Cloud compliance trap:

What is it, and how do you avoid it?

The benefits of migrating to the cloud often make it seem like you’re on easy street from here on out. However, in the case of data security compliance, it’s too good to be true. Many businesses fall into the “cloud compliance trap” after migrating and expose themselves to risks due to some misconceptions about the cloud.

What is the cloud compliance trap and how can you avoid it? Let’s find out.

What the cloud compliance trap is

Because cloud data is stored on a provider’s infrastructure (in the case of public cloud setups), many business leaders mistakenly believe that it falls solely to the service provider to ensure that the data stored is compliant with data security regulations. This, of course, is not true.

In public cloud setups, there exists a shared responsibility model for compliance between you and your cloud infrastructure provider. This means that the service provider does have to secure the data on their servers from attacks or leaks, but the responsibility of keeping data compliant in the first place falls on you. You also still have to take into account how the data is transmitted, where and how it is stored, and who has access to your cloud network. 

How to avoid the cloud compliance trap and prevent breaches and penalties

When it comes to ensuring your cloud network’s compliance with data security regulations, knowing is half the battle. There are several key things your company must be aware of so that you know what your risk exposure is.

How your data is classified

The cloud is not some kind of home base where you can stick data to automatically make it compliant and secure. It’s more like an indifferent vault. It will keep what you put in it safe, but if you put a cache of stolen goods inside, the law will still have something to say about it.

In data terms, this means that you must make sure that the information you are storing is allowed to be stored in the cloud in the first place. Different kinds of data have different regulations that apply to if and how it can be stored or transmitted. Moreover, different governing bodies often have their own distinct regulations on the same kinds of data.

To avoid these headaches in the future, your CIO or compliance officer must find a way to effectively classify each kind of data you handle and set policies on its storage and handling.

Where your data is stored

It may seem counterintuitive to worry about the physical location of data when talking about the cloud, but with tightening data privacy laws, it could make all the difference. For example, the European Union’s General Data Protection Regulation (GDPR) covers data stored in data centers within the EU. So if you’re storing customer data on their turf or are handling and storing personal data of EU citizens, it’s up to you to ensure you are compliant with the GDPR.

Contact your cloud infrastructure provider and determine exactly where your data is stored and processed. It’s common for providers to disperse your data and workload over several locations for economic and security reasons, so don’t assume that your data is always stored in the same country as your business’s location.

Who has access to your data

Your cloud infrastructure provider is responsible for keeping your data locked away, but if you give up the keys to the kingdom, you’ll be left holding the bag when the regulators come knocking. Often, you don’t even need to experience a breach to incur a penalty; even if data is theoretically accessible by unauthorized parties, you could be in trouble.

This is why it’s up to you to tightly control access to your cloud infrastructure and the data within. Set restrictions on who can access what. With cloud security tools being advanced as they are, you can set tiers of access for certain individuals or roles, and even set timed access to data. And of course, always implement multifactor authentication for all users to reduce the risk of credential theft.

 

Related reading: Is Moving To The Cloud Right For Your Business?

Be prepared

There’s obviously a great deal to consider when migrating to the cloud, particularly regarding compliance, but it has to be done to avoid financial and reputational damage. If your workforce lacks the extensive compliance expertise to safeguard your organization from future penalties, seek the assistance of a managed IT services provider like All Connected. Our IT professionals can help handle the complexities of cloud compliance for your California business. Contact us today.

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