Why 48% of businesses still store unencrypted files on the cloud, and how AxCrypt fixes it

Introduction

With more workflows shifting to the cloud and remote and decentralised organisations rising, breaches are becoming expected, and the attack surface widens.

By 2026, nearly 98% of workers will seek remote working options, and about 27% of the workforce is looking to go fully remote. Sources claim the hybrid workforce now dominates the professional landscape, with nearly 52% aiming to improve work-life balance. Nearly 89% of tech employees embrace hybrid and remote work.

Remote and hybrid working appear convenient and viable, but carry numerous threats.

Unencrypted files in the cloud - the lowest-hanging fruit, to begin with.

Most employees and professionals, even today, believe that basic cloud data security should do the trick. But in reality, that's the gateway to all risks. Because the threatscape is always evolving, and with AI-powered cyber attacks and ready-to-use malware, it is easy to break through. It doesn't take much of a skilled hacker to bypass basic cloud data security or even privilege-based loopholes and get a hold of all your data.

Without strong cloud data security practices and an app to encrypt files in the cloud, especially when working remotely, you are not just in hot water for a looming data breach, but you are in trouble for not meeting compliance parameters, too.

To put things into a statistical perspective of what is going on with remote working and cloud-based, borderless workforces, here is a report of the top cloud data security statistics of 2026 so far.

1. By 2026, around 200 zettabytes of data will be stored in the cloud, accelerating the shift towards remote, cloud-first work.

2. Nearly half of the world's data will live with hyperscalers such as AWS, Azure, and Google. According to SpaceLift, AWS leads the public cloud market with about 32% share, followed by Microsoft Azure at 23%.

3. Cloud risk is increasing: about 45% of data breaches occur in the cloud, and servers remain the primary targets.

4. Despite greater focus on security, a major gap persists: 48% of businesses still store both encrypted and unencrypted data in the cloud, often worsened by BYOD practices and convenience-first file sharing.

So here is the core problem, and that is 48% of businesses still store unencrypted files on the cloud, and this dangerous gap continues to persist and widen.

But why?

The gaps exist exactly when there are unencrypted files on the cloud, and it widens even more when encryption becomes a policy on paper and not a day-to-day practice on cloud provisioning, key management, or access control. This gap and the cloud security risks also amplify when cloud adoption moves faster than data governance.

A good 83% of businesses that prioritise cloud data security. But what about the rest?

This gap exists, and here are the main reasons why it exists:

1. People prefer convenience over security: Cloud platforms like Google Drive, OneDrive, and Dropbox make sharing effortless with default settings, like anyone with the link can kind of access. Many teams assume that the provider's built-in protections are just enough to protect sensitive information. But in reality, if anyone with the link has access, they have access to pretty much everything in your company, too.

2. Assumed Complexity: Most traditional encryption feels complicated and cumbersome, causing extra steps, key management, disrupted workflows, complex scripts, and a need for many developers or coders. In fast-moving organisations, especially with remote teams, time is limited. This gap is where cloud data breaches occur. Many assume that deploying cloud data security is difficult and dismiss the idea.

3. Resource constraints: Another challenge SMBs and fast-growing mid-sized companies face is the lack of dedicated security teams. They often prioritise productivity, leaving cloud data security behind. Encryption is frequently treated as an afterthought or deemed too costly for management during growth.

4. Inconsistent policies and the BYOD culture: Hybrid and remote work often mix personal and corporate devices. Some remote organisations rely on employees' personal systems, which may be compromised. This causes shadow IT, unencrypted uploads, and unsafe downloads. Sending sensitive information over unsecured channels and public Wi-Fi exposes unencrypted data to hackers and attackers.

5. The last one is our personal favourite. It would never happen to us mindset: Until a breach happens, the risk seems abstract. Many SMBs, freelancers, and small groups wrongly believe they are safe. When they think breaches or attacks won't affect them, that's when incidents occur. They neglect data security, send sensitive info over unsecured channels, and allow third parties to see everything. This mindset is harmful, especially for organisations without offices or proper cloud security.

Most organisations do deploy the use of encryption tools and programs, but it is scarce. And when it comes to remote work, the gap widens. According to NordLayer's summary, the problem lies in BYOD, unsecured or public Wi-Fi, shadow IT, and unencrypted file transfers or even public cloud folders that remain exposed longer than they ideally should.

Another point of concern is how secure file sharing is only slowly gaining traction, and how cloud-file-sharing services and remote access paths become separate entry points. And so, in the bargain, a single misconfiguration or a stolen batch of credentials can become a gateway for an attacker to gain access straight into the company data.

Another report by Talo's incident response data shows how attackers are actively exploiting weak seams and how phishing is the most observed initial-access vector in its Q1 2026 report, and MFA weaknesses, along with exposed infrastructure and poor logging, were constant issues.

So, how do you secure cloud storage and minimise cloud security risks?

In a time and age where the 'office' is wherever there is good internet, and cloud data security cannot be compromised, and coffee breaks are literally in your kitchen, AxCrypt provides the secure cloud storage environment that most modern teams are still trying to match up to.

If you actively use Windows 11 and seek free file encryption software or robust encryption for businesses to protect your team's data and workflow, AxCrypt is your definitive solution for the 2026 threat landscape.

Read more here for information and solutions on cloud data security.

The transition to a borderless workforce should not force a choice between speed and safety. One main reason unencrypted files persist in the cloud is the friction traditional security and encryption cause.

Today's evolving threat landscape makes security challenging, but it cannot be an afterthought or ignored.

With AI-driven cyberattacks and other severe data risks rising, employees often find workarounds, turning the 48% gap into breaches. The goal is granular: file encryption must be invisible yet strong.

Businesses need data encryption, especially at a granular level. You not only secure files and folders but also empower your team to work anywhere with full security and confidence. AxCrypt delivers this confidence through file-level security for companies, one that is ironclad.

True data breach prevention arises not from strict restrictions but from strategic, intelligent data protection at a cellular level. It operates automatically, so even if you forget, your data remains protected.

Whether you want to automate your entire encryption process or need a simple app to encrypt files on the fly, AxCrypt ensures your productivity stays intact and your privacy remains secure with our zero-knowledge security.