Security Tips for Using Third-Party Cloud Service Providers

The migration to cloud computing has become essential for modern business operations, but it brings significant security challenges. According to IBM’s 2024 Cost of a Data Breach Report, the global average cost of a data breach reached $4.88 million, a 10% increase from the previous year. For breaches involving third-party cloud providers, these costs can be even higher.

Companies either set up their data centers or use third-party service providers to gain access to cloud systems for their operations. This article will focus on the security tips for companies that do the latter.

Organizations face three critical challenges in cloud security:

1. Complex Identity Management: With distributed workforces and multiple third-party vendors accessing cloud systems, managing digital identities has become the new security perimeter.
2. Shadow Data Risks: 35% of breaches now involve shadow data – information stored in unmanaged locations – leading to 16% higher breach costs and longer detection times.
3. Business Disruption: 70% of organizations experience significant operational disruption from cloud-related breaches, with only 12% achieving full recovery.

This article explores essential security measures for organizations using third-party cloud services, focusing on SaaS Security Posture Management (SSPM) and proven strategies to reduce breach risks.

Modern Cloud Security Challenges

Cloud computing platforms increase productivity and efficiency by enabling remote workforces and seamless collaboration. However, this internet-dependent infrastructure creates new vulnerabilities. Data breaches in cloud environments now take an average of 258 days to identify and contain, with breaches involving public clouds averaging $5.17 million – 13.1% higher than the previous year.

SaaS Security Posture Management (SSPM)

There are many third-party SaaS companies that provide businesses with cloud computing access. They offer their services on a subscription basis, and businesses must ensure they keep the cloud platform safe from cyber threats while their subscription is active. This is accomplished through SaaS Security Posture Management (SSPM).

You may ask, “What is SSPM?” SSPM is a process through which companies keep their third-party cloud platform safe by monitoring it and managing its security settings. Research shows organizations using comprehensive SSPM tools can reduce breach costs by up to $2.2 million.

SSPM works in four critical ways:

1. Monitoring Cloud Security Settings

Businesses use SaaS security posture management tools to monitor and ensure the third-party cloud platform they use is configured in a way that keeps them safe. This includes checks to see if their cloud data is encrypted, if employees are using hard-to-guess passwords, or if their access controls are functioning as intended.

2. Identifying Vulnerabilities and Security Gaps

Cybercriminals often exploit vulnerabilities and weak spots in cloud systems. Cloud security professionals find these security gaps and work to patch them before they can be used to infiltrate their company’s cloud systems.

3. Implementing Cloud Security Best Practices

There are cloud security best practices that professionals in the business world generally adhere to. Companies that engage in SaaS security posture management implement these best practices because they fix or help avoid commonly encountered security incidents.

4. Compliance With Data Protection Regulations

The government mandates that companies protect their consumers’ data from leaks and misuse. SSPM tools help companies comply with these regulations by having features that let them audit their cloud platforms and adjust security settings where necessary.

Security Challenges and Mitigation

Recent data shows breaches involving social engineering tactics take 257 days to identify and contain. Attackers target cloud credentials through sophisticated phishing schemes and vendor impersonation. Shadow IT, including unauthorized cloud services, creates additional vulnerabilities with shadow data present in 35% of breaches.

Impact of Shadow Data

Organizations experiencing shadow data breaches face costs of $5.27 million, 16.2% higher than average. These incidents take 26.2% longer to detect and 20.2% longer to contain, significantly extending vulnerability periods.

Essential Security Measures

Modern cloud security depends on robust identity management. Multi-factor authentication reduces breach costs by $1.76 million. Regular access reviews and automated deprovisioning have become essential for third-party access management.

Data Protection

Organizations must implement end-to-end encryption for data in transit and at-rest protection for stored information. Regular key rotation and comprehensive data inventory ensure consistent protection.

Automated Security Controls

AI and automation in security operations reduce breach costs by $2.2 million and accelerate detection by 43%. These systems provide continuous monitoring and rapid response capabilities beyond human capacity.

Recovery and Business Continuity

Only 12% of organizations achieve full recovery after a cloud-related breach, with 76% requiring more than 100 days to restore operations. Organizations with tested incident response plans reduce breach costs by $2.66 million.

Recovery Timeline

Organizations face three distinct recovery phases:

1. Technical Restoration (30-60 days)

• System and data recovery
• Security control reinforcement
• Third-party access reconfiguration

2. Operational Recovery (60-90 days)

• Business process restoration
• Supply chain reintegration
• Service level normalization

3. Trust Rebuilding (90+ days)

• Customer confidence restoration
• Regulatory compliance verification
• Brand reputation management

Conclusion

While cloud computing offers significant benefits, the rising costs of data breaches underscore the importance of robust security measures. Organizations must prioritize SSPM implementation while addressing emerging challenges like shadow data and AI-driven threats.

Success requires a balanced approach: leveraging automation, maintaining vendor oversight, and ensuring comprehensive employee training. With proper security controls and continuous vigilance, organizations can maximize cloud benefits while minimizing associated risks.