The world of work is increasingly virtual. This virtual world has nothing to do with the Metaverse. Virtual security and hosting tools are boosting security, improving performance, and lowering costs worldwide.

This article will look at three critical virtualization technologies: virtual private clouds (VPC), virtual private networks (VPNs), and virtual private servers (VPS).

All three technologies go beyond legacy systems, delivering significant advantages to modern companies. But businesses need to use them correctly. Let’s explore what each virtual tech offers and how they work together to improve security and productivity.

What is VPC and how does it work?

VPC stands for “virtual private cloud.” A virtual private cloud is a cloud environment designed for use by a single organization.

VPCs reside on standard cloud services. However, cloud vendors use logical segmentation and access controls to create a watertight barrier between public and private cloud resources.

VPCs are like private offices on the cloud, secured by multiple locks and entrance protections. Users following VPC best practices enjoy many benefits compared with standard cloud computing features.

VPCs have low maintenance and installation overheads. They are easy to scale, flexible, and reliable. Cloud resources also work well with remote access workforces, making virtual workloads available wherever users are.

VPCs deliver enhanced security to complement these features. Segmentation cuts the risk of intrusion via the public cloud and limits data breach risks. Users can assign IP addresses to subnets and route tables to calibrate access controls. Encryption and firewall settings safeguard data, helping businesses meet compliance goals.

From the user’s perspective, VPCs are like traditional on-premises networks. Users connect to applications, send data, and work normally. Behind the scenes, cloud technologies offer scalability, customization, and security not provided by legacy networking.

There are also similarities when we compare virtual private cloud vs. private cloud deployments. The difference is that VPCs reside on shared public cloud resources. You don’t need a specific private cloud infrastructure—just part of the existing cloud. Sharing cloud space cuts costs dramatically.

What is a VPN and how does it work?

VPN stands for Virtual Private Network. VPNs route internet traffic through a private VPN server. The VPN server creates encrypted tunnels to transmit user data. They also assign anonymous IP addresses—effectively concealing network traffic from outsiders.

This technique creates a virtual network over the public internet. Users can send or receive data through their private network without exposing files and data to malicious actors.

VPNs also suit remote access. Employees can install VPN clients on remote devices or laptops and instantly create a VPN gateway to on-premises or cloud-hosted resources. All users need is a virtual private network client and an internet connection. There’s no need for extra hardware.

What is VPS and how does it work?

VPS stands for “virtual private server.” A VPS is a virtual machine installed on a physical server or group of servers. The VPS shares server space with other resources and traffic. Similarly to a partitioned portion of a physical server, users have a dedicated virtual server within that environment.

Companies often use virtual private servers for web hosting. Virtual servers offer greater security than traditional shared server space. Greater processing capacity also usually results in performance improvements.

VPS hosting also scales easily. Companies order additional capacity as needed, with no need to install or maintain server hardware. Virtualization also adds customization options. Users control every aspect of the server environment, including CPU and memory usage, app installations, and the operating system.

These features make VPS technology increasingly popular among small businesses with high growth potential. Small enterprises can lower operating costs, simplify their workload, and scale server capacity as their needs expand.

VPC vs. VPN vs. VPS: differences

One way of visualizing the differences is to Imagine a typical city, just like your own.

VPCs are like gated neighborhoods in the city. People can enter if they have the right credentials, but public access is blocked. VPS are homes in that community, serving local people. Finally, VPNs act like protected access roads. They ensure only the right people can approach the neighborhood and those who live there.

That’s obviously just an analogy. As we will see, things are a bit different in network environments.

VPN

• Role: Creates a secure connection for data transfers
• Usage: Enables users to establish secure remote connections
• Scaling: Well-suited to individual remote access
• Management: Users have limited configuration options
• Adaptability: Generally limited customization, limited to basic security

VPC

• Role: Provides private cloud capacity within the public cloud
• Usage: Flexible and secure hosting for cloud applications
• Scaling: Scales naturally as companies expand
• Management: Users have extensive powers to adapt their VPC deployment
• Adaptability: Users can toggle network configurations

VPS

• Role: Supplies virtual machines instead of physical servers
• Usage: Dedicated and secure server capacity without high overheads
• Scaling: Easier to scale than traditional servers
• Management: In-depth server control (depending on the vendor)
• Adaptability: Plenty of configurable server settings

VPS, VPNs, and VPCs are different but inter-linked technologies. As the table above shows, they have different purposes and customization potential. Knowing how they differ makes it easier to understand how all three technologies fit into network environments.

• VPC vs. VPN: The main difference between VPCs and VPNs is that VPNs create secure network connections over the public internet. VPCs enclose resources in a private domain with a larger cloud environment. We can use VPNs to safely access VPCs without exposing data.
• VPC vs. VPS: The main difference between VPCs and VPS is that VPCs host cloud resources and use the cloud vendor’s server resources. VPSs are virtualized servers. They provide dedicated server resources for clients, often within VPC environments. Users can also combine multiple VPS within a VPC.
• VPN vs. VPS: The main difference between VPNs and VPS is that VPNs enable secure access to cloud resources or the public internet. VPSs are used to host resources, including public-facing websites, databases, or remote access workloads. VPNs help secure access to VPS and VPC deployments.

What features are shared by VPN, VPC, and VPS technologies?

The functions of VPNs, VPCs, and VPS differ, but the technologies often work together in secure cloud computing systems. As such, they share features that characterize cloud resources in general.

As the “V” suggests, all three technologies use forms of virtualization to carry out their duties. Virtualization simulates hardware or software. Resources reside on shared infrastructure, providing dedicated virtual security or hosting services.

Virtualization supports flexible remote access. VPNs, VPS, and VPCs are available to globally distributed users. Users can access servers or virtual private network gateways via any internet connection. This suits remote workforces and provides flexibility for network admins.

Security is another common feature of VPNs, VPCs, and VPS technology. A VPN server uses encrypted tunnels and IP address anonymization. VPC security employs segmentation and access controls. VPSs create dedicated secure environments for server hosting.

Alongside security comes enhanced privacy. VPNs create private network gateways. Users do not share internet infrastructure when accessing sensitive data. VPCs separate business resources from the public cloud, creating private zones. VPS is similar, offering private servers with no direct connection to other shared infrastructure.

Tips on choosing the right solution

The key takeaway of this article is that we should view VPNs, VPCs, and VPS as part of a wider picture. They are different but closely related technologies. The “right” solution often involves two or three components.

The critical task is deciding when to use each technology. The table below provides some pointers. However, always consider your business needs before selecting which virtualized tools to use.

• When you need VPC. VPCs are used to create secure environments for confidential data. With a VPC, you have complete control over access. Subnets, access control lists, and firewalls determine who can access resources. You can set privileges for different roles according to the principle of least privilege and separate data from public cloud users.

VPCs are a good option for organizations comparing a private vs public cloud solution. In that case, you could opt for expensive private cloud systems. VPC offers a secure and user-friendly middle ground that suits most modern businesses.

• When you need a VPN. VPNs are ideal for establishing a secure remote access connection. They suit companies with large home-based workforces. A virtual private network should secure connections between many offices or work locations and also create a protected gateway between work devices and cloud endpoints.
• When you need VPS. VPS suits companies that need dedicated server capacity without excessive expenditure. VPS cuts costs by leveraging virtualization and shared infrastructure. A virtual private server is also easier to customize than standard shared hosting, enabling bespoke deployments.

How NordLayer’s Business VPN can secure access to VPC environments

NordLayer makes it easier to secure virtual private cloud deployments. With our tools, you can create secure access systems to block unauthorized intruders and enable smooth workflows for legitimate users.

Our Business VPN enables small and medium-sized companies to create private gateways between remote workers and VPC or VPS resources. End-to-end encryption protects data flows and user credentials, allowing secure file transfers and guarding cloud endpoints.

NordLayer’s site-to-site secures access to hybrid networks, including VPCs. It enables secure remote access for employees across the world.

NordLayer also enables users to enforce strong network access control policies. Our NAC solutions ensure that only authorized individuals can access VPCs. Cloud firewalls segment access by identities, while device posture security only allows access for compliant devices. Choose a simplified but powerful security solution for virtualized resources. To find out more, contact the NordLayer team today.

According to IBM’s 2024 Cost of a Data Breach Report, the global average cost of a data breach has surged to $4.88 million, a 10% increase from the previous year. This was the largest annual jump since the COVID-19 pandemic.

Traditional security models, which rely heavily on perimeter defenses, are no longer enough to handle today’s sophisticated cyber threats. Malicious actors and insiders can easily bypass these defenses, exploiting outdated systems to gain unauthorized access to sensitive data.

This is where the Zero Trust maturity model comes into play. It offers a modern approach to security, shifting from the outdated “trust but verify” mindset to the more robust “never trust, always verify” principle. The Zero Trust maturity model provides a framework that helps organizations implement this advanced security in stages.

By assessing your organization’s place within the model, you can enhance your defenses, safeguard sensitive data, and stay ahead of evolving cyber threats.

What is the Zero Trust maturity model?

The Zero Trust maturity model is a strategic framework that helps organizations gradually shift from traditional perimeter-based security methods to a more comprehensive Zero Trust approach. Unlike older models that assume trust within the network, Zero Trust requires continuous verification of all users and devices, regardless of their location.

This model provides a clear roadmap for assessing an organization’s cybersecurity posture, outlining stages to improve security protocols over time. It emphasizes verifying users, devices, and data access at every level to effectively counter threats, both external and internal.

The stages of the Zero Trust maturity model

The Zero Trust maturity model breaks down the process of adopting Zero Trust principles into several stages. Each stage represents a different level of security preparedness and implementation. Let’s take a closer look at these stages:

1. Initial/Ad-hoc stage

At the initial stage, security measures are primarily reactive rather than proactive. Organizations may not have formal Zero Trust policies yet. While multi-factor authentication (MFA) might be used inconsistently, organizations often rely on perimeter-based security like firewalls and VPNs. Security practices tend to be inconsistent, with minimal internal monitoring. Once inside the network, trust is often assumed rather than verified.

Key characteristics:

• Multi-factor authentication (MFA) may be in place but not consistently enforced
• Minimal network segmentation
• Lack of visibility into internal traffic
• No consistent identity verification
• Limited control over device access

2. Developing/Basic stage

In the developing stage, organizations start to recognize the need for stronger security measures. They consistently enforce multi-factor authentication across all tools handling sensitive information. This phase marks the early implementation of Zero Trust principles, focusing on critical areas such as identity management and access control. Security policies are still evolving, but there is an increasing emphasis on monitoring and segmentation.

Key characteristics:

• Consistent enforcement of MFA across all critical systems
• Basic identity management in place
• Limited monitoring of user activity
• Partial implementation of access control policies
• Introduction of network segmentation

3. Defined/Intermediate stage

At the defined stage, the organization has implemented clear security policies that align more closely with the Zero Trust framework. Role-based access control (RBAC) and device management have become integral parts of the security structure. Internal monitoring is more robust, leading to a clearer understanding of who has access to what resources.

Key characteristics:

• Established Zero Trust security policies
• Role-based access control
• Centralized identity management
• Regular network traffic monitoring
• Secure device management

4. Managed/Advanced stage

At the managed stage, organizations have integrated advanced security technologies and processes. All network activity is continuously monitored and logged, and security incidents are detected and responded to using automation. The Zero Trust principles are now consistently applied across the entire infrastructure, reducing the risk of unauthorized access or lateral movement within the network.

Key characteristics:

• Full identity and access management (IAM)
• Automated incident detection and response
• Detailed auditing and reporting
• Comprehensive device posture management
• Continuous network and resource monitoring

5. Optimized/Strategic stage

At this final stage, Zero Trust architecture is deeply embedded into the organization’s culture and systems. Security is automated and adaptive, using machine learning and artificial intelligence to predict and prevent threats. Zero Trust is applied to every aspect of the organization, from user identity to applications and data.

Key characteristics:

• Automated Zero Trust principles across all systems
• Predictive security measures using AI/ML
• Fully adaptive and scalable security practices
• Minimal manual intervention is needed
• Continuous improvement through audits and reviews

How to assess your organization’s Zero Trust maturity

Understanding your current Zero Trust maturity level is crucial for making informed decisions about future security strategies. Here’s how to assess where your organization stands:

1. Evaluate your security policies: Do you have consistent, clearly defined security policies? Are they aligned with Zero Trust principles, such as “least privilege” access and continuous verification?
2. Examine access controls: Look at how access is granted across your network. Are all users, devices, and applications authenticated before they can access sensitive resources?
3. Monitor network activity: Are you continuously monitoring traffic within your network, and can you detect anomalies quickly? Real-time visibility is a critical aspect of Zero Trust maturity.
4. Review identity management: Ensure that you have robust identity verification protocols in place, including multi-factor authentication and role-based access control.
5. Assess automation: The higher levels of the Zero Trust maturity model require automation for threat detection and response. Consider how much of your security operations can be automated.

Benefits of Zero Trust maturity

Reaching a higher level in the Zero Trust maturity model brings numerous benefits that extend beyond just improving security—it also enhances overall operational efficiency.

One of the primary advantages is the reduced risk of breaches. Verifying every user and device at each access point greatly lowers the chance of unauthorized access. This constant verification creates a more secure environment and helps prevent breaches before they occur.

Another key benefit is enhanced visibility. Continuous monitoring of network traffic and internal activities gives organizations real-time insight into their systems. This enables them to quickly detect anomalies and respond to potential threats before they escalate into serious security incidents.

A mature Zero Trust framework also promotes better compliance with industry regulations. In sectors with strict data security laws, ensuring that your organization meets legal requirements is essential. Zero Trust helps keep your security practices aligned with these regulations, reducing the risk of compliance violations.

Lastly, improved user experience is a notable advantage. Contrary to the belief that tighter security might hinder usability, Zero Trust solutions are designed to authenticate users smoothly. This provides a seamless experience for authorized users while maintaining the highest level of security.

Challenges of the Zero Trust maturity model

Adopting the Zero Trust maturity model is not without its challenges. Here are some common hurdles that organizations face:

• The complexity of implementation: While moving from a perimeter-based approach to Zero Trust may seem complex, it doesn’t have to be. The challenge often arises when organizations attempt to implement various solutions for different Zero Trust policies. However, choosing a comprehensive solution like NordLayer, which is cloud-based, compatible with hybrid networks, and offers a strong ZTNA framework, can simplify the process.
• Resource demands: Implementing Zero Trust architecture can require time, money, and expertise. While there are upfront costs, selecting a smart, comprehensive solution pays off over time, especially considering the potential financial damage from security breaches.
• Cultural resistance: Changing the security culture within an organization may meet resistance, as employees could see new policies or technologies as obstacles. This is why it’s crucial to adopt simple, intuitive solutions that make it easier for everyone to accept changes.
• Legacy systems: Some organizations still rely on legacy systems that may not be fully compatible with modern Zero Trust principles, which can make complete implementation challenging.

By understanding these challenges and taking a strategic approach, organizations can overcome them and create a robust Zero Trust architecture that evolves alongside digital threats.

How NordLayer can help

NordLayer’s Zero Trust solutions equip your organization with the essential tools to safeguard data and resources effectively. They make it easy to navigate the complexities of the Zero Trust maturity model. Whether you are just beginning to adopt Zero Trust principles or looking to optimize an existing framework, our scalable and secure solutions support you at every stage.

• Secure remote access: Implement secure remote access policies with Site-to-Site VPN and Smart Remote Access to ensure smooth, encrypted connectivity for your distributed teams.
• Granular network access control: Gain precise control over your network with Virtual Private Gateways, Cloud Firewall, and Device Posture Monitoring. This allows you to ensure that only the right people—or secure devices—can access sensitive network resources.
• Multi-layered authentication: Strengthen authentication practices with additional multi-factor authentication and biometric checks. You can also set custom session durations to ensure frequent re-authentication, making access more secure.
• Comprehensive monitoring & logs: Stay informed of who and what is accessing your network with Session and Device Connection Monitoring Logs. These tools provide visibility into every device and user, ensuring full network transparency.
• Advanced security features: NordLayer offers Device Posture Security, behavioral analysis, and automated threat detection to help protect sensitive resources while maintaining seamless access for authorized users.

At NordLayer, we’re dedicated to empowering organizations to improve their network security. We’re excited to introduce our revamped Dashboard feature, now offering four new graphs that give admins a comprehensive view of network activity.

From monitoring 2FA adoption to analyzing the distribution of operating systems, these Dashboard graphs deliver critical data. With enhanced transparency and data-driven metrics, you can make informed decisions and optimize your company’s security strategies. Note that this feature was previously known as “Server Usage Analytics,” reflecting our commitment to improving your experience.

Feature characteristics: What to expect

Here’s what’s new in this release of the Dashboard and how this update can benefit your organization:

1. Percentage of organization members who have 2FA enabled

Two-factor authentication (2FA) is essential for safeguarding user accounts and your company’s network. The new chart tracks the percentage of members within your organization who have completed the 2FA setup, whether enabled by an admin or by users themselves. With this data, admins can promote broader adoption of this security layer and take specific actions to reduce vulnerabilities.

2. Distribution of devices OS types

Knowing the distribution of OS types across your organization helps optimize IT resources, plan for compatibility with future updates, and identify potential security vulnerabilities specific to certain OS types. The OS Types Distribution Graph provides clear data to strengthen your network security practices and support proactive system management.

3. Distribution of NordLayer application versions

Regularly monitoring the NordLayer Application Versions Graph helps ensure that all devices run the latest version of Nordlayer. By tracking version distribution, you can quickly spot any devices that need updates, helping maintain optimal performance and security across your organization.

4. Browser types distribution (for NordLayer Browser Extension)

The Browser Types Distribution Graph tracks which browsers are being used with the NordLayer Browser Extension across your organization. This information is helpful for optimizing web applications, ensuring compatibility, and improving the overall user experience.

How it works: Dashboard in action

NordLayer’s Dashboard provides a detailed view of user connections, network devices, and your network’s server performance. Depending on your plan—Lite, Core, Premium, or Enterprise—certain charts and key metrics are available in near real-time, allowing IT admins to monitor and manage network security and service efficiently.

For example, the 2FA Chart can show that only 60% of your team has enabled two-factor authentication. With this information, you can run an internal campaign to encourage more team members to enable 2FA, thereby strengthening your overall network security.

Similarly, if the Application Versions Graph reveals that a significant number of users are running outdated versions of the NordLayer app, you can quickly address these security gaps by encouraging updates, ensuring that everyone has access to the most recent features and fixes.

Avoiding potential vulnerabilities

Let’s say you’re an IT admin of a growing company. You’ve recently onboarded several new employees, and you noticed a few inconsistencies in how different teams are using security protocols. With the new Dashboard, you can quickly assess the situation:

• The 2FA Chart shows a low adoption rate of two-factor authentication
• The OS Types Graph reveals that some teams are still using outdated operating systems
• The App Versions Graph highlights that several employees haven’t updated their NordLayer application in months

By gathering this data in close to real-time, you can make strategic decisions to improve your company’s security posture—whether it’s launching an internal security campaign or scheduling updates across devices.

Why do dashboards matter?

Dashboards are essential tools for organizations looking to maintain strong network security and service usage and streamline decision-making. By providing clear, real-time data into key metrics, they help IT admins monitor, manage, and optimize their security strategies effectively. Here’s why dashboards are crucial in general:

• Stronger network visibility: Dashboards offer a comprehensive view of your service and the network’s usage, security, and performance. Whether you’re tracking operating systems, 2FA usage, or app versions, these insights give you the clarity you need to secure your organization.
• Easier decision-making: The data provided by the Dashboard allows admins to make informed decisions quickly, improving security strategies and keeping the network running smoothly.
• Data-driven security: Close to real-time data directly impacts your organization’s security posture by making it easier to identify vulnerabilities and mitigate them before they become problems.

Conclusion

With these updates, NordLayer’s Dashboard provides the data for the clear insights you need to protect your organization—no matter its size. By providing close to real-time data on essential security and usage metrics, the Dashboard helps admins take action where it matters most, ensuring a safer, more efficient network for everyone.

Ready to optimize your network security and monitor NordLayer’s service usage? Check out the new Dashboard feature today and start making data-driven decisions that safeguard your organization.

ITC Compliance, based in the UK, helps car dealerships and other retailers meet the standards of the UK’s Financial Services Regulator. By becoming appointed representatives of ITC Compliance, these businesses rely on the organization to handle their compliance. This way, clients stay compliant with the Financial Conduct Authority (FCA), without dealing with complex rules, allowing them to focus on their main work.

James Snell, IT Director at ITC Compliance, manages technology strategy and vision, technology teams, cybersecurity, IT infrastructure, and operations. He is also responsible for vendor and stakeholder management. He needs to secure remote access to sensitive internal systems while maintaining regulatory compliance.

The challenge

Securing remote access while meeting regulatory compliance

The COVID-19 pandemic led ITC Compliance to shift to remote and hybrid work. This required a secure way for employees to access internal systems with sensitive data from various locations.

“COVID changed how companies work,” explains James Snell. “Only ITC Compliance employees can access our systems, so we needed secure remote access to internal resources.” Managing individual IP whitelisting for all remote employees was impractical.

As a regulated company working towards SOX compliance, ITC Compliance also needed strict access controls, which are crucial for certification.

The solution

Using NordLayer for secure and simple remote access

To tackle these issues, ITC Compliance adopted NordLayer as their business VPN in 2020. Routing all employee traffic through NordLayer allowed for a consistent IP address, which simplified security.

NordLayer also offered essential security tools, like multi-factor authentication (MFA). This met ITC Compliance’s security needs and supported their SOX compliance goals.

Why choose NordLayer

During renewal, James considered other options but decided to keep NordLayer. The solution felt reliable, and the pricing suited their needs, so switching wasn’t necessary.

NordLayer offered scalability and flexibility, with easy server setup and team routing through different IPs. From a cybersecurity standpoint, NordLayer provided essential tools, including ease of use, strong security features, and simple management with MFA options.

One key feature enabling ITC Compliance to maintain a fixed IP is NordLayer’s Dedicated IP. It ensures online traffic stays private and secure, helps control permissions, and prevents unauthorized access. With NordLayer, a fixed IP allows smooth, secure access to business data from any location. You can control who accesses resources by allowlisting specific IPs. Dedicated servers with fixed IPs cost $40/month and are available on all plans except Lite.

The outcome

Enhanced security and compliance support

NordLayer helped ITC Compliance secure remote access to internal systems. Using a single IP address simplified security management and reduced workload.

The NordLayer rollout was smooth, and the team found it easy to use. Scaling is simple, and adding licenses is hassle-free.

Pro cybersecurity tips

Protecting sensitive information is crucial, especially for regulated businesses. James Snell shares three essential tips for enhancing security.

With NordLayer, ITC Compliance simplified remote access, strengthened security, and met compliance needs. Try NordLayer to secure your team’s access, no matter where they work.

Managing access to network assets is a critical part of cybersecurity. Two concepts constantly arise when discussing access management: Zero Trust and the principle of least privilege.

These are more than just buzzwords. What do these terms mean, and why are they vital in modern cybersecurity? Just as importantly, are Zero Trust and least privilege separate concepts or part of a larger whole?

This blog will explore how the principles differ and help you understand the conceptual basis of secure network access.

What is Zero Trust?

Zero Trust is a strategic security approach that follows the principle “never trust, always verify.”

In cybersecurity, organizations implement this principle via a set of technologies known as Zero Trust Network Access (ZTNA).

The Zero Trust concept requires a default position of mistrusting all connection requests and internal network activity. Every user and connection poses a potential threat. Systems should only grant access when organizations know for sure users are legitimate.

ZTNA’s main role is safeguarding work-related assets. For example, systems block access requests to documents from unauthorized devices or unusual locations. ZTNA technologies deny access to attackers with stolen credentials, keeping sensitive data safe.

The Zero Trust model departs from traditional security concepts by operating at the network edge and within the network perimeter.

• Only trusted users can enter the network perimeter. Identity verification happens via credential authentication and tools like device posture checks.
• Network managers monitor user activity within the network boundary. Access control measures block resources without appropriate permissions.
• Zero Trust architecture involves continuous security measures. Security tools monitor users continuously, requesting identity verification for each access request.

The idea behind Zero Trust is simple. With ZTNA safeguards in place, businesses make it harder for attackers to move within the network. By enforcing strict verification at each access point, ZTNA helps block any unauthorized access attempts.

Access controls and monitoring shrink the attack surface, limit lateral movement, and give security teams time to take quarantine measures.

The ZTNA framework evolved to suit modern business needs. The rise of distributed workforces and cloud computing made traditional perimeter defense obsolete. Identity-based security makes more as network boundaries become increasingly vague.

What is the principle of least privilege?

The principle of least privilege (PoLP) is related to privilege management.

PoLP requires network admins to limit the devices or applications users can access. Users should only enjoy access to resources they need to carry out authorized tasks.

Companies often apply PoLP via role-based access control (RBAC) measures. For example, medical researchers may need access to data sources and reports relevant to their research. Physicians should have access to individual medical records but may not need access to aggregated medical data. This approach ensures that each role has only the permission necessary for its specific responsibilities.

In other cases, PoLP applies dynamically, using just-in-time access, where permissions are granted only for a limited period. For example, DevOps teams at financial institutions may need to escalate privileges for database maintenance temporarily.

With just-in-time access, teams receive the necessary permissions only for the duration of the task, and access to confidential records is automatically revoked once the specific period ends. This way, sensitive access is strictly limited to when it’s needed, reducing long-term exposure to potential security risks.

Least privilege access allows teams to carry out maintenance tasks, before revoking access to confidential records when the task is done.

PoLP aims to reduce the harm caused by malicious actors by minimizing user privileges at all times. If cyber attackers breach network defenses, the principle of least privilege limits their access to sensitive data and critical systems.

When properly applied, PoLP ensures that users only have minimal permissions necessary for their roles. This means that even if attackers gain control of a user’s device, they’ll face restrictions on what actions they can take, reducing the risk of major data breaches or unauthorized access to critical information.

Cutting data breach risks has another important benefit. The principle of least privilege aids compliance with regulations like GDPR, PCI-DSS, and HIPAA. Companies handling confidential information can limit access to those with a legitimate business reason – in line with regulatory requirements.

Least privilege access applies to all network users, from junior staffers to administrators. Nobody should have the freedom to roam across all network resources. Controls include non-human users such as APIs and virtual machines as well.

Privileged access applies to all users within the network directory, requiring a comprehensive analysis of network resources and user identities. Admins must assign privileges accurately and update access rights as needed.

Zero Trust vs. least privilege

The principle of least privilege and ZTNA play complementary roles in digital security architecture, but their scope and how they handle security risks differ.

Let’s start with the similarities. Both frameworks aim to protect data and shrink the attack surface.

ZTNA and least privilege access also use similar tools to achieve this goal. Both frameworks advise using identity and access management (IAM) systems, segmentation, and network monitoring.

Are there any important differences between ZTNA and least privilege access?

ZTNA and least privilege are far from identical. However, the key takeaway is the two concepts complement each other in network security setups.

The Zero Trust model is concerned with how organizations authorize user activity. ZTNA-based systems authenticate users, discovering whether they are who they claim to be. Systems verify identities whenever they receive access requests. As a result, ZTNA is generally more resource-intensive and complex. Security teams must verify every activity and access request.

Least privilege access focuses narrowly on how users relate to network assets. In this sense, the principle of least privilege is an essential component of all Zero Trust solutions.

Applied on its own, PoLP is a useful foundation for data protection and privileges management. However, ZTNA delivers greater in-depth protection to meet urgent security needs.

Should you choose between Zero Trust and least privilege models?

The key takeaway is this: There is no natural opposition between Zero Trust vs. least privilege concepts.

Most companies would benefit from using both approaches when designing security measures. PLOP and ZTNA are critical components of Defense-in-Depth (DiD) strategies. You can’t lock down data effectively without considering both frameworks.

Companies can choose how extensively they deploy Zero Trust and least privilege-based access controls. However, in-depth access controls are vital in a world of endemic data breaches and phishing threats.

Key components of Zero Trust and least privilege

Robust network security setups leverage Zero Trust Network Access and the principle of least privilege to safeguard resources. We generally find the following components in both security models:

• Network asset classification. Companies must identify critical assets before defining access rights. Admins identify assets requiring protection, including data storage, applications, and hardware systems. Access policies define user permissions, enabling precise access control measures.
• Access controls at the network edge. Traditional access controls filter requests at the network edge. Tools like multi-factor authentication (MFA) and next-generation firewalls admit legitimate users and block unauthorized access requests.
• Software-defined perimeters. ZTNA deployments often use a software-defined perimeter (SDP) that accommodates today’s flexible network architecture. SDP verifies user identities via credentials, posture checks, and data like user location and access times. Users can then access approved resources without the need for add-ons like VPNs or wholesale network access.
• Identity and Access Management. Privileged access tools assign permissions, determining which resources users can access and the types of activity they can carry out. For instance, some users may have read privileges, while access rights for others include editing or deleting data.
• Network segmentation. Network segmentation divides network resources by robust internal walls. Admins define segments via firewalls, software-defined networking (SDN), access control lists, or a combination of measures.
• Network monitoring. The Zero Trust security models require continuous monitoring of access requests. Systems must check device statuses, user activity, and network traffic patterns. Monitoring ensures users remain at the appropriate privileged access level. Alerts also allow rapid responses to potential data breaches.
• Threat response. Security teams must shrink the attack surface rapidly when attacks materialize. Zero Trust security advises companies to plan for worst-case scenarios and adopt a proactive approach to quarantining threats.

How do ZTNA and least privilege fit into security systems?

PoLP and ZTNA security measures often complement Virtual Private Networks (VPNs) and encryption to maximize security. VPNs allow remote workers to connect securely and anonymously. ZTNA and least privilege controls limit their access to relevant resources, adding another layer of security protection.

Zero Trust security may also form part of Secure Access Service Edge (SASE) solutions. In this case, adaptive ZTNA controls work with next-generation firewalls and software-defined networking to defend network resources.

SASE is a good model for globally distributed remote workforces. It does not rely on fixed infrastructure or single work locations. Identity verification occurs wherever users connect, so you may not need legacy tools like VPNs.

How NordLayer can help

Implementing Zero Trust solutions or the principle of least privilege can be challenging.

Zero Trust requires companies to cover every asset and user, install reliable monitoring and authentication systems, and handle lengthy periods of disruption. PoLP requires tight privileges management and access controls.

The good news is that expert partners like NordLayer help you manage these problems.

Nordlayer enables you to create virtual private gateways to safeguard access to your sensitive resources, enhanced by additional layers of security.

For example:

• The Cloud Firewall enables easy network segmentation to strengthen resource protection.
• IAM solutions like multiple MFA options, single sign-on (SSO), and user provisioning ensure identities are triple-checked.
• Robust network access control measures such as Device Posture security make sure that only authorized devices or users from allowed locations can connect to the network.

NordLayer can help with whichever approach you adopt. We provide a simple route to implement Zero Trust and the principle of least privilege. To find out more, contact our team to arrange a demo today.

Cloud computing has revolutionized business networks, cutting the need for hardware and maintenance tasks while making network design more flexible than ever.

On the other hand, the public cloud can feel a little exposed. Sharing space with other users increases security risks – and those risks may be unacceptable when storing or processing client data.

Virtual Private Cloud (VPC) deployments offer a practical solution.

VPCs create private zones within the public cloud, blending the pros of cloud computing with robust security. Even so, using VPCs safely is essential. Let’s explore the subject and understand how private cloud technology can work for you.

What is Virtual Private Cloud infrastructure?

A Virtual Private Cloud is a private virtualized domain within the public cloud. VPCs contrast with public cloud computing, where tenants share cloud space with other users. VPC deployments use single-tenant architecture, creating private spaces within the public cloud.

VPCs allow companies to benefit from cloud computing’s flexibility and easy scaling while securing critical resources via logical isolation.

How does a Virtual Private Cloud work?

Unlike public cloud solutions, VPC cloud infrastructure is owned and maintained by the organization that uses it.

A VPC resides in a standard public cloud data center. Owners source software and cloud hosting facilities and may hire additional IT management professionals. However, the VPC is effectively private. Isolation minimizes links to other publicly hosted assets.

Technicians use logical isolation to separate VPC resources from the public cloud. This technique uses Virtual Local Area Networking (VLAN) technology and private IP subnets to create barriers and protect private assets.

Private subnets make local IP addresses inaccessible from the public internet. VLANs isolate types of traffic, prevent access from unauthorized devices, and ensure all traffic relates to the VPC owner.

Most VPC instances also use Virtual Private Network coverage (VPNs). A VPN connection creates an encrypted zone around the shared public cloud. Users log into the VPC via their VPN gateway. The VPN conceals their identities and activity when using the Virtual Private Cloud.

VPC components and architecture

VPC networks tend to have elements in common. As the VPC diagram below shows, core components include:

• Web gateways: These create a connection between the VPC environment and the public cloud or the Internet. Each VPC requires a separate internet gateway, which serves as a location for access control measures. Best practices advise users to guard every web gateway with a VPN.
• NAT gateways: One-way gateways that enable outward connections from the VPC to the public internet.
• Subnets: A subnet is a group of IP addresses linking assets within your VPC. VPC subnets can be public or private. Public subnets define resources users can connect with inside the internet gateway. Private cloud subnets are off-limits to public web users and connect to the NAT gateway.
• Routers and route tables: Route tables define the movement of VPC network traffic. Routers use route tables to direct traffic to apps or data containers. Without a properly configured route table, elements of the VPC cannot communicate.
• Security groups: VPC security groups operate like firewall rules at the instance level, regulating traffic between the private and public cloud.
• Network access control lists (NACLs) provide security at the subnet level. They set rules for traffic that enters or leaves a subnet and block unauthorized users.
• VPC peering: Sometimes, users need to connect resources on different Virtual Private Clouds. Peering uses IPv4 or IPv6 addresses to safely link VPC resources and ensure smooth data flows.

Benefits of using a Virtual Private Cloud

There are many reasons to deploy a VPC instead of relying on public cloud infrastructure or locally-hosted network resources. For instance, Virtual Private Cloud benefits include:

• Easy scaling: Users can add VPC capacity as needed. They don’t need to install hardware or software solutions; they can purchase cloud space from vendors when needed.
• Improved performance: Well-designed VPCs generally perform better than equivalent on-premises networks or public cloud resources.
• Flexibility: Users can connect VPC infrastructure to the public cloud or on-premises assets. They can accommodate remote working arrangements and communicate across geographical regions without relying on public internet connections.
• Security: VPCs provide secure work and data storage environments, provided cloud vendors update their infrastructure regularly. Logical isolation also makes VPCs more secure than relying on public cloud computing.
• Value for money: Deploying a Virtual Private Cloud is cost-effective. Installation requires little human labor, and you can often rely on off-the-shelf solutions. Hardware overheads are low, while your cloud vendor should handle most maintenance needs.

Security challenges associated with using VPCs

One of the main benefits of virtual private cloud systems is that VPC deployments are usually more secure than public cloud alternatives and traditional networking.

However, using VPC in cloud infrastructure can create security vulnerabilities. Users should understand the risks before permanently moving assets to private cloud services.

1. Improper configuration allows paths from the public internet

Generally, attackers find it difficult to hop from a public cloud provider to private cloud assets. Isolation by VLANs and subnets minimizes the risk of unauthorized infiltration.

However, default subnet configurations can leave open routes to and from the external internet. Administrators may also fail to secure subnets via network access control lists. Hence, VPC best practices always include changing default configurations to reflect your cloud architecture.

Adding access control lists is also recommended. The absence of ACLs makes it easier for attackers to access subnets that should be restricted within the VPC.

2. Preventing lateral movement within the VPC

Malicious actors accessing VPC infrastructure can move between peered resources and seek compromised applications or storage containers. For instance, infrequently updated security rules may not cover virtual machines, raising the risk of data breach attacks.

Similarly, access control lists and subnets can become misaligned, enabling lateral access to resources that should be off-limits.

3. Ensuring secure access

The issues above are important, but unauthorized access is the most significant VPC cybersecurity risk.

Problems often arise when cyber attackers obtain credentials or breach firewall protection. Insecure service endpoints may enable easy access to the entire deployment. Weak access controls and privileges management can allow excessive access – exposing customer records or financial data.

When that happens, attackers can roam freely within a virtual private cloud and cause chaos. So, how should you secure access to your VPC and prevent unauthorized intrusions?

VPN coverage is essential. Site-to-site VPNs create secure connections between offices or remote work locations and your VPC gateway. When users log in, the VPN shields their activity, making credential theft attacks much less likely.

NordLayer enables users to connect directly to AWS or another cloud provider via a dedicated VPN. We recommend adding this security feature to ensure watertight private cloud security.

Major Virtual Private Cloud providers

VPCs are not mom-and-pop operations. Big global corporations usually host virtual cloud infrastructure and offer diverse products to suit client needs. Let’s run through popular cloud provider options before exploring how to perfect your VPC setup.

• Amazon Web Services (AWS). AWS is the market leader in VPC services, claiming around 32% of all cloud hosting revenues. Users can rent virtual machines via the Amazon Elastic Compute Cloud (EC2) and use Amazon Relational Database Service (RDS) to manage databases in the cloud. Basic VPC is free, but extra costs apply for services like NAT gateways.
• IBM Cloud. IBM’s VPC offering uses a Software-Defined Network (SDN) model to deliver VPC solutions. Users mix and match computing, storage, and networking architecture. Pay-as-you-use billing allows flexibility and cost-effective scaling.
• Google Cloud. Google’s VPC is similarly flexible and covers every geographical region. Features include flow logs, peering, central firewall management, and free credits to get smaller businesses started.
• Microsoft Azure. Azure is Amazon AWS’ main competitor. Microsoft’s VPC includes a built-in IPSec VPN, granular controls over communication between subnets, and peering and NAT gateways for maximum flexibility.

Securing access to a VPC with NordLayer

If you decide to use a VPC, you must also implement the right security options to safeguard your data and applications. NordLayer is compatible with the most popular VPC solutions and can enhance your security by protecting who can access the information stored there.

To secure your VPC, consider implementing the following measures:

• Secure remote access: Users need secure access to resources and applications inside the VPC. NordLayer’s Site-to-Site VPN provides an encrypted tunnel. This allows secure access to the VPC without exposing data to public internet threats.
• Preventing unauthorized access: NordLayer’s Cloud Firewall adds an extra security layer by allowing you to control who can access the VPC. You can restrict VPC access to authorized users, prevent accidental data leaks, and implement multilayered authentication methods with SSO and MFA. That way, you can double or triple-check identities before granting access.
• Device Posture Security: NordLayer’s Device Posture Security ensures that only approved devices that meet company security policies can connect to the VPC. This reduces the risk of compromised or non-compliant devices accessing sensitive data.

NordLayer’s powerful suite of security tools makes it easy to protect your VPV and ensure that only the right users and the right devices can access your resources. We can help you benefit from VPC architecture without putting critical information at risk. To find out more, contact the NordLayer team today.

A VPN passthrough is a router feature that allows data encrypted by VPN protocols to pass network firewall filters.

Passthroughs were once essential to work around router limitations. Improved protocols and security technology have made them less critical. However, some situations still involve the VPN passthrough setting.

Key takeaways

After reading this article, you will:

• Know what a VPN passthrough is and how passthrough types function.
• Learn how to configure IPSec, PPTP, and L2TP passthroughs on standard routers.
• Understand the limitations of VPN passthrough features and common security vulnerabilities.
• Know how to troubleshoot VPN passthrough security problems and create secure VPN router setups.
• Learn about effective alternatives to a VPN passthrough and how to choose the right way to establish VPN connections.

VPN passthrough definition

A VPN passthrough is a router feature that allows outbound VPN traffic to pass through a network firewall.

Passthroughs allow businesses to connect devices to VPNs without compromising firewall protection. Users can encrypt traffic leaving the network and hide their activity. The firewall filters other inbound and outbound traffic normally.

Think of a VPN passthrough as a secret passage. Only authorized users can access the passage, and external actors cannot see where it leads.

How does a VPN passthrough work?

Sometimes, compatibility issues arise between VPNs and network routers. Some routers do not support VPN protocols.

VPNs rely on protocols to encrypt and transport data. VPN clients must establish connections with VPN servers outside the network boundary. This leads to problems when Network Address Translation (NAT) setups cannot handle VPN protocols.

NAT assigns a public IP address and sends data to its destination. Unfortunately, older VPN protocols can derail this process. NAT is unable to route packets to their final destination. Instead of creating an encrypted tunnel, routers block data packets and return them to the source.

A VPN passthrough solves this problem. Passthroughs allow routers to recognize protocols like IPSec, L2TP, or PPTP. When the VPN passthrough is engaged, encrypted traffic can pass across the network edge, protecting user data.

Note: Advanced protocols like OpenVPN and WireGuard avoid the need for a VPN passthrough. Modern VPN protocols work with NAT, allowing outbound traffic to the VPN server.

Do all routers need a VPN passthrough?

Not all routers need a VPN passthrough, but some do. It’s important to know whether your routers support VPNs, as configuration issues can expose sensitive data to cyber attackers.

The good news is most routers include a VPN passthrough option. In practice, only very old routers lack passthrough capabilities (and you should probably replace those devices for security reasons).

The bottom line is that you need to enable passthrough for older VPN protocols like IPsec or PPTP. Modern protocols and more secure alternatives make this unnecessary.

If you do need passthrough functionality on your router, choosing the right type matters. That’s where we will turn next.

Types of VPN passthrough

VPN passthroughs deal with different VPN protocols. There is no one-size-fits-all passthrough design, as protocols operate differently. Here are the three main versions:

PPTP passthrough

The point-to-point tunneling protocol (PPTP) uses the Transmission Control Protocol (TCP) via Port 1723 and the Generic Routing Encapsulation (GRE) protocol.

GRE does not require a specific port or IP address to create a PPTP connection. NAT requires a port number and IP address—creating a conflict. That’s where a PPTP passthrough becomes essential.

The PPTP passthrough feature solves this conflict by assigning a Call ID to GRE headers. The router sees this Call ID as a port number and allows traffic through the firewall.

Users implement a PPTP passthrough via their router firmware. Here’s how to do so:

1. Find your router IP address and enter it into a browser address bar.
2. Log onto the router settings tool and find the VPN settings section.
3. You should see an option to apply a PPTP passthrough. Enable the VPN passthrough and save your settings.
4. Reboot the router. The VPN passthrough functionality should be enabled.

IPSec passthrough

IPSec (Internet Protocol Security) passthroughs use NAT-Traversal (NAT-T) technology.

NAT-T packages data using the User Datagram Protocol (UDP) to wrap IPSec data. The NAT router can recognize this format but cannot understand encrypted IPSec traffic.

IPSec passthroughs use UDP port 4500 to establish an IKE packet exchange. IKE exchange allows the router to assign a private IP address for IPSec traffic while underlying payloads remain untouched.

Users also implement an IPSec passthrough via router firmware. To do so:

1. Firstly, log onto your router via a web browser.
2. Look for the VPN section and the option to enable IPSec passthrough.
3. You may need to reboot the router after saving passthrough settings.
4. Test the VPN connection to ensure passthrough is enabled.

L2TP passthrough

The L2TP VPN passthrough resembles the process for PPTP. In this case, passthroughs use Port 1701 to create a VPN connection.

VPN passthroughs assign a Session ID to UDP packets passing over the port. This Session ID substitutes for the port number, allowing transfers via the NAT router.

What is the difference between a VPN and a VPN passthrough?

VPNs and VPN passthroughs sound similar, but they are very different technologies. Passthroughs only allow VPN traffic from internal networks to the public internet. That’s all they do.

Virtual Private Networks are far more powerful network security tools. VPN companies operate servers across the world. The VPN server transports encrypted data and assigns new IP addresses, effectively making users anonymous.

Users generally access the VPN server via a locally-hosted VPN client. VPN software uses protocols to encrypt and send data to servers. A VPN passthrough feature smooths that process.

Companies may also choose to install a VPN router. VPN routers operate on the internal network and eliminate the need to install a VPN client on every device. The router encrypts and anonymizes data and connects with external VPN services.

Passthroughs are not usually needed if you run a VPN router. They may be necessary if you rely on separate clients for devices connected to a standard network router.

VPN passthroughs and security considerations

Let’s assume you continue using PPTP or IPSec and must traverse a typical NAC router. Does this impact your network security status, and should you take action in response?

Firstly, passthroughs are more secure than disabling NAC. This would solve the routing issue, but NAC manages traffic efficiently, conceals IP addresses from the public internet, and allows easy IP changes for network users.

Don’t even think about disabling NAC. Even so, VPN passthroughs generally leave networks more exposed to cybersecurity threats. There are a few reasons why this happens.

• Firstly, passthroughs can allow connections via insecure old VPN protocols. These protocols are rarely updated (if ever) and become less secure over time.
• Security teams may not know if users may establish insecure outbound VPN connections — putting data at risk.
• Another problem is that firewalls cannot inspect VPN traffic passing into and from network devices. This is fine if VPNs use strong encryption, but insecure VPN traffic can become an attack vector.
• Passthroughs also open ports for attackers to exploit. They may even act as backdoors, allowing freedom of movement for malicious traffic inside the network.

That sounds worrying. However, the best practices below should ensure a secure passthrough setup:

• Avoid older VPN protocols. Use secure protocols like OpenVPN or WireGuard that are harder to crack and offer better compatibility. Use VPN passthrough as a last resort.
• Block inactive ports. If you set up a VPN passthrough, only enable port forwarding where necessary. Check and close open ports that the VPN does not need.
• Maintain authentication and access policies. Limit network access to authorized users and devices. Use multi-factor authentication and processes to limit VPN access.
• Monitor VPN traffic. Use logs and real-time tracking to detect unusual behavior patterns or potential attacks.
• Use network segmentation. If you need passthroughs for certain activities, create secure zones with network segmentation tools. That way, intruders will find their path blocked if they exploit passthrough vulnerabilities.
• Audit passthroughs regularly. It’s never wise to enable VPN passthrough permanently. Regularly check router settings. Disable VPN passthrough when it is no longer needed.
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Alternatives to a VPN passthrough

Another way to avoid the security problems above is to use an alternative solution for outbound VPN traffic. Common alternatives include:

• SSL encryption. SSL encrypts HTTPS traffic passing across the network edge. You can use SSL as a VPN alternative, but only for web traffic. SSL is a viable alternative for web-based workloads but a poor general security option.
• RDP. The Remote Desktop Protocol (RDP) enables remote work connections without firewall conflicts. It’s a good alternative if you need to access remote devices for maintenance or training. However, RDP does not offer encrypted tunnels, making it less secure than a VPN passthrough.
• SD-WAN. Software-defined wide-area networks enable companies to create secure networks across many sites. Access controls and encryption transfer data securely without needing a standard VPN.
• Site-to-Site VPN. Site-to-Site VPNs connect locations via an encrypted tunneling protocol. Internet gateways interact without firewall conflicts, and there is no need for individual clients. However, this VPN style often relies on inefficient hub-and-spoke routing, and configuration can be complex. Problems may also arise when securing cloud deployments.
• IAM. Identity and Access Management (IAM) partly replaces VPNs for cloud-based and hybrid networks. Admins can control who accesses sensitive assets, blocking unauthorized connections. With the correct security setup, there is no need for an extra VPN or a VPN passthrough.

A VPN passthrough may be necessary to connect older devices or applications and allow remote work. But more advanced alternatives exist. Options include the tools above and modern VPN protocols that render passthroughs obsolete.

Go beyond a VPN passthrough with NordLayer’s security solutions

One thing hasn’t changed—companies must secure connections without compromising firewall performance. As cyber threats mount, protecting data transfers is becoming more important than ever.

NordLayer provides a flexible solution to secure remote connections and optimize efficiency. Our business VPN uses a variant of the WireGuard protocol, with no need to configure a VPN passthrough.

Secure gateways connect remote devices to on-premises and cloud assets. Strong encryption and IP address anonymization keep transfers completely secure. Access controls and Firewall-as-a-Service implement Zero Trust Network Access principles—blocking unknown and unauthorized connections.

Forget about VPN passthrough issues. Our simple, scalable, secure solution protects data and streamlines security management. To find out more, contact the NordLayer team today.

Frequently asked questions

Should VPN passthrough be enabled?

No. As a rule, companies should minimize the need for a VPN passthrough.

Passthroughs rely on outdated VPN protocols and create serious security vulnerabilities. Instead, security teams should invest in a modern router or investigate secure remote access solutions.

Only enable a VPN passthrough if bypassing your firewall is necessary. You may need a point-to-point tunneling protocol (PPTP) passthrough for remote access or operating devices that rely on the PPTP VPN protocol.

If possible, update your setup to accommodate newer protocols. Only use the VPN passthrough as a temporary solution.

What happens if you turn off the VPN passthrough?

Turning off the VPN passthrough is rarely a problem.

Turning off a VPN passthrough can prevent encrypted data transfers through your network firewall. The VPN passthrough allows transfers across older VPN connection types. If the VPN passthrough fails or is not activated, the VPN connection will lapse.

This can cause problems for remote workers who rely on their VPN client to establish outbound VPN connections. In some cases, users may backslide to less secure connection methods.

Generally, choosing to enable VPN passthrough is worse than turning it off. Advanced VPN protocols and tools like IAM provide reliable connectivity and improve security.

Healthcare providers and insurers handle more valuable personal data than any other organizations. Losing this data puts millions of patients at risk, which is why healthcare is also one of the most highly regulated sectors.

Regulations like the Health Insurance Portability and Accountability Act (HIPAA) protect our privacy from an army of cyber attackers. HIPAA recommends administrative and technical solutions to lock down patient data.

There are many HIPAA requirements, ranging from preventing PHI disclosure to making health information available. Firewall barriers help meet requirements for access control policies and role-based access.

That’s because firewall tools allow for the implementation of granular network access controls, which helps protect sensitive medical records and data from unauthorized access. Firewalls enable healthcare companies to benefit from digital environments and remote access while securing data and avoiding HIPAA penalties.

This article will explore what role firewalls play in achieving HIPAA compliance and suggest some best practices for firewall configuration. We will look at firewall risk assessments and help you lock down medical data.

What is HIPAA compliance?

HIPAA compliance involves following security and privacy rules under the Health Insurance Portability and Accountability Act (HIPAA). This act is a body of regulations covering the healthcare sector in the United States, and non-compliance can result in significant penalties.

HIPAA is a complex set of acts and regulations, but core aspects include:

• Privacy. Organizations must safeguard the confidentiality of Protected Health Information (PHI) relating to patient identities and healthcare histories.
• Security. Organizations must protect against data breaches and implement appropriate data protection and cybersecurity measures.
• Assessment. Companies must allow access to patient records.
• Portability. Patients must be able to change providers if desired.

Compliance requirements extend to covered entities and business associates. Covered entities include direct healthcare organizations and insurers. Business associates are third parties with access to medical records. Examples include cloud storage providers or IT support companies.

Key takeaway: HIPAA compliance is essential if your company handles or stores PHI.

The importance of firewalls in HIPAA compliance

Data protection is one of the core HIPAA requirements. Although HIPAA does not set out precise technical requirements, organizations can use any technical means to protect patient data.

However, Firewalls usually play a critical role by blocking unauthorized access and filtering data passing to and from network assets.

A robust firewall enables healthcare organizations to regulate who accesses digital PHI (ePHI). Cloud-based firewalls also secure hybrid environments that host patient information or web assets.

Firewalls are not the only tools required to comply with the HIPAA Security Rule, but they are compliance essentials.

Features of a HIPAA-compliant cloud firewall

Every business should use firewalls in their security infrastructure, but not all firewalls suit healthcare organizations. Firewalls that contribute to HIPAA compliance must meet regulatory standards in various ways. Knowing where you stand is vital.

Features of a suitable firewall include:

• Data encryption for patient information (at rest and in transit)
• Access controls and identity management to block unauthorized access to medical records
• In-depth traffic analysis via Deep Packet Inspection (DPI) and Stateful Packet Inspection (SPI)
• Real-time activity monitoring (inbound and outbound traffic)
• Blocking viruses and malicious software
• Virtual private network (VPN) coverage
• Network segmentation for confidential data
• Flexibility and the ability to scale safely

Best practices for using firewalls to achieve HIPAA compliance

Given the requirements above, what is the best way to set up a firewall that helps you meet HIPAA regulations?

Implementations vary depending on the type and amount of PHI you handle. The best practices below apply to most HIPAA compliance situations and provide a solid foundation.

• Secure inbound connections. Securing remote access or third-party network connections is a common pain point. Set inbound firewall rules to allow access to legitimate users. Add VPN protection for remote connections to shield traffic from external view.
• Manage outbound connections. Configure outbound firewall rules to prevent unauthorized extraction of PHI.
• Manage third parties securely. Many covered entities use business associates to process, store, or analyze data. Carry out risk assessments for all third-party access. Consider time-limiting third-party providers to minimize their contact with PHI.
• Strategically position your firewall. Firewall rules should manage traffic to and from locations where you store or handle PHI. Assess PHI processing operations and position your firewall to filter inbound and outbound traffic.
• Control access to firewall settings. Only approved administrators should have access to firewall controls. Be careful when assigning admin privileges. Apply brief escalation windows to scale back permissions if needed.
• Protect PHI inside a secure zone. Secure zones are network segments containing HIPAA-covered health data. Configure firewall rules to filter traffic to and from these zones.
• Implement threat responses. Plan how you respond to suspected data breaches or security gaps. Document firewall breaches and actions taken in response. Constantly update firewall rules to meet evolving cyber threats.
• Create HIPAA firewall policies. Policies document firewall rules and how your firewall meets HIPAA obligations. Revisit policies annually to assess their effectiveness and make changes if needed.
• Backup firewall rules and configurations. Create a secure storage zone for firewall configurations. Regular and secure backups allow you to restore security infrastructure following cyber attacks.
• Maintain and review audit logs. Configure firewall logs to record access patterns. Retain logs for at least one year, according to HIPAA guidelines. Store logs in an accessible format and consult logs daily to detect incoming cyber attacks.
• Schedule third-party HIPAA audits. Covered entities and business associates should arrange external audits to ensure HIPAA compliance. Audits should include robust firewall assessments. Implement recommendations promptly to resolve vulnerabilities.
• Scan systems to detect weaknesses. Scan networks regularly using qualified internal resources or third-party services. Include firewall integrity in vulnerability scans, focusing on access to sensitive data.
• Update firewall appliances and software regularly. Implement vendor-supplied updates as soon as they are available. Upgrade or replace software tools if vendors no longer support them. Audit tools annually to detect unsupported firewalls. Vendors may not inform users when products change.
• Train staff to use firewalls. HIPAA compliance requires employee training. Programs should focus on handling patient data and preventing cyber threats. Firewall usage is a core component. Ensure staff understand cloud security protocols and tools and test knowledge and behavior annually.
• Consider a managed firewall to cut costs. Smaller covered entities under HIPAA may struggle to protect patient information themselves. While firewalls—whether hardware or software—are typically provided by third-party vendors, choosing a managed firewall service adds an extra layer of support. For example, instead of setting up NordLayer’s firewall directly and handling all configurations yourself, you could choose an MSP (Managed Service Provider). MSPs handle all firewall configurations and maintenance, which is ideal for organizations without the internal expertise or confidence to manage these technical safeguards.

Carrying out a firewall risk assessment

Risk assessments consider critical HIPAA compliance risks. They complement the best practices above by systematically assessing firewall setups according to HIPAA risks.

Never roll out firewall appliances without a thorough risk assessment. Risk assessments determine whether your firewall protects patient data while meeting operational needs and limiting costs.

HIPAA risk assessments for firewalls should include several critical elements:

• Scope and asset identification. Determine where patient data resides and how it moves around your network. Establish the scope for firewall protection, including any necessary network segments.
• Threat assessment. What kind of cyber threats should the firewall counter? Think about DDoS, data breaches, insider threats, and physical risks to firewall infrastructure.
• Assess vulnerabilities. Check configuration issues like vendor-supplied passwords, default settings, or compatibility problems. Ensure firmware is current. Look at policies and identify gaps that could impact firewall effectiveness.
• Prioritize risks. Identify risks based on vulnerabilities. Rank HIPAA risks based on impact and probability and create risk management plans for each vulnerability. Using a risk matrix makes it easy to visualize risks and keep track of progress.
• Risk mitigation. Test firewalls to ensure they protect HIPAA-covered data. Run simulations to test filtering, access control, and packet inspection features. Check training knowledge and admin controls. Verify firewalls are physically secure. If relevant, test remote access from employee workstations.
• Continuous monitoring. If you have not already done so, implement continuous firewall monitoring.
• Documentation. Create a risk assessment report documenting your findings. This document should explain how your firewall helps you meet HIPAA compliance requirements. It should list any additional mitigation actions and include sign-off from senior company officials.

What happens if your cloud firewall does not guard PHI?

Following best practices and carrying out a robust risk assessment may seem time-consuming. However, spending time on HIPAA risk mitigation is always worthwhile. Insecure firewalls eventually cause serious problems for healthcare companies and their customers.

Firewalls’ most important role is preventing PHI data leaks, the number one cyber attack risk for healthcare organizations.

In 2023, the average data breach cost in the USA was $4.45 million, while the average in healthcare was $10.9 million—a massive difference. Firewalls cut data breach risks by blocking direct access to patient records.

According to HHS, this risk is even greater if companies rely on remote access. Telehealth services and medical practitioners use the public internet to send ePHI and access cloud storage. Firewalls and VPNs secure these connections while allowing innovation and flexibility.

Firewalls can also manage risks from insider attacks by locking ePHI inside secure zones. Only users with a legitimate reason have access to these zones, deterring other users with malicious intentions.

Just as importantly, firewalls achieve HIPAA compliance goals. This avoids some very damaging consequences.

Companies with solid access controls and data filtering systems are less likely to receive HIPAA penalties. Compliant organizations spend less on mitigation activities and avoid reputational damage when regulators detect problems.

How NordLayer can help you achieve HIPAA compliance

Access control policies are essential for HIPAA compliance, and firewalls are key tools for creating secure data environments that meet HIPAA requirements. Firewalls protect sensitive medical records and ensure that only authorized personnel can access critical resources. However, meeting compliance can challenge smaller and medium-sized enterprises.

NordLayer is the ideal HIPAA security partner for companies experiencing these challenges. Our cloud firewall protects today’s hybrid network infrastructures with fine-grained access controls and traffic inspection. Administrators can also set role-based access controls, ensuring only authorized users access sensitive data.

That’s not all. NordLayer also offers VPN coverage, Deep Packet Inspection (DPI), Device Posture Security (DPS), and multi-factor authentication (MFA). Quantum-safe encryption of data in transit also meets HIPAA’s cryptography management requirements.

Together, NordLayer’s features address most of HIPAA’s technical and access control requirements. Applying security measures also makes life easier for users by integrating with business systems.

Our cloud firewall scales smoothly, allowing organizations to grow. IT admins can easily change rules to create groups or manage permissions. There’s no hardware to maintain or update. Everything updates automatically, avoiding security gaps.

Ready to update your firewall and enhance your HIPAA compliance status? Contact the NordLayer team today.