What is SaaS Security?

Wiz Experts Team
6 minute read
Main takeaways from SaaS Security:
  • Security measures for SaaS are non-negiotable to protect sensitive data, ensure compliance, and support seamless business operations.

  • Common threats to SaaS include data breaches, insider threats, misconfigurations, compliance violations, and third-party integration risks.

  • Implementing IAM, API security, encryption, and continuous monitoring are the first steps toward securing SaaS applications from vulnerabilities.

  • SaaS security posture management (SSPM) solutions are your best bet for reducing your attack surface because they provide deep visibility, risk assessment, threat detection, and automated remediation. Better yet? Supercharge your SSPM tools by integrating them with a CSPM like Wiz.

What is SaaS security?

SaaS security involves a combination of strategies, tools, and policies designed to protect cloud-hosted applications and the sensitive data they manage. Unlike traditional application or infrastructure security, SaaS is unique in its reliance on third-party providers to host and manage applications. 

That said, it’s not just about the tools and policies—it’s also about understanding the specific challenges SaaS brings to the table. After all, SaaS security comes with its own set of challenges that aren’t quite the same as what you'd face with other cloud models like IaaS or PaaS.

It’s important to understand the differences between these models because each one has its own risks and requires a different approach to keeping things secure. When you know what makes SaaS security unique, you can build strategies that actually fit and protect what matters most.

  • Infrastructure-as-a-service (IaaS) security focuses on protecting virtual machines, storage, and networking components controlled by the customer within a cloud environment.

  • Platform-as-a-service (PaaS) security involves securing development platforms, databases, and services used for application deployment.

  • SaaS security, on the other hand, centers on securing data, user access, integrations, and compliance within a third-party application that is fully managed by the SaaS provider. I

In other words, in a SaaS environment, security is a joint effort. SaaS security follows a shared responsibility model. This model is crucial because the level of responsibility can vary depending on the type of SaaS application in use—whether it's a collaboration tool, a cloud database, or a CRM platform:

  • The SaaS provider is responsible for ensuring the security of the underlying infrastructure, maintaining application uptime, and implementing built-in security controls such as encryption, access management, and compliance frameworks.

  • The customer is responsible for configuring security settings appropriately, managing user access controls, classifying sensitive data, reviewing third-party integrations, monitoring user activities, and ensuring compliance with internal policies and regulatory requirements.

Common security risks and threats in SaaS applications

Several high-profile breaches have demonstrated the risks associated with misconfigured access and third-party integrations in SaaS environments. One notable example is the LastPass breach, where attackers gained access to encrypted password vaults due to compromised developer credentials. This breach underscored the critical need to safeguard privileged credentials and implement multi-factor authentication (MFA) as a protective measure against unauthorized intrusions.

Here’s a closer look at common SaaS security risks and threats to look out for: 

  • Data breaches: Misconfigurations, weak access controls, or insufficient encryption measures can lead to unauthorized access to sensitive customer or corporate data, potentially resulting in financial and reputational damage.

  • Insider threats: Employees or third-party vendors could exploit their access privileges, either deliberately or accidentally, resulting in data leaks, financial fraud, or other security incidents. Since these individuals have legitimate credentials, identifying and mitigating insider threats requires continuous monitoring, behavioral analysis, and strict access controls.

  • Misconfigurations: Default security settings or incorrect configurations, such as overly permissive sharing settings or lack of encryption, can expose data to unauthorized parties and increase the risk of breaches.

  • Compliance violations: Organizations that fail to meet regulatory requirements like GDPR, SOC 2, or HIPAA risk severe penalties and legal consequences. Compliance lapses may result from poor data protection policies, lack of auditing, or inadequate security measures.

  • Third-party integrations: SaaS applications frequently connect with external tools and services, which may introduce security risks if not properly managed. Weak API security, excessive permissions, and insufficient monitoring of third-party applications can create significant security gaps.

  • OAuth token misuse: Attackers often exploit OAuth tokens to gain unauthorized access to SaaS applications by leveraging token-based authentication flaws to compromise accounts and steal data.

  • Session hijacking: Stolen session cookies or weak session management mechanisms have allowed attackers to impersonate legitimate users, leading to unauthorized access and data theft.

Key components of SaaS security

An effective SaaS security strategy should incorporate multiple layers of defense, each targeting different risks:

  • Identity and access management (IAM) is essential for regulating access to SaaS applications, ensuring that users have only the necessary permissions.

  • API security plays a vital role in protecting SaaS applications from exploitation. To keep APIs protected, it’s important to use strong authentication methods such as OAuth 2.0 and OpenID Connect. 

  • Data security and encryption protects sensitive information both at rest and in transit. Keeping sensitive data safe is key in any SaaS environment. Encryption makes sure that data is secure from unauthorized access, while data loss prevention (DLP) policies help stop accidental or malicious data leaks.

  • Monitoring and threat detection is about keeping a close watch on what’s happening across your SaaS apps—whether it’s user activities, security configurations, or access patterns. 

  • Compliance and governance ensure that organizations meet industry standards, such as GDPR, SOC 2, HIPAA, and ISO 27001. Regular audits of SaaS applications help maintain compliance and address any security gaps before they lead to regulatory violations.

  • Security posture management focuses on identifying and remediating misconfigurations within SaaS environments. It’s important for organizations to have full visibility into security settings and put the right policies in place to proactively minimize risks that come with improper configurations.

Integrating SaaS security into a broader cloud security strategy

Here’s how to navigate fitting SaaS security into your big-picture cloud security approach:

1. Understand SaaS security’s unique aspects

As we’ve seen, SaaS security is an integral part of your broader cloud security strategy, which also includes infrastructure as a service (IaaS) and platform as a service (PaaS). Unlike IaaS and PaaS, SaaS security primarily revolves around data protection, user access control, and compliance within third-party–managed applications.

2. Leverage CSPM, SSPM, and SSE for SaaS security 

Cloud security posture management (CSPM) tools help organizations identify and address security risks in their cloud environments, ensuring compliance and adherence to security best practices. While CSPM provides critical visibility into cloud infrastructure risks, it often has limited insight into the granular settings and user behaviors unique to SaaS applications.

That’s where SaaS security posture management (SSPM) tools shine: They provide deep visibility into the configuration and security posture of SaaS applications like Microsoft 365, Salesforce, and Slack. They help organizations detect SaaS-specific misconfigurations, manage user permissions, monitor data-sharing settings, and reduce risks related to third-party integrations. 

Complementing both are security services edge (SSE) solutions, which focus on securing access to SaaS applications in real time. Security services edge (SSE) is a cloud-delivered framework that secures user access to web, cloud, and SaaS resources by enforcing zero-trust principles, inspecting traffic, and applying adaptive policies. SSE solutions provide secure access to SaaS applications by implementing zero-trust principles, data protection measures, and threat prevention mechanisms.

Figure 1: Wiz’s industry-leading CSPM

3. Ensure visibility across hybrid and multi-cloud environments

Organizations often use a mix of SaaS applications across different cloud platforms. A security mesh architecture provides a unified framework to monitor and secure SaaS applications alongside other cloud resources. 

Strengthening SaaS security with SSPM integrations

Once the basics like access controls and configuration reviews are in place, the next step is leveling up your SaaS security posture. That’s where SSPM comes in. As we’ve seen, SaaS security posture management provides comprehensive security visibility, continuous risk assessment, and proactive threat mitigation. SSPM tools enable organizations to detect misconfigurations, enforce security policies, and monitor access patterns to prevent unauthorized access and data breaches. 

CSPM tools like Wiz feature SSPM integrations to help secure SaaS applications, such as Snowflake, Salesforce, and Google Workspace. With these integrations, Wiz provides deep visibility into security configurations, detecting risks associated with misconfigurations and enabling automated remediation to reduce vulnerabilities. Wiz’s advanced analytics and continuous monitoring empower organizations to maintain compliance and strengthen overall SaaS security posture. 

Figure 2: Wiz’s centralized dashboards show you everything you need to know at a glance

Count on SSPM tools for:

  • Visibility and risk assessment: Identify misconfigurations, excessive permissions, and security vulnerabilities within SaaS environments to minimize risk exposure.

  • Threat detection and compliance management: Continuous monitoring ensures compliance with security frameworks such as SOC 2, GDPR, and HIPAA while proactively detecting potential threats.

  • Automated remediation: Reduce security risks proactively through automated security controls, misconfiguration correction, and policy enforcement.

Conclusion

As SaaS adoption grows, organizations must prioritize security to protect their data and users and to comply with regulations. Implementing strong security measures, integrating SaaS security into broader cloud strategies, and leveraging SSPM solutions significantly enhance security posture. Taking a proactive approach allows organizations to minimize threats and guarantee secure SaaS adoption.

By providing SSPM connectors for our CNAPP platform, Wiz enables organizations to enforce security policies, monitor access patterns, and proactively remediate configuration risks across multiple SaaS platforms—all from a single, unified interface. In other words, Wiz helps customers secure SaaS platforms using the same Wiz workflows they use to secure the rest of their cloud. And by integrating SSPM into our CNAPP platform, Wiz empowers organizations to correlate SaaS risks with infrastructure and identity risks, prioritize vulnerabilities based on real exposure, and maintain continuous compliance.


Explore how Wiz can enhance your SaaS security posture: Schedule a free demo today!