Debunking the 5 biggest cloud security myths

As cloud adoption continues to grow and legacy systems become too outdated to keep pace with cybersecurity demands, misconceptions about cloud security remain a concern for organizations, especially those in highly regulated industries.

In reality, cloud security is more extensive, more scalable and more resilient than ever. With advancements in artificial intelligence (AI) and automation, modern cloud security frequently exceeds the protection of internal security protocols.  

This article debunks five of the biggest cloud security myths, providing insights into how  organizations can  confidently move to the cloud without compromising security, control or compliance. 

Myth #1: AI and automation are too complex and ineffective for cloud security

AI and automation are powerful enablers of robust cloud security. They’re key drivers in helping to scale financial institutions while maintaining effective cybersecurity measures. By leveraging advanced analytical processing to handle vast volumes of data, organizations can effectively manage load spikes while maintaining cybersecurity resilience - a critical element of scaling product and service offerings securely.  

AI elevates real-time threat detection capabilities, such as identifying unauthorized access and configuration changes, while automating responses and reducing manual intervention. Plus, AI powers automated anomaly detection and incident responses, including blocking malicious IP addresses, isolating compromised workloads and upgrading vulnerable software.

Automation has become a key factor in regulating and meeting evolving compliance checks. This is especially important when adhering to frameworks like GDPR, PCI DSS, and SOC 2 which may operate across regions and countries. AI-driven report generation also simplifies the auditing process, reducing human errors and ensuring accuracy. 

Myth #2: If my data is stored in the cloud, I may lose control

Cloud-based storage has effectively replaced data storage on local drives and is managed by third-party providers who maintain infrastructure without physical servers.

Cloud-based storage systems increase accessibility, with no restraints around location or hardware, and have advanced built-in security capabilities. Also, cloud security providers follow extensive access control protocols, enabling users to manage exactly who may review and retrieve sensitive data. Service agreements are designed to ensure data ownership always rests with the user, ensuring firm control over information.

Concerns around data sovereignty have also highlighted the need for greater data protection across territories without the loss of control.

IBM defines data sovereignty as “Data that is stored and processed in the country where it was generated”, meaning it's subject to the laws and regulations of that specific region or country. For financial institutions, data sovereignty enables control over data within specific compliance frameworks. With stricter access to data, sensitive data is better protected from malware and breaches, empowering organizations to grow with regulatory confidence. 

Myth #3: My internal security protocols are the best for data and system security

This is probably one of the most common myths about cloud computing and cloud security. Internal security protocols do offer protection against cyber threats, but cloud security that leverages AI and intelligent automation provides organizations stronger, more scalable threat protection, reducing extensive losses during breaches.

In fact, according to IBM’s Cost of a Data Breach 2024 report, organizations not using AI and automation had average breach costs of $5.72M, while those making extensive use of AI and automation had a much lower average cost of $1.88M.

AI cloud security uses advanced encryption to protect sensitive data, which is stored in multiple servers equipped with backup solutions. With machine learning, automated threat intelligence can identify potential vulnerabilities, attack patterns and irregularities. AI can contextualize and prioritize threats, minimizing human intervention.

Additionally, AI cloud security solutions automate several security tasks, such as automatically classifying security alerts and reducing alert fatigue, enabling security personnel to focus on other critical issues. By  decreasing response times, isolating affected systems, and adding additional monitoring capabilities, AI-driven cloud security limits potential damage and saves costs in the long term. 

Myth #4: Zero Trust Architecture is too complex and not feasible for cloud environments

Zero Trust Architecture (ZTA) prevents the lateral movement of cyber threats, reducing an organization's attack surface and screening all data access requests. This differs from more traditional ‘network perimeter’ security models, where users are given broad security permissions.  

ZTA has become a foundational standard for securing cloud security systems. This ‘never trust’ approach works adjacent with cloud-based systems which operate as a middleman between users and systems regardless of location and device. In fact, ZTA empowers security teams to make granular, more consistent control decisions, and is feasible for organizations of all sizes with the right tools and cloud security strategies. 

Myth #5: Cloud compliance is too complex and difficult to keep up with

Modern cloud solutions offer built-in security tools, automated monitoring and expert guidance that ensures regulatory compliance is upheld. This is particularly important as the government introduces stricter cybersecurity laws and best practice guidelines to safeguard critical industries like financial services.

Machine learning (ML) can scan cloud configurations and data flows to ensure they meet complex regulatory requirements like GDPR. ML programs can identify and classify data, flagging vulnerabilities and mapping data flows to detect fraudulent transfers. Additionally, anomaly detection powers better compliance with GDPR requirements.

AI-powered systems audit processes, compile logs, generate reports and predict potential compliance bottlenecks based on historical data, saving time, reducing human error and avoiding unnecessary penalties. 

The final word on cloud security

Cloud security has evolved to be more sophisticated, accessible and effective than ever before. Debunking common cloud security myths is essential to encourage organizations to take advantage of their AI and automation capabilities, especially in an era where real-time threat detection and compliance are as important as ever.

As financial institutions face an increasingly digital future, Finastra’s LaserPro solution operates in the cloud, positioning leaders to improve agility, accelerate closings and drive profitability. This unified loan document system is for use across commercial, consumer and mortgage portfolios.

Want to learn more about LaserPro and its cloud capabilities? Watch our recent webinar ‘Streamline your document workflow with cloud technology’.