The unseen risks of cloud data sharing and how companies can safeguard intellectual property

By Saloni Jain, Co-Founder at Plus91Labs

Cloud collaboration has become the engine of innovation in the digital age. It offers unparalleled perks for storing and sharing data across teams, geographies, and devices. Nonetheless, as firms embrace the cloud’s flexibility, they also expose themselves to subtle yet serious risks. These include the loss, theft, or unintended exposure of their intellectual property (IP). Moreover, cloud data sharing presents novel challenges as businesses continue to adopt cloud data sharing. This necessitates dedicated effort from companies in order to secure their intellectual property in a cloud-first future.

The Cloud’s Double-Edged Sword

Cloud computing offers various advantages to businesses. Some of these include enhanced productivity through real-time access, seamless collaboration, and extensive storage capabilities. As per the Gartner report, the use cases of the cloud are increasing. They are focusing more on distributed, hybrid, cloud-native, and multicloud systems supported by a cross-cloud architecture. Furthermore, the cloud market is set to achieve a 21.5 per cent growth in 2025. The study also predicts that 90 per cent of organisations will adopt a hybrid cloud approach by 2027. However, with this rapid shift comes an underexplored downside- the vulnerability of intellectual property (IP) when shared across cloud platforms.

The decentralised nature of the cloud means that data is not stored on a single and secure device. Rather, it is distributed across various servers and systems globally. Such a scenario makes it challenging for firms to control and monitor. This leads to the development of a potential vulnerability. While cloud service providers (CSPs) ensure the security of their infrastructure, the responsibility of securing the data itself lies with the business. This gap in responsibility is often where companies fail to address crucial security disparities.

Intellectual Property Theft: A Rising Concern

For many technology-driven sectors, intellectual property lies at their core. This is particular to the fields of software development, pharmaceuticals, and design innovation. For companies in these fields, IP theft can have serious consequences. Unfortunately, cybercriminals increasingly target valuable IP because it can be sold or used to undermine the original creators. According to the Verizon 2025 Data Breach Investigation Report, nearly 97 per cent of these attacks in the Asia-Pacific region are fuelled by social engineering, system intrusion and web app attacks. This alarming trend highlights the urgent need for stronger data protection measures.

But what’s even more concerning is that the involvement of the human element in these breaches remains high. Employees frequently pose the greatest threat to a company’s confidential information, whether as a result of negligence, dissatisfaction, or collaboration with external hackers. This can happen if employees continue to access their systems even after leaving the organisation or because they were able to retain passwords to systems they previously accessed.

Additionally, mistakes such as sending sensitive documents to the wrong recipient contribute to the rising number of breaches. Not only this but data security has turned even more difficult as work becomes more mobile- many professionals use personal devices for work-related duties.

The Hidden Risks of Cloud Misconfigurations

One of the most common causes of cloud-related data breaches is misconfiguration. In cloud environments, there exists a “shared responsibility model”. While the cloud provider ensures the security of the underlying infrastructure – it is up to businesses to manage their data, applications, and security settings. According to the IBM Cost of a Data Breach report, cloud misconfigurations account for 12 per cent of breaches. These gaps can allow cybercriminals to scan and access unsecured data. For example, assailants may exploit the opportunity to pilfer sensitive documents by leaving a storage container exposed to the internet. This is usually dangerous, as these misconfigurations are often not identified until it’s too late.

Cloud Security: Encryption as a Key Defence

While cloud platforms present unique challenges for securing IP, they also offer some potential solutions. One of the most effective ways to protect data is through encryption. Encrypting files before they are uploaded to the cloud ensures that even if unauthorised access is gained, the data remains unreadable without the proper decryption key.

For organisations that rely on cloud platforms for collaboration, file-level encryption is crucial. This form of encryption ensures that sensitive data is protected not just at rest but throughout its entire lifecycle in the cloud. Many cloud platforms offer built-in encryption tools, but companies can also implement third-party solutions to enhance the protection of their intellectual property.

Strengthening Cloud Security with Access Management and Monitoring

Encryption is a vital tool, but it should not be seen as a catch-all solution. Robust access management practices are also essential for securing sensitive data. Companies should enforce a “need-to-know” policy, ensuring that only authorised employees have access to specific types of intellectual property.

In addition to defining access controls, organisations should leverage advanced monitoring tools to track user activity. By maintaining an audit trail, companies can identify who accessed a document, when it was accessed, and what actions were taken. This level of visibility is essential for detecting unusual or unauthorised access patterns in real-time.

Having the ability to revoke access quickly—particularly in cases of a disgruntled employee or a lost device—is crucial for maintaining control over sensitive IP. Immediate access revocation, paired with real-time monitoring, enables companies to respond to potential breaches before they escalate.

Conclusion: Embracing the Cloud with Caution

The cloud has transformed how businesses collaborate and innovate, offering unparalleled flexibility and efficiency. However, the ease of sharing and accessing data in the cloud also brings significant risks—especially regarding the security of intellectual property. Organisations must recognise the potential dangers of cloud data sharing and implement robust security practices to safeguard their most valuable assets.

By adopting encryption, implementing strong access management, and monitoring cloud environments, companies can significantly reduce the risk of IP theft, loss, or exposure. With the right security measures in place, businesses can confidently leverage the cloud’s potential without compromising their intellectual property. As businesses increasingly depend on their IP for competitive advantage, the need for effective cloud security will only continue to grow.