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Key Risks of Software as a Service and How to Manage Them

Key Risks of Software as a Service and How to Manage Them

Jason Silberman
December 18, 2024
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Key Risks of Software as a Service and How to Manage Them

As organizations increasingly adopt Software as a Service (SaaS) applications, they gain scalability, flexibility, and ease of use. However, the rapid adoption of SaaS also introduces unique security risks that can jeopardize sensitive data, compliance efforts, and operational continuity. Understanding these key SaaS security risks and implementing targeted strategies to address them is critical for securing SaaS environments effectively.

The Challenge of Identity Management in SaaS

Identity and access management (IAM) is foundational to SaaS security, yet it is also one of the most challenging areas. Risks associated with SaaS identity management include:

  • Overprivileged Accounts: Employees often retain access to sensitive data or systems far beyond their job requirements. This overprovisioning can inadvertently expand the organization’s attack surface.
  • Shadow IAM Accounts: Local accounts created outside of centralized Single Sign-On (SSO) systems, such as unmanaged GitHub accounts, bypass lifecycle management. These unmanaged accounts can persist after an employee leaves, creating significant blind spots in security.
  • Weak Authentication Practices: Despite the availability of robust authentication tools, many organizations fail to enforce Multi-Factor Authentication (MFA) consistently, leaving accounts vulnerable to compromise.

How to Address These Risks: Adopt strong IAM protocols, enforce the Principle of Least Privilege, and conduct periodic audits to identify and revoke unnecessary access. Prioritize implementing MFA across all user accounts to reduce the likelihood of credential compromise.

Protecting SaaS Data from Persistent Threats

Sensitive information stored in SaaS applications is a lucrative target for cyber attackers. Without proper safeguards, data security risks in SaaS can multiply.

  • Excessive External Sharing: Files shared externally using settings like "anyone with the link" can remain accessible indefinitely, increasing the risk of unauthorized access.
  • Dormant Shares: Data shared for temporary collaboration often becomes orphaned, with no monitoring or expiration policies in place. Valence’s 2024 State of SaaS Security Report found that over 90% of external file shares are inactive but remain accessible.

How to Address These Risks: Regularly audit file-sharing permissions, restrict external sharing, and enforce expiration dates for shared links. Combine policy-based governance with automation to detect and disable unused shares proactively.

Misconfigurations: A Silent SaaS Security Threat

SaaS platforms are highly dynamic, which makes them prone to misconfigurations. Common examples include overly permissive access controls, unlimited cloud sessions, and settings that are enabled by default but not aligned with security policies.

Another problem is configuration drift. Over time, SaaS environments deviate from established security baselines due to new features, user changes, or updates. This drift can create hidden vulnerabilities that attackers exploit.

How to Address These Risks: Use automated tools for continuous configuration monitoring and remediation. Establish secure baseline configurations for all SaaS applications and review them regularly to ensure alignment with your security policies.

Risks from SaaS-to-SaaS Integrations

SaaS-to-SaaS integrations enhance productivity but also introduce new vectors for attack. These integrations often rely on non-human identities (NHIs) such as API keys and OAuth tokens.

  • Unmanaged Tokens: If not regularly rotated or revoked, tokens can provide unauthorized access to sensitive systems.
  • Excessive Permissions: Integrations often request broad access rights that exceed their functional requirements, increasing exposure.

How to Address These Risks: Implement strict access controls and monitor all active integrations for excessive permissions. Revoke tokens linked to inactive integrations or employees and adopt tools that provide visibility into SaaS interconnectivity.

SaaS Lifecycle Management: The Hidden Cost of Inactive Accounts

When user accounts, integrations, and data shares are not properly decommissioned, they can linger as unmonitored security vulnerabilities. Risks associated with SaaS lifecycle management include:

  • Inactive Accounts: Accounts that are not deactivated during employee offboarding can become backdoors for attackers.
  • Orphaned Integrations: SaaS-to-SaaS integrations tied to inactive accounts may retain access to critical systems and data long after their intended use.

How to Address These Risks: Automate the deprovisioning process for both user accounts and SaaS integrations. Use centralized visibility tools to identify inactive accounts and orphaned integrations promptly.

The Rising Risks of Shadow SaaS and GenAI

The rapid rise of generative AI (GenAI) tools integrated with business-critical SaaS applications introduces both transformative potential and significant security challenges. These tools often create a complex landscape where both sanctioned and unsanctioned AI (shadow AI) can bypass traditional security measures.

GenAI tools often require broad access to sensitive data across multiple SaaS platforms to function effectively, raising serious concerns about data privacy and security. This level of access can inadvertently expose sensitive information or lead to unauthorized data usage, making oversight and management of these tools a critical priority for security teams.

How to Address These Risks: Organizations must address these risks by implementing policies to manage GenAI adoption, closely monitoring SaaS-to-SaaS integrations involving GenAI tools, and providing employees with secure, approved alternatives.

The Compliance and Regulatory Landscape

Organizations must ensure their SaaS applications meet regulatory requirements, such as HIPAA, SOC 2, or ISO 27001. Mismanagement can result in non-compliance, financial penalties, and reputational damage.

How to Address These Risks: Establish comprehensive compliance checklists and align SaaS application configurations with industry standards. Leverage tools that provide automated compliance monitoring and reporting to streamline audits.

How Valence Helps Lower Saas Risk Exposure

Valence Security simplifies and fortifies SaaS security by providing comprehensive visibility, continuous monitoring, and automated remediation for the unique challenges of SaaS environments. Our platform is designed to address the following areas:

  • Identity and Access Management: Discover and remediate overprivileged accounts, inactive users, and shadow IAM accounts.
  • Data Security: Identify and secure dormant or risky external data shares to minimize the risk of exposure.
  • Configuration Management: Continuously monitor for misconfigurations or configuration drift, ensuring compliance with security baselines.
  • Non-Human Identity Management: Detect and revoke unnecessary or risky SaaS-to-SaaS integrations and API tokens.
  • Lifecycle Management: Automate offboarding processes to ensure accounts and integrations tied to departed employees are deprovisioned.
  • Shadow SaaS and GenAI Risks: Gain visibility into unauthorized AI tools, assess their access permissions, and ensure secure alternatives are available for your teams.

Want to learn more about how Valence’s SaaS Security Posture Management (SSPM) platform can help secure your SaaS ecosystem? Read more about our SSPM capabilities or request a demo today.

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