SaaS applications are now part of almost every organisation’s daily operations, but managing their security is becoming harder as the number of apps, users, integrations, and data connections grows. The Cloud Security Alliance’s 2025 State of SaaS Security report found that 63% of organisations reported external data oversharing, while 58% struggled to enforce proper privileges across SaaS applications.

This shows why SaaS security cannot be left entirely to the software provider. The provider secures the underlying platform, but organisations still need to manage user access, configurations, data sharing, integrations, and how their teams use the application.

What Is SaaS Security?

SaaS security refers to the practices used to protect data, users, configurations, applications, and integrations within Software-as-a-Service platforms.

Unlike traditional software hosted on an organisation’s own infrastructure, SaaS applications are managed and hosted by a third-party provider. This reduces the organisation’s infrastructure responsibility but does not remove its security responsibilities.

The main objective is simple: ensure that the right people and applications have the right access to the right data, and that this access is properly monitored.

SaaS Security and the Shared Responsibility Model

SaaS security works through a shared responsibility model. The SaaS provider is responsible for securing the platform and underlying infrastructure, while the customer remains responsible for how the service is configured and used.

The provider generally manages areas such as:

• Physical infrastructure.
• Data centre security.
• Platform infrastructure.
• Core application security.
• Network and infrastructure controls.

The customer is generally responsible for:

• User accounts and permissions.
• MFA and authentication settings.
• Data sharing and access settings.
• Third-party integrations.
• API permissions.
• User offboarding.
• Data uploaded to the application.

The exact division depends on the SaaS provider and service. Organisations should therefore review the provider’s security documentation and contract rather than assume that all security responsibilities rest with the vendor.

Why SaaS Security Is Becoming More Difficult

SaaS security becomes harder as more applications, users, and integrations are added to the business environment. A single application may connect with CRM systems, marketing tools, cloud storage, AI tools, and other services.

These connections can create extra access points that are difficult to track and manage. Employees may also start using new SaaS applications without the security teams knowing, creating shadow SaaS and making it harder to know where business data is stored or who can access it.

That is why SaaS security requires ongoing visibility, access reviews, and integration checks rather than a one-time security review.

Common SaaS Security Risks

SaaS risks usually come from how applications are configured, accessed, and connected rather than from the underlying infrastructure alone.

• Excessive User Permissions

Users may retain access they no longer need as their roles change. Former employees and contractors can also become a risk if their accounts are not removed promptly.

• Weak Authentication

SaaS accounts are often accessible from anywhere, making strong authentication important. MFA should be enabled and enforced wherever the application supports it.

• Misconfigured Data Sharing

Public links, overly broad sharing permissions, and incorrect access settings can expose sensitive information without any software vulnerability being involved.

• Uncontrolled Third-Party Integrations

OAuth applications, APIs, plugins, and connected services may receive access to SaaS data. The Cloud Security Alliance reported that 56% of organisations were concerned about over-privileged API access.

• Shadow SaaS

Employees may sign up for applications without involving IT or security teams. This creates applications that may contain company data but are missing from the organisation’s security inventory.

• Inactive Accounts

Accounts that remain active after employees or contractors leave can create unnecessary access paths into business applications.

• Data and Compliance Risks

SaaS applications may process customer, employee, financial, or other sensitive information. Organisations therefore need to understand where their data is stored, how it is processed, and what contractual and regulatory requirements apply.

How to Secure Your SaaS Environment

A strong SaaS security programme starts with visibility and access control. Organisations should first understand which applications they use and who or what can access them.

A practical approach includes:

• Maintain a SaaS inventory: Keep a current record of approved applications and identify applications being used outside formal IT processes.
• Review access regularly: Remove unnecessary permissions and review privileged accounts as roles change.
• Enforce MFA: Require MFA for SaaS applications, particularly those containing sensitive or business-critical information.
• Control integrations: Review OAuth applications, APIs, plugins, and service accounts and remove connections that are no longer required.
• Manage offboarding: Disable accounts and revoke sessions, tokens, and connected applications when employees or contractors leave.
• Control data sharing: Review external sharing settings, public links, download permissions, and other settings that could expose sensitive information.
• Monitor for unusual activity: Look for unusual login locations, large data exports, unexpected integrations, and other indicators that may suggest account compromise or misuse.

How to Assess a SaaS Vendor Before Adoption

SaaS security starts before the application is approved. A vendor assessment can help identify security and compliance risks before company data enters the platform.

Before selecting a SaaS provider, consider:

• Security certifications and reports: Ask for relevant independent evidence such as ISO/IEC 27001 certification or a SOC 2 report where applicable.
• Data location: Understand where your data is stored and processed and whether this meets your contractual and regulatory requirements.
• Breach notification: Check whether the contract clearly defines how and when security incidents will be reported.
• Data deletion: Confirm how your data will be returned or deleted upon contract termination.
• Access controls: Understand how the vendor manages privileged access and authentication.
• Third-party providers: Check whether other providers will process or access your data.
• Security testing: Ask whether the vendor conducts regular security assessments and penetration testing.

For organisations processing personal data, vendor security should also be considered as part of the wider third-party risk and data protection programme.

SaaS Security vs SaaS Application Security Testing

SaaS security focuses on managing how the platform is used, while security testing checks whether connected applications and integrations can actually be exploited.

SaaS Security	SaaS Application Security Testing
Manages user access and permissions.	Tests whether access controls can be bypassed.
Controls data sharing and application settings.	Checks applications and APIs for exploitable vulnerabilities.
Reviews third-party integrations and connected apps.	Tests whether integrations expose data or functionality.
Enforces authentication and MFA.	Tests authentication and session controls for weaknesses.
Monitors user and application activity.	Validates whether identified weaknesses can be exploited.

For example, a SaaS platform may have correct access settings, but a custom API connected to it could still have an authorisation flaw. In such cases, a web application penetration test can help identify and validate these technical weaknesses.

A Practical SaaS Security Review

Instead of reviewing every SaaS application in exactly the same way, organisations should prioritise applications based on the data and business functions they handle.

Start with applications that:

• Store sensitive or regulated data.
• Have administrator or privileged access.
• Connect to multiple other applications.
• Support financial or critical business processes.
• Are widely used across the organisation.
• Provide access to customer or employee information.

For each high-priority application, review its users, permissions, integrations, data-sharing settings, authentication controls, vendor security evidence, and monitoring capabilities.

This risk-based approach makes SaaS security more manageable and helps security teams focus on the applications that could create the greatest impact.

Final Thoughts

SaaS security is not only the provider’s responsibility. Organisations must also manage user access, data sharing, integrations, and account permissions across the applications they use. Regular access reviews, MFA, vendor checks, and continuous monitoring can help reduce these risks.

As SaaS environments become more complex, organisations also need a structured approach to managing security and compliance across multiple applications and vendors. CyRAACS helps organisations assess and manage these risks through its GRC services, supported by cybersecurity assessments and technology-enabled compliance management.

Frequently Asked Questions

1. What is SaaS security?

SaaS security protects data, user access, configurations, integrations, and applications used through Software-as-a-Service platforms.

2. Who is responsible for SaaS security?

SaaS security is a shared responsibility. The provider secures the underlying platform and infrastructure, while the customer manages access, configurations, data, and integrations.

3. What are the most common SaaS security risks?

Common risks include excessive permissions, weak authentication, misconfigured sharing, uncontrolled integrations, shadow SaaS, inactive accounts, and poor data governance.

4. How can organisations improve SaaS security?

Start with a complete SaaS inventory, enforce MFA, review user access, control integrations, manage employee offboarding, restrict data sharing, and monitor unusual activity.

5. Should organisations conduct security testing for SaaS applications?

Yes, where they use custom applications, APIs, extensions, or integrations around a SaaS platform. Technical testing can help identify vulnerabilities that configuration reviews may not detect.