Category: Cybersecurity

Imagine shipping out thousands of packages, trusting that customer information is safe—only to find out that 14 million shipping labels were exposed due to a preventable security flaw.

That’s exactly what happened in the latest Hipshipper data breach. A misconfigured AWS cloud storage bucket left sensitive customer names, addresses, and tracking details open to the public. Let me explain how that can happen.

What Is an AWS Cloud Storage Bucket?

An AWS cloud storage bucket is a safe and scalable container in Amazon S3. It’s widely used in industries like e-commerce and cloud computing. Many businesses use it to store and manage data like images, documents, and backups. In other words, companies use it as a digital storage unit to store, retrieve, and organize data remotely.

If security settings are wrong, these buckets can be open to the public. This exposes sensitive data to cybercriminals. That’s precisely what happened in the Hipshipper breach, where an unprotected AWS bucket leaked 14 million shipping records.

For SMBs, this is a warning that cybersecurity strategies are critical to keep data safe.

How Misconfigurations Cause Data Breaches

A misconfigured AWS bucket means the security settings are wrong. This could mean that default settings were left unchanged or permissions were incorrectly assigned. This makes the data available to anyone, even without logging in. Common mistakes include:

• Setting buckets to public instead of private.
• Not using encryption to protect sensitive data.
• Granting too many permissions to users or applications.
• Not monitoring access logs for unusual activity.

How Businesses Can Secure Their AWS Buckets

Data leaks can be expensive. Small to medium-sized businesses (SMBs) using AWS should begin using these security best practices:

• Set buckets to private by default.
• Review access permissions.
• Use Identity and Access Management (IAM) to restrict access to authorized users.
• Enable encryption to keep sensitive data safe.
• Monitor access logs to detect unauthorized activity.
• Create alerts to notify admins of potential security risks.

Proper cloud security isn’t only for large corporations—SMBs are just as vulnerable. In fact, 93% of small businesses utilize cloud computing services, with cloud backup and email/web hosting being the most popular applications. (SBE Council, June, 2023) This widespread reliance on cloud infrastructure makes security misconfigurations a serious risk. A simple error can expose customer data, leading to financial losses, reputational damage, and regulatory penalties.

How Were 14 Million Shipping Labels Exposed?

Hipshipper, a logistics platform used by major e-commerce sellers on eBay, Shopify, and Amazon, did not configure the security settings of its cloud storage in the right way. This occurred during the height of the international shipping time of the year.

It’s unfortunate, but misconfigurations are more frequent than you might think. These occurrences have led to serious breaches. Most are caused by false assumptions:

• Using cloud storage doesn’t always mean you are safe.
• Misconfigurations are a top cause of data leaks.
• Small to medium-sized businesses are not exempt from the risk.

The High Cost of Security Flaws

The impact of a data breach doesn’t go away quickly. Moreover, it can last for a long time and cause serious consequences. Below are some of the more serious ones you might see:

• Financial loss – Data breaches cost businesses an average of $4.45 million (IBM Security Report 2023).
• Regulatory fines – GDPR, CCPA, and other laws can lead to significant penalties for exposed customer data.
• Reputation damage – Customers take their business elsewhere once trust is broken.
• Cybercrime risks – Exposed shipping records can lead to identity theft and fraud.

For SMBs, the adverse effects of security flaws can be devastating. Some reports indicate that 60% of SMBs never recover from a data breach and go out of business within six months.

High Cost of Security Flaws Warrants Caution

With careful planning, data breaches like this are often avoidable. All it takes is following sound cloud security practices. Here’s what businesses can do today:

• Regular security audits – Be sure your cloud settings and permissions are configured correctly.
• Restrict access – Use role-based permissions to reduce exposure.
• Enable encryption – Encrypt customer data to protect it from leaks.
• Monitor for breaches – Use security tools to detect vulnerabilities before attackers do.
• Train your team – Employees often make mistakes that expose data without realizing it.

The Takeaway: Security Flaws Are Costly but Preventable

While 14 million shipping labels being exposed sounds like an enormous breach, the Hipshipper breach is only one of billions that occurred in 2024. For example, the COMB Data Leak had a massive global impact a few years ago.

It only takes one mistake to put millions of records at risk. So, if you are an SMB, you must prioritize security or risk losing money, customers, credibility, and maybe even your livelihood.

Is your business doing enough to protect customer data? If you’re unsure, now’s the time to strengthen security before it’s too late.