IT Support, Security & Managed IT Services Blog - iCorps

You're Responsible for That Data Breach on Microsoft 365: Here's How to Prevent It

Written by Jeffery Lauria | 2024/07/16

Keeping your Microsoft 365 accounts secure is a big deal. Microsoft makes it clear that it’s up to you and your company to protect your accounts and follow the rules. According to Microsoft's Terms of Use, you’re on the hook for any breaches that happen because of negligence, like using services improperly or not securing your account. This isn't just a theoretical risk; companies have faced severe consequences for not following security best practices.

Prevention is Key

Cloud Vendors Hold Customer Responsible

Microsoft’s Terms of Use cover services like Microsoft 365 and spell out what you need to do to prevent data breaches. They say you're 'entirely responsible for maintaining the confidentiality of your password and account' and for 'any and all activities that occur under your account.' This means you’re liable for unauthorized access or misuse if it happens because you didn't follow good security practices. Other cloud providers like AWS also follow a Shared Responsibility Model, where they secure the cloud, but users must secure what's in the cloud.

Best Practices for Securing Microsoft 365

To avoid security incidents, here are some easy steps you can take to keep your Microsoft 365 accounts safe:

1. Enable Multi-Factor Authentication MFA
MFA adds an extra layer of security by requiring two or more ways to verify your identity. This makes it much harder for hackers to get in.

2. Regularly Update Passwords
Use strong, unique passwords and change them regularly. Avoid obvious choices and think about using a password manager to keep track.

3. Use Conditional Access Policies
These policies control how and when users can access your resources, adding another layer of protection.

4. Conduct Regular Security Training
Keep your team up to date on the latest security threats and how to avoid them. Human error is often the weakest link in security.

5. Monitor and Audit Logs
Keep an eye on logs for any unusual activity. This helps catch potential security breaches early so you can act fast.

6. Implement Data Loss Prevention DLP Policies
DLP policies help prevent the accidental sharing of sensitive info, making sure critical data stays within your organization.

Real-World Security Breaches

MOVit File Transfer Breach
In May 2023, the MOVEit file transfer tool, used by companies like Sony and IBM, was hit by the CL0P Ransomware Gang. This attack led to significant data breaches affecting millions of users showing how crucial it is to keep software updated and secure. The breach caused serious damage to the reputation and finances of the affected companies.

Capital One Breach 2019
A misconfigured firewall in Capital One's AWS environment exposed sensitive data of millions of customers. This breach cost Capital One over $80 million in fines and significant costs for fixing the problem and legal fees. It’s a clear reminder of how important it is to set up your cloud services correctly and stay vigilant.

Optus API Breach 2022
Optus, an Australian telecom company, faced a major breach due to an unsecured API that exposed personal data of up to 9.8 million users. The breach led to significant reputational damage, customer loss, and financial hits, including payouts to affected customers and potential regulatory fines.

Vendors Suing Customers

Blackbaud 2020
In 2020, Blackbaud, a cloud computing provider, faced a ransomware attack affecting many organizations. After the breach, Blackbaud was sued by customers for not securing their data properly. Blackbaud also sued customers, claiming their poor security practices contributed to the breach. This case shows the mutual responsibility between service providers and users and the serious financial and legal consequences of data breaches.

Impact on Small Businesses

Small Law Firm Breach 2023
In March 2023, a small law firm was targeted by a phishing attack on its Microsoft 365 accounts. The attackers accessed sensitive client information, leading to a significant loss of client trust and revenue. The firm also faced legal fees and potential fines for not complying with data protection laws. This incident highlights how critical cybersecurity is for small businesses and the severe impact breaches can have on them.

Other Cloud Providers and User Responsibility

Microsoft isn’t the only company that holds users responsible for security breaches. The AWS Shared Responsibility Model explains that while AWS secures the cloud, users must secure what’s in the cloud. Verizon and Capital One are just two examples where user mistakes led to major data breaches. These cases highlight the need for proper setup and user responsibility in managing cloud security.

Conclusion

Microsoft provides tools to help you secure your data, but the ultimate responsibility lies with you. By following best practices like enabling MFA, updating passwords, using conditional access policies, conducting regular security training, monitoring audit logs, and implementing DLP policies, you can significantly improve the security of your Microsoft 365 environment. Ignoring these areas puts your data at risk and can make you liable for breaches. For more details on your responsibilities and Microsoft’s terms, visit the Microsoft Terms of Use.

Securing your data is a shared responsibility. Stay proactive and follow these best practices to protect your organization from potential breaches. Need help securing your business's Microsoft 365? A certified Microsoft Competency Partner like iCorps can help. Schedule a meeting with one of our experts today.

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