Cloud storage is now indispensable for contemporary business functions. It enables companies to store large amounts of data, reduces IT maintenance costs, and facilitates team collaboration from different locations.
According to IBM, approximately 97% of enterprises utilize more than one cloud platform. Some companies are actually using over ten different platforms concurrently. Besides enterprises, cloud computing benefits have also appealed to small businesses that want to grow without the heavy burden of infrastructure.
However, storing client data in the cloud introduces new responsibilities. Customers entrusting their personal data to a company anticipate that it will be safeguarded and kept private. This includes names, addresses, payment details, purchase histories, and, in some cases, sensitive health or legal data.
After data is moved to the cloud, both the business and the cloud provider share responsibility for its security. However, the company that initially gathered the data bears the final responsibility.
This article discusses how businesses storing client data in the cloud can implement robust security for enhanced privacy.
Cloud service providers generally offer a range of security features, including firewalls, encryption, and physical safeguards for their data centers. While these measures help, they don't cover everything.
The concept of "shared responsibility" means that the provider secures the cloud infrastructure, but the business must protect the data it uploads. The specifics of this can differ based on the chosen cloud provider, as well as the service and deployment models in use.
In a Software as a Service (SaaS) model, for example, the cloud service provider assumes most security obligations. This leaves the company with the main role of managing application access. In Infrastructure as a Service (IaaS), the service provider secures the infrastructure, while the business is responsible for everything built on it.
There are many cloud security best practices organizations can follow. This includes setting proper access controls, ensuring regulatory compliance, securing APIs, using multi-factor authentication, and enhancing visibility and control. Companies must also monitor employee activity, manage access privileges, and ensure that customer data is not accidentally exposed.
The risks aren't limited to external threats like hackers. Data breaches can also occur due to internal mistakes, like accidentally sending a file to an unintended recipient. Businesses need to take an active role in minimizing these risks rather than assuming the cloud provider will handle everything.
Legal Pressure and Public Expectation
Laws around data privacy are no longer limited to specific industries or countries. Regulations such as the GDPR and CCPA set clear rules on how companies should collect, store, and handle personal data. These laws also give consumers the right to know what information is held about them and how it is being used.
Non-compliance with these regulations can lead to fines, legal action, and erosion of customer confidence. Regulatory bodies are increasingly proactive, and enforcement is more frequent, alongside growing public demand for data privacy. They are also more willing to hold companies accountable when their information is mishandled.
Almost every industry holds sensitive information about its clients. Consider the example of the legal sector, which stores information on lawsuits, including compensation amounts.
One of the largest ongoing lawsuits is against manufacturers of aqueous film-forming foam (AFFF). According to TorHoerman Law, AFFF contains hazardous per- and polyfluoroalkyl substances (PFAS). Some PFAS chemicals in AFFF are known carcinogens and have been associated with many types of cancer.
Law firms store information about plaintiffs who have sued AFFF manufacturers through them. They would also have details such as AFFF lawsuit settlement amounts. Such data can encourage malicious cybercriminals to try to scam plaintiffs and steal their money. Therefore, securing such sensitive information becomes essential.
Avoiding Complacency with Cloud Providers
Businesses often believe that once they select a reputable cloud provider, their data is automatically safe. While cloud platforms offer a higher level of built-in security, relying solely on that can lead to serious problems. Businesses must take additional steps to ensure their own systems and processes are secure.
Cloud breaches can happen through unexpected methods. A poorly configured storage bucket, an outdated application, or a lack of encryption can leave sensitive files open. In many cases, the breach results from small oversights that go unnoticed until it's too late.
Cloud providers typically offer tools to help manage these risks, but it's up to the business to utilize them effectively. This includes setting alerts for suspicious activity, enforcing password rules, and requiring authentication steps beyond just a username and password. While the necessary tools exist, their effectiveness depends on consistent implementation by companies.
Another danger arises from employees who have excessive access to sensitive data. As stated in an article by The Conversation, human error is the weakest link in cybersecurity. An overwhelming number of cyberattacks occur due to human error. Therefore, regardless of how strong your technical defense is, you should also focus on training your employees adequately.
Monitoring, Audits, and Response Planning
Ongoing surveillance can detect questionable activities early, preventing them from developing into major issues. Logs of user activity can reveal patterns such as repeated login failures or file changes made by unauthorized users.
Scheduled audits serve a similar purpose. They provide a structured way to examine the effectiveness of security measures and identify gaps that may not be immediately apparent. Audits, whether conducted by internal teams or external organizations, can reveal vulnerabilities requiring remediation.
A response plan is equally crucial as preventative measures; businesses need well-defined procedures for handling a data breach, which should encompass:
- How to isolate the threat
- Communicate with affected clients
- Report the incident to the relevant regulators
Failing to communicate promptly and clearly during a security breach can aggravate the problem and further tarnish the company's image.
There are many frameworks available to follow when making a response plan. For instance, businesses can simply follow the National Cyber Incident Response Plan (NCIRP). It is created by the Cybersecurity and Infrastructure Security Agency (CISA) to describe a national approach to addressing and responding to significant cyber incidents.
Frequently Asked Questions
Are free cloud services safe for storing client information?
Free cloud services often come with basic security, but they may not provide the level of protection required for sensitive client data. Furthermore, these platforms might restrict your capacity to tailor security configurations or perform audits. For professional use, it's safer to use a paid service that includes business-grade encryption, access logs, and compliance support.
Can clients request that their data be deleted from the cloud?
Yes, in many regions, clients have the legal right to request deletion of their personal data. This principle is often known as the "right to be forgotten." Businesses must have a process in place to honor these requests and ensure that all data, including backups, is removed when required. The process should also be documented to demonstrate compliance in case of an audit.
How often should a business review its cloud data privacy policy?
As a general guideline, cloud privacy policies should be reviewed yearly and also updated in response to new regulations or shifts in internal practices. Regular reviews help ensure that privacy practices stay aligned with legal requirements and reflect current business operations.
The use of cloud storage isn't going away. If anything, businesses are becoming more dependent on it. But this convenience must be balanced with caution. The potential dangers are too substantial to disregard, and maintaining client trust is paramount. A business that prioritizes data privacy sends a clear message to its customers: their information is safe, respected, and handled with care.
