Cloud Data Security · Topic 2 of 7

Encryption, Hashing and Key Management

CCSP data protection with encryption, envelope keys, hashing for integrity, digital signatures for non-repudiation, and keys, secrets and certificates.

  • 5 min
In a nutshell
  • Encryption by the provider with its own keys does not protect against the provider.
  • Envelope encryption: DEK encrypts data, KEK in a KMS or HSM encrypts the DEK.
  • Hashing gives integrity; digital signatures add origin and non-repudiation.

What it is

Encryption keeps data confidential, hashing proves it has not changed, and digital signatures prove who sent it. All three depend on keys, secrets and certificates being managed well, which is where most cloud failures happen.

The CCSP view is design: where to encrypt, who holds the keys, and how secrets and certificates are issued, stored, rotated and revoked.

GenerateStoreHSM or KMSDistribute and useRotateRevoke or retireDestroy

How it works

Where to encrypt

LayerExampleProtects against
Storage levelProvider encrypts disks or objectsStolen or discarded media
Volume levelEncrypted block volume attached to an instanceSnapshot and media exposure
Object or file levelEach object encrypted, possibly by the clientMisconfigured storage access, provider staff
DatabaseTransparent database encryption or field level encryptionTheft of database files; field level also limits DBA viewing
Application levelThe application encrypts before storingEveryone without application access, including the provider
In transitTLS 1.2 or 1.3Interception between components

The higher the layer, the more threats are covered and the more work the customer does. Encryption performed by the provider with keys it controls does not protect against the provider.

Envelope encryption

Large data is encrypted with a data encryption key (DEK). The DEK is then encrypted with a key encryption key (KEK), often a master key held in a KMS or HSM. Only the wrapped DEK is stored with the data.

DataDEKCiphertextDEKKEK in KMSWrapped DEK stored with ciphertext

Rotating the KEK only requires rewrapping DEKs, not re-encrypting all data. Destroying the KEK makes every DEK under it, and so all the data, unreadable, which is how cryptographic erase works at scale.

Key management principles

  • Separation: keys are stored and administered separately from the data and by different people.
  • Least privilege: distinct permissions to administer keys and to use them for encryption.
  • Rotation: on a schedule and after suspected compromise.
  • Hardware protection: master keys in an HSM, ideally validated to FIPS 140-3.
  • Backup and escrow: losing a key loses the data; archived data needs its keys kept as long as the data.
  • Logging: every key use is logged for audit.

Hashing

A hash function produces a fixed length digest from any input. A small change in input changes the digest completely, and it is not feasible to recover the input or find two inputs with the same digest.

UseHow
Data integrityCompare the digest of stored or received data with a known good digest
Evidence integrityHash forensic images at acquisition and again before analysis
Password storageSalted, slow password hashing functions, never plain fast hashes
Message authenticationHMAC combines a hash with a shared secret key

Use SHA-2 or SHA-3 families. MD5 and SHA-1 are broken for collision resistance.

Non-repudiation

A plain hash proves integrity but not origin, because anyone can compute it. A digital signature hashes the data, then encrypts the hash with the signer's private key. Anyone can verify it with the public key, and only the holder of the private key could have created it.

HMAC does not give non-repudiation, because both parties share the key and either could have created the tag.

Keys, secrets and certificates management

ItemExamplesGood practice
KeysEncryption keys, signing keysKMS or HSM, rotation, separation of duties
SecretsDatabase passwords, API keys, tokensSecrets manager, never in code or images, automatic rotation, short lifetimes
CertificatesTLS server certificates, client certificatesInventory, automated renewal, monitored expiry, prompt revocation

Secrets in source code repositories are a leading cause of cloud account compromise. Scan code and images for them in the pipeline.

Certificates are revoked through a certificate revocation list (CRL) or checked online with OCSP. An expired certificate causes an outage; a compromised one must be revoked and replaced.

A worked example

A SaaS company stores customer contracts in object storage with provider managed encryption. A large customer asks for assurance that provider staff and other tenants cannot read its contracts, and for the ability to cut off access at contract end.

The architect introduces per customer KEKs in an HSM backed KMS, with the customer able to disable its own key. Each document gets its own DEK, wrapped by that customer's KEK. Disabling the KEK at exit makes the documents unreadable, giving the customer verifiable crypto erase.

How the exam asks about this

  • "Which technique provides non-repudiation for a document?" A digital signature using the sender's private key.
  • "Why is envelope encryption used for large data sets in the cloud?" Data is encrypted with data keys protected by a master key, so rotation and revocation do not require re-encrypting everything.
  • "Where should application database passwords be stored?" In a secrets manager with rotation, not in code or configuration files.

What to remember for the exam

  • Encryption by the provider with its own keys does not protect against the provider.
  • Envelope encryption: DEK encrypts data, KEK in a KMS or HSM encrypts the DEK.
  • Hashing gives integrity; digital signatures add origin and non-repudiation.
  • HMAC authenticates a message between parties sharing a key, without non-repudiation.
  • Secrets belong in a secrets manager; certificates need inventory, renewal and revocation.
Watch out

Losing a key is the same as losing the data. Archived data must keep its keys available for the full retention period, or it becomes unrecoverable.

Common mistakes

Treating hashing as encryption. A hash cannot be decrypted; it proves integrity, not confidentiality.

Thinking HMAC proves who sent a message. Both parties hold the key, so either could have produced it.

Leaving key administration and data access with the same person. One compromised account then exposes both the data and the means to read it.

Check yourself

  • What is the difference between a DEK and a KEK?

    The DEK encrypts the data itself; the KEK encrypts, or wraps, the DEK and is usually held in a KMS or HSM.

  • Why does a plain hash not provide non-repudiation?

    Anyone can compute a hash of the data, so it proves the data is unchanged but not who created it.

  • What is the main risk of hardcoding secrets in source code?

    Anyone with access to the code or its history, including attackers who obtain it, can use the secrets to reach the systems they protect.

Topic 2 of 7 in Cloud Data Security

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