Library Header Image Library Header Image

Detecting Lateral Movement in Hybrid Cloud Environments


Posted on by Durojaye Olusegun

Hybrid cloud security means protecting data and infrastructure across on-premises and multiple cloud environments. One of the biggest challenges in these scenarios is lateral movement – when attackers move across systems to get high value assets. Detecting lateral movement in hybrid clouds is key. In practice, this means unifying monitoring tools and analytics across all platforms since attackers no longer respect traditional network boundaries. For many security teams, improving lateral movement detection is now top of the list in any hybrid cloud security program.

Lateral Movement Attacks in Hybrid Clouds

Lateral movement attacks happen in stages. After an initial foothold (via malware, phishing, or stolen credentials), attackers methodically explore the environment, steal credentials, and seek higher privileges. This east–west progression often ends in data exfiltration or ransomware. Because attackers use valid credentials and blend in with normal traffic, these attacks can go undetected for weeks or even months. As the Mitiga security team puts it, lateral movement “attacks are particularly hard” because they are “super tricky to detect”. In a hybrid cloud, this stealthy activity means attackers can roam free between on-premises networks and cloud accounts until they hit a sensitive target.

The hybrid environment makes these threats even worse. On-premises systems (data centers, on-prem servers) can be compromised by traditional means and then attackers move laterally in the corporate network. Public clouds add new entry points: misconfigured cloud Application Programming Interfaces (APIs), leaked credentials, or overly permissive identity roles can give an attacker instant access to cloud resources.

From there, features like cross-account roles let an attacker jump from one cloud account to another or even back into on-prem resources. In short, hybrid cloud deployments expand the attack surface. Hybrid cloud security must enforce strict segmentation and continuous monitoring of both network traffic and identity activity to catch these crossover attacks.

Detection Challenges

Lateral movement in a hybrid cloud is a visibility gap. Security teams have to correlate logs and telemetry from on-prem networks, private clouds, and public cloud services – a complex task when each domain has its own tools. SOC teams need visibility into their entire hybrid cloud deployment, including on-prem data centers, identity systems, Software-as-a-Service (SaaS) apps, and multiple clouds. Without a unified view an attacker can slip between environments undetected. “Lateral movement detection across hybrid cloud environments requires unified visibility and anomaly correlation to track attackers from on-prem to cloud” says Joseph Chukwube, founder of StartUp Growth Guide.

Real world data reveals how cloud threat detection behaves under pressure: companies receive thousands of alerts from their clouds monthly but confirm just a few genuine occurrences. A recently published study by ARMO revealed that 89% of companies confessed to being oblivious to ongoing attacks in their clouds. One of the reasons is tool sprawl: companies deploy a lot of security products but only 13% can correlate alerts between products.

The result is that subtle lateral signals – for example, a credential used in two data centers or crossing into a cloud VPC – often get lost in the noise. Improving cloud threat detection (reducing false alarms and fusing context) is therefore top priority. Without it even good hybrid cloud security controls can’t automatically alert on the stealthy east-west moves an attacker makes.

Detection Strategies and Best Practices

Detecting lateral movement in hybrid clouds demands real-time monitoring and next-gen analytics. Sec teams must bring logs and metrics from all domains (on-prem, IaaS clouds, PaaS/SaaS) to one Analytics Platform or Security Information and Events Management (SIEM). Extended Detection and Response (XDR) offerings or native-cloud tools for detecting can correlate across domains and recognize when an identity or host acts outside of normal behaviors across clouds and across networks.

For instance, processing all of the cloud telemetry and then running behavioral analytics can identify a "needle in the haystack" type of activity – i.e., a user account apparently from out of nowhere accessing a strange set of servers and cloud services. In reality, existing threat detection pipelines for the cloud (which often follow an ingest → analyze → alert workflow) serve to short-list suspicious patterns from the voluminous set of cloud logs.

Zero Trust helps to verify every user and device all the time, so even if one segment is breached, the attacker has to re-authenticate or re-qualify to move laterally. In short, for strong defense lateral movement, detection must analyze new telemetry from all cloud and on-prem sources and flag risky correlations immediately.

Network segmentation is just as essential. Micro segmentation divides the hybrid environment into secure enclaves in such a way that an attacker cannot move freely from system to system. Individual VMs, containers, or app tiers are isolated by policy such that a vulnerability in one cannot spread automatically to others.

This significantly limits an attacker’s options. And encrypting data (in transit and at rest) and rotating keys or credentials regularly reduces the value of anything they steal. These measures work with detection – if an attacker does try to move, the secure zones will force more authentication checks that can trigger alerts.

On the technical side, behavior analytics and AI are the cornerstones of identifying lateral movement. For instance, products such as Vectra's Attack Signal Intelligence search for advanced behaviors of attackers, including strange credential usage, escalation of privileges or suspicious transfers of data across cloud and data-center environments.

Automated threat hunting helps detection even more: analysts write queries to flag things like an admin account calling an unknown cloud API or an endpoint talking to a new service. As Antony Grek, founder of Mobile Proxy, said,  “Hybrid cloud security requires continuous monitoring of identity and network signals; correlating these data sources is key to catching stealthy intrusions early.” By combining logs from identity providers, servers and network systems, defenders can reconstruct the full path of a lateral move.

Ultimately, it's all about being prepared to stop lateral movement. Assume that lateral movement is going to occur and plan for it. This entails regular vulnerability scanning, hard access controls (MFA, least privilege) throughout and automated incident response. For instance, when suspicious lateral activity is spotted, playbooks can automate the quarantining of impacted segments and reset of credentials before the attackers reach sensitive assets.

In reality, a hybrid security posture for the cloud is a combination of prevention (firewalls, MFA, patching) and detection (SIEM, XDR, analytics) such that lateral movement raises alarms immediately. Plan to get attacked. What you do spend time on now preparing will harden you and mitigate its effect.

Lateral movement detection is key to a hybrid cloud security strategy. As you bring on-premises and cloud assets together, attackers can jump from one domain to another if you don’t watch closely. The challenges are many – from fragmented logging to stealthy credential abuse – but layered defenses make detection possible. By enforcing zero trust, micro-segmentation and continuous cloud monitoring, you can promote suspicious east–west activity into actionable alerts. In short, combining strong lateral movement detection, scalable cloud threat detection and hybrid cloud security is the way to stay ahead of the modern attacker.

Contributors
Durojaye Olusegun

Developer Relations Engineer, CloudRay

Blogs posted to the RSAConference.com website are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed are those of the blog author individually and, unless expressly stated to the contrary, are not the opinion or position of RSAC™ Conference, or any other co-sponsors. RSAC Conference does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented in this blog.


Share With Your Community

Related Blogs