7 Hidden Cloud Security Risks Small Businesses Overlook And How to Fix Them Fast
Information security in small and medium-sized businesses presents unique challenges compared to enterprise security. Small businesses typically do not have the same scale of technological resources as corporations. Most are struggling to implement cloud security and lack the necessary solutions.
This is especially difficult for small organizations with limited budgets, small staff, and competing priorities. These vulnerabilities make small and medium-sized businesses prime targets for cyberattacks. Additionally, some businesses may not be able to fully recover from a data breach or cyberattack due to cost and complexity.
By understanding the cloud security risks your business may face (including the top five challenges listed below) and prioritizing cybersecurity, you’ll be better prepared to deal with potential threats.
Current State of Cloud Adoption
- 94% of businesses worldwide use cloud computing for their operations.
- By 2025, 30% of SMBs plan to move half of their major workloads to the cloud.
- Approximately 60% of business data is stored in the cloud.
What Is Cloud Security?
Cloud security is a comprehensive system of technologies, protocols, and controls designed to protect cloud data, applications, and infrastructure from unauthorized access, use, and destruction.
The security architecture consists of three interconnected layers:
- Provider-based security (infrastructure and hardware),
- Customer-based security (access control and identity management), and
- Service-based security (platform-level security).
Why Cloud Security is Important for Small Businesses
Cloud security is an essential requirement for survival, trust, and scalability in the digital economy. The cloud security risks in cloud computing remain the same whether your company uses Amazon Web Services, Microsoft Azure, or Google Cloud Platform. Small businesses are prime targets for cyberattacks, where hackers actively target small businesses for the following reasons:
- Lack of a team dedicated to IT security.
- Use weak passwords and outdated software.
- Assume “we are too small to attack.”
More than 43% of cyberattacks worldwide target small and medium-sized businesses, and most are resolved within six months of a major breach due to financial and reputational damage.
Cloud security protects small businesses from:
- Ransomware
- Phishing attack
- DDoS attack
- Internal threat
- Malicious injection
Why Small Businesses Often Overlook Cloud Security Risks
With limited budgets and resources, small businesses often prioritize growth over security and overlook cloud security risks.
- Misconceptions about costs and priorities: 36% of SMBs believe that security is a secondary concern and that, despite the availability of enterprise tools, security is too expensive.
- Internal security assumptions: Owners believe that “the cloud is automatically secure” and ignore controls, leading to misconfigurations such as open recycle bins and weak passwords.
- Lack of experience and transparency: Small and medium-sized businesses without a dedicated IT team ignore monitoring, patching, multi-factor authentication, and insider threats.
- Perceived low threat level: Many feel it is too small for hackers, leading to complacency.
These omissions can lead to interruptions, downtime, and compliance violations, increasing risk in rapid deployment environments.
The 7 Hidden Cloud Security Risks
Common cyber threats like DDoS attacks, phishing, and ransomware are already known by most businesses. Here is a list of 7 hidden cloud security risks that you might be overlooking:
- Misconfigurations: Common breaches occur due to misconfigurations such as open storage segments or weak IAM policies, resulting in data being left exposed despite vendor security measures.
- Unauthorized access: Insufficient login/logout and credential sharing can allow attackers to compromise cloud applications and consoles, leading to more serious attacks.
- Data breaches: Breaches are exploited to expose sensitive customer information, go undetected, and cause reputational and financial damage.
- Ransomware/Malware: Encrypts data for extortion purposes. 82% target small and medium-sized businesses without backup, leading to business outages.
- Lack of official policy: The lack of a documented scenario leads to a disorganized response to an incident, which further worsens the outcome.
- Third Party Vulnerabilities: Unreliable suppliers create supply chain risks and put the ecosystem at risk.
- Unpatched systems: Outdated software invites exploits; automation gaps delay fixes in cloud environments.
How to Protect Your Business from Hidden Cloud Security Risks?
To protect your small business from hidden cloud security risks, use these best practices.
- Regular security and configuration audits: Periodically check your cloud configuration and identify and resolve configuration mistakes that may result in data breaches. Automated tools should also be adopted in order to guarantee compliance and secure configuration, where possible.
- Implement strict access controls: Securely manage identity and access via IAM and prohibit unwarranted access based on concepts such as least privilege, multi-factor authentication (MFA), and regularly auditing of users’ permissions.
- Data backup and encryption: Backup and encrypt your critical data regularly with a verified recovery strategy to facilitate a prompt recovery from a ransomware attack or Data Loss Event. Encrypt any sensitive information being transmitted or stored, and further protect your privacy in the event of a Data Breach.
- Software patch and update management: Maintain up-to-date software by applying timely patches and updates to your cloud and applications in order to fix any vulnerabilities. Automate as much of the patching process as possible to mitigate the cloud security risks in cloud computing that come with older versions of software.
- Employee security training: Train your Employees to be able to identify phishing, malware, and social engineering attacks, typically aimed at Small Business Owners.
- Continuous monitoring of cloud environments: Continuously monitor your Cloud Environment to detect any suspicious activity and respond quickly using security monitoring, intrusion detection, and incident response tools to minimize any damage.
- Develop and enforce cloud security policies: Establish and enforce Cloud Security Policies that clearly define usage, management, and access rights to your Cloud Services.
Why Agency 1987 for Cloud Security for Small Businesses?
Agency 1987 is an established player in the cybersecurity industry, offering advanced cloud-based security services to safeguard the digital assets of companies:
- We offer 24/7 clock monitoring, threat detection, and fast response to incidents that ensure that your business remains safe and resilient amidst changing cyber threats.
- We proactively identify threats and respond swiftly to mitigate them in real-time to prevent expensive breaches through threat hunting and faster threat response.
- We find out hidden vulnerabilities, examine real-world attack scenarios, and protect your systems with detailed remediation recommendations and expert assessments.
- We ensure compliance with the industry regulations, expert-led audits, policies, and controls to enhance data security and guarantee ongoing compliance.
Conclusion
Cloud security risks and threats for small and medium-sized businesses shouldn’t be taken lightly. They won’t stop just because you start. Small businesses are an easy target because of their huge potential for growth and scalability. Attackers know this and therefore perform covert reconnaissance before ultimately acting on their findings and exploiting vulnerabilities.
Implementing a new cloud security solution is no small task. There are many variables and challenges involved when migrating from an existing infrastructure. A reliable multi-cloud security solution like Agency1987 can help protect your future. Schedule a free demo to learn how.
Frequently Asked Questions
1.Is the cloud good for small businesses?
A. The cloud offers benefits and challenges for small and medium-sized businesses, especially when it comes to security. Cloud service providers may have higher capital costs, while maintaining data centers may have higher labor costs. Which one you choose depends on your company’s specific needs.
2. What are the most common cloud security risks for small businesses?
A. Some of the most common risks include:
- Data leak
- Unauthorized access
- Ransomware attack
- Compliance violation
3. How can small businesses implement cloud security with limited resources?
A. Start with:
- Built-in security features provided by cloud providers
- Password managers and multi-factor authentication
- Regular safety education
- Basic dashboard and security alerts
4. Is cloud security expensive for small businesses?
A. Using free built-in security features, leveraging low-cost tools such as a password manager, and introducing two-factor authentication can provide an affordable option for small businesses. Most businesses can expect to spend anywhere from a few dollars a month to several hundred dollars per month on cloud security.