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General restrictions
Macromedia Flash player has an extensive list of checks, restrictions and features in order to ensure that Macromedia Flash content is secure and safe.
These include:
(from: Macromedia Flash MX Security -- Macromedia white paper- The ability to use the encryption capabilities of the browser, including SSL, to encrypt all communications between a Macromedia Flash movie and the server
- An extensive sandbox security system that limits transfer of information that might pose a risk to security or privacy.
- Macromedia Flash player does not allow web content to read data from the local drive except for SharedObjects that were created by that domain.
- Macromedia Flash player cannot write any data to the disk except for data that is encapsulated in SharedObjects.
- Macromedia Flash player does not allow web content to read any data from a server that is not from the same domain unless that content explicitly allows access. See also: Loading data across domains.
- Macromedia Flash player does not allow web content to place more that 100k of data on the local disk from a single domain.
- Macromedia Flash player enables the user to disable the storage of information for any domain.
- Macromedia Flash player does not allow data to be sent from a camera or microphone unless the user gives permission for a domain.
New restrictions with Flash 7
With Flash 7 some new security limitations are introduced:- All operations require an exact domain match. Similar domains, such as www.mysite.com and store.mysite.com, are no longer considered a match. Domains must now match exactly.
- Macromedia Flash movies served over HTTP (or other insecure protocols) are no longer allowed to access movies or data served over HTTPS.
Related: Loading data across domains, Security

