Did you know your personal data was almost certainly exposed in a cloud server breach? A few years ago a cloud misconfiguration at Alteryx, a marketing analytics firm, exposed sensitive data on 123 million U.S. households, or 97% of Americans.
As more small businesses turn to cloud services for their affordability, scalability, and convenience, it’s important to understand and address the hidden risks associated with storing sensitive data in these environments.
For small businesses, cloud services enable them to access enterprise-level technologies without the need for significant upfront investments in hardware and infrastructure. However, the rapid adoption of these services has also led to a rise in cloud-related security incidents, as many small businesses lack the expertise and resources to properly secure their data in the cloud.
The purpose of this guide is to help small and medium-sized businesses (SMBs) understand the risks associated with storing sensitive data in the cloud and to provide practical guidance on how to mitigate these risks. By following the best practices outlined in this guide, you can take proactive steps to protect your sensitive data and ensure the security of your cloud environments.
The Risks of Storing Sensitive Data in the Cloud
When you move your sensitive data to the cloud, there are some new risks to think about. Even though many cybersecurity best practices stay the same no matter where your data is stored, cloud services come with their own set of challenges that small businesses need to address.
One important thing to consider is the safety of your data as it moves across the public internet. Encryption is even more crucial now to prevent unauthorized access. Without proper encryption, your sensitive information could be intercepted by cybercriminals.
Another risk involves the cloud service providers themselves. While most reputable providers invest a lot in security, they can still face vulnerabilities, attacks, or outages. If your provider experiences a breach or downtime, your data could be exposed or become inaccessible, disrupting your business operations.
It’s also important to remember that cloud security is a shared responsibility. The provider secures the underlying infrastructure, but you are still responsible for protecting your data and managing who can access it. Misconfigurations or poorly managed access controls can accidentally expose your sensitive information to unauthorized people. Over the last few years, several of the most high-profile data breaches have been due to incorrect security policies applied to cloud data sources:
- A major Department of Defense contractor left highly-classified material on a publicly-exposed Amazon AWS service.
- The WWE left personal data for more than 3 million fans exposed to the public due to a misconfiguration on a cloud data storage system.
- A credit reporting firm exposed personal data for 123 million U.S. households to the Internet (there are only 126 million households in the U.S., so chances are really good your data was part of this exposure).
In each of these cases, while the data was stored on a cloud server, the error and responsibility belonged to the data owner.
The ever-changing nature of cloud environments can make it difficult to maintain visibility and control over your data. With the ease of creating new resources and the potential for shadow IT, it’s essential to have strong monitoring and auditing in place to detect and respond to any suspicious activities or misconfigurations.
To address these risks, small businesses must be proactive and take a comprehensive approach to cloud security. This includes choosing trusted providers, implementing strong encryption, properly configuring access controls, and regularly monitoring their cloud environment. By understanding and addressing the unique risks associated with storing sensitive data in the cloud, small businesses can benefit from these services while protecting their valuable information.
Securing Microsoft Office 365 and OneDrive
Microsoft Office 365 and OneDrive are by far the most common cloud systems used by small & medium-sized businesses. When it comes to protecting your sensitive data in these tools, there are several key steps you can take:
Implement multi-factor authentication (MFA)
MFA. This adds an extra layer of security by requiring users to provide a second form of verification, such as a code sent to their phone, before accessing their accounts. This makes it significantly harder for attackers to gain access to your accounts, because now they need to both have your password and your second security device (such as your phone. For a closer look at MFA, including steps to implement it, check out our comprehensive guide.
Configure data loss prevention (DLP) policies
DLP policies help prevent sensitive information from being accidentally or intentionally shared outside your organization. You can set up rules to detect and block the sharing of specific types of data, like social security numbers or credit card information. Microsoft’s Knowledgebase has an excellent step-by-step walkthrough on how to set up DLP.
Encrypt your sensitive data in the cloud
Office 365 offers built-in encryption options, such as Office 365 Message Encryption and Microsoft Purview Information Protection. For data stored on OneDrive, consider per-file encryption for sensitive data. These tools ensure that even if your data falls into the wrong hands, it will be unreadable without the proper decryption key.
⚠️ Data encryption always needs to be managed against usability concerns. For example, email encrypted through Office 365 Message Encryption may be unreadable by recipients that do not also use Outlook or Office 365. Per-file encryption, while extremely secure, requires anyone who needs access to the file to have the decryption key, which can make it harder for legitimate users to access the data.
Regularly monitor user activity and access logs
This helps you spot any unusual or suspicious behavior, such as large downloads or access from unfamiliar locations. By keeping a close eye on these logs, you can quickly detect and respond to potential security threats. Microsoft maintains a list of systems and actions you can audit, and a step-by-step set of instructions for how to use the audit logs.
Protecting Data in Microsoft Azure
Microsoft Azure offers a range of security features to help protect your data in the cloud. Start by properly configuring your Azure Active Directory (Now known as Microsoft Entra ID) settings. This includes setting up strong password policies, enabling MFA, and regularly reviewing and removing inactive user accounts.
Implementing role-based access control (RBAC) is another crucial step. RBAC allows you to grant users only the permissions they need to do their jobs, following the principle of least privilege. This minimizes the risk of unauthorized access and helps prevent data breaches.
As we mentioned above, Microsoft Purview Information Protection for data classification and labeling is also important. Purview allows you to classify and label your data based on its sensitivity level, making it easier to apply the appropriate security controls and policies.
Lastly, enable Azure Security Center (now known as Microsoft Defender for Cloud) for threat detection and response. This service provides real-time monitoring and alerts for potential security threats, as well as recommended actions to help you mitigate risks and protect your data.
Addressing Risks in Hybrid Environments (On-Premise AD and Cloud Services)
Many small businesses operate in hybrid environments, with both on-premise Active Directory and cloud services. To secure your sensitive data in this setup, start by synchronizing your on-premise AD with Entra ID. This ensures that user accounts and permissions are consistent across both environments.
Next, implement conditional access policies. These policies allow you to set up rules that control access to your cloud resources based on factors like user location, device type, and risk level. For example, you can require MFA for users accessing sensitive data from outside your office network.
Monitoring and auditing your hybrid environment activities is also crucial. Regularly review logs from both your on-premise and cloud systems to identify any unusual or suspicious behavior. This helps you detect and respond to potential security threats more quickly.
Finally, make sure to regularly review and update your security configurations. As your business needs and the threat landscape evolve, it’s important to adjust your security settings and policies to ensure they remain effective. Schedule periodic reviews to identify any necessary updates or improvements.
Securing Google Workspace (G Suite)
While Microsoft Office 365 and Azure are popular choices for small businesses, some organizations prefer to use Google Workspace, also known as G Suite. Securing your sensitive data in Workspace requires a similar approach to Microsoft’s offerings, with a few platform-specific considerations.
Enable Two-Factor Authentication (2FA) in Google Workspace
Just like with Office 365, enabling two-factor authentication (2FA) is a critical first step in securing your Google Workspace account. 2FA adds an extra layer of protection by requiring users to provide a second form of verification, such as a code sent to their mobile device, in addition to their password. This helps prevent unauthorized access even if a user’s password is compromised.
Configure Google Workspace DLP Rules
Google offers Data Loss Prevention (DLP) services for Google Workspace, which allow you to set up rules to detect and prevent the unauthorized sharing of sensitive data. These rules can be customized based on your organization’s specific needs and can help ensure that sensitive information, such as financial data or personally identifiable information (PII), is not accidentally or intentionally shared outside your company.
Access Management
Google’s access management tools are not as centralized as Microsoft’s. There are two areas where you’ll want to focus:
User-level permissions in Google Workspace
To manage users and what tools and functionality they can access you’ll want to use Google Workspace Admin. You can even manage what access your users have to consumer sites like YouTube when they are signed into their work account.
File and directory permissions in Google Workspace.
Each user in a Google Workspace gets a personal folder in Google Drive, and files can be shared from there with other members of your company. This can make it extremely challenging to manage company information centrally. To get more control over documents in your Google Drives, consider using Shared Drives for company-critical information, and have users use those instead.
Monitor Google Workspace Audit Logs
Regularly monitoring your Google Workspace audit logs is essential for detecting and responding to potential security threats. These logs provide detailed information about user activity, such as login attempts, file access, and data sharing. By reviewing these logs regularly, you can quickly identify any suspicious or unusual activity and take appropriate action to mitigate risks.
Encrypt Data with Google Cloud KMS
Google Cloud Key Management Service (KMS) allows you to manage encryption keys for your sensitive data stored in Google Workspace. By encrypting your data with Cloud KMS, you can ensure that even if your data is accessed by unauthorized parties, it will be unreadable without the proper decryption keys. This adds an extra layer of protection for your most sensitive information. As with Microsoft products however, encryption can often lead to usability concerns.
Train Employees on Google Workspace Security Best Practices
Finally, it’s crucial to provide regular training to your employees on Google Workspace security best practices. This includes topics like identifying and reporting phishing attempts, properly handling sensitive data, and using strong passwords. This can be part of a comprehensive cybersecurity awareness training program.
Wrapping up
Protecting sensitive data in the cloud is essential for small businesses that want to take advantage of the benefits of cloud services without falling victim to costly data breaches or compliance issues. By understanding the unique risks associated with storing data in the cloud and implementing the security measures and best practices outlined in this guide, SMBs can significantly reduce their risk of a cloud-related security incident.
The key takeaways from this guide include the importance of properly configuring security settings in Microsoft Office 365, OneDrive, and Azure; addressing the specific challenges of hybrid environments; and for those who are using Google services, securing Google Workspace and Cloud Services.
If your small business needs expert guidance and support in securing your cloud environment, consider partnering with Arch Access. Our team of experienced cloud security professionals can help you assess your risks, implement appropriate security measures, and provide ongoing monitoring and support to keep your sensitive data safe in the cloud. Contact us at sdeal@archaccess.com to learn more about our services and how we can help you protect your business.
Frequently Asked Questions (FAQ)
What types of sensitive data are most at risk in the cloud?
Any data that is valuable, confidential, or regulated is at risk in the cloud if not properly secured. This can include financial information, personally identifiable information (PII), protected health information (PHI), intellectual property, and trade secrets.
How often should I review and update my cloud security settings?
It’s recommended to review and update your cloud security settings at least quarterly, or whenever there is a significant change in your business, such as the addition of new cloud services or a change in compliance requirements.
What are the consequences of a data breach in the cloud?
The consequences of a data breach in the cloud can be severe, including financial losses, reputational damage, legal liabilities, and regulatory fines. In addition to the direct costs of responding to a breach, small businesses may also face lost revenue, customer churn, and difficulty attracting new customers.
How can an MSSP help me protect my sensitive data in the cloud?
By partnering with an MSSP, small businesses can access the expertise and resources needed to effectively protect their sensitive data in the cloud, without having to hire and train an in-house security team.