Secure Your Data With Cloud Data Encryption

As cyber threats become ever more sophisticated, layers of security best practices come together to form a data fortress that protects not only the information within it but also a business' brand and reputation. Cloud data encryption is one of the foundational layers of this protection, safeguarding sensitive data and playing a crucial role in your cyber resilience strategy.

Advanced cloud encryption features, like Wasabi's server-side encryption, simplify security management, streamline authorization controls, and support regulatory compliance. In this blog, learn about the basics of cloud encryption and how it protects your data and organization.

Why cloud data encryption is important

Cloud computing has become the backbone of business operations, making cloud environments prime targets for cyber attacks. Organizations, customers, and all users need to have complete confidence that their information isn’t misused or lost. Cloud data encryption is a technical necessity and a strategic business imperative.

It’s not just about the cost of a data breach, which can run into the millions in lost business, legal fees, and lawsuits. Everything is on the line. A recent massive data breach involving billions of people's records across North America led to the bankruptcy and closure of National Public Data, the company responsible for safeguarding the data.

And it’s not just threats from outside the fortress that keep IT security managers up at night. Inside threats from disgruntled employees or someone accidentally falling victim to a phishing scheme might also lead to data exposures. Stringent data and cloud encryption practices coupled with strong authorization policies such as Multi-Factor Authentication (MFA), Multi-User Authentication–an exclusive Wasabi feature, and unique identity and access management (IAM) mean data cannot be accessed without the right person holding the decryption keys.

General data protection and industry-specific regulations impact nearly all information shared on the web, meaning all organizations should comply with at least some standards. The General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) describe how personally identifiable data must be stored and used, while laws like Health Insurance Portability and Accountability Act (HIPAA) and Payment Card Industry Data Security Standard (PCI DSS) govern how healthcare and financial information are managed.

Using cloud encryption standards ensures data isn’t altered or corrupted and helps organizations avoid fines or damage to their reputation.

Data encryption basics

Proactively deploying data encryption can be a major strategic move. It shows your commitment to privacy and security and builds trust among clients and stakeholders, indicating you’re a modern, cloud-savvy organization. But what are the fundamentals of cloud encryption?

Encryption converts data from readable text, also known as plaintext, to a coded form that prevents unauthorized access. Only those who have the right key will be able to decipher the data at its endpoint. Cloud encryption ensures data is secured before it’s stored in a cloud provider’s server or moved throughout cloud-based transactions and environments. Full end-to-end encryption secures data at every point along its path so that no one can access it except the sender and recipient.

Data is encrypted in two basic forms:

• Data at rest: Data currently not in use but stored in some form, such as on a physical drive, in a database or on a cloud server, is protected if those devices are compromised, lost, or stolen. Encrypted data at rest cannot be accessed without a decryption key, rendering the storage device useless to thieves.

• Data in transit: Sensitive information is protected as it moves out of storage devices, between cloud services, or across the Internet. If anyone intercepts information on the network, it will be unreadable without the correct key, guarding against man-in-the-middle and phishing attacks.

How does cloud encryption work?

Cloud encryption takes data encryption to the next level, bringing companies and service providers together in a shared security responsibility model to protect information as it’s managed and used in cloud environments. Organizations and cloud providers spell out the policies and technologies they’re responsible for to create an effective security plan.

Identify encryption needs before you hit the cloud

Start the encryption process before you store any data. Identify and classify information—are you managing financial records, proprietary business data, or personally identifiable information? Is your data crucial to operations? In other words, would a data breach result in critical downtime or a government fine? Encrypt only what needs protecting to optimize resources and maximize security.

Once you know what needs to be encoded, choose the right encryption standards to stay secure while maintaining reliable network performance. Then encrypt data before it’s transmitted and stored in the cloud using a compliant, robust process like AES256-bit encryption.

Key management in cloud encryption: ensuring security and accessibility

When someone is handed the keys to the kingdom, they have free rein and control. Encryption key management is paramount for data security. Who do you let hold your keys?

If organizations store and encrypt data on-prem, they fully control their keys in-house. Cloud encryption involves managed services by a provider, which means key management can be divided.

For example, Wasabi automatically encrypts all data at rest and employs server-side encryption with customer-provided keys (SSE-C). Wasabi manages the encryption as data is written to disks and decryption when you access your objects. In this way, organizations only manage their own encryption keys, which gives them more control over their security while reducing exposure and complying with strict data regulations like the GDPR.

Dedicated key management systems should separate the keys from the data they protect, adding another layer of security.

Cloud encryption methods 

Two common encryption methods offer specific benefits and points to consider before you begin:

• Symmetric encryption uses a single key to encrypt and decrypt data. This method efficiently encrypts large batches of data in archives, but databases can be vulnerable if the key becomes compromised.

• Asymmetric encryption uses two keys, a public encryption key and one for private decryption, which works well for securing specific data and private communications between two parties. However, it’s less suitable for large databases because of the network lag time that can be introduced.

Instead, companies and cloud providers can take a hybrid approach, using symmetric encryption to secure data and asymmetric techniques to encrypt the key.

Another process, tokenization, is a complementary strategy that works alongside cloud encryption. Sensitive data is replaced with random values, or tokens, that are meaningless without the key. Using tokens helps streamline encryption processes and also simplifies key management.

In cloud security, the tokens safeguard critical data while allowing less sensitive information to move around freely as needed. Think of a bank with a physical vault housing safe deposit boxes. Anyone can walk around the general bank area, but several layers of protection are in place before authorized visitors can access the vault. And once there, they’ll only be able to get into their box with the correct, confirmed credentials. The safe deposit box is the token protecting the visitor’s most valuable data.

Challenges to cloud data encryption

Organizations can maintain strong security measures while mitigating impacts on network performance. Standard algorithms and protocols efficiently encrypt data and, when combined with hardware, optimize data processing times to limit network lag.

Cloud architecture can also be optimized to distribute encryption and decryption tasks, avoiding bottlenecks through any one network server. Data itself could be compressed to reduce size or deployed through cache functions to keep information closer to where it will be used, limiting how many times it needs to go through an encryption/decryption cycle.

Just as organizations must ensure integration within their systems, encryption services must be navigated across complex multicloud environments. Encryption standards for data in transit, automated network optimization protocols, and robust key management techniques all ensure data is secure and travels seamlessly to the right endpoint.

Cloud encryption implementation best practices 

All technology shares the same common vulnerability: human interaction. The most secure data won’t be of any use if the people who own it and use it don’t understand how or why they’re protecting it. Robust encryption policies empower employees on the front line of defense against data breaches.

Additional measures to ensure your data remains safe include:

• Activating compliance monitoring tools to audit data encryption processes regularly.

• Establishing policies on handling data, authorization practices, and encryption steps.

• Creating risk assessment and incident response plans to find threats and react to potential breaches proactively.

• Training staff on data classification and authorized access management systems and providing ongoing education on data stewardship principles and security best practices.

Safeguard your data and peace of mind with Wasabi 

Security decisions come at you fast, and you must be as agile as the cyber landscape demands. Cloud encryption is not only about best data security practices; it’s a crucial step toward safeguarding your company’s future, making informed decisions that protect digital assets, and leveraging compliance as a strategic brand strength.

Wasabi offers the flexibility and security that your data needs. We take a deep and extensive approach to encryption and security, following industry-best standards to protect your data, storage, and business. Our advanced features mean your data in Wasabi Hot Cloud Storage is automatically encrypted at rest, along with the server-side encryption applied on top of that. You hold the keys to your data kingdom.