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Home » News & Press » Surge in Cloud Adoption Means a Greater Data Attack Surface for Healthcare and Financial Servic…
Organizations in both industries are falling short when addressing new challenges to protect data in the cloud
AUSTIN and LONDON – March 8th, 2023—New research launched today by Blancco Technology Group (LON: BLTG), the industry standard in data erasure and mobile lifecycle solutions, reveals the extent to which healthcare and financial services organizations have embraced cloud, as well as the effects cloud adoption has had on data classification, minimization and end-of-life (EOL) data disposal.
Based on a global survey of 1,800 respondents, the study, Data at a Distance, found extensive cloud adoption, thanks to the ease of managing increasing volumes of data. However, 65% say the switch has increased the volume of redundant, obsolete or trivial (ROT) data they collect.
Increasing volumes of stored data brings with it many issues and is of growing concern for organizations operating in heavily regulated markets. In addition to regulatory noncompliance risks, there are the cost and sustainability impacts of storing this data, as well as security concerns—more data means a greater attack surface and more liability in case of a breach.
Data management best practices indicate that organizations need to know what data they have collected, including its value, where it’s stored and when it needs to be permanently erased. Yet just over half of organizations (55%) can boast a mature data classification model that determines when data has reached EOL—meaning that nearly half fall short when it comes to determining when to dispose of cloud-stored data.
When asked about their cloud approaches, 60% of respondents said that their cloud provider handles EOL data for them. However, more than a third (35%) do not trust their cloud provider to appropriately manage EOL data on their behalf.
“Healthcare and financial services providers handle some of the most confidential and sensitive information possible. While they have made the move to cloud for better connectivity, digital transformation and ease of managing data, many of them are still falling short when it comes to knowing how to reduce risk and maintain compliance when that data is no longer serving a business function,” said Jon Mellon, President Global Sales, Marketing and Field Operations at Blancco.
“Covid changed working norms for all industries, and adopting cloud helped adapt to those changes. But hackers also changed their approach. The industry reported that 45% of breaches that occurred in 2022 were cloud based. Yet our research found multiple instances of insufficient practices for managing EOL data in the cloud.”
Regular assessment of data and setting retention periods is a critical and growing concern as regulatory requirements increase for the healthcare and financial services industries. The study found that 57% of organizations have a data schedule where they review different data types to determine whether data has reached end of life. But just over a quarter (28%) use the blunt approach of automatically setting a data expiration date, which is simple but ineffective: it does not consider what the data is, what it’s worth, or the risk of it getting into the wrong hands.
Healthcare and financial services organizations are, however, aware of the new challenges for managing EOL data in the cloud. In fact, 65% have found it necessary to reassess how they determine what data is no longer needed since making the switch from analog to digital. But in addition to falling short when it comes to data classification and minimization, a worrying 59% of respondents reported using processes without verified data destruction at least some of the time to deal with at least some of their EOL data. This can leave data intact and retrievable without a proper audit trail to prove proper EOL data disposal.
Best practice that may have been in place in on-premises data centers can be left behind when organizations migrate their data to the cloud. While it is standard for cloud providers to refer to data deletion or destruction processes within user agreements, the practice of receiving clear assurances that specific sensitive data has been removed for good is still in its infancy, leaving highly regulated industries vulnerable to both regulatory noncompliance and unauthorized data access threats.
Rapid covid-generated cloud adoption is bringing to light the need for organizations to rethink ownership of their data in a heavily regulated and threat-saturated market. The report lists best practices that will guide these and other data-dependent industries towards ensuring regulations are met and that they can continue to protect both themselves and their customers. For full analysis, read the report here: https://www.blancco.com/data-at-a-distance.
 (IBM, 2022): Cost of a data breach 2022: A million-dollar race to detect and respond. https://www.ibm.com/reports/data-breach
This study is based on a survey of 1,800 data retention and data disposal decision makers across the globe. Respondents are evenly split between Financial Services and Healthcare.
The survey, undertaken by independent research company Coleman Parkes between November and December 2022, gathers data from employees from six countries: the United States (U.S.), Canada, the United Kingdom (U.K.), Germany, France, and Japan. The countries represent the North America, Europe, and Asia Pacific regions in which Blancco operates.
Blancco Technology Group (AIM: BLTG), a carbon-neutral supplier, provides organizations with secure, compliant, and automated solutions that accelerate the transition to the circular economy. Each year, tens of millions of Blancco erasures allow top-tier organizations to protect end-of-life data against unauthorized access, safely redeploy data storage assets, and firmly comply with increased data protection and privacy requirements. Our precise device diagnostics help move used IT assets confidently into the circular economy, enabling enterprises, IT asset disposition (ITAD) vendors and recyclers, and mobile industry stakeholders to operate more sustainably.
Globally approved, recommended and certified by governing and industry bodies around the world, Blancco is the industry standard in data erasure and mobile lifecycle solutions. With 35+ patented or patent-pending ideas, we continue to grow the number of innovative solutions global companies can rely on to accelerate operations, secure their data, and grow their businesses. Read more about us at www.blancco.com.
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