What Is Cloud Encryption? Definition, Importance, Methods, and Best Practices
Cloud encryption solution encode and transform data before transferring it to cloud storage.
Cloud encryption is defined as the process of encoding and transforming data before transferring it to the cloud. This process converts plaintext data into ciphertext using mathematical algorithms and makes the data unreadable, thus protecting it from unauthorized and potentially malicious users. This article discusses the definition and importance of cloud encryption and shares some best practices for 2021.
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What Is Cloud Encryption?
Cloud encryption is the process of encoding and transforming data before transferring it to the cloud. This process converts plaintext data into ciphertext using mathematical algorithms and makes the data unreadable, thus protecting it from unauthorized and potentially malicious users.
Cloud encryption is a simple yet effective method to prevent sensitive cloud data from being accessed in the event of a breach. Even if the data ends up being stolen, cybercriminals fail to read the content of the encrypted files. Many experts regard encryption as a successful and effective approach to robust data security.
Simply put, encryption scrambles the content of business databases, systems, and files to make deciphering it impossible without the correct decryption key. Cloud storage is becoming the most popular way to store enterprise data and ensure cutting-edge availability and redundancy. By combining encryption with cloud storage, enterprises can secure encryption keys and have complete control over access to sensitive data.
Perhaps the biggest advantage of encrypted cloud data lies in the fact that even if it is stolen or otherwise accessed, it lies in an unreadable state without proper authorization. This means that it is useless unless the party with illegitimate access also has the correct decryption key. Encrypted cloud storage solution providers encrypt information and pass the encryption keys to their client companies. When the data needs to be decrypted, these keys can be used to safely access the information and pass it along as required. Decryption keys transform the encrypted data into readable form.
Typically, cloud encryption solutions have several applications. These include:
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- Encrypting connections between cloud and endpoint
- Limited encryption of sensitive information
- End-to-end encryption of all data from inception to storage
All models normally entail cloud storage vendors encrypting information upon receipt and transmitting the encryption keys to clients to facilitate safe data decryption.
Also Read: Cloud Vs. On-premise Comparison: Key Differences and Similarities
Importance of Cloud Encryption in 2021
If done correctly, implementing cloud encryption can be a simple process. Cloud encryption can help organizations boost data privacy, enable remote work flexibility, and ensure regulatory compliance—issues that have come to the fore in 2021. Let’s look at some benefits of cloud encryption.
Importance of Cloud Encryption
1. Ensures round-the-clock data protection
Generally, enterprise data is exposed to the highest level of risk when undergoing a transfer or when it is stored in a third-party environment, such as a cloud server. Cloud encryption ensures security for both data-at-rest and data-in-motion.
As workflow structures become more flexible and employees stretch their shifts and shuffle their devices or locations, data must be subject to 24/7 protection. If not, there is a high chance that it will be accessed by unscrupulous elements looking to cause damage to the enterprise.
Cloud encryption solutions jump into action and protect data, whether it is being stored or transferred. Regardless of the process that the data is going through, cloud encryption solutions prevent unauthorized access.
2. Mitigates insider threat
External elements are not the only risk factor for an organization’s data security, especially during remote work when scrutiny is stretched thin, and monitoring is not always efficient. Employees, business partners, and contractors with malicious intentions can wreak even more havoc than a cybercriminal that is not affiliated with the organization, should they choose to do so.
However, it’s not always intentional. An employee who is not very tech-savvy can make unintended blunders that may leave the organization’s data open to unauthorized access and cause damage to the enterprise.
While cloud encryption is not a replacement for negligence or lack of training, it certainly helps shift control of the enterprise data to an experienced and trustworthy cloud service provider. This introduces a new layer of security and helps prevent employees from causing any damage to the company.
3. Overcomes insecure APIs
Organizations that operate in a cloud environment often rely on APIs to control various elements of their online infrastructure. APIs are built into mobile or web applications and can access cloud data externally (for clients and contractors) or internally (for employees).
Whether external or internal, APIs with weak security protocols can introduce a cloud-based security risk, especially when data is being transferred. For instance, an insecure external API may serve as a gateway that offers unauthorized access to cybercriminals looking to steal data.
Cloud encryption services, especially comprehensive ones that encrypt data before the upload process begins, can help mitigate risks posed by insecure APIs and prevent sensitive data from falling into the wrong hands, even if a leak occurs.
4. Maintains organizational integrity
2021 continues to see an increase in the frequency of cyberattacks, especially in healthcare, banking & finance, education, and government sectors. This can be attributed to the transition toward storing data on the cloud rather than on local databases that can no longer be accessed by employees who are working remotely.
Cloud databases are connected using wired and wireless technologies and present a simple way to store large amounts of data, including employee, customer, sales, and financial records. However, the rise in the popularity of remote workplaces has given cybercriminals many more avenues to exploit the shortcomings of cloud computing platforms.
Unencrypted cloud data is susceptible to unauthorized access, as hackers cloak malicious packets as local traffic and introduce them into organizational cloud databases through illegal methods. Further, cybercriminals can benefit from modifying data to commit fraud. However, when cloud data is encrypted, stealing or modifying it becomes close to impossible.
5. Ensures protection for multiple devices
Gone are the days when employees had a dedicated endpoint to work on. In 2021, remote workers are using whatever device their company’s infosec policy allows. However, some of these devices can be less secure than others. Transfer of information among devices introduces another layer of vulnerability, making encryption critical for protecting data across several devices.
Apart from stored data, comprehensive cloud encryption solutions can also help encrypt communication, passwords, and even web traffic—elements that are agreed-upon as best practices for data security. No matter what data ends up compromised, whether due to a breach at the endpoint level or on the cloud provider’s side, bad actors would only obtain information that is useless to them without the correct decryption key.
6. Guarantees compliance
Remote work may be a potential regulatory compliance nightmare for organizations across verticals, especially with directives requiring companies to know exactly where their data is stored, how it is being transferred and processed, the parties that have access to it, and how it is secured.
At the provider level, regulations in some jurisdictions may require cloud solution vendors to hold specific compliance credentials and meet other cybersecurity requirements. Therefore, just one instance of careless transfer of sensitive data to or from the cloud or choosing a non-compliant provider may put the entire enterprise at risk of being pulled up for non-compliance and lead to severe financial and legal repercussions.
Cloud encryption is not only a secure solution for sharing and saving data. It can also be set to comply with the restrictions required within an organization as well as compliance with relevant regulatory bodies such as Federal Information Security Management Act (FISMA), Federal Information Processing Standards (FIPS), Health Insurance Portability and Accountability Act (HIPAA), and Payment Card Industry Data Security Standard (PCI/DSS).
Also Read: Top 10 Cloud Data Protection Companies in 2021
Key Methods Used in Cloud Encryption
Cloud encryption solutions use two different methods to encrypt and decrypt data: symmetric and asymmetric. Also known as encryption algorithms, these methods are explained below.
Symmetric algorithms
The symmetric algorithm cloud encryption method uses the same keys for encryption and decryption, making it ideal for ‘closed’ organizational systems. Also known as the secret key algorithm method, this method leverages keys to secure communication of all forms. This technique is most suitable for bulk encryption of data.
Swift and simple implementation by hardware and faster encryption are the main advantages of this method. However, any employee having access to the secret key can decipher encrypted sensitive data using that same key, even if that data is not meant for them.
Asymmetric algorithms
The asymmetric algorithm method uses two keys linked together mathematically—one private and the other public. As the name suggests, keys are asymmetric in this method — while they are paired with each other, they are not the same. Cloud encryption solutions share these private keys only with relevant authorities within the organization, often through a secure communication channel.
These keys need to be stored with utmost secrecy, as they can be used to decrypt all information that has been encrypted. However, public keys are shared with all relevant stakeholders, both within and outside the organization, to enable data to be encrypted before transmission.
Also Read: Top 10 Hybrid Cloud Solution Companies in 2021
Top 8 Best Practices for Cloud Encryption Management in 2021
Data protection has always been a key priority for organizations, and as remote work continues to remain prominent in 2021, more efficient methods to protect sensitive enterprise data are required. The following best practices for cloud data encryption help ensure strengthened privacy and security at all levels within and outside an organization and ensures that the company’s information is secure on the cloud.
Best Practices for Cloud Encryption Management
1. Assess security requirements for cloud deployment
Begin by identifying the organizational data that requires encryption, and lay out a plan to prioritize databases that are more sensitive. This plan should preferably be detailed enough to be shared and discussed with the chosen cloud encryption service provider.
When assessing the various features offered by cloud encryption providers, look for service interface access that is restricted to authenticated and authorized personnel only. The provider must offer authentication and identity features, including username, password, TLS client certificates, two-factor authentication, and identity federation with the enterprise’s current identity provider. Ensure the ability to restrict access to a dedicated enterprise, line, or community network.
To prevent encryption keys from falling into the wrong hands, it is critical to avoid vendors with insecure authentication practices. Failure to do so will expose company systems to cybercriminals looking to steal data, modify information, or launch ‘denial of service’ attacks.
The cloud encryption vendor should not rely on email, telephone, or HTTP for authentication, as these mediums are open to social engineering attacks and interception of authentication or identity credentials. A genuine cloud encryption vendor will provide authentication through secure channels such as HTTPS to ensure complete protection.
2. Study the finer details of service before choosing a CSP
Reading the user agreement normally allows the client company to understand the details of the plan being offered by the cloud service provider (CSP). Ensure this agreement is reviewed by knowledgeable personnel from across departments, and sufficient time is given for inputs and queries to be shared.
In case of any information being omitted from the user agreement, ensure that clarification is sought around details, especially things such as when, how, and where data will be stored, particularly in the case of public cloud services. Any element of the user agreement that might end up violating the enterprise’s privacy policy or regulations that it is subject to should be highlighted immediately.
Reviewing the contracts and SLAs of potential cloud encryption providers is an integral part of cybersecurity. These two elements are the strongest guarantees of recourse in case of difficult circumstances. The terms, conditions, appendices, and annexes that a cloud encryption contract is subject to can impact a company’s cybersecurity severely.
Simply put, the contract can either make the cloud service provider a responsible handler of your data or the complete owner of your data. The 2019 Cloud Adoption and Risk Report by McAfee states that nearly two of every three cloud providers do not specify that client data is owned by the client. Such legal gray areas may allow a cloud encryption vendor to claim ownership of all data being uploaded and refuse to share keys as required in case of a perceived breach.
Apart from data ownership, knowing what happens to information once the agreement is terminated is critical. Whenever possible, the cloud encryption provider must also offer complete visibility into all cybersecurity events and keep the client company updated regarding the response measures being taken.
If any element of the service proposal is unsuitable to the enterprise’s needs, know that most CSPs leave room for negotiation. However, in case a clause is deemed as ‘non-negotiable’ by the CSP, determine whether agreeing to it is worth the risk it opens the company to. If not, seek alternatives to deal with the threat. These include monitoring solutions, non-cloud-based encryption products, or a different provider altogether.
3. When feasible, back up cloud data locally
Although most cloud encryption providers include instant backups and redundancy as part of enterprise plans, backing up critical data, such as employee details, vendor information, and customer data, locally on a secured server is always a good idea.
In case of cloud-saved data being corrupted or lost, or the cloud service provider restricting access for any reason, local backups can mean the difference between continuity and disruption. Data can also be backed up on a different provider’s encrypted cloud. For example, a company that relies on Google Drive for primary storage can back up its more important databases on Dropbox as well.
4. Use cloud cryptography to secure access
Cloud cryptography solutions protect an enterprise’s cloud architecture and provide a layer of encryption that relies on the ‘Quantum Direct Key’ system, and enables secure access to shared cloud users. The benefits of cloud cryptography include enhanced privacy and improved data security through the use of cryptographic keys.
Also Read: Top 10 Cloud Security Challenges 2021 Needs to Address
5. Use a CASB to protect data in transit and at rest
A cloud access security broker (CASB) enables secure connections between users and cloud applications through API connectors and proxies. CASBs help enterprises exercise greater control over cloud data encryption, encryption keys, and visibility & access for cloud-based applications.
CASB solutions play the role of a middleman between the enterprise and its CSPs, provide visibility into the cloud environment, implement data safety policies effectively, ensure effective identification of and protect against threats, and ensure that regulatory compliance is followed. CASBs are quickly becoming a cloud security best practice.
6. Pick a cloud service provider with comprehensive encryption
Some cloud encryption providers also offer encryption at the local level, which provides an additional layer of security during data creation and transfer. When choosing a cloud encryption service provider, check if it offers protection for data in transit from the end-user level itself. At the same time, ensure the implementation of network protection that prevents the interception of data at the company level. A cloud vendor that offers encryption in transit and at rest from the moment data is created should always be preferred.
7. Retain complete visibility and control
An enterprise should be able to view and control its own data when using a cloud encryption solution. A good service provider will offer a cloud encryption solution with complete visibility into data uploaded and the list of parties with access to it. Actively monitoring this enables the discovery of changes to security and configuration across the enterprise ecosystem.
Make sure that the physical location of data storage, processing, and management are discussed, including redundancy and backup purposes. Although this may not have been a matter of concern around a decade ago, it is now a key best practice due to the implementation of national and international regulations such as the European Union’s General Data Protection Regulation (GDPR).
Additionally, ensuring advanced physical protection of data assets, such as guarded facilities situated in geopolitically stable regions, is also crucial for long-term control over the visibility and security of enterprise data. The right cloud encryption vendor will also ensure complete and irrecoverable erasure of data before any resources are re-provisioned, decommissioned, or disposed of, to prevent any data from accidentally falling into the wrong hands.
8. Finally, ensure enterprise-wide data security awareness
In 2021, more than ever, data security has become dependent on the online activities of remote employees. Even the most advanced cloud encryption solution would not be able to ensure data security if employees of the client company use public computers or rely on insecure connections, leaving their data vulnerable.
Setting computers to disable caching of passwords and logins, ensuring that employees log out from all sites or accounts once the required data has been accessed, and asking them to avoid insecure Wi-Fi connections whenever possible are simple yet effective ways to prevent data from falling into the hands of hackers.
Key takeaway
With enough awareness, end users can become the strongest line of defense to secure an organization’s cloud environment. Thorough knowledge of security practices and their application could end up being the difference between a secure enterprise network and one that is an easy target for cyberattacks.
As the final best practice, ensure security awareness training for all stakeholders who access company systems—staff, vendors, and contractors working on-premise and remotely.
Spread awareness around spotting malware, identifying phishing emails, and understanding why some practices are insecure. Consider providing specialized certification and training to stakeholders involved at advanced levels, such as cloud administrators and CSP liaisons.
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