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What Are the Leading Causes of Cloud Data Breaches?

Businesses of every size are moving critical applications and data to the cloud, but cloud adoption also introduces new security risks. Recent research shows that cloud misconfigurations, limited visibility into cloud environments, inadequate security controls, and lack of internal expertise are among the most common contributors to cloud data breaches. According to a study cited by SentinelOne, 70% of cloud breaches will originate from compromised identities, not software flaws. Human error and misconfigurations will account for nearly 95% of cloud security failures in 2026.

In this article, we'll cover:

  1. Why are cloud data breaches increasing?
  2. How Do Cloud Misconfigurations Lead to Data Breaches?
  3. Are Small Businesses Targets for Cybercriminals?
  4. How Can Businesses Reduce the Risk of a Cloud Data Breach?
  5. What Is a Secure Managed Services Approach?

 

Our experience is that too often small to medium-sized businesses are under the impression that they're too small for hackers to worry about—that incidents like the ones you hear about in the news won’t happen to them. They feel like they can fly under the radar. That is clearly not the case as the data suggests. 

 

Brian Trudeau, VP of Centre Cloud Hosted Services at Centre Technologies

For small and midsize businesses, these risks are often amplified by limited internal IT resources, growing compliance requirements, and increasingly sophisticated cybercriminals targeting organizations that may have weaker security defenses.

 

Why Are Cloud Data Breaches Increasing?

Cloud data breaches continue to rise because organizations are managing more cloud applications, more data, and more user access points than ever before. While cloud platforms provide powerful security capabilities, those protections depend on proper configuration and ongoing management.

Common factors that contribute to cloud breaches include:

  • Misconfigured cloud environments
  • Excessive user permissions
  • Weak security monitoring
  • Lack of visibility into cloud activity
  • Inadequate employee security training
  • Unmanaged third-party applications
  • Insufficient incident response planning

Many organizations mistakenly assume that cloud providers are responsible for all aspects of security. In reality, businesses share responsibility for protecting their data, users, and configurations.

 

How Do Cloud Misconfigurations Lead to Data Breaches?

Misconfigurations remain one of the most preventable causes of cloud security incidents. A cloud environment may contain publicly exposed storage, improperly secured databases, open network ports, or permissions that grant users more access than necessary.

64% of organizations say they'd design their cyber security strategy with a single-vendor platform that will unite application, network, and cloud security.

Without continuous visibility and monitoring, security gaps can remain undetected for extended periods, creating opportunities for attackers.

 

Are Small Businesses Targets for Cybercriminals?

Yes. One of the most dangerous cybersecurity myths is that small businesses are too small to attract attackers.

While large enterprise breaches often dominate the headlines, small and midsize businesses are frequent targets because they typically have fewer cybersecurity resources, less mature security programs, and smaller internal IT teams. Cybercriminals often look for the easiest path to success, making organizations with unaddressed vulnerabilities attractive targets.

 

How Can Businesses Reduce the Risk of a Cloud Data Breach?

Reducing cloud security risk requires a combination of technology, processes, and expertise. Organizations should focus on:

Establishing Secure Cloud Configurations

Cloud environments should be built using security best practices and regularly reviewed for misconfigurations, policy violations, and compliance concerns.

Implementing Layered Security Controls

A layered security strategy helps protect against multiple attack vectors by combining endpoint protection, identity security, monitoring, backup, and threat detection capabilities.

Improving Visibility Across Cloud Environments

Organizations need continuous monitoring and reporting to identify vulnerabilities, suspicious activity, and unauthorized access before they become major incidents.

Training Employees

Employees remain one of the most common attack vectors. Ongoing security awareness training helps reduce the likelihood of phishing attacks, credential theft, and user-related security incidents.

Partnering with Security-Focused IT Providers

Many businesses rely on managed IT providers for technology support. However, organizations should ensure their provider incorporates cybersecurity, compliance, cloud expertise, and proactive risk management into their services rather than simply delivering traditional help desk support.

 

What Is a Secure Managed Services Approach?

A Secure Managed Services model combines traditional IT support with cybersecurity, cloud expertise, and proactive risk management. Rather than addressing technology issues only after problems occur, this approach helps organizations continuously strengthen their security posture through monitoring, threat prevention, cloud governance, and strategic guidance.

Businesses that adopt a security-first approach are often better positioned to detect threats earlier, reduce risk, improve compliance, and maintain business continuity.

We believe a "Secure by Default" approach is the most effective way to ensure our partners implement a security foundation that addresses both technology and people risk. Collaboration between Centre's managed, cloud and security experts ensures a diverse set of vectors are considered in the development of Centre's multi-layer security blueprint.

 

Craig Cheatham, Chief Information Officer at Centre Technologies

 

Key Takeaways

  1. Cloud misconfigurations remain a leading contributor to data breaches.
  2. Many organizations lack sufficient visibility into cloud vulnerabilities and security incidents.
  3. Small and midsize businesses are common cyberattack targets.
  4. Layered security controls, cloud governance, and ongoing monitoring are critical for reducing risk.
  5. Working with a security-focused managed services provider can help organizations address gaps in people, processes, and technology.

 

Frequently Asked Questions

What is the most common cause of a cloud data breach?

Cloud misconfigurations are among the most common causes of cloud security incidents and data exposure.

Can small businesses experience cloud data breaches?

Yes. Small and midsize businesses are frequently targeted because they often have fewer cybersecurity resources than larger enterprises.

How can companies improve cloud security?

Organizations should implement layered security controls, continuously monitor cloud environments, regularly review configurations, and provide employee security training.

Do managed services providers improve cloud security?

Security-focused managed services providers can help organizations strengthen cybersecurity, improve visibility, reduce risk, and maintain compliance requirements.

Originally published on July 21, 2026

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About the author

Cloud Solutions
Cloud Solutions
Organizations partner with Centre to harness the benefits of cloud services and minimize the cost. Centre’s cloud services deliver comprehensive planning and dedicated support so customers can choose, navigate, and secure their cloud journey with confidence. With a focus on personalized solutions, Centre’s certified experts help customers achieve their business goals through public cloud services, private hosting options, or a combination of both.

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