Understanding cloud security risks and why it is crucial for your business

Cybersecurity

Cloud computing has revolutionized the way businesses access and manage IT resources. With flexible, pay-as-you-go models, organizations can now scale infrastructure, storage, and applications rapidly—without the capital expenses traditionally associated with on-premises hardware.

This shift from capital expenditure (CapEx) to operational expenditure (OpEx) has lowered barriers to entry, enabling companies of all sizes to adopt enterprise-grade technologies.

But with this innovation comes a new set of challenges.

Cloud environments introduce unique cybersecurity risks that are often underestimated. From misconfigurations to data breaches, relying solely on cloud service providers can leave critical gaps—especially if an organization isn’t proactively managing its cloud security posture.

In this article, we explore today’s most pressing cloud cybersecurity threats—and the consequences of leaving cloud environments unsecured.

A Brief History of Cloud Adoption

Cloud computing allows organizations to access applications, servers, storage, development tools, and other IT resources remotely via the internet or private networks.

The concept began gaining traction in 1999 when Salesforce launched its customer relationship management (CRM) platform entirely online—paving the way for the Software-as-a-Service (SaaS) model.

By 2002, Amazon Web Services (AWS) introduced foundational services such as cloud storage and computing power, accelerating widespread adoption.

Despite this innovation, early concerns around reliability, data control, and security made many companies hesitant to fully commit to cloud infrastructure.

That hesitation began to fade in the 2010s due to two major shifts:

  • Improved Connectivity: Broadband and 4G LTE networks enabled cloud applications to deliver near real-time performance—even for remote users.
  • Platform Maturity: Leading providers like AWS, Microsoft Azure, and Google Cloud significantly expanded and refined their services, offering robust, flexible, and scalable options.

The COVID-19 pandemic further accelerated cloud adoption. Businesses needed to quickly support remote teams, and cloud platforms provided a fast, scalable, and secure way to deliver applications, data, and collaboration tools.

    The Role of Cloud in Modern IT

    Cloud computing is now foundational to digital operations:

    • Nearly 60% of corporate data is stored in the cloud.
    • Over 98% of enterprises using public cloud providers rely on multi-cloud strategies.
    • From 2020 to 2022, cloud spending among small businesses grew by 38%.

    As adoption increases, so does the importance of understanding the unique security challenges that come with it.

    Top Cloud Cybersecurity Threats

    Trusting third-party platforms to house critical data and systems can feel risky—and with good reason. While top cloud providers invest heavily in security, many risks stem from how cloud services are implemented and maintained by their customers.

    Here are three of the most prevalent cloud security threats today:

    1. Misconfigurations

    Cloud misconfigurations remain the leading cause of breaches. Simple errors—such as overly permissive access settings, exposed storage buckets, or misaligned firewall rules—can create major vulnerabilities.

    The risk is magnified in cloud environments, where even minor mistakes can expose systems to the public internet. Because these platforms differ by provider, organizations often struggle to apply consistent security policies—especially amid talent shortages and limited cloud expertise.

    Real-world examples:

    • Capital One (2019): A misconfigured AWS web application firewall enabled a hacker to access over 100 million records, resulting in more than $100 million in damages.
    • Broadvoice (2020): A VoIP provider left databases unprotected in the cloud, exposing over 350 million records, including sensitive medical and financial details.

    2. Account Hijacking

    Account hijacking involves attackers gaining unauthorized access to cloud accounts—often using stolen credentials to steal data, deploy malware, or move laterally through systems.

    Cloud environments are prime targets due to their volume of users and services. Weak passwords, poor credential hygiene, and increasingly sophisticated phishing tactics all contribute to this growing threat.

    Detection is also harder in the cloud. Unlike traditional on-premise systems, cloud platforms often provide limited visibility into user behavior and access logs—making it difficult to detect intrusions in real time.

    Recent incidents:

    • Okta (Dec 2022): Threat actors accessed private source code via compromised accounts in Okta’s cloud-hosted GitHub repository.
    • Snowflake (May 2024): Attackers used stolen credentials to breach accounts lacking multi-factor authentication (MFA), compromising data belonging to over 560 million users.

    3. Unsecured APIs

    APIs are the backbone of cloud platforms—facilitating integration, automation, and service management. However, insecure APIs can become entry points for attackers.

    Public documentation, if not protected by authentication, can offer threat actors a detailed roadmap to vulnerabilities. Without proper access controls, encryption, and monitoring, APIs are often exploited with ease.

    Case in point:

    Dell (May 2024): A threat actor exploited an unsecured partner portal API to scrape data from 49 million customer records, including names, order numbers, and warranty details.

    The Shared Responsibility Model

    Every cloud provider offers built-in security features—encryption, identity access management, monitoring tools—but these only cover the infrastructure side. The responsibility for securing data, applications, and configurations rests with the customer.

    In multi-cloud environments, this complexity increases. Each provider has its own tools, naming conventions, and policies. Security best practices in AWS may not apply to Google Cloud or Azure, requiring teams to manage multiple frameworks simultaneously.

    It’s a common misconception that using a well-known cloud vendor ensures security. In reality, cloud security is a shared responsibility. While vendors secure the infrastructure, customers must secure how services are configured, accessed, and used.

    Final Thoughts

    The cloud brings immense business benefits—agility, scalability, and cost efficiency—but also introduces unique cybersecurity risks that require proactive management.

    By understanding the top cloud security threats and embracing the shared responsibility model, organizations can harness the full power of cloud computing without compromising the integrity of their data or systems.

    Cloud security isn’t just an IT issue—it’s a business imperative.

    Need expert support crafting your cybersecurity plan?

    Contact us to develop a risk-based, business-aligned strategy that strengthens your organization’s defenses without overspending.

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      Author: Lyle Melnychuk

      With two decades of experience in information security, I pride myself on offering candid, straightforward insights. I am not typically concerned with political correctness, which has occasionally led to challenges, but more often than not, clients and colleagues come to value my direct, commonsense approach.

      When approached with security in the right way, you’ll find that it’s not as complex as it’s often made out to be. I hope you find my writings on security and other topics engaging and valuable. My passion lies in helping others leverage technology to create positive change and contribute to making the world a better place.

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