What are the three biggest security risks in the cloud?

The three biggest security risks in the cloud are misconfigurations, unauthorized access, and data loss due to insufficient encryption. These three risks underlie the majority of security incidents in cloud environments and affect organizations across virtually every sector. In this article, we discuss how these risks arise and what you can do about them.

How do security incidents in the cloud occur?

Security incidents in the cloud almost always result from a combination of technical vulnerabilities and human error. Cloud environments are scalable and flexible, but that flexibility brings complexity and complexity increases the likelihood of mistakes. Most incidents are not the result of sophisticated attacks, but of avoidable errors in configuration, access management, or data security.

In 2026, cloud solutions are more deeply embedded in business-critical processes than ever before. Organizations are moving increasing amounts of data and applications to hybrid environments, expanding the attack surface. At the same time, regulatory requirements such as NIS2 and the Cybersecurity Act are becoming more stringent. Organizations that do not actively manage security risks in the cloud face not only technical exposure, but legal and reputational risk as well.

The three risks discussed below appear repeatedly in security analyses and are responsible for the vast majority of cloud-related incidents.

What is the risk of misconfigurations in cloud environments?

Misconfigurations are the most common cause of security issues in the cloud. A misconfiguration occurs when cloud services or storage buckets are set up incorrectly, making sensitive data unintentionally accessible to unauthorized parties. This can be as simple as a storage container set to public when it should have been private.

The root cause is often the speed at which cloud environments are deployed. Teams set up infrastructure without a standardized security policy, or they copy configurations that are not suited for production environments. Cloud platforms offer a wide range of options, but the default settings are not always the most secure.

Common examples of misconfigurations include:

• Publicly accessible storage containing confidential business data
• Incorrect firewall rules that allow too much traffic through
• Unsecured API endpoints that expose data
• Missing logging that allows incidents to go undetected
• Overly broad permissions assigned to users or applications

The danger of misconfigurations is that they can go unnoticed for a long time. An error made during deployment may not become visible until months later, often only after data has already been leaked. Regular audits and automated configuration checks are therefore not a luxury, but a necessity.

Why is unauthorized access such a serious threat in the cloud?

Unauthorized access is dangerous because cloud platforms are accessible via the internet, making them an attractive target for attackers worldwide. Once an attacker gains access to a cloud account, they immediately have access to all the data, applications, and systems connected to it. The damage can be enormous in a very short period of time.

This risk is compounded by weak access management. Reused passwords, missing multi-factor authentication, and overly permissive access rights make it easier for attackers to gain entry. Cloud accounts are also regularly targeted through phishing, where employees unknowingly give away their login credentials.

A particular risk is what is known as privilege creep: employees gradually accumulating more and more access rights over time, even when they no longer need them. In a dynamic organization, roles change frequently, but permissions are rarely revoked. The result is an environment in which many people have access to data they should not be able to view.

Effective identity and access management, combined with the principle of least privilege, is the most important measure against unauthorized access. Every user and every system is granted only the permissions that are strictly necessary for the task at hand. A robust security strategy should always include clearly defined access policies as a foundational layer.

How do data loss and insufficient encryption increase risk?

Data loss and insufficient encryption increase risk because sensitive information, even when intercepted or stolen, is immediately readable and usable by attackers. Without encryption, data is vulnerable at every stage: in transit, at rest, and during processing. A data breach without encryption is almost always a serious privacy incident as well.

Data loss in the cloud can have multiple causes. Ransomware attacks can encrypt or delete cloud storage. Human errors, such as accidentally deleting files or overwriting data, occur more frequently than expected. And with an inadequate backup policy, recovery after an incident is not always possible.

Insufficient encryption is a separate but related risk. Organizations sometimes assume that the cloud provider handles encryption, but responsibility for managing encryption keys often rests with the customer. When key management is not properly configured, or when data at rest is not encrypted, a vulnerability is created that is difficult to detect.

For organizations that handle sensitive personal data or business-critical information, it is advisable to look into encryption solutions that provide end-to-end protection, independent of the cloud provider. This ensures that control over sensitive data always remains with the organization itself.

How do organizations protect themselves against cloud risks?

Organizations protect themselves against cloud risks by adopting a layered security strategy that combines technical measures, policy, and continuous monitoring. No single measure provides complete protection on its own. The combination of multiple layers makes an environment more resilient against the most common attack vectors.

The most effective measures are:

• Configuration management: Use automated tools to continuously check cloud configurations for deviations from the security policy.
• Multi-factor authentication: Make this mandatory for all users with access to cloud environments, including administrator accounts.
• Least privilege access: Assign permissions based on role and periodically verify that they are still current.
• Encryption: Encrypt data both at rest and in transit, and manage encryption keys yourself.
• Backup and recovery policy: Regularly test whether backups can actually be restored in the event of an incident.
• Real-time monitoring: Detect anomalous behavior early through monitoring and network management to contain incidents before they escalate.

In addition to technical measures, employee awareness is essential. Phishing remains one of the most widely used attack methods. Regular training and clear procedures significantly reduce the likelihood that a human error will lead to a security incident.

How we help with cloud security

Cloud security requires more than individual products. It requires an approach that combines technical depth with insight into your specific risk profile and the regulations applicable to your organization. That is precisely where we at Netways Europe can help.

Through our Compliance, Cloud & Threat Landscape service, we support organizations with:

• Designing and implementing secure cloud environments that comply with NIS2 and other relevant frameworks
• Vendor-independent advice on encryption, access management, and network security
• Secure Data Center Interconnect (DCI) and hybrid cloud architectures, from design through to implementation
• Continuous monitoring and management of your network infrastructure to identify risks at an early stage
• Concrete recommendations tailored to your sector, whether that is transportation, healthcare, or critical infrastructure

Want to know how your cloud environment measures up and what steps you can take to manage the three biggest risks? Get in touch with us and we will be happy to think it through with you.