Last year, over 60% of organizations experienced security incidents tied to public cloud usage. As more businesses shift their operations to the cloud, the attack surface gets bigger, and so do the risks. Misconfigured settings, weak access controls, and shadow IT can leave gaping holes for attackers to exploit.
But here’s the good news: cloud security isn’t out of your control. With the right strategies in place, you can dramatically reduce your exposure and keep sensitive data safe, without slowing down your team or your tech stack. Let’s break down what that looks like.
What are the Risks in Cloud Computing?
Data Breaches and Unauthorized Access
Data breaches are every cloud user’s worst nightmare. They often stem from unauthorized access – think attackers stealing login credentials or finding an open door to sensitive cloud data.
With so much critical info in the cloud, it’s no surprise that 79% of companies have reported experiencing one or more cloud data breaches. This highlights the need for strong access controls (like multifactor authentication and strict permissions) to keep out the bad guys and protect your data.
Misconfigurations and Human Error
Not all cloud threats come from brilliant hackers – sometimes it’s just someone on your team clicking the wrong setting. Misconfigurations (like leaving a storage bucket public or mismanaging access keys) and plain old human mistakes cause a huge chunk of cloud incidents.
Misconfigured cloud resources contribute to nearly 70% of cloud security breaches. Gartner even predicts that by 2025, 99% of cloud security failures will be the customer’s fault (not the cloud provider’s). The takeaway: double-checking your cloud setups and training your staff can prevent those “oops” moments that turn into major security fiascos.
Insecure APIs and Interfaces
Cloud services expose APIs and web interfaces so that apps can talk to each other, but if they aren’t secured, attackers can talk to them too. An insecure API is like an unlocked door into your cloud environment. Whether it’s a lack of authentication, poor encryption, or unpatched vulnerabilities, these flaws can be exploited to steal data or manipulate services.
Over 30% of cloud security incidents have been attributed to API vulnerabilities and weak interfaces. The lesson here is to lock down your APIs (use keys, tokens, stringent permissions, etc.) and regularly test them so that only the right people and services have access.
Compliance and Legal Risks
Storing data in the cloud doesn’t dodge your legal responsibilities. If anything, it complicates them. Companies must comply with regulations like GDPR, HIPAA, or other data protection laws even when using cloud providers. Juggling these rules across different regions and services is tough, and businesses are worried about meeting compliance requirements in the cloud.
They have good reason to worry: failing to secure customer data or follow legal mandates can result in hefty fines reaching millions of dollars. In short, a cloud security slip-up isn’t just an IT problem – it can become a legal and financial nightmare. Staying on top of cloud compliance (through audits, documentation, and working closely with your providers) is crucial to avoid those penalties.
Insider Threats
Not every threat is external – sometimes the danger comes from inside your own organization. Insider threats involve people with legitimate access misusing it, whether intentionally (a disgruntled employee stealing data) or accidentally (someone unknowingly sharing sensitive info).
Because insiders often already have the keys to the kingdom, these incidents can bypass many security measures. They’re less common than external attacks but still significant, accounting for roughly 15% of cloud security breaches. Mitigating this risk means implementing strict access controls (principle of least privilege), monitoring user activity, and fostering a security-aware culture so your team doesn’t become the weakest link.
Third-Party Vulnerabilities
Cloud computing is an ecosystem – your company likely relies on third-party vendors, partners, or SaaS providers to keep things running. But every third-party connection is a potential risk if that partner has poor security. You could do everything right and still be exposed via a supplier’s breach.
A whopping 98% of organizations work with a vendor that has experienced a breach in the past two years, meaning almost everyone is exposed through the supply chain in some way. This “weakest link” problem means you must vet the security of your providers, insist on things like security certifications or assessments, and have contingency plans. Third-party risk management isn’t the most exciting part of cloud security, but when one vendor’s slip-up can impact your data, it’s clearly a risk you can’t ignore.
Shared Responsibility Model Explained
When it comes to cloud security, many teams assume their provider handles everything, but that’s a fast track to trouble. The shared responsibility model is how most major cloud platforms divide up security duties.
The provider (like AWS, Azure, or Google Cloud) is responsible for securing the cloud infrastructure itself. Things like the physical data centers, hardware, and core networking. But the customer is on the hook for everything they put in the cloud, including data, applications, user access, and configurations.
This setup has a big impact on your risk mitigation strategy. You can’t rely on your provider to protect sensitive files if you leave a storage bucket public or skip MFA for admin accounts. For example, AWS states that while they manage “security of the cloud,” customers must manage “security in the cloud.” Azure and Google Cloud follow similar models—offering security tools, but leaving the responsibility for how you use them squarely in your hands.
Understanding your role in the shared model helps you prioritize where to focus your defenses, avoid dangerous assumptions, and build a cloud setup that’s actually secure, not just assumed to be.
Key Strategies to Mitigate Cloud Security Risks
If you’re actively taking steps to avoid security threats, here are some strategies to get started.
1. Implement Strong Identity and Access Management (IAM)
Strong Identity and Access Management (IAM) is one of the most effective ways to reduce risk in cloud environments. It ensures the right people have access to the right resources—nothing more, nothing less. Poorly managed access is a common entry point for attackers, especially in the cloud, where user roles, services, and APIs all intertwine.
With IAM, you can implement least privilege access, meaning users only get the permissions they absolutely need to do their job. This dramatically shrinks the attack surface, especially in larger environments where it’s easy to lose track of who has access to what.
Modern cloud platforms like AWS, Azure, and Google Cloud all offer robust IAM tools, including multifactor authentication (MFA), role-based access controls (RBAC), and session logging. These tools let you monitor who’s accessing your cloud resources and how, helping you detect suspicious behavior before it becomes a breach.
Organizations that use strong IAM practices are 50% less likely to experience identity-related security incidents, according to the Identity Defined Security Alliance. The takeaway: IAM isn’t just a checkbox. It’s a frontline defense that keeps unauthorized users out and your data safe.
2. Encrypt Data at Rest and in Transit
Encrypting data at rest and in transit ensures that even if someone gains access to your systems or intercepts your traffic, they can’t actually read the data. When data is at rest (sitting in storage), encryption keeps it protected from unauthorized access, including from potential breaches due to misconfigured storage or stolen drives. When data is in transit (moving between services, users, or systems), encryption protects it from being intercepted in man-in-the-middle attacks or leaked through insecure channels.
Most major cloud providers offer built-in encryption capabilities; AWS utilizes services like KMS (Key Management Service), Azure offers Azure Key Vault, and Google Cloud provides Customer-Managed Encryption Keys (CMEK). These tools make it easier to enforce encryption without needing to build it from scratch. Plus, they let you manage your own encryption keys for added control.
According to IBM’s 2024 Cost of a Data Breach report, the average cost savings was 2.2 million USD for organizations that used security AI and automation extensively in prevention versus those that didn’t.. So, beyond being a security best practice, encryption can also soften the financial blow if something does go wrong.
3. Regularly Monitor and Audit Cloud Environments
Regularly monitoring and auditing your cloud environment is like having a security camera on your digital front door, your back door, and all the windows, too. Continuous monitoring helps you detect suspicious behavior, misconfigurations, or unauthorized access before they escalate into full-blown security incidents. Whether it’s a sudden spike in outbound traffic, a user logging in from an unexpected location, or changes to firewall rules, visibility into your environment is key to responding quickly and effectively.
Auditing, on the other hand, helps you take stock of what’s actually happening in your cloud—who accessed what, when, and why. Cloud providers like AWS CloudTrail, Azure Monitor, and Google Cloud’s Audit Logs offer detailed logging that can flag policy violations, privilege escalations, or outdated configurations. These tools don’t just help with security, they’re also essential for proving compliance and passing audits.
4. Conduct Frequent Security Assessments
Conducting frequent security assessments is one of the smartest ways to stay ahead of cloud threats. Cloud environments are constantly evolving. New users are added, services change, and permissions shift.
Regular assessments help you catch risks that creep in over time, like overly permissive roles, outdated encryption protocols, or misconfigured firewall rules. These reviews can uncover blind spots that automated tools might miss, especially when changes happen quickly across complex architectures.
Security assessments come in many forms: vulnerability scans, penetration tests, compliance checks, and configuration reviews. Many cloud providers even offer tools to help, like AWS Inspector, Azure Security Center, or Google Cloud Security Command Center.
5. Secure APIs and Endpoints
APIs and endpoints are the connective tissue of cloud applications, but they can also be major vulnerabilities if not properly secured. Every exposed API is a potential entry point for attackers, especially if it lacks authentication, rate limiting, or input validation.
Securing APIs helps prevent unauthorized access, data leaks, and injection attacks that could compromise your entire cloud environment. It’s not just about protecting external interfaces either—internal APIs between microservices need protection too.
Major cloud providers offer tools like AWS API Gateway, Azure API Management, and Google Cloud Endpoints to help secure, authenticate, and monitor API traffic. You can also implement best practices like OAuth 2.0, API keys, throttling, and logging to keep your interfaces locked down.
6. Train Staff on Cloud Security Best Practices
Technology can only go so far. Your people are often the first and last line of defense. Training staff on cloud security best practices ensures that everyone, from developers to admins to end users, understands how their actions impact the security of your cloud environment. One wrong click, misconfigured setting, or leaked credential can expose critical systems. But when your team knows what to look out for, like phishing attempts, insecure sharing practices, or role creep, they're far less likely to make costly mistakes.
Ninety-five percent of cybersecurity breaches are caused by human error. Empowering your team with knowledge around things like the shared responsibility model, proper data handling, and secure deployment practices can close gaps that tools alone can’t fix. Plus, ongoing education helps keep everyone up to speed as cloud technology and threats continue to evolve.
Compliance Considerations
When working in the cloud, staying compliant with industry regulations isn’t just about avoiding fines. It’s about protecting your data and earning customer trust. Whether you're in healthcare, finance, or e-commerce, frameworks like GDPR, HIPAA, SOC 2, and PCI-DSS set the standard for how sensitive information should be handled and protected.
These regulations outline clear expectations around things like encryption, access controls, data retention, and breach notification—many of which overlap with smart cloud security practices.
Most major cloud providers offer tools and infrastructure that support compliance, but it’s still on you to configure them properly. When choosing a provider, look for one that offers built-in support for common compliance requirements, documentation for audit trails, and third-party certifications. This makes it easier to prove compliance and reduces the risk of accidental violations. Key considerations include:
- GDPR: Focuses on protecting the personal data of EU citizens. Requires strict access controls, breach reporting, and data handling transparency.
- HIPAA: Governs healthcare data and demands encryption, access logging, and signed Business Associate Agreements (BAAs).
- SOC 2: Evaluates controls related to security, availability, processing integrity, confidentiality, and privacy.
- PCI-DSS: Applies to companies handling credit card info. Requires secure transmission, regular monitoring, and vulnerability management.
Aligning your cloud setup with these frameworks helps you bake security into everyday operations.
Tools and Technologies That Help Reduce Cloud Security Risk
Here are some popular cloud security tools and technologies to consider:
- AWS Security Hub / Azure Security Center / Google Security Command Center: Centralized dashboards for visibility, threat detection, and compliance monitoring.
- Cloud Access Security Brokers (CASBs): Provide visibility and policy enforcement between cloud service users and providers (e.g., Netskope or Zscaler).
- Cloud-native firewalls and WAFs: Protect your environment at the perimeter, blocking malicious traffic and filtering unsafe API requests.
- IAM & MFA tools: Enforce identity verification and access controls, using services like AWS IAM, Azure Active Directory, or Okta.
- SIEM solutions (e.g., Splunk, Datadog, IBM QRadar): Aggregate and analyze security logs across systems for threat detection and compliance.
- Encryption and key management tools: Services like AWS KMS or Azure Key Vault allow secure data encryption and control over who can access encryption keys.
Implementing a layered approach using a combination of these tools ensures that even if one line of defense fails, others are ready to catch what slips through.
Take the Steps for Proactive, Layered Security in Cloud Computing
Securing your cloud environment isn’t a one-time task. It’s an ongoing commitment to staying ahead of evolving threats. From managing identities to locking down APIs, every step you take to mitigate risk helps protect your data, your users, and your reputation.
If you’re unsure where to start or want expert guidance on assessing and strengthening your cloud security posture, the team at DragonSpears (now part of Improving) is here to help.
Reach out to Improving today to get started on a security strategy that’s built for the way you work, and ready for what comes next.
