TL;DR: SaaS application security is essential for protecting sensitive data in the cloud. This blog offers a practical checklist to help you meet key SaaS application security requirements and perform effective SaaS application security testing.
- Use encryption for data in-transit and at-rest
- Enforce strong authentication and access controls
- Follow secure software development practices
- Establish reliable backup and disaster recovery plans
- Manage third-party vendor risk carefully
- Protect continuity with SaaS escrow agreements
- Conduct vulnerability management and timely patching
- Monitor systems and build incident response plans
- Implement data privacy and compliance controls
- Train employees and users in security awareness
Ensuring SaaS application security has become a critical priority for businesses and organizations worldwide. After all, some of the globe’s most sensitive data is flowing through cloud environments each and every day.
The key to mitigating risks is a proactive approach to SaaS application security.
Today, we’re sharing a practical and free SaaS application security checklist. This resource outlines essential SaaS application security requirements, from encryption protocols to vendor continuity plans. We hope you will use this checklist to perform comprehensive SaaS application security testing that keeps your mission-critical data secure.
Continue reading to access the list and begin protecting your digital assets.
SaaS Application Security Checklist
1. Data Encryption In-Transit and At-Rest
Data encryption is the process of converting readable data into an unreadable format. Only authorized users with the proper decryption key can convert the data back to its original form. That means data remains protected even if it’s accessed by an unauthorized user.
It’s key to prioritize encryption for data both in transit and at rest. According to IBM, encryption of in-transit data prevents man-in-the-middle attacks and eavesdropping. Encryption of at-rest data ensures that data is unreadable to unauthorized users who gain access to storage systems.
Action Items:
- Ensure all data is encrypted using industry-standard protocols (e.g., TLS 1.2+ for in-transit, AES-256 for at-rest).
- Verify that encryption keys are securely managed and rotated regularly.
2. User Authentication and Identity Management
Strong identity controls limit access to only authorized users. Protections like multi-factor authentication (MFA) and role-based access reduce the risk of credential-based attacks.
Action Items:
- Implement strong password policies and enforce multi-factor authentication (MFA).
- Use Single Sign-On (SSO) and federated identity where applicable.
- Apply least-privilege access controls and role-based permissions.
3. Secure Software Development Practices
Insecure code can create vulnerabilities. Continuous security testing helps prevent issues early in the development lifecycle. Proactively adopting secure coding standards can stop security incidents long before they occur.
Action Items:
- Verify that your SaaS provider follows secure coding practices (e.g., OWASP Top 10).
- Conduct regular code reviews and security audits.
- Ensure CI/CD pipelines include automated SaaS application security testing tools like SAST/DAST.
4. Data Backup and Disaster Recovery
Even secure systems can fail, so you must have a plan in place to back up your mission-critical data. A strong disaster recovery plan can reduce downtime and data loss in the event of a breach or failure.
Action Items:
- Ensure automatic and frequent backups are in place.
- Test data restoration procedures periodically.
- Evaluate whether backup data is also encrypted and stored separately.
5. Third-Party Risk Management
SaaS vendors often rely on a network of third-party providers to deliver secure services. These include:
- Cloud infrastructure providers
- Content Delivery Networks (CDNs)
- Payment processors and billing platforms
- Identity and Access Management (IAM) services
- Email and communication APIs
- Software libraries and APIs
While helpful, these partnerships can introduce new security risks if not managed carefully. Assessing vendor risk and setting clear security expectations ensures your data isn’t compromised through these indirect channels.
Action Items:
- Perform due diligence on all third-party providers.
- Review their security certifications (e.g., SOC 2, ISO 27001, GDPR compliance).
- Establish clear security SLAs and incident response expectations in vendor contracts.
6. SaaS Escrow as a Security and Continuity Measure
When relying on a third-party SaaS provider, your business continuity is tied to the vendor’s business continuity. In other words, your success is directly related to the vendor’s ability to deliver a promised service.
A SaaS escrow agreement provides access to source code, data, and deployment tools if a vendor fails to deliver. This ensures you can continue running your mission-critical SaaS application if the vendor becomes unavailable. Likewise, you won’t lose access to data if an unreliable vendor fails to deliver.
This step addresses not just technical but also business continuity concerns, meeting critical SaaS application security requirements.
Action Items:
- Implement a SaaS escrow agreement. It can protect access to your application’s source code and data in case the vendor fails to deliver.
- Choose a reputable provider like EscrowTech to ensure escrow deposits are verified, tested, and up to date.
7. Vulnerability Management and Patching
Vulnerability management is the ongoing process of identifying and addressing security weaknesses. It helps reduce the risk of exploitation by staying ahead of known threats.
Patching is the act of fixing those vulnerabilities. It may involve updates or vendor-released software fixes. Patching helps resolve known issues before unauthorized users can take advantage.
Action Items:
- Subscribe to threat intelligence and CVE feeds relevant to your stack.
- Regularly scan for vulnerabilities and apply security patches promptly.
- Automate patch deployment where possible while maintaining rollback plans.
8. Logging, Monitoring, and Incident Response
Logging gives you real-time visibility into your SaaS application. It can help you detect unusual behavior like unauthorized access or data exfiltration.
Without monitoring your logs, a breach could go unnoticed for weeks. The sooner you’re aware of an incident, the sooner you can act, and the less damage can be done. That’s when effective incident response protocols become crucial.
Logging also plays a key role in meeting SaaS application security requirements, especially in regulated industries like healthcare or finance. Logs provide a historical record of events for audits and proof of compliance.
Action Items:
- Enable centralized logging and real-time monitoring for abnormal activity.
- Integrate with SIEM systems for actionable security insights.
- Create and test an incident response plan tailored to SaaS-specific threats.
9. Data Privacy and Compliance Controls
Non-compliance with data regulations can result in heavy fines. Even worse, it can lead to reputational damage, harming your business.
Privacy controls ensure your SaaS application meets all legal obligations. Simultaneously, they’ll help support you in maintaining customer trust.
Action Items:
- Clearly define data ownership, retention, and deletion policies.
- Ensure compliance with regional regulations (e.g., CCPA, HIPAA, GDPR).
- Include privacy impact assessments in onboarding and updates.
10. Employee and User Security Awareness
According to research out of Stanford, 88% of security breaches are caused by human error. Educating employees and users fosters a culture of security. Regular training and education help prevent common threats like phishing or accidental data sharing.
Action Items:
- Conduct periodic training on phishing, credential management, and secure behavior.
- Offer guidance for the safe use of the SaaS application within your organization.
- Require certifications or training for SaaS admins and developers.
Prioritize SaaS Application Security with EscrowTech
This SaaS application security checklist can help organizations confidently assess their risk exposure. However, it’s equally important to account for vendor viability. SaaS escrow is a solution that balances security and the resilience of your business.
Does your business currently use SaaS Escrow? If not, learn more about our SaaS escrow offerings today to discover new peace of mind.