Top 7 Cloud Computing Risks and Security Issues

Historically, to run any service, application or store data, you must own a PC or server with the required computing power and software architecture. With the rapid development of cloud computing, this is no longer the case as a lightweight browser can be used to execute CPU intensive tasks or store large data without physical infrastructure.

Cloud computing involves the use of computing resources such as servers, databases, networks, and software in the cloud (internet). It allows businesses to use resources that will ordinarily be expensive or out of budget if developed in-house. 

With cloud computing, scaling and innovation is cheaper. However, the cloud also has security challenges. Some of these cybersecurity threats are similar to those found in traditional computing while others are peculiar to it. It is these security threats and risks that are preventing some organizations from fully embracing the cloud.

In this article, we will explore the risks and security issues with cloud computing for business.

1. Lack of Employee Awareness

While cybersecurity threats to the cloud are often about outside attackers. One aspect that is often overlooked is the degree of employees awareness and education about the cloud system and its security.

Your employees need to be well-trained about cybersecurity so as to minimize the human error aspect of system compromise. Attackers have long used phishing techniques for tricking employees into compromising their personal and organization system and cloud system is no different. When your employees know the nature of the threats and what to expect, they will be in a better position to fend off such attacks.

2. Targeted Malware Infections

Cloud services presents a novel cybersecurity threat. Attackers can take over a system resource by uploading malicious files on shared servers which may be accidentally executed by unsuspecting victims. Once a system is infected, cybercriminals can continue to access for a long time without leaving a trace of their activities. 

Hackers often upload malware which when downloaded can compromise a system. Employees can also be using the cloud to transfer business data so as to gain total control over them.

3. Regulatory Violations

Due to privacy concerns, many industries are under government regulatory policy such as HIPAA   which aim to protect sensitive data. The regulations mandate that a business knows where their data resides and restrict access to it. Businesses may not transfer customers’ data outside stipulated areas due to data privacy laws. Storing data on the cloud poses a risk of non-compliance due to the flexibility or ambiguity of storage location. A violation of such law may result in penalties and fines. 

4. Lack of Control

The use of cloud services implies that you will give control to third parties over your data. They will be responsible for managing your data and ensuring that it is available. While it is convenient to not worry about how your data is being stored or managed, there are also the risks of being a spectator in the case of an emergency. If the provider is attacked or suffers an outage, you can’t do anything about it as you have to wait for them to fix it. This can be detrimental to time-critical business. Also, you may not implement better protection for your data due to limitations imposed by your cloud service provider.

5. Insecure Mobile Devices

Employees are often encouraged to use their personal devices for work related activities both onsite and offsite which may include business cloud data and applications. Such devices may expose your business to security risks without you knowing. Cyber attackers who want to infiltrate a business may first compromise an employee’s system with the aim of gaining access to the target business’ cloud data.

6. No Auto-Backups

Some cloud computing services do not provide automatic backups. Since the cloud is often used for backup some users can be lured into the false thinking that their data is being backed up. This isn’t the case for some providers. If you lose your data to hackers or system glitches, you cannot get another copy unless you specifically set up a data backup yourself. In the event of a data loss, there is no safety net for retrieving such data. 

7. Use of Insecure Applications

No matter how secure your cloud provider system is, it can be compromised when accessed with insecure external applications and APIs. The applications that help employees to easily manage large data on the cloud may contain vulnerabilities that can be exploited by attackers to steal your data. Enforce policies that prevent employees from using random applications or submitting APIs to unvetted third party tools.

Cloud computing has huge potentials for a business, nevertheless, you can minimize the security risks by educating your employees, deploying auto backups, enforcing security rules and extending cyber security to employees devices. 

Cloud computing is the future of computing, start it with a strong cybersecurity policy. We can help to get you started today. 

Common IT Security Compliance Pitfalls and How to Avoid Them

June 17, 2025
Meeting IT security compliance standards is crucial for businesses that handle sensitive data, particularly in industries such as healthcare, finance, defense, and e-commerce. Regulatory frameworks such as HIPAA, CMMC, PCI-DSS, and GDPR exist to help ensure businesses protect customer information and maintain robust cybersecurity practices. Unfortunately, many organizations fall short of these requirements, often due to common, avoidable mistakes. These gaps can result in costly fines, data breaches, and reputational damage, which can significantly impact the business's bottom line and customer trust. 1. Failing to Conduct Regular Risk Assessments The Pitfall: Many businesses overlook the importance of conducting routine risk assessments. Without these, it’s challenging to identify vulnerabilities or evaluate whether your current cybersecurity controls meet compliance standards. How to Avoid It: Implement a regular risk assessment schedule. Work with a qualified IT provider to evaluate your systems, identify weaknesses, and document remediation plans. These assessments should be performed at least annually, or whenever significant changes to the system occur. 2. Inadequate Employee Training The Pitfall: Your employees are your first line of defense—and often your most significant vulnerability. A common compliance issue arises when businesses fail to train staff on cybersecurity best practices or on handling sensitive data appropriately. How to Avoid It: Invest in ongoing cybersecurity awareness training. Ensure employees understand how to recognize phishing emails, create strong passwords, and report any suspicious activity. Training should be updated regularly to reflect current threats and compliance requirements. 3. Improper Data Handling and Storage The Pitfall: Storing sensitive data in unsecured locations, failing to encrypt information, or retaining data longer than necessary are significant compliance risks. These practices are often flagged during audits. How to Avoid It: Adopt data classification policies that define how different types of data should be handled; encrypt sensitive data both at rest and in transit. Establish clear data retention policies and ensure that obsolete data is disposed of securely. 4. Lack of Incident Response Planning The Pitfall: When a security incident occurs, time is of the essence. Many businesses lack a documented incident response plan, or their existing plan hasn’t been thoroughly tested. This can lead to delayed responses, increased damage, and regulatory penalties. How to Avoid It: Develop a formal incident response plan that includes roles, responsibilities, communication protocols, and steps for containment and recovery. Run simulated breach scenarios with your IT team to ensure everyone knows how to respond effectively. 5. Using Outdated Software or Systems The Pitfall: Running outdated operating systems, software, or firmware is a common issue that can lead to compliance failures. Unsupported technologies are more vulnerable to exploitation. How to Avoid It: Keep all systems and applications up to date with the latest patches. Use automated tools to track software versions and receive alerts about end-of-life technologies. Schedule regular maintenance windows to apply updates and upgrades. 6. Insufficient Access Controls The Pitfall: Allowing too many employees access to sensitive data—or failing to revoke access when it’s no longer needed—can lead to data breaches and non-compliance. How to Avoid It: Implement role-based access controls and follow the principle of least privilege. This principle means that each user should have the minimum level of access necessary to perform their job. Regularly audit user accounts and permissions to ensure access is current and appropriate. Use multi-factor authentication (MFA) to add an additional layer of protection. 7. Neglecting Third-Party Vendor Risks The Pitfall: Businesses often overlook the fact that their compliance responsibilities extend to third-party vendors. If a vendor mishandles your data, you could still be held accountable. How to Avoid It: Vet third-party vendors carefully. Ensure they meet the same compliance standards as your business and include security requirements in your contracts. Conduct periodic audits or request compliance certifications from your vendors. 8. Failing to Document Policies and Procedures The Pitfall: Even if your security practices are strong, failing to document your compliance policies can result in audit failures. Regulators want to see evidence that you have formal processes in place. How to Avoid It: Create and maintain clear documentation for all compliance-related policies, including data protection, access control, incident response, and employee training. Make these documents easily accessible for audits and regularly review them to ensure updates are current. Conclusion Compliance with IT security standards is not a one-time project—it requires ongoing attention, regular updates, and a proactive approach to maintain effectiveness. By understanding and addressing these common pitfalls, your business can stay ahead of regulatory requirements, strengthen its security posture, and reduce the risk of costly incidents. This ongoing attention is crucial to maintaining your business's security and audit readiness. If you’re unsure whether your business is meeting current IT compliance standards, professional support can help. Contact SDTEK today to schedule a compliance assessment and learn how our IT services can keep your business secure and audit-ready. With our support, you can navigate the complex landscape of IT security compliance with confidence.

Why Cybersecurity and Business IT Support Are Crucial for Fort Wayne Businesses

April 9, 2025
In today’s digital-first world, cybersecurity isn’t just a luxury—it’s a necessity. Whether you run a small startup or a growing enterprise in Fort Wayne , protecting your business’s data, systems, and clients is essential for long-term success. From ransomware attacks to phishing scams, cyber threats are evolving every day, and the best way to stay ahead of them is by partnering with a reliable IT services provider that understands the unique needs of local businesses. Here’s why investing in professional business IT support is one of the smartest decisions Fort Wayne businesses can make—and how working with SDTEK helps protect your operations, your data, and your reputation.