Software-as-a-service (SaaS) has been around for the past 40 years, with its emergence around the same time as early computers of the 1980s. With the internet, digitization, and globalization, these cloud platforms have become more popular but data security in SaaS applications remains a concern.
As 94 percent of companies currently use some sort of cloud, more enterprises are turning to SaaS, with the market growing at 18 percent each year. Studies show that by the end of 2021, 99 percent of organizations will be using one or more SaaS solutions, but data and business processes like records, pricing information, client interactions, and transactions are critical considerations in compliance policies. While it provides an efficient and easy solution, the biggest concern remains on ensuring their data is secure with SaaS.
Data Security with SaaSWith digitization and globalization, the need for data security has never been greater. Having an effective data security strategy is crucial for every business. Organizations must protect sensitive information, whether it's in a database, cloud, or SaaS platform, as it's easy for unauthorized users to perform actions that can result in a cyberattack or data breach. Having a strategy in place can maintain the confidentiality, integrity, and availability of a company's data and prevent intentional or accidental destruction, change, or disclosure of the data.
Although data security has always been a priority, COVID-19 accelerated the need for data protection. As remote work policies took place over the last year, they increased the risk of cyber-attacks and privacy breaches. Over the past year alone, 64 percent of companies around the world experienced some cyber-attack. Insights from IBM's Data Breach report revealed that 2021 had the highest average cost in 17 years, with the average data breach cost reaching $4.24 million.
Cyberattacks threaten all industries, including healthcare, the public sector, and retail, but the financial services industry is a primary target for cybercriminals. Banks are at the greatest risk and are breached 300 times more frequently than companies in any other industry as they offer criminals multiple avenues for profit through fraud.
Furthermore, as companies look to more innovative tools and migrate their data to the cloud, they need to be more vigilant about protecting their and their customers' data. The global SaaS market will grow more than 38 percent and reach over $140 billion by 2022. Although SaaS solutions provide multiple benefits to companies, like helping them manage their business operations more efficiently, CIOs and CISOs underestimate the data risks associated with adopting SaaS platforms.
As we live in a more digital and global world and with permanent work from home and hybrid work changes because of the pandemic, the need for data protection will only grow. Specifically, organizations that use SaaS platforms will need to understand the risks associated with migrating to the cloud and working with a SaaS provider.
What is software-as-a-service (SaaS) security?
SaaS security is the data privacy and protection within a software-as-a-service platform. A SaaS is a subscription-based software delivered by a third-party provider and delivered to customers over the cloud. Unlike traditional software models, users can access the software via the internet, reducing the time to benefit. Additionally, these platforms cost less, can be integrated with other SaaS offerings and internet applications, and are easy to use.
SaaS provides more advantages than traditional software, which requires custom installations, configuration, and software deployment and can be more expensive. Third-party providers offer security benefits, but there are some aspects that providers are not responsible for. For example, SaaS providers are responsible for the back end of the system, such as securing the platform, network, applications, operating system, and physical infrastructure. Regulatory bodies like the General Data Protection Regulation (GDPR), EU-US and the Swiss-US Privacy Shield Frameworks, have provided mandatory guidelines for SaaS companies to follow. However, securing customer data and user access to it are the company's responsibilities.
Three layers of security provided by SaaS providers
SaaS providers offer three layers of security to ensure that the platform is secure. The three layers include the infrastructure in which it is built, the network, and the software.
Infrastructure: The infrastructure is the base layer of the SaaS product and makes up the lower part of the tech stack. The infrastructure can include applications from different providers such as AWS, cloud storage providers, and internal servers, to name a few. However, the provider will need to ensure that every point of connection between providers is initiated correctly, maintained consistently, and follows compliance.
Network: The network is the next layer and moves further up towards the server-side. Network security is critical as it ensures that when a user accesses the SaaS product, the connection is secure. Without a secure connection, cyber threats can pose significant risks. However, a secure network connection can identify, log, and alert connectivity and cyber issues.
Software: The final layer that touches both the server-side and client-side is the software. The software will be used to store, manage, and analyze sensitive data. The SaaS provider will focus on this layer to maintain compliance so that a company's customer data will remain secure.
Apart from these three layers, it's up to organizations to have their own security strategy in place. The main challenges companies face are the external and insider threats from the amount of unmanaged data in today's enterprises. According to a study by DoControl, nearly 40 percent of all SaaS assets are unmanaged by companies, which provides internal, external, and public data access to outside actors. Furthermore, Gartner predicts that by 2022 95 percent of cloud security failures will be from companies not protecting data in the SaaS application. As more financial services firms are turning to the cloud, businesses need to ensure that their data is secure within the SaaS product.
How to ensure data is secure in your SaaS application
Although providers of these applications play a critical role in maintaining security, companies using SaaS applications must also implement security practices to avoid data breaches. In addition to typical data security best practices like educating your employees and customers on data privacy, here are a few SaaS security practices that organizations can adopt to ensure data is secure:
Cloud Data Encryption – Organizations can encrypt their data before storing it in the cloud. With encryption, data is transformed from its original text format to an unreadable form before being held in the cloud. Only authorized users who have access to the encryption keys will access the data, making it more secure.
Identity and access management (IAM) –Companies can determine who has access to the company's cloud deployment and set parameters for each user. Organizations can provide access to users depending on their role in the organization. With IAM, a framework is created with business rules that determine which users have access through the data requirements, system accesses, and workflow assignments.
Back up user data – More than 50 percent of businesses are unprepared for data breaches, making it even more critical to manage customer data effectively. Once customer data is compromised, companies must deal with the reputation and monetary repercussions of the breach. Backing up your data in several places ensures that a system failure will not damage data security. Although many cloud platforms will provide this service, companies must be diligent with backups to avoid the potential loss of customer data.
Strengthen access controls – Whether it's requiring stronger passwords or using multi-factor authentication (MFA), companies can ensure their data is protected by strengthening their access controls. MFA is the preferred method of choice in the remote era as it requires users to pass multiple authentication challenges like providing a code sent to their mobile devices to ensure users are who they say they are.
For more information about how you can ensure data is secure within your SaaS application, register for our free, upcoming webinar about Securing SaaS Application in the Cloud Using AWS.
About Accern
Accern is a no-code AI platform that enables data scientists at financial organizations to easily build models that uncover actionable findings from structured and unstructured data. With Accern, you can automate processes, find additional value in your data, and inform better business decisions- faster and more accurately than before. For more information on how we can accelerate artificial intelligence adoption for your organization, visit accern.com