Moving to the cloud has transformed the way small and mid-sized businesses work. It makes it easier to scale, cut costs, and support hybrid or remote working from anywhere. Entire teams can now collaborate in real time and access company systems around the clock. But while the benefits are undeniable, too many organisations still assume that security is automatically taken care of by their cloud provider. The truth is that cloud security is very much a shared responsibility, and failing to recognise this can leave major blind spots.
For SMBs, the impact of a security breach is far from theoretical. A single incident can undermine customer trust, cause costly downtime, and in extreme cases, threaten the survival of the business. What many companies overlook is that although cloud providers such as Microsoft secure the underlying infrastructure, businesses themselves are still responsible for managing things like user access, data protection, and compliance. Overlooking those responsibilities can create easy openings for attackers.
The positive news is that the most common security gaps are both predictable and avoidable when you know what to look out for. By understanding the most frequent mistakes and putting the right measures in place, you can lower your risk significantly. Let’s explore six of the most common pitfalls businesses face, alongside practical advice on how you can protect against them.
Gap 1: Misconfigured Access Controls And Permissions
It is surprisingly common for businesses to give employees much broader access than necessary to files, applications, or shared resources in the cloud. Often this happens out of convenience, or because it seems simpler not to set up granular controls. The problem is that excessive access makes insider mistakes or malicious actions far more damaging than they need to be.
Misconfigured permissions can also create long-term risks, especially if temporary accounts are left open, or contractors retain privileges after a project has ended. In these scenarios, your organisation may be exposed without even realising it. If one of those accounts is later compromised, attackers gain a free path to extract sensitive data.
The fix is to follow the principle of least privilege: in other words, allowing employees access only to what is strictly needed for their role. Regularly auditing and tightening permissions significantly reduces exposure, and removing unused or redundant accounts instantly reduces your attack surface. Even small adjustments can quickly make a big difference to your overall security posture.
Gap 2: Weak or Inconsistent Authentication Practices
Cloud accounts are now the front door to your business, and unfortunately, they’re also one of the easiest ways for attackers to get in. Many organisations continue to rely on single passwords, sometimes even reused across services, which makes it effortless for hackers to break in through phishing or credential theft.
Multifactor authentication (MFA) adds an important additional layer, but it’s still not universally applied across all users or devices. Even the presence of one admin account without MFA enabled creates a potentially devastating single point of failure.
Stronger defences start with basics: enforce robust password policies, remove legacy or weak authentication methods, and introduce identity management tools that streamline secure access for staff. Enforcing MFA uniformly, across both standard and privileged accounts, is one of the fastest and most cost-effective improvements you can make. When combined with awareness training to reduce the risk of phishing, you make it far harder for cybercriminals to gain an easy entry point.
Gap 3: Unsecured Data In Transit And At Rest
Cloud services are built for sharing and collaboration, but without correct safeguards, sensitive data can end up exposed. The problem is not usually the cloud infrastructure itself, but the way settings are applied and managed by the organisation using it.
Data is regularly moved between devices, locations, or networks, sometimes on personal hardware or home Wi-Fi connections, which makes encryption essential. When encryption isn’t enforced, data can be intercepted, altered, or accessed in transit. At rest, files in storage environments can also be left more exposed than intended if default or “open” permissions are unchanged.
In Microsoft 365, for example, sensitive folders can easily end up shared too widely if the default sharing level is set to “everyone.” While the intention is practical collaboration, the result could be that confidential information is inadvertently available to more people than it should be.
Preventing this comes down to building a culture of security by design. Encryption should be switched on by default, both while data is stored and while it moves. Administrative policies should also be put in place to control file sharing rights, ensuring that sensitive data does not spill beyond trusted users. These controls might feel restrictive initially, but they avoid costly mistakes and help guarantee the confidentiality of your most important information.
Gap 4: Poor Visibility And Monitoring of Cloud Environments
The cloud often feels like it is running quietly in the background, yet assuming it needs no active watch can be a costly mistake. Without proper monitoring, early warning signs of an attack, such as suspicious logins, irregular activity, or sudden permission changes, may go completely undetected until the damage is done.
Too many businesses never enable the dashboards, logs, and alerts that are already included with major cloud services like Microsoft Azure or Microsoft 365. Others do enable them but never review or act upon the notifications. The result is an environment where malicious behaviour flies under the radar, and opportunities to intervene early are missed.
Improving visibility doesn’t have to cause disruption. It starts with enabling audit logs, creating alerts for unusual events, and making sure someone is responsible for checking them regularly. Even small organisations can benefit from simple monitoring practices that build situational awareness and reduce risk. For many, the most practical option is to work with a managed service provider who can bring expertise and 24/7 vigilance, lifting the burden from internal teams while strengthening overall protection.
Gap 5: Lack of Backup and Recovery Planning
A common misconception persists that using a major cloud provider means you’re automatically covered when it comes to backups. While providers like Microsoft ensure their infrastructure is resilient, they are not responsible for restoring your files if they are deliberately or accidentally removed.
Data loss can occur in many ways: accidental deletion of critical emails, malicious actions from disgruntled staff, or ransomware encrypting your data until a ransom is paid. Without your own backup plan, recovering from these incidents is extremely difficult and often impossible.
The solution is to implement a reliable backup and recovery strategy tailored to your cloud applications. Automated backups reduce reliance on manual processes, while regular testing ensures recovery actually works in practice. In moments of crisis, having confidence that you can quickly rebuild your environment puts control back in your hands and limits interruption to business operations.
Gap 6: Ignoring Compliance and Shared Responsibility Models
Perhaps the most misunderstood aspect of cloud security is compliance. Many organisations assume that because they use a trusted cloud provider, all compliance mandates are automatically satisfied. In reality, cloud providers focus on the safety and resilience of their infrastructure, they do not carry the full burden of how you secure or manage your data.
This gap becomes particularly problematic when dealing with sensitive information, such as customer data or financial records. Non-compliance may not only bring fines or legal penalties, it can also damage your reputation and cost you opportunities with potential customers who expect proof of strong security practices.
The key to closing this gap is acknowledging the shared responsibility model. That means educating yourself and your team on what your provider covers and what remains your duty. It’s about taking accountability for your own data protection processes and demonstrating that security is not only a technical requirement but also a business commitment. By putting this responsibility into practice, you stay compliant and strengthen trust with customers and stakeholders alike.
Building a Safer Cloud Strategy
Cloud has unlocked opportunities for flexibility, resilience, and growth, but it has also created a set of responsibilities that no business can afford to ignore. The six gaps we’ve covered, misconfigured permissions, weak authentication, unsecured data, limited visibility, inadequate backup planning, and misunderstandings around compliance, are the traps most likely to cause problems if they’re left unchecked.
The encouraging message is that they are entirely preventable. SMBs don’t need to have enormous IT budgets to build effective safeguards: clear policies, consistent monitoring, and the right advice go a long way. The safest and most sustainable path often involves working with a trusted IT partner who can bridge knowledge gaps, keep watch, and ensure your cloud environment follows best practices from day one.
Cloud is not just about cost savings or convenience; it is about enabling your business to thrive with confidence. Addressing these security gaps is not optional, it is central to protecting your operations and your reputation. If you are unsure where to start, or simply want reassurance that your current setup is properly aligned to best practice, contact us to find out more about how we can strengthen your cloud journey and keep your business secure.