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Encryption: iSCSI does not provide built-in encryption for data in transit. To secure the data being transmitted, encryption must be handled by external protocols or applications, such as IPsec (Internet Protocol Security) or TLS (Transport Layer Security). These protocols can encrypt the data packets, ensuring confidentiality and integrity during transmission.
Authentication. When using iSCSI in a cloud environment, authentication must be handled by an external protocol or application to ensure secure connections.
Data Encryption: the data exchanged between the iSCSI initiator and iSCSI target is not encrypted, which is why an attacker who is able to sniff the data of the wire will also be able to reconstruct the data, or more precisely, the files and directories transferred between the two parties. Additionally, an attacker might also be able to inject his own data into the traffic, thus creating/modifying/deleting arbitrary files on the iSCSI target. To mitigate the risk, the IPsec ought to be used to properly encrypt the communication between the iSCSI endpoints.
https://resources.infosecinstitute.com/topics/cloud/iscsi-security-considerations-cloud/
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