With the increasing adoption of cloud services, organizations today store more sensitive data in the cloud than ever before. As we move into 2025, the need to protect personally identifiable information (PII) and protected health information (PHI) is more critical than ever. Between complex cloud architectures, evolving regulations, and the rise of sophisticated cyberattacks, securing this data in the cloud requires a proactive and structured approach.
Here’s a look at the best practices to protect PII and PHI in the cloud, focusing on strategies that keep data safe while helping businesses stay compliant.
Understand Your Data and Where It Lives
The first step in protecting PII and PHI in any cloud environment is knowing where this sensitive data is stored and who has access to it. In multi-cloud setups, data is often spread across different locations and services, creating challenges for security teams tasked with maintaining visibility. Without a clear understanding of where data resides, it becomes challenging to secure it effectively.
Orca’s Data Security Posture Management (DSPM) platform offers valuable tools for businesses needing complete visibility into their data across the cloud. With Orca’s DSPM, organizations can locate, classify, and monitor sensitive data without needing additional tools or manual integrations. This platform provides a comprehensive view of data risks by scanning both managed and unmanaged data, ensuring that shadow data—data that exist without being part of the formal data structure—is identified and monitored as well. You can learn more about the platform here: https://orca.security/platform/data-security-posture-management-dspm/
For any organization handling sensitive information, continuous data monitoring is crucial. Regular scanning and data inventory maintenance help security teams identify what data types are stored, where they’re located, and what risk factors are associated with each data point. By keeping a continuous check on data locations, companies can better control access and make quicker adjustments when necessary.
Limit Access with Strong Identity and Access Management (IAM)
Limiting access to sensitive data is a fundamental way to reduce the risk of unauthorized exposure. With multiple user roles and departments often accessing the same data, it’s easy for access to become too broad, increasing the chance of an internal or external breach.
Implementing strong Identity and Access Management (IAM) policies helps organizations control who can view or modify sensitive information. One effective approach is the principle of least privilege, which grants users access only to the data they need to perform their roles. Limiting access in this way prevents users from accessing unnecessary data, reducing the likelihood of accidental or malicious exposure.
It’s important to audit IAM settings regularly. These audits allow teams to review who has access to PII and PHI and make necessary adjustments, especially if any roles have overly permissive access settings. When combined with role-based access control, regular reviews of IAM settings offer an added layer of security for cloud-stored data.
Implement Data Encryption for Greater Security
Encryption is a powerful tool for protecting sensitive data, both when it’s stored and when it’s transmitted across networks. With cloud environments, encryption at both levels—data at rest and data in transit—adds a solid layer of defense against unauthorized access. If encrypted data falls into the wrong hands, it becomes much harder for anyone without the encryption key to decode the information.
For data protection in the cloud, end-to-end encryption is particularly useful. It keeps data encrypted throughout its journey, from the moment it’s created until it reaches its final destination. Managing encryption keys securely is just as crucial, as poorly handled keys can lead to data exposure. Encryption should be part of the regular data handling processes for any organization handling PII and PHI, aligning data security practices with compliance requirements as well.
Automate Compliance Monitoring and Reporting
With increasing regulations on data privacy, including GDPR, HIPAA, and CCPA, organizations need to actively monitor and report on data compliance. These regulations set strict standards for data handling, and non-compliance can lead to penalties or legal challenges. Cloud environments often require regular compliance checks to verify that sensitive data is stored and managed according to these standards.
Automating compliance checks helps organizations stay on top of these requirements. Automated compliance tools provide real-time insights into regulatory adherence, tracking compliance across all cloud platforms used by the organization. Automated systems also reduce the time needed for manual audits, allowing security teams to spot and address compliance issues more efficiently. Quick action on any compliance gaps or risks helps companies meet their obligations under various data privacy laws.
Detect and Address Misconfigurations
Misconfigurations are a common issue in cloud environments and a leading cause of data breaches. When settings are misconfigured, they can leave PII and PHI exposed to unauthorized users. For example, a storage bucket that isn’t set to private can be accessed by anyone who has the link, posing a high risk if sensitive information is stored within it.
Automated tools that scan for misconfigurations help organizations find and fix these issues quickly. These tools can monitor settings and configurations across cloud assets and send alerts when they detect potentially risky configurations. Addressing misconfigurations quickly can make a big difference in data security, as it closes gaps that might otherwise be exploited by attackers.
Adopting cloud-native solutions that offer configuration monitoring as part of a broader security strategy is a smart move. Such solutions integrate seamlessly with cloud infrastructures, making it easier for security teams to maintain secure configurations across all cloud services.
Protecting PII and PHI in the cloud is an ongoing process. Organizations need to stay proactive by understanding where data is stored, controlling who can access it, and using robust encryption practices. Implementing automation for compliance checks and configuration monitoring further strengthens the organization’s security posture, helping teams manage data more efficiently and stay compliant with regulations.
By following these best practices, companies can build a stronger foundation for securing sensitive data in the cloud. As cloud technologies and threats continue to evolve, organizations that take a forward-thinking approach to data security will be better positioned to protect their assets, meet regulatory requirements, and maintain customer trust.