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Top cloud technology security risks, threats, and challenges

Cloud technology has drastically changed how people work, play, and communicate online. While the cloud offers plenty of benefits, it also has unique security risks that shouldn’t be overlooked. Let’s explore some of the biggest cloud security challenges and risks that everyone should know.

Jan 22, 2025

11 min read

Top cloud technology security risks, threats, and challenges

What is cloud security, and why is it important?

Cloud security is the process of protecting cloud-based infrastructure and assets from cyber threats. Hackers often target cloud-based servers and data storage applications because they likely contain large volumes of sensitive or valuable information. Cloud security uses a variety of configurations, tools, and business practices to limit external access to these systems. 

Different types of cloud servers exist, and each has its own unique security risks. Cloud servers can be public or private and are available for both personal and professional use. For example, you might use public cloud servers hosted by Apple or Google to store your personal documents, photos, and music. Alternatively, your workplace might have private cloud servers, which host secure business data and documents. 

No matter what type of cloud servers you’re using, security measures are essential for protecting your assets. Without cloud security, malicious threat actors could gain access to your data, putting your business and customers at risk. Security measures are also necessary to prevent accidental data loss and comply with applicable industry regulations. 

Top 6 cloud security risks

Even a small vulnerability could subject your business to significant data loss. Unfortunately, many teams are unaware of the security risks present in their systems. Here are six of the most common cloud storage security risks. Understanding them can help you put systems in place to protect them. 

1. Misconfiguration

A misconfiguration happens when you don’t implement the correct cloud settings for your security needs. This often happens when businesses use public cloud environments to store their data. Public cloud services often come with default configurations that may not be suitable for every business. If you don’t change these configurations, your system could be vulnerable to attacks. 

Common misconfigurations include incorrect access controls, unsecured backups, or weak network segmentation. Regardless of which type of cloud server you’re using, you should review your configuration settings regularly to avoid these unnecessary public cloud security risks. 

2. IAM misconfiguration

An IAM misconfiguration is an incorrect configuration of your Identity and Access Management (IAM) system. One common example is giving administrative access to the entire team, regardless of whether they need it to perform their jobs. Another common IAM misconfiguration is accidentally exposing your team’s access credentials, making usernames and passwords accessible to any threat actors who may be looking for them. 

3. Cloud storage exposures

A cloud storage exposure, also known as a cloud leak, happens when data stored in the cloud is exposed to users outside of your system. When your cloud storage is exposed, cybercriminals can access your sensitive data. 

A breach like this could compromise both customer and employee privacy and, in severe cases, lead to identity theft. Additionally, this exposure could allow proprietary business data to fall into the wrong hands. Depending on your industry and local consumer data regulations, cloud storage exposure could also lead to serious compliance issues. 

4. Service account key mismanagement

If you use Google’s hybrid cloud options, you might have a service account rather than a standard public account. These accounts use RSA service keys instead of traditional passwords to access encrypted data, making them more secure than standard Google accounts. 

You can choose between a Google-managed or user-managed key pair. In a user-managed key pair, you’ll control both service account keys, which theoretically makes it a more secure option. However, you’ll need to keep the service account key secure. 

If your service account key is mismanaged, it could end up in the wrong hands, giving threat actors access to your secure cloud data. This often happens when service account keys are stored digitally in an unsecured location. 

5. Virtualization vulnerabilities

Virtualization is a type of cloud technology used to create virtual versions of physical servers or networks. Many large organizations use virtualization to replicate their on-site environments digitally. This approach helps conserve resources while allowing employees to access the network virtually. 

While virtualization helps businesses operate more efficiently, it can also cause system vulnerabilities. For example, if the APIs in your virtualized cloud environment aren’t configured properly, hackers could hijack them to access your systems. 

To keep your virtualized systems safe, you’ll need to implement the same security measures that you would for your physical devices. Just like physical hardware, virtualized systems are also vulnerable to malware, viruses, and other common security threats. 

6. Legacy applications

When you find a software program that works for your organization, it can be tempting to stick with it for years or even decades. However, when legacy applications become outdated, they can pose serious security risks for your systems, especially when running them in the cloud. This is one of the biggest private cloud security risks and can pose a significant threat to your business. 

While legacy applications may still work, they are usually not built to handle today’s advanced security threats. Because they were designed for outdated systems, they are difficult to update to meet current needs. 

If you attempt to run legacy applications in a cloud environment, their instability could leave your entire system vulnerable to cyberattacks. In addition to the security threats they pose, legacy applications also run slowly and require frequent maintenance.

8 key cloud security threats 

Any cloud-based system can be vulnerable to security threats, particularly if you don’t have practices in place to keep them safe. As cloud technology has advanced, so have the security threats that target them. 

1. Data breaches

A data breach is any incident in which threat actors gain access to secure data, such as customer records, banking information, or intellectual property. 

Unfortunately, data breaches are very common and can pose serious compliance issues for your business. Depending on your local consumer data protection laws, you could be subject to hefty fines for each record exposed in a breach. When data breaches are publicized, they can also negatively affect your reputation, making it difficult to attract new customers. 

2. Insider threats

It’s not only external cybercriminals that threaten your cloud systems — malicious insiders can be just as damaging. When a disgruntled current or former employee has access to your systems, they could harm your business for revenge. 

Some insider threats also happen by accident. For example, an employee could log into your cloud systems on an unsafe public WiFi network, unknowingly exposing your company’s data to threat actors. Accidental data exposure can also happen when you work with third-party vendors that don’t have robust security policies. 

3. Zero-day exploits

A zero-day exploit is a vulnerability in a software program that the developer and program users are unaware of. When a hacker finds a zero-day exploit in a cloud software program and uses it to launch an attack, it can be particularly devastating for users. 

To limit exposure to zero-day exploits, it’s important to install software updates and patches as soon as they’re released.

4. Unsecured APIs

An application programming interface, or API, is a set of protocols software programs use to communicate. Hackers often use unsecured APIs to target specific cloud programs or systems.  

To prevent this from happening, you’ll need to put security measures in place for each of the APIs your organization uses. This could include encrypting the data you send with your APIs, using monitoring tools to track API activity, and using access control strategies to limit API use.

5. Account hijacking

Account hijacking is when a cybercriminal gains access to a legitimate user’s digital accounts and uses those accounts for their own gain. For example, the hijacker might access your cloud systems to change user permission levels, search for sensitive customer data, or even publish their own content on your website or social media profiles. 

Hackers often use phishing scams to trick users into revealing their usernames and passwords. Training your employees to spot and avoid phishing scams can help you prevent account hijacking instances. 

6. Denial of Service (DoS) attacks

DoS attacks often target cloud services. When successful, they render the service unusable for a short period of time. During a DoS attack, the hacker overwhelms the target server with requests so that it cannot function properly. 

DoS attacks are often done in conjunction with a data breach or theft. While the system is overloaded with requests, the hacker uses other techniques to breach the system without anyone noticing. 

7. Container security risks

Many cloud software programs use container technology. This means the software is packaged with all the code and files it needs to run in any environment. 

Container technology has become very popular because it makes these programs lightweight and flexible. However, container technology does come with some risks. For example, if the application isn’t designed or configured properly, it could leave weak spots that hackers can exploit to access the system. 

Programs that use container technology are particularly vulnerable to unsecured images. If you use images from a public database, they could contain malicious code that harms the program. 

8. Billing exploitation

If your cloud software programs contain billing features, cybercriminals could potentially use these features to disrupt your systems and harm your business financially. For example, they may exploit flaws in the system to create fake accounts, make unauthorized charges, or steal customers’ billing information.

5 cloud security challenges

The following challenges can make it difficult to keep your cloud environment secure. It’s important to be aware of these security challenges so you can address them proactively. 

1. Compliance violations

Not complying with local cloud security laws or industry regulations when using cloud technology could lead to fines or even legal action. You must stay on top of applicable data regulations to avoid accidental violations. 

2. Inconsistent security policies

When your company’s security policies are constantly changing, it creates confusion among your team and allows threats to slip through the cracks. Take the time to formulate security policies that will hold up against external threats. 

3. Data transfer vulnerabilities

Many cloud security issues happen during data transfers between servers. These transfers should always be conducted through secure, encrypted channels to avoid third-party interference. 

4. Shadow IT

Shadow IT happens when employees use devices or apps that your company’s IT department hasn’t approved. This issue often happens by accident but can introduce serious threats to your cloud environment. Clearly communicating with your employees about your security policies and approved technologies helps prevent shadow IT issues. 

5. Human error

Small coding, configuration, or network monitoring mistakes can leave your cloud systems vulnerable. To minimize human error, have multiple people work together on cloud system management and leverage technologies to improve your accuracy. 

Solving cloud security risks: Comprehensive solutions and strategies 

No new technology is completely free from security risks. However, you can take some steps to make your company’s cloud computing environment more secure. 

Data security risks in cloud computing

Some of the biggest data security risks in cloud computing include: 

  • Misconfigured programs or systems
  • Poor access management
  • Insecure APIs
  • DoS attacks
  • Account hijacking

How can you solve cloud computing security risks?

To keep cloud security risks from turning into full-blown threats, you’ll need to be proactive about maintaining a strong security posture. 

This process starts with implementing strong access management protocols so only your team members can access your cloud systems. Permissions within the system should be based on what each person needs to do their job. For example, lower-level employees do not need administrative permissions. 

Finally, make sure you’re regularly monitoring your system for possible errors and vulnerabilities. This means reviewing your configuration options on a regular basis and monitoring your cloud systems for abnormal activity.

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Ugnė Zieniūtė

Ugnė Zieniūtė is a content manager at NordVPN who likes to research the latest cybersecurity trends. She believes that everyone should take care of their online safety, so she wants to share valuable information with readers.