPAs

Backup transfer mechanism


Data Ownership & Legal Framework

Who Owns What?

  • We remain fully responsible for compliance with our customers
  • PostHog processes data on our behalf - they don't own or sell our customer data
  • We control what data gets sent to PostHog through configuration
  • Legal protection available through Data Processing Agreement (DPA)


Security & Compliance Framework

PostHog's Certifications

  • SOC 2 Type II:II: Enterprise-grade security controls
  • GDPR Compliant:Compliant: EU data protection requirements
  • CCPA Compliant:Compliant: California privacy law requirements
  • Data Processing Agreements:Agreements: Available for formal legal protection

Data Storage Options

  • US Servers:Servers: Default AWS infrastructure in United States
  • EU Servers:Servers: Frankfurt-based servers for GDPR compliance


Risk Assessment

High Risks (Must Address)

Risk

Impact

Mitigation Required

SSN/DOB visible in session replays

Compliance violation, data breach

Exclude sensitive pages from recording (no capture)

Network requests containing sensitive data

Data exposure in network logs

Disable network capture for sensitive endpoints


Medium Risks (Manageable) 

Risk

Impact

Mitigation Available

Cross-border data transfer

Regulatory compliance

Use EU servers for GDPR compliance

Third-party data breach

Customer data exposure

DPA provides legal recourse


Low Risks (Standard)

Risk

Impact

Management

Standard analytics data

Minimal privacy impact

Normal business operations

Performance monitoring

Technical data only

No sensitive information












Implementation Recommendations

Phase 1: Safe Implementation (Immediate)

  1. Configure EU Data Storage

    • Use PostHog Cloud EU (Frankfurt servers)
    • Ensures GDPR compliance for customer data
  3. Exclude Sensitive Pages

    • No session recording on pages containing SSN/DOB
    • Whitelist-only approach for recorded pages
  5. Disable Network Monitoring

    • Turn off network request/response capture
    • Prevents sensitive API data exposure


Phase 2: Enhanced Privacy Controls (Month 2)

  1. Implement Granular Masking

    • Use CSS classes to hide sensitive form fields
    • Mask confirmation pages and user profiles
  3. Legal Documentation

    • Execute Data Processing Agreement with PostHog
    • Update privacy policy to include PostHog












Cost-Benefit Analysis

Costs

  • PostHog Subscription:Subscription: Free tier available, paid plans scale with usage
  • Implementation Time:Time: ~2-4 weeks for safe configuration
  • Ongoing Compliance:Compliance: Regular review of recorded data

Benefits

  • Improved User Experience:Experience: Identify and fix user friction points
  • Data-Driven Decisions:Decisions: Replace guesswork with user behavior insights
  • Faster Issue Resolution:Resolution: Session replays for debugging customer problems
  • Feature Optimization:Optimization: Understand which features drive engagement

ROI Potential

  • Customer Retention:Retention: Identify why users churn and address issues
  • Conversion Optimization:Optimization: Improve sign-up and onboarding flows
  • Support Efficiency:Efficiency: Faster resolution of customer issues
  • Product Development:Development: Build features users actually want



Alternative Options Comparison

Feature

PostHog

Hotjar

FullStory

LogRocket

Data Storage

✅ Frankfurt servers GDPR Compliant

✅ Available

⚠️ Limited options

⚠️ Limited options

Self-Hosting Option

✅ Open source (but unstable releases)

❌ Cloud only

❌ Cloud only

❌ Cloud only

Privacy Controls

✅ Comprehensive

✅ Good

⚠️ Basic

⚠️ Basic

Price for Startups

✅ Generous free tier

⚠️ Limited free plan

❌ Expensive

❌ Expensive





Decision Framework

✅ Proceed with PostHog If:

  • We can implement proper masking for sensitive data
  • We're comfortable with EU data storage for compliance
  • We want comprehensive analytics beyond just session replay
  • We prefer open-source solutions with data ownership [Highly unstable OSS Posthog] -> this is how they promote their cloud solution

❌ Consider Alternatives If:

  • We cannot exclude sensitive pages from recording
  • We require 100% on-premises data storage
  • We have unlimited budget for premium alternatives



Risk Mitigation Checklist

Before Implementation

  • [ ] Choose PostHog Cloud EU for data storage
  • [ ] Review and approve Data Processing Agreement (https://posthog.com/dpa)
  • [ ] Update customer privacy policy 
  • [ ] Train team on sensitive data handling [with the help of Product Team]

During Configuration

  • [ ] Exclude all pages containing SSN/DOB from session recording 
  • [ ] Disable network request monitoring
  • [ ] Implement CSS masking for sensitive form fields
  • [ ] Test privacy controls thoroughly

After Go-Live

  • [ ] Regular audits of recorded sessions
  • [ ] Monitor for accidentally captured sensitive data
  • [ ] Quarterly review of privacy controls
  • [ ] Annual compliance assessment



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