New Zealand Businesses Experience Alarming Increase in Cloud Data Breaches
According to a recent study conducted by French tech giant Thales, more than two-thirds of businesses in New Zealand have experienced a cloud data breach in the past year. The study surveyed 53 local respondents and found that 67% of them reported a breach, a significant increase from the 38% reported last year.
Interestingly, the study also revealed that human error, rather than malicious activity, was the leading cause of these cloud data breaches. 38% of the Kiwi organizations surveyed attributed the breaches to human error, while globally, it was the cause in 55% of cases.
Thales’ annual assessment of cloud security threats further highlighted that these breaches were occurring while the volume of sensitive data stored in the cloud was also increasing dramatically. 70% of local businesses reported that more than 40% of their data stored in the cloud was classified as sensitive, compared to 57% last year.
Brian Grant, the regional director of Australia and New Zealand at Thales cloud security, emphasized that organizations need to take action to embed effective data security in their cloud environments. He warned that the consequences of not doing so can be catastrophic, as it only takes one small oversight to open the door to a skilled attacker.
The study also found that software-as-a-service (SaaS) applications were the leading target for hackers, with 47% of the New Zealand respondents ranking them as such. This was closely followed by data in motion, which was identified as the leading target by 44% of the organizations surveyed.
Thales stressed the importance of identity and access management as a crucial measure in mitigating data breaches. The study revealed that the adoption of robust multi-factor authentication in New Zealand had risen to 66%, indicating progress in fortifying access controls.
However, despite the reported increase in sensitive data stored in the cloud, the study found that New Zealand businesses were not utilizing encryption to its full potential. Only 17% of local IT professionals reported that more than 60% of their sensitive cloud data was encrypted, compared to 22% globally.
The study also highlighted a lack of control over encryption keys, with only 6% of the New Zealand organizations surveyed reporting that they controlled all the keys to their encrypted data in their cloud environments. Additionally, 64% indicated that they had five or more key management systems, creating increased complexity when securing sensitive data.
Globally, the study revealed a surge in the adoption of multi-cloud, with 79% of organizations reporting that they used more than one cloud provider. Similarly, the use of SaaS applications was on the rise, with a significant increase from 4% to 19% of respondents reporting the use of over 100 different SaaS applications between 2021 and 2023.
The study also highlighted the complexity of managing data in the cloud, with 64% of respondents expressing that it is more complex than managing data in on-premises environments.
Furthermore, digital sovereignty emerged as a major concern for New Zealand respondents. 89% expressed concerns over data sovereignty, and 64% agreed that data privacy and compliance in the cloud has become more difficult.
It is surprising to note that only 40% of Kiwi organizations have implemented zero trust controls in their cloud infrastructure, and even fewer (38%) use such controls within their cloud networks.
The Thales study serves as a reminder that businesses must prioritize data security in their cloud environments and take proactive steps to mitigate risks. Data encryption, data access control, and data-at-risk alerts were identified as three essential security measures every organization should have in place to leverage the cloud successfully while ensuring the integrity and confidentiality of their valuable information.
In conclusion, this study by Thales underscores the urgent need for organizations in New Zealand to address their cloud data security challenges. With the increasing volume of sensitive data stored in the cloud and the alarming rise in cloud data breaches, businesses must prioritize data protection, adopt robust security measures, and ensure compliance with regulations. By taking proactive steps and partnering with credible cloud security providers, businesses can effectively safeguard their valuable data and mitigate the risks associated with cloud environments.
