What Is SaaS Security? Challenges and Best Practices

SaaS applications are a cornerstone of modern business. From startups to established enterprises, SaaS offers a compelling combination of flexibility, cost-effectiveness, and scalability.

However, as a SaaS provider manages an expanding customer base, safeguarding sensitive data becomes paramount. This is where SaaS Security Posture Management (SSPM) tools come into play.

This article delves into essential measures to ensure data remains protected, customer confidence is maintained, and your business thrives in the ever-evolving cloud security landscape.

Why is SaaS security important?

Unfortunately, compromised security isn't the exception anymore. Data breaches continue to plague businesses of all sizes. But how serious of an issue is security for SaaS businesses? The short answer is very serious.

Reports suggest billions of records have already been exposed in the first half of 2024 alone. As a result, businesses are expected to spend significantly more on SaaS security measures.

The rise of Internet of Things (IoT) technology further intensifies this concern. With the ever-growing number of connected devices, the attack surface expands dramatically 

Unfortunately, the current state of security solutions in the IoT industry remains a major cause for worry. The emphasis on speed-to-market often overshadows data safety within the business landscape.

While short-term gains can be enticing for growing companies and established players launching new products, the long-term consequences of neglecting security can be catastrophic.

For example, let's discuss the data breach of the Indian Council of Medical Research (ICMR) database in October 2023. This breach compromised sensitive medical information, including COVID test results and biometrics. This one incident illustrates the vast array of data that attackers can target.

Similarly, in 2021, social media giant Facebook (now Meta) faced a security breach exposing the personal information of over 500 million users. This highlights the long-term risks of data breaches, as compromised information can resurface years later.

High-profile breaches like these should serve as a wake-up call for businesses, especially scaling SaaS companies. Robust SaaS data security measures and proactive action are crucial for preventing similar incidents in 2024.

Layers of SaaS security

Safeguarding sensitive information within cloud-based applications involves a multi-layered approach.

• Infrastructure (Server-side): This is the backbone of the software and hardware that run your SaaS product. It includes cloud storage providers like AWS, hosting companies, and internal servers.
• Network: This layer facilitates data transmission between users and your SaaS application. It's essential for communication but vulnerable to cyber threats. 
• Application and Software (Client-side): At the top is the user-facing layer. This includes your SaaS product and any third-party applications interacting with customer data.
  

Pillars of SaaS security

The security of SaaS applications is built upon a foundation of fundamental principles, that encapsulate the elements to safeguard sensitive data, mitigate risks, and maintain compliance in an ever-changing threat landscape.

Let's explore them

• Data encryption is a fundamental technique that scrambles data into an unreadable format, rendering it unintelligible to unauthorized parties. By encrypting data at rest and in transit, organizations can safeguard sensitive information against interception and theft, upholding confidentiality and integrity.
• Access control governs who can access data and dictates their permissible actions. Establishing granular user roles, permissions, and authentication methods ensures that access is restricted to authorized individuals, reducing the risk of data misuse or compromise.
• API security is essential for protecting your data and preventing unauthorized access. By implementing security measures, you ensure that only authorized entities can access your data, reducing the risk of breaches. Since APIs facilitate data exchange between SaaS applications and other systems, using API security tools helps safeguard information as it moves through your network.
  
• Identity and Access Management (IAM) focuses on who can access the SaaS application and what they can do. It involves strong authentication methods (e.g., multi-factor authentication), role-based access controls (RBAC), and user provisioning/de-provisioning processes. Using cutting-edge IAM software further fortifies these measures, ensuring comprehensive security and compliance standards are met.
• Compliance management facilitates regulatory compliance by offering features such as audit trails, real-time monitoring, and automated reporting, thereby mitigating the risk of non-compliance penalties. Adherence to regulatory standards and industry-specific mandates is imperative for SaaS applications, so using compliance management software for constant monitoring can prove beneficial. 
• Configuration management is critical to maintaining a secure framework for the SaaS application and its underlying infrastructure. This pillar involves establishing secure baseline configurations, ensuring proper patching and updates, and monitoring configuration drift.
• Disaster recovery plans are indispensable for mitigating the impact of disruptive events such as cyberattacks or system failures. These plans outline swift system restoration and business resumption procedures, ensuring minimal downtime and data loss.

Challenges in SaaS security

• Shared responsibility model: Security in SaaS is a shared responsibility. Providers secure the platform, but organizations are responsible for securing their data and user access. This division of responsibility can create confusion and require clear policies.
• SaaS sprawl: Many organizations use many SaaS tools, which can be difficult to manage and secure. Keeping track of data location, access permissions, and security configurations across numerous platforms can be overwhelming.
• Integration vulnerabilities: Integrating various SaaS applications can introduce security vulnerabilities. Insecure APIs or misconfigurations can create openings for attackers to exploit.
• Insider threats: Like any IT system, SaaS is susceptible to insider threats. Malicious employees or compromised accounts can steal or tamper with sensitive data.
• Evolving regulatory landscape: Regulations around data privacy and security are constantly evolving. Organizations must ensure their chosen SaaS providers comply with relevant regulations to avoid legal repercussions.

SaaS security best practices

Here are the most important SaaS security best practices, along with a deeper explanation for each:

• Start with encryption: Use strong algorithms to encrypt data at rest (stored on servers) and in transit (moving between servers and users). Look for providers offering default encryption, and consider adding extra protection with multi-domain SSL certificates.
• Conduct regular vulnerability testing: Use automated tools to scan for common weaknesses, and have security experts conduct manual penetration testing for more advanced threats. Understanding penetration testing for startups is especially important for smaller organizations or growing businesses to ensure tailored security measures. This proactive approach ensures your defenses evolve to tackle real-world and emerging cyber threats.
• Prevent data breaches: Use Data Loss Prevention (DLP) solutions to scan outgoing data streams for sensitive information like credit card numbers and block unauthorized transfers. Choose solutions with administrator alerts for flagged data verification and easy integration with your SaaS application.
• Mitigate unauthorized access risks: Only grant users the minimum access needed for their roles. Implement Multi-Factor Authentication (MFA) for added login security, requiring secondary verification factors like fingerprints or mobile codes.
• Prepare for the worst: Implement a robust backup strategy for unexpected events. Store user data in dispersed locations to ensure availability and minimize downtime during disasters or cyberattacks. Regularly test backups to ensure quick and reliable restoration when needed.

SaaS security is an ongoing journey

SaaS security is an ongoing journey, not a destination. By embracing a proactive approach and implementing the best practices outlined above, organizations can confidently leverage the immense benefits of SaaS applications.

Remember, security is a shared responsibility. Collaborate with your SaaS providers to understand their security measures and ensure they align with your compliance requirements. Educate your users on security best practices and empower them to be vigilant against threats.

By continuously monitoring your SaaS environment, staying informed about evolving threats, and adapting your security posture accordingly, you can ensure the safe and secure operation of your SaaS applications and foster a thriving and secure cloud ecosystem.

Learn why prioritizing cloud security is crucial for businesses and thriving by combining security with innovation.

This article was originally published in 2020. It has been updated with new information.