SaaS security: best practices and key challenges

What is SaaS security?

The term “SaaS security” refers to the measures and security protocols used to protect the data, applications, and infrastructure tied to an organization’s SaaS environment.

To put it differently, SaaS cybersecurity is all about implementing the right strategies to defend an organization against unauthorized access, data breaches, and other cyber threats that may compromise the confidentiality, integrity, and availability of its SaaS-based resources.

So, the core focus of SaaS security requirements is making sure the digital tools and data you use through SaaS services are safe and sound. This is usually achieved by incorporating measures such as encryption (to maintain the confidentiality and integrity of the data), authentication (to verify user access), and access control (to manage permissions). SaaS security monitoring plays a crucial role in overseeing these measures and ensuring their effectiveness. Regular security assessments are also necessary to identify and address potential vulnerabilities.

The most common SaaS security threats

Switching to SaaS is a big shift for businesses, mainly because it often involves giving up some control over how data is handled, how apps are managed, and how systems are customized.

This shift introduces a unique set of risks, particularly when it comes to SaaS data security. Let’s now explore the top 7 challenges organizations face when using SaaS solutions today:

Unauthorized access

SaaS environments are prime targets for cybercriminals because they usually hold valuable data. That means there will always be bad actors trying to sneak into your SaaS apps—often by exploiting weak passwords, stolen credentials, or gaps in access controls. If they get in, sensitive data may be exposed, and unauthorized activity may occur within your systems.

Data breaches

If a threat actor manages to break into your company’s SaaS infrastructure, things can go downhill fast. They might steal sensitive information and leak it on shady websites or dark web marketplaces, where others could easily get their hands on it and potentially use it against your organization. A data breach like this doesn’t just expose valuable company and customer data—it can also lead to serious financial losses and lasting damage to your reputation.

Human error

We all make mistakes—that’s just part of being human. But it’s also what introduces a major risk: we can end up jeopardizing our operations. In the world of SaaS, even minor slip-ups can turn into big problems. Mistakes made by employees—like misconfiguring security settings or falling for phishing attacks—can create serious vulnerabilities in SaaS environments. So, even a single lapse in judgment or a momentary oversight can give threat actors a foothold in your systems.

Insider threats

Of course, not all mistakes are accidents. Sometimes, someone is actively trying to throw a wrench in the works. These incidents are what we call “insider threats.” They occur when employees or contractors misuse their access to harm your company. Whether it’s out of spite, frustration, or a deliberate intent to do wrong, insiders can leak sensitive data or even interfere with your SaaS security tools to put your organization in a tough spot.

Compliance issues

One of the biggest SaaS security risks for today’s companies is non-compliance with data privacy regulations and other industry-relevant standards. Failure to comply with these regulations can result in hefty fines, legal troubles, and reputational damage once word gets out that a company doesn’t handle data with care.

Shadow IT

The term “shadow IT” describes a situation in which employees use unauthorized applications under the radar, meaning they do it without the knowledge or approval of the IT department. We don’t need to tell you that this can pose severe SaaS security risks. When employees stick to using unauthorized tools, they might end up creating insecure connections between those tools and your SaaS infrastructure. And that’s exactly the kind of opening threat actors are looking for.

Vulnerable APIs

Companies often use APIs to connect their SaaS apps with other software—and that’s totally fine as long as those APIs are secure and set up properly. But if those APIs are insecure, poorly designed, or misconfigured, attackers can take advantage of them to break in, mess with your systems, and manipulate your company data.

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What is SaaS security posture management (SSPM)?

SaaS security posture management (SSPM) is a strategic approach that organizations can adopt to help ensure the security of their SaaS applications. In other words, it involves continuously monitoring, assessing, and improving the security of a company’s SaaS applications to protect them from potential threats and vulnerabilities.

The key benefits include enhanced visibility into the security of SaaS applications, which allows organizations to quickly identify and address any issues. Additionally, SSPM helps ensure compliance with security policies and regulations, reducing the risk of data breaches and improving the overall security posture.

SaaS security: Best practices

When it comes to keeping your software-as-a-service environments safe, it’s crucial to follow best practices. Here are the most important guidelines from what we call “the SaaS security checklist.”

Use data encryption

Encryption is a big part of keeping your sensitive data safe. In simple terms, it scrambles your information into unreadable code that only someone with the right decryption key can make sense of. End-to-end encryption takes it a step further—it locks your data on your device, and only the person you’re sending it to can unlock it. That way, your info stays protected, whether it’s being sent or just sitting in storage.

Implement identity and access management tools

Identity and access management (IAM) tools are essential in software as a service (SaaS) environments for controlling access to applications and data. In essence, IAM solutions help you make sure that only authorized individuals have the necessary permissions, reducing the risk of unauthorized access and data breaches. IAM is also involved in setting up, removing, and overseeing user identities throughout their lifecycle within the system.

Introduce effective authentication methods

Using multi-factor authentication (MFA) is a way to take your organization's SaaS security standards to the next level. When you enable this feature, users must provide more than just a password—for example, a special code or security token—to verify their identity. As a result, MFA makes it much harder for unauthorized users to get in, adding an extra layer of protection beyond just passwords.

Making MFA a key part of your SaaS security solution can help ensure that sensitive data and resources stay secure. When it comes to implementation, MFA is often enabled through enterprise password managers, identity providers, or network security tools that offer advanced access control.

Become compliant with data privacy standards

Being compliant with data protection standards, such as the General Data Protection Regulation (GDPR) or the Health Insurance Portability and Accountability Act (HIPAA), demonstrates an organization's ability to handle sensitive data legally and securely. So, if a company wants to keep its data safe, build customer trust, and avoid legal trouble, it needs to make compliance a priority. That means regularly updating policies and making sure employees understand the importance of adhering to these standards.

Raise awareness among your customers

It's no surprise that human error plays a huge role in SaaS cybersecurity. Gartner even predicts that by 2025, 99% of cloud security breaches will be due to customer mistakes. To help avoid these issues, it's crucial to keep both new and existing customers updated on any system changes. They need to know how each update might impact their security and how their actions could potentially jeopardize it.

Moreover, as more companies shift to cloud-based systems, some customers might not fully understand the risks involved with that transition. That's why you need to make sure they're informed on how to keep their information safe and avoid security problems when dealing with your SaaS applications.

Ask the provider about certifications

One of the most important steps toward ensuring a secure SaaS environment is teaming up with the right cloud services provider. Therefore, before making a decision, it's essential to do your research. Ask potential providers about their certifications and the standards their solutions adhere to, particularly regarding SaaS network security.

For instance, you might want to check for compliance with certificates like SOC 1, SOC 2, and ISO 27001, but also consider other relevant certifications based on your specific needs. Also, be sure to request documentation from providers to check if their solution meets your security requirements, and choose the one that offers the best value.

Improve SaaS security with NordPass

All the practices we mentioned above can be followed by using just one cybersecurity solution, NordPass. Let us prove it to you.

First, NordPass is an encrypted password management platform, which means that you and your team can use it to securely and easily generate, store, manage, and share company credentials, knowing that they are protected by advanced encryption algorithms.

Second, you can use NordPass as an identity and access management (IAM) tool, ensuring the secure provision of access to company data, services, and applications. In other words, with NordPass, you have full control over access to company resources, plus, you can monitor all company logins in real time so that you know exactly who accessed what and when.

Third, NordPass enables multi-factor authentication (MFA) and the single sign-on (SSO) method, allowing you to double-check and confirm the identity of each user whenever they attempt to access one of the company accounts.

Fourth, NordPass can play a crucial role in helping you meet regulatory compliance by adhering to some of the most essential data privacy standards, such as HIPAA. Also, you can use the platform to set up various rules, procedures, and policies in a way that will allow your organization to be in line with specific requirements.

Of course, there is a lot more to NordPass than we can discuss in just one blog post. So if you want to learn more about how it can help your organization improve its cybersecurity and productivity, make sure to visit our website or reach out to us via email: [email protected].