Understanding the Risks of Storing Data in the Cloud

Data storage has always been one of the more obvious use cases for the cloud. However, everyone must understand the risks of entrusting sensitive company data to third-party providers. While leading cloud providers invest heavily in security measures, no system is entirely safe. More than a quarter of U.S. organizations report they’ve experienced theft or leakage of sensitive data in the public cloud.

Human error is a leading cause of data loss. This is often the result of configuration errors during the initial setup or subsequent changes to settings, permissions, and access controls. For example, Toyota recently disclosed that data of more than two million customers was exposed due to a cloud storage misconfiguration.

Shadow data is another problem. Employees often create, store, and share data in the cloud to help them do their jobs. However, doing this without the knowledge or control of the organization’s IT department creates potential security risks and compliance issues.

That’s not to say you shouldn’t use cloud storage — it is a necessary tool for improving productivity and collaboration. However, it is important to work closely with the IT department to minimize the risk.

 Your company’s IT team can:

• Assess different cloud storage providers to ensure they’re using robust security practices.

• Ensure that the cloud storage solution meets regulatory compliance standards.

• Reduce configuration errors by using automation and by enforcing company policies and guidelines.

• Establish proper access controls, encryption and backup strategies that reduce the risk of data loss.

• Apply data loss prevention tools that detect and prevent unauthorized access, accidental deletion, or exfiltration of sensitive data.

• Provide guidance and training on best practices for efficient collaboration and file sharing within the organization.