August 2, 2016 By Larry Loeb 2 min read

Blue Coat Elastica Cloud Threat Labs released the latest edition of the Shadow Data Report on cloud file storage, which covers the first half of 2016.

The research focused on the risks enterprises face when they adopt popular cloud file storage and sharing apps. Researchers analyzed more than 15,000 enterprise cloud apps as well as 108 million enterprise documents stored and shared within these apps.

They also considered the types of data that enterprises will expose in this kind of cloud use. The report found that most apps fail to achieve compliance with common but recently adopted U.S. and European standards, such as SOC 2 and the General Data Protection Regulation (GDPR).

Cloud File Storage in the Shadows

The report declared that shadow data, which refers to “unmanaged content employees store and share across cloud apps,” Blue Coat stated, poses a “major threat.” It also found that 23 percent of this shadow content was being “broadly shared among employees and external parties.” Even a sanctioned app — such as Microsoft Office, for example — can be misused by an employee.

Surprisingly, the report also found that organizations run about 20 times more cloud apps than they estimate. Most use an average of 841 across their extended networks.

“The vast majority of business cloud apps we analyzed do not meet enterprise standards for security and can put companies at risk for compromise, even though virtually every enterprise uses them,” said Aditya Sood, Ph.D., director of security and Elastica Cloud Threat Labs at Blue Coat. “Understanding which cloud applications your employees are adopting and using is an important step to identifying which apps are business ready and which apps need to be replaced with more secure alternatives.”

Failing to Meet SOC 2 and GDPR

Blue Coast also judged that “95 percent of enterprise-class cloud apps are not SOC 2 compliant.” That could be true, especially since SOC 2 is not yet widely implemented.

The 2016 report now includes analysis into whether apps are meeting the stringent GDPR guidelines currently being rolled out in the EU. It found that 98 percent are not ready for GDPR. As with SOC 2, no criteria for these judgments was evidenced in the report.

Meaningful changes in the cloud storage of data can only help an enterprise trying to determine its security perimeter with more effectiveness.

More from

Hive0137 and AI-supplemented malware distribution

12 min read - IBM X-Force tracks dozens of threat actor groups. One group in particular, tracked by X-Force as Hive0137, has been a highly active malware distributor since at least October 2023. Nominated by X-Force as having the “Most Complex Infection Chain” in a campaign in 2023, Hive0137 campaigns deliver DarkGate, NetSupport, T34-Loader and Pikabot malware payloads, some of which are likely used for initial access in ransomware attacks. The crypters used in the infection chains also suggest a close relationship with former…

Unveiling the latest banking trojan threats in LATAM

9 min read - This post was made possible through the research contributions of Amir Gendler.In our most recent research in the Latin American (LATAM) region, we at IBM Security Lab have observed a surge in campaigns linked with malicious Chrome extensions. These campaigns primarily target Latin America, with a particular emphasis on its financial institutions.In this blog post, we’ll shed light on the group responsible for disseminating this campaign. We’ll delve into the method of web injects and Man in the Browser, and…

Crisis communication: What NOT to do

4 min read - Read the 1st blog in this series, Cybersecurity crisis communication: What to doWhen an organization experiences a cyberattack, tensions are high, customers are concerned and the business is typically not operating at full capacity. Every move you make at this point makes a difference to your company’s future, and even a seemingly small mistake can cause permanent reputational damage.Because of the stress and many moving parts that are involved, businesses often fall short when it comes to communication in a crisis.…

Topic updates

Get email updates and stay ahead of the latest threats to the security landscape, thought leadership and research.
Subscribe today