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Outsourced KMS (the cloud service provider owns the keys): Cloud vendors will say that all your
data and files are secured and encrypted. That’s good – except if the provider or your account
credentials to the provider get hacked (as it did in Uber's case with AWS). Your files may be
encrypted, but if you’re storing your encryption keys with them, then the attacker can decrypt
everything if their attack gains access to your keys as well.
Cloud KMS (you own the keys but they’re stored in cloud software): A software-based, multi-
tenant cloud KMS is especially ill-suited for cryptographic key management. Since hardware
resources are shared across multiple clients, there’s a higher level of insecurity to the protection
of these keys – the Spectre and Meltdown vulnerabilities are testament to this.
Cloud HSM (you own the keys but they’re stored in cloud hardware): The “gold standard” for
protecting encryption keys are secure cryptoprocessors - hardware security modules (HSM) and
trusted platform modules (TPM). Although certain risks are mitigated by using a cloud-based HSM
or TPM, the fact remains that in the cloud, even applications that use secure cryptoprocessors
are still part of a multi-tenant infrastructure. Between attacking a purpose-built hardware
cryptoprocessor or an application running in a multi-tenant environment, the application is always
the easier target from an attacker’s point-of-view.
Obey the Laws
Even if you trust the cloud to provide all of the industry buzzwords about perimeter security with next-
generation firewalls, intrusion detection, and other protective measures, securing the core elements your
business depends on – sensitive data and files – against breaches requires encryption using the
fundamental “Laws of Cryptographic Key Management”:
1. Cryptographic keys must be protected under the control of secure cryptoprocessors (HSM/TPM).
2. Cryptographic keys must be under the exclusive control of multiple key custodians within a single
organization.
3. The parts of the application that use cryptoprocessors to operate on sensitive data must not execute
within public multi-tenant environments – not only is sensitive data already unprotected in the multi-tenant
environment, but so are the secrets that authenticate the application to the cryptoprocessor, potentially
leading to the breach of encrypted data using the secure cryptoprocessor in the attack.
Unfortunately, no currently designed public cloud can meet these essential requirements. Organizations
that leave security solely in the hands of cloud providers could be in for a rude awakening.
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