According to Veeam, 76% of companies have experienced data loss in the cloud, while half of companies believe that in the event of mass file deletion, it wouldn’t be possible to recover their data. These are the mistakes organizations around Microsoft 365 data protection.
Cloud applications provide organizations with a range of benefits; notably the ability to access business-critical files and services from anywhere, allowing employees to be productive no matter where they are, be they at the office or working remotely. However, harnessing cloud can also lead to additional mistakes and errors around backups and data protection.
Mistake #1: Relying on Microsoft 365’s Built-In Tools for Data Protection
Many IT leaders assume OneDrive, SharePoint and Exchange Online will automatically protect their data – 60% believe Microsoft 365 automatically protects their files. But this isn’t the case.
Based on the Microsoft 365 shared responsibility model, it doesn’t provide a full backup of data; the built-in recovery tools only store deleted files for between 30 and 90 days before permanently deleting them.
Mistake #2: Ignoring the Threat of Ransomware Attacks
Ransomware continues to be a major problem for MSPs and other organizations- especially when cyber criminals don’t just encrypt data, they threaten to delete it if they’re not paid. Remote compromise of admin accounts only adds to the risk.
Unfortunately, Microsoft 365 doesn't provide automatic ransomware protection for cloud data, leaving victims facing mass file-deletion if attackers aren’t paid their ransom demand. And even then, the attackers could still just delete the data.
MSP360’s automated backups without time restrictions allows for data recovery even years after deletion, while MS360’s immutable backups stored in a separate cloud means hackers can’t permanently delete files, protecting organizations against data deletion by ransomware attacks.

Mistake #3: Inadequate Protection Against Insider Threats
MSPs and IT leaders are strongly focused on potential external cybersecurity threats. But this isn’t the only danger; insider threats can be an even greater risk to data than outsiders. This could be unintentional, like an admin error causing data loss – or it could be intentional, like a disgruntled employee actively wiping data.
Mistake #4: Non-Compliance with data protection rules
Cloud applications operate in a global ecosystem; but many companies don’t verify whether their data protection processes comply with local regulations. Meanwhile, Microsoft’s built-in tools don’t offer long-term data retention as required by privacy legislation, potentially putting organizations at risk of losing millions in fines and lawsuits.
MSP360 for Microsoft 365 ensures GDPR compliance, meets HIPAA data protection requirements, and supports SOC 2 compliance for cloud data — with flexible retention policies tailored to industry-specific needs.
Mistake #5: Storing Backups in the Same Cloud as the Original Data
Many companies believe their doing the right thing by storing in OneDrive or SharePoint backup – but that means storing the backup in the same Microsoft 365 cloud as their original data. In this scenario, if a Microsoft 365 account is compromised, attackers can delete both the original data and the backups. MSP360 fixes this issue by storing backups independently and with hybrid storage options, which mean they can be copied to local servers when required.
Further reading Five Common Misconceptions About OneDrive Data Security
Mistake #6: No Data Recovery Plan in Place
Some companies think they’re doing the right thing by creating backups, but never test if their data recovery plan works. It’s only when they’re hit by a real incident – like a cyber attack or a service outage – they realise their backups are incomplete or there’s no data recovery plan in place at all. With regular test recovery simulations to ensure data is always recoverable and instant file restoration, MSP360 can help organizations avoid this issue.
Conclusion
These six mistakes put Microsoft 365 data at serious risk; MSPs need to understand them and take the necessary actions to ensure their data is protected.
MSP360 Managed Backup for Microsoft 365 provides a comprehensive solution that eliminates these risks. Request a demo today and ensure your data is protected!