As Australian organisations embrace the cloud, adoption has accelerated with a growing reliance on Amazon Web Services (AWS) to host critical workloads and data. According to the ABS, 59% of Australian businesses reported using cloud technology as of January 2024, with much of this data being stored by cloud giants such as AWS and Microsoft Azure. The most reported information and communications technologies (ICTs) used were cyber security software (63%), internal digital platforms (41%) and public digital platforms (38%). However, with this growing reliance comes risk, and while AWS hosts a raft of security features, vigilance starts with your organisation.
Vigilance is a security-conscious mindset that starts with a shared responsibility between the user and AWS. While AWS secures the underlying infrastructure, customers are responsible for securing what they run in the cloud. Failing to address common security gaps such as misconfigurations, weak access controls, and a lack of visibility can leave your environment vulnerable to breaches, compliance violations, and data loss.
AWS environments can expose businesses to costly threats without a strong security strategy. In this blog, we explore the top 10 AWS security risks you need to be aware of, how to identify vulnerabilities and practical steps you can take to strengthen your defences.
1. Inadequate Identity and Access Management in Cloud Security
Weak Identity and Access Management (IAM) is a significant vulnerability in AWS environments. Common missteps include:
- Assigning overly broad permissions
- Using root accounts for daily tasks
- Failing to enforce multi-factor authentication (MFA)
- Avoid the use of persistent credentials by using IAM roles over IAM users
Such practices expose critical assets to potential compromise. Follow AWS best practices by applying the principle of least privilege, assuming roles for short-term access and enforcing MFA for all users. Don’t forget to routinely audit IAM roles and permissions (for example, by using IAM Access Analyser) and monitor API activity for suspicious actions.
2. Misconfigured S3 Buckets and Data Protection Failures
Misconfigured S3 buckets remain one of the leading causes of cloud data breaches, as evidenced in a recent Football Australia data breach, which opened access to 127 digital storage containers. Allowing public access or failing to apply encryption leaves sensitive information open to unauthorised access, data leakage, and regulatory fines.
Strengthen S3 security by blocking public access at the bucket and account level, enabling default encryption, applying strict bucket policies, and using tools such as AWS Security Hub and AWS Config Rules to detect misconfigurations.
3. Insufficient Logging and Monitoring for Threat Detection
Without proper logging and monitoring, organisations are flying blind in detecting breaches or unusual behaviour. Lack of visibility delays threat response and complicates forensic investigations.
As such, your organisation should establish continuous monitoring and threat detection to stay abreast of potential intrusions. Centralised logging strategies and integrating logs into a specialist Security Information and Event Management (SIEM) system also support proactive alerts and maintain the information needed for forensic analysis after an incident.
4. Unpatched Vulnerabilities and Compliance Challenges
Unpatched vulnerabilities are a favourite entry point for attackers. Cloud environments often involve numerous services and dependencies, and rapid deployment cycles can lead to gaps in patch management at both the infrastructure and application levels. When known flaws remain unaddressed, attackers can exploit them using publicly available tools, resulting in data breaches, service disruption, or privilege escalation.
Apply automated patching solutions like AWS Systems Manager Patch Manager. Regular vulnerability assessments across workloads are conducted using tools such as Amazon Inspector. Maintain an accurate asset inventory and/or SBOM and prioritise high-risk vulnerabilities for immediate remediation.
5. Overly Permissive Security Groups and Access Risks
Security Groups should act as firewalls, but overly permissive rules, like open access from all IP addresses, can inadvertently expose systems to attack.
Implement tightly scoped Security Group rules, limit access to trusted IPs or Security Groups, and conduct regular reviews to eliminate redundant or risky permissions. Leverage network segmentation to isolate critical resources further and automation to remove high-risk rules.
6. Poorly Managed Third-Party Integrations and Supply Chain Security Risks
Third-party integrations and marketplace solutions enhance AWS environments but can introduce unvetted risks. Insecure APIs, excessive permissions, or compromised vendors can act as backdoors.
Vet all third-party providers for their security posture, grant only the minimal necessary permissions, monitor third-party activities and routinely reassess their security compliance.
7. Weak Incident Response Planning in Cloud Environments
Inadequate incident response planning leaves organisations vulnerable to prolonged breaches and increased damages. Without a predefined and tested incident response workflow, teams often struggle to coordinate effectively during an attack, delaying containment and recovery efforts. Many cloud environments lack clear response protocols and the ability to maintain or access data for forensics.
Develop and maintain a cloud-specific incident response plan, train key personnel with tabletop exercises, and ensure immediate access to critical logs and tools. Engage AWS support services when necessary for major incidents.
8. Insecure APIs and Endpoints Increasing Attack Surfaces
Unsecured APIs can significantly expand an organisation’s attack surface. Common pitfalls include weak authentication, excessive exposure, and lack of input validation.
Implement strict authentication and authorisation controls for APIs, validate all input and output, enforce rate limiting, and use the AWS Web Application Firewall to reduce the risk of API exploitation.
9. Misconfigured Serverless Applications and Lambda Permissions
Serverless platforms like AWS Lambda introduce new risks if functions are misconfigured. Common mistakes include overly broad IAM roles and insufficient runtime protections.
Assign minimum necessary permissions to Lambda functions, validate and sanitise all inputs, apply environment-specific settings, and use AWS security services such as Amazon GuardDuty to identify potential threats to serverless applications.
10. Lack of Data Encryption and Cloud Compliance Issues
Data without encryption will render data at risk. A lack of encryption undermines data security and breaches compliance obligations under standards like the Australian Privacy Act.
Implement encryption at rest and in transit using AWS-native services like AWS Key Management Service. Audit encryption policies and ensure encryption keys are regularly rotated and managed securely.
Conclusion
AWS provides extensive cloud capabilities that can streamline and strengthen Australian businesses. However, these advantages come with significant security risks that demand attention. Organisations can improve cloud resilience and maintain stakeholder trust by addressing identity threats, S3 misconfigurations, and third-party vulnerabilities. AWS provides over 50 security services, but you must configure them and respond when they tell you something!
A security-first approach ensures regulatory compliance and your cloud environment’s long-term sustainability and success.
RedBear Can Help Strengthen Your AWS Security Posture
RedBear has the specialist expertise to help your organisation minimise incidents and strengthen your AWS security posture. As AWS Security Incident Response and MSSP Specialists, we deliver tailored guidance, proactive strategies, and advanced tools to prepare your team and environment for potential threats.
Visit our AWS Security Incident Response page to learn how we can help you build a secure and resilient AWS environment.
