Cloud computing changed how companies deliver services. It offers faster releases, elastic scale, and lower upfront costs. But with speed comes risk.
One of the most common and damaging mistakes in cloud operations is misconfiguration.
A single unchecked setting. Such as an open storage bucket, public endpoint, or exposed API key, can turn a secure cloud into an open door.
Recent incidents show how setup mistakes can cause big problems.
The Tesla Cryptojacking Incident
In 2018, Tesla became an example of how a misconfiguration can lead to a security breach.
Attackers gained access to Tesla’s Kubernetes console. It was exposed to the internet without a password. Inside it, they found credentials for Tesla’s cloud environment stored in container images.
Key Entry points:
Attackers used Tesla’s credentials to run crypto-mining scripts in their cloud environment. They didn’t steal data. They used Tesla’s computers to mine cryptocurrency. The software used limited CPU and hidden traffic to stay undetected longer.
Using these credentials, the attackers deployed cryptocurrency mining scripts inside Tesla’s cloud infrastructure.
Instead of stealing customer data, the attackers used Tesla’s computing power to mine cryptocurrency.
The mining software was configured to use a limited CPU and to hide traffic behind legitimate domains. This helped it remain unnoticed.
How the attack was concealed:
By the time it was detected, Tesla’s cloud resources had been silently consumed. And to generate profit for the attackers.
RedLock Cloud Sec Intelligence Team (2018) noted:
“The rise of crypto-currencies is making it far more lucrative for cyber-criminals to steal organizations’ compute power rather than their data.”
Crytpojacking in context
Tesla was not alone. The RedLock team found hundreds of unprotected Kubernetes admin consoles that same year. Many of them are without passwords or monitoring.
In 2018, “The RedLock CSI team has found hundreds of unprotected Kubernetes admin consoles in the past few months,” he explained. “While the cloud enables agility, it also creates risk of accidental exposure by users with limited security expertise due to lack of security oversight. It is tough to speculate why these instances were not password protected, but it is likely due to simple user error and lack of configuration monitoring by security teams.”
Their analysis showed a wider trend. As companies rushed to adopt cloud platforms, they often skipped basic configuration checks.
Statista’s data later confirmed this rise. Cryptojacking incidents grew steadily from 2018 to 2022, often exploiting cloud misconfigurations.
The Tesla breach was simple, not sophisticated — and that is what made it worrying. It showed that attackers no longer need advanced exploits. They just need one unguarded entry point.
RedLock recommendation: “Organizations need to proactively monitor their public cloud environments for risky resource configurations, signs of account compromise, and suspicious network traffic just as they do for their on-premise environments.”
Why These Misconfigurations Happen
Cloud platforms are built for flexibility and speed. Developers can launch servers, storage, and networks in minutes.
However, this speed often skips traditional security checks.
The reasons behind misconfigurations include:
Default settings left open. Services like S3, Azure Blob Storage, or Kubernetes dashboards often keep default permissions.
Lack of visibility. Different teams own different accounts, and no one sees the full picture.
Copy-paste infrastructure. Teams reuse IaC templates with unsafe inherited settings.
Pressure to deliver. Deadlines push engineers to deploy first, secure later.
Complex permissions. IAM systems can be confusing. Without a well-thought-through structure, it’s easy to grant too elevated permissions.
For example, Aviva exposed internal data through an open cloud storage bucket because of the wrong policy during testing.
Such incidents show that configuration errors are not rare. They happen in almost every company moving fast in the cloud.
The Technical Impact
Misconfigurations affect more than security. They also impact cost, performance, and reliability.
In Tesla’s case, attackers only mined cryptocurrency. In another scenario, the same access could have stolen code, data, or taken systems offline.
Main consequences include:
- Unauthorized access – Attackers find exposed databases, storage, or APIs.
- Cryptojacking and resource abuse – Compute power is hijacked, raising bills and slowing systems.
- Data exposure – Public storage or open APIs leak internal (and often sensitive) data.
- Privilege escalation – Overly broad permissions allow attackers to move deeper inside the system.
- Cost and performance issues – Misused or hijacked resources can drain budgets quickly. A single GPU instance can cost thousands of dollars per week.
Misconfiguration
Most misconfigurations come from how systems are designed.
When security is added late in the process, small errors spread across environments.
Manual setup causes differences between environments. Automation like Infrastructure as Code (IaC), keeps configurations consistent and tested before use.
In short:
- Poor architecture increases the chance of configuration errors.
- Automated and validated design reduces them.
Organizations that include security reviews, IaC validation, and automated compliance scans (using tools like AWS Config, Azure Policy, or GCP Security Command Center) face fewer incidents and recover faster.
How to Prevent Misconfigurations
You cannot remove all human mistakes. Yet, you can design systems that detect and reduce them early.
1. Treat configuration as code
Use Terraform, CloudFormation, or Bicep with version control and review. Every configuration change should be visible and traceable.
2. Enforce policy automatically
Use native cloud policies to block risky configurations before they deploy.
3. Restrict permissions
Apply least privilege. Avoid “allow all” in IAM roles. Separate access for developers, automation, and production systems.
4. Monitor configurations
Enable drift detection and continuous scanning for misconfigurations. Alert on new public endpoints or policy changes.
5. Educate teams
Provide short training on how cloud permissions, networking, and defaults work. Most errors come from misunderstanding these basics.
6. Test before deployment
Run configuration validation and compliance checks as part of CI/CD pipelines.
7. Maintain visibility
Use tags, logging, and dashboards to track ownership, cost, and risk across environments.
Lessons from the Field
Tesla’s and Aviva’s cases show that cloud attacks often begin with small configuration mistakes.
They are not advanced exploits. They are simple errors left unnoticed.
Among mistakes:
- Lax security
- Weak monitoring strategy
- Lack of tagging
- Missing compliance
- Network misconfiguration
- Lack of isolation between environments
Designing for Safety and Change
Cloud systems evolve constantly. Services update, new regions open, and teams change.
Trying to remove every possible error is unrealistic.
Instead, design environments that can catch errors and recover fast.
Focus on three things:
- Clear ownership – Each cloud resource should have a defined owner.
- Automated safety – Guardrails prevent risky settings before they go live.
- Learning through testing – Simulate exposure, review outcomes, and update controls.
Cloud reliability is not built by avoiding every failure. It is built by preparing for them.
References
- RedLock (Palo Alto Networks), Tesla Cloud Breach Report (2018) https://arstechnica.com/information-technology/2018/02/tesla-cloud-resources-are-hacked-to-run-cryptocurrency-mining-malware/
- Statista, Global Cryptojacking Incidents by Quarter https://www.statista.com/statistics/1377860/worldwide-annual-number-cryptojacking/
- Aviva, 2020, Public Cloud Exposure Report https://cointelegraph.com/news/hackers-delight-bitcoin-mining-comes-to-aviva-due-to-lack-of-passwords
- Cloud Security and Misconfiguration Best Practices https://services.google.com/fh/files/misc/threat_horizons_report_h2_2024.pdf
