“More than half of organizations faced a SaaS security incident in 2023.”, Adaptive Shield Report

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SaaS adoption has exploded thanks to its flexibility, quick setup, and lower upfront costs. Many fast-growing companies now use over 250 tools to scale efficiently while keeping expenses in check. But with this growth comes a serious concern, security. When one vendor’s system is compromised, it can expose sensitive data across multiple users, leading to revenue loss and damaged trust.

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That’s why having a clear SaaS security checklist is essential. In this blog, we’ll outline what it is and how you can use it to protect your business from avoidable risks.

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What is a SaaS security checklist?

A SaaS security checklist is a step-by-step guide that helps CTOs and CSOs assess the security of their company’s SaaS applications. It outlines key checks for data protection, access control, compliance, and vendor risk to ensure all tools meet the organization’s security standards.

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Components of a SaaS security checklist

• Data Encryption: Secure data in transit and at rest.
• Access Controls: Implement strong user authentication and authorization.
• Regular Security Audits: Conduct vulnerability assessments periodically.
• Compliance Standards Adherence: Follow relevant legal and industry standards like GDPR, HIPAA.
• Endpoint Security: Protect all endpoints accessing the SaaS application.
• Incident Response Plan: Establish and test procedures for handling security incidents.
• Data Backup and Recovery: Ensure effective backup strategies and recovery plans.
• Regular Updates and Patch Management: Keep the application updated with the latest security patches.

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Prepare specific checklists to ensure your SaaS apps comply with different security standards. For example, create a security checklist for GDPR and another for HIPAA, as they have their own requirements. 

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SaaS vendors also extensively use this checklist. It’s a proactive way of assuring the clients that they strictly adhere to the security standards and build their trust. 

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6 Tips To Check On Your SaaS Security Checklist

To help you strengthen your SaaS ecosystem, here’s a clear checklist of best practices every organization should follow to reduce risk and maintain compliance.

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1. Automate Continuous Security Audits and Compliance Monitoring

Continuous security audits help you detect and address vulnerabilities before they become threats. Automate your scans using tools that identify configuration errors, weak permissions, and compliance gaps across SaaS platforms.

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Set up automated compliance monitoring for frameworks like HIPAA, GDPR, and SOC 2, ensuring you meet data protection standards at all times. Automated reports simplify audit readiness and save your team hours of manual work.

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2. Advanced Encryption Practices: Key Management and Rotation

Encryption protects your SaaS data at every stage. Use encryption at rest and in transit to safeguard data stored on servers and during transfers. Implement Hardware Security Modules (HSMs) for managing encryption keys securely.

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Establish policies for regular key rotation to limit exposure if a key is ever compromised. Periodic audits of your encryption framework ensure ongoing data security.

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3. Automated Incident Response and Disaster Recovery Planning

A fast and coordinated response is critical during a security event. Use automated incident detection and escalation tools that alert your team in real time when suspicious activity occurs.

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Define clear incident response playbooks and simulate disaster recovery scenarios regularly. These exercises help your team practice restoring operations quickly while minimizing data loss.

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4. Secure API Management and Real-Time Monitoring

APIs are a key part of SaaS ecosystems, but they can be entry points for attackers if left unsecured. Enforce strong API authentication and rate limiting to prevent misuse.

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Use vulnerability scanning tools to check for weak endpoints and enable real-time API threat monitoring to detect abnormal activity before it escalates. Proper API management strengthens your SaaS security posture.

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5. Continuous SaaS Security Awareness and Phishing Simulations

Employees play a major role in your organization’s defense. Run regular security awareness training to educate teams about phishing, social engineering, and risky online behaviors.

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Conduct simulated phishing attacks to test employee readiness and identify areas for improvement. Encourage reporting of suspicious activity and reward safe practices to build a security-first culture.

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6. Implementing Zero Trust Architecture

The Zero Trust model operates on a simple rule: never trust, always verify. This means every user, device, and application must be authenticated and authorized continuously.

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Use micro-segmentation to isolate workloads and apply continuous monitoring to detect unauthorized access attempts. Adopting Zero Trust principles significantly reduces the attack surface and keeps your SaaS data secure.

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What are the major SaaS security risks?

Here’s a list of the most common risks that you should be aware of and prepare your security team accordingly:

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Data breaches

A data breach occurs when company-sensitive data is leaked. This occurs when companies rely on the SaaS provider for the complete security of their data.

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Last year, as a Thales Group report suggests, a worrying 39% of businesses experienced a data breach within their cloud environment, marking a notable increase of 4 percentage points from the previous year's figure of 35%. This trend is further compounded by the fact that 75% of businesses report that over 40% of their data stored in the cloud is sensitive, representing a significant jump of 26% from the year before.

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The ideal way to mitigate this risk is by internally reinforcing strong SaaS security measures. Appoint a security team to monitor how these SaaS tools store data and decide what steps should be taken to add an extra layer of security to the apps. 

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Shadow IT

Shadow IT refers to using unauthorized applications by employees within an organization, bypassing the IT department's knowledge and approval. It does not include malware, which is malicious software installed by hackers. Shadow IT specifically involves employee-initiated use of non-sanctioned apps.

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As a result, the crucial business data stored in these apps falls beyond the purview of IT teams’ vigilance. This creates an easy inlet for hackers to access sensitive information and manipulate it thereafter. 

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Risky APIs

When left unsupervised, APIs may invite malicious sources to exploit your data. Once this is discovered, it can erode user trust and damage the company's reputation.

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Insecure APIs occur when senior developers fail to perform code reviews or are not configuring the APIs properly. Poorly coded API lends additional visibility to the sensitive data.

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Lack of compliance

One tricky part about compliance is if your cloud service provider does not adhere to particular security standards or industry regulations, your private data can be in jeopardy, and you are also liable to penalties. 

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For example, a healthcare provider follows the stringent guidelines of HIPAA. However, the SaaS vendor that manages the patient record and sensitive patient information does not comply with the HIPAA. In the unfortunate event of patient data falling into the hands of threat actors, the healthcare provider will face substantial fines from the Department of Health and Human Services. 

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To avoid such instances, conduct thorough background checks and prepare more while evaluating vendors. Work with only the vendors that meet the industry standards.

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Enhance the security of your SaaS applications using Spendflo 

Every data breach or compliance failure can cost a business more than just revenue, it erodes customer trust and delays growth. That’s what a leading fintech firm faced before adopting Spendflo. Within weeks, they automated vendor risk assessments, reduced security review times by 60%, and achieved full SOC 2 compliance ahead of schedule.

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If your team is still managing SaaS security manually or juggling multiple vendor spreadsheets, the risk only grows over time. Spendflo simplifies and secures your entire SaaS ecosystem with automated compliance checks, centralized visibility, and faster approvals so your security never lags behind your growth.

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Ready to secure your SaaS stack and cut compliance time in half? Book a free demo with Spendflo.

FAQs

1. How often should SaaS security practices and certifications be reviewed or renewed?

SaaS security practices and certifications should be reviewed at least once a year, or whenever there’s a significant change in your infrastructure, vendor ecosystem, or data policies. Regular reviews help ensure that your systems stay compliant with evolving frameworks such as SOC 2, ISO 27001, and GDPR. Many companies also schedule quarterly internal audits to catch potential risks early and maintain continuous compliance readiness.

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2. What proactive steps should a business take after getting certified?

Achieving certification is only the beginning. Businesses should continue to monitor their SaaS applications for vulnerabilities, run regular penetration tests, and update their access controls. Ongoing employee training and real-time security monitoring are also essential to prevent lapses. By embedding security into daily operations rather than treating it as a one-time project, organizations can sustain a strong compliance posture and reduce the chance of costly incidents.

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3. Are SaaS security certifications recognized globally, or do requirements differ by region?

While certifications like SOC 2 and ISO 27001 are widely recognized across industries, regional regulations can differ. For example, companies operating in Europe must align with GDPR, while those in the U.S. may need to comply with HIPAA if they handle healthcare data. In Asia-Pacific regions, standards such as Singapore’s Multi-Tier Cloud Security framework may apply. Understanding and mapping your compliance strategy to local and global requirements ensures consistent protection and trust across markets.

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