Cloud compromise costs organizations $6.2 million per year


Organizations have reported an average of 19 cloud-based intrusions in the past year, but most organizations have not evaluated the security of SaaS applications before deployment.

The cost of cloud compromise is high, and its cost continues to rise. A new report found that the average financial loss of the surveyed organization caused by the infected cloud account was $6.2 million, or an average of 3.5% of its total revenue in the past 12 months.

To learn more about how companies protect confidential data in the cloud, the Ponemon Institute, commissioned by Proofpoint, conducted a survey of 662 IT and IT security experts in the United States. They found that cloud-centric attacks are costly for victims, and most people lack the process of how to assess the security of cloud-based resources or who will audit these resources.

In addition to the time it takes to respond to incidents, financial losses after business violations may also come from business process workarounds, fines, attorneys’ fees, consultants and/or lawyers, managed security service providers (MSSP), notification companies and their information Informed personnel were exposed, reputation damage resulted in loss of customers and business partners, and application downtime. Organizations experience an average of 138 hours of application downtime per year.

Half of the respondents said that the frequency of cloud account intrusion has increased in the past year, while 53% of the respondents believe that the severity of these incidents has increased. In the past year, respondents reported an average of 19 cloud breaches. When they lead to the exposure of sensitive data, these compromises can lead to data theft, business interruption and reputation damage.

Three-quarters of the respondents said they believe that using cloud applications and services without the approval of the IT department is a “serious risk”, even though many people report that this occurs within their own organization.

Researchers report that IT teams have little control over company data in the cloud. On average, 42% of company data is stored in the cloud, but IT only controls 27% of it. More than two-thirds of cloud services are deployed by departments outside the company’s IT.

The use of SaaS applications has been growing all the time. Nearly 80% of respondents said that their organization uses SaaS. Among them, 40% of people use it extensively, 23% of people report moderate use, and 16% of people use it lightly. On average, 36% of an organization’s business-critical applications rely on SaaS rather than local software applications.

More reliance on SaaS requires security assessment of applications before they are deployed. Although the majority of respondents said this is important, 58% said that their organization did not check the security of SaaS applications before using it, and 20% did not know whether they had been evaluated.

Similarly, only 44% of respondents stated that their organization has created “clearly defined roles and responsibilities” to protect confidential or sensitive data stored in the cloud. When protecting data in the cloud, they mainly rely on encryption, tokenization and other tools (59%), cloud access service agents (56%) and private data network connections (42%).

Researchers found that there is no centralized accountability system for protecting SaaS applications: 30% of respondents said that the company’s end users/business departments are most responsible for protecting SaaS applications; 24% said that the responsibility lies with the company and its cloud provider Shared, 20% said their IT security team has the greatest responsibility, and 16% believe that the responsibility should be borne by the cloud provider.

Tim Junio, vice president of product marketing at Proofpoint, said: “It is vital that the necessary process reviews must be conducted to verify what is happening…what kind of application and what kind of data is being uploaded to the cloud.”

Without a structured approach to adopting and deploying applications, organizations will not be able to deploy potentially dangerous software.

Migrate to multi-cloud
The majority of respondents (68%) indicated that their organization has a multi-cloud architecture or strategy. On average, they have about four different clouds. Of the 32% of clouds that are not yet cloudy, more than half will have it within six months, while 26% said they will have it within the next year.

The responsibility for assessing the security of cloud providers is dispersed throughout the enterprise: 23% of respondents said that information security is the most responsible, 21% of work belongs to enterprise IT, 19% of work is end-user work, and 7% Of people said that the legal department would deal with it, and 6% said that physical security would be competent.

As multi-cloud becomes a reality, data security is at the forefront. More than half of the respondents said that e-mail storage in the cloud poses the greatest security risk. Other types of data deemed risky include employee records (49%), intellectual property (43%), financial business data (41%), consumer data (33%), and health information (27%).

Junio ​​said: “This aspect needs to be considered.” “Who shares the data with whom, who has the right to access it… understand the content, context, and threat of the data.”

Kelly Sheridan (Kelly Sheridan) is a contributing editor of “Dark Reading”, focusing on cybersecurity news and analysis. She is a business technology news reporter. She previously reported on her in InformationWeek, where she reported on Microsoft, and reported on finance and economics in Insurance&Technology.

Recommended reading:

More insights

Related Articles

Back to top button