- 67% of New Zealand businesses experienced a data breach in their cloud environment last year, an increase of 29% from the previous year
- More sensitive data moving to the cloud with seven in ten (70%) New Zealand businesses saying more than 40% of data stored in the cloud is sensitive, up 13% from last year
- Despite a dramatic increase in breaches and sensitive data stored in the cloud, on average only 45% of this sensitive data is encrypted globally
As per Thales 2023 Thales Cloud Security Study, more than two thirds (67%) of New Zealand businesses experienced a data breach in their cloud environment during the last year, an increase on the 38% reported in 2022. In addition, human error was reported as the leading cause of cloud data breaches by over a third (38%) of those surveyed.
This comes as businesses reported a dramatic increase in the level of sensitive data stored in the cloud. Almost three quarters (70%) of businesses said that more than 40% of data stored in the cloud is classified as sensitive, compared to 57% of businesses this time last year.
Almost half (47%) ranked Software as a Service (SaaS) applications as the leading target for hackers, closely followed by data in motion (44%).
Lack of Encryption and Key Control Causes Cloud Data Concerns
Despite the reported increase in sensitive data in the cloud, the study found low levels of encryption being used by New Zealand businesses. Less than a fifth (17%) of IT professionals reported that more than 60% of their sensitive data in the cloud is encrypted. According to the findings, on average, only 45% of cloud data is currently encrypted globally.
The study also found a lack of control over encryption keys by businesses, with only 6% of those surveyed stating that they controlled all the keys to their encrypted data in their cloud environments. In addition, two thirds (64%) say they have five or more key management systems – creating increased complexity when securing sensitive data.
Multicloud Causing Operational Complexity
The adoption of multicloud continues to surge globally, with more than three quarters (79%) of organisations having more than one cloud provider.
Notably, it’s not just infrastructure that is experiencing this growth. The use of SaaS apps is also on the rise significantly. In 2021, just 4% of respondents reported their enterprises utilising over 100 different SaaS applications, while in 2023 this percentage increased to 19%.
Despite the expansion of cloud usage, a significant challenge remains. Almost two thirds (64%) expressed that managing data in the cloud is more complex than in on-premises environments – up from 45% compared to the previous year. Digital sovereignty is also front of mind for New Zealand respondents. Nine in ten (89%) expressed concerns over data sovereignty, and 64% agreed that data privacy and compliance in the cloud has become more difficult.
Pathways to Better Cloud Security
Identity and access management (IAM) is a crucial measure in mitigating data breaches, emphasising the significance of strong security practices. Encouragingly, the adoption of robust multi-factor authentication (MFA) in New Zealand has risen to 66%, indicating progress in fortifying access controls.
Surprisingly, only 40% of organisations have implemented zero trust controls in their cloud infrastructure, and an even smaller percentage (38%) utilise such controls within their cloud networks. These statistics highlight the need for greater emphasis on adopting comprehensive security measures to effectively safeguard sensitive data and enhance overall cybersecurity resilience.
Brian Grant, Regional Director, ANZ, Thales Cloud Security, says, “New Zealand is home to a dynamic multicloud landscape. As organisations continue their digital transformations, more and more sensitive data will move to the cloud. This data remains the responsibility of the enterprise customer and not the cloud service provider. Ultimately, if businesses and their executive leadership team do not take action to embed effective data security in their cloud environment, the consequence can be catastrophic.”
“While cloud environments offer many benefits, the reality is that they are complex; it takes only one small oversight to open the door to a skilled attacker. When this occurs, sensitive cloud information can be stolen or compromised, costing organisations hundreds of times more than the investment to secure the cloud data in the first place.”
“Data encryption, data access control and data-at-risk alerts are three essential security measures every organisation should have in place if they are to successfully leverage the cloud while ensuring the integrity and confidentiality of their valuable information. The growth and success of a cloud-first business today relies as much on great data security as on protecting its cash flow.”
About the 2023 Thales Cloud Security Report
The 2023 Thales Cloud Security Report was based on a global S&P Global Market Intelligence survey commissioned by Thales of almost 3000 executives with responsibility for or influence over IT and data security. Respondents were from 18 countries: Australia, Brazil, Canada, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Netherlands, New Zealand, Singapore, South Korea, Sweden, the United Arab Emirates, the United Kingdom, and the United States. Organisations represented a range of industries, with a primary emphasis on healthcare, financial services, retail, technology, and federal government. Job titles ranged from C-level executives including CEO, CFO, Chief Data Officer, CISO, Chief Data Scientist, and Chief Risk Officer, to SVP/VP, IT Administrator, Security Analyst, Security Engineer, and Systems Administrator. Respondents represented a broad range of organisational sizes, with the majority ranging from 500 to 10,000 employees. The survey was conducted in November and December 2022.
