The security risks associated with third-party SaaS providers

September 2024 Information Security, Security Services & Risk Management


Ethan Searle.

According to a Thales 2023 cloud security study, enterprises use, on average, 97 SaaS apps as they increasingly switch away from legacy in-house applications.

“Thales says while the benefits of SaaS are manifold, enterprise SaaS consumers require comprehensive security, often based on compliance mandates, for their sensitive data stored in SaaS clouds,” says Ethan Searle, Business Development Director, LanDynamix. “SMEs are no different, and whether they know it or not, they require comprehensive security measures for their sensitive data stored in SaaS clouds.”

SaaS apps are here to stay, and with good reason – they live in the cloud and can be accessed via a stable internet connection, removing the technology burden from the shoulders of the SME. It translates into your own in-house IT team without employing an expensive technician.

One site notes the significant benefits of SaaS for small businesses and declares without it, they will not survive the competition. “Possibly quite true, but one thing is certain; introducing an array of SaaS platforms into your SME’s operations without the knowledge or ability to manage the cybersecurity implications is immensely risky,” confirms Searle.

Forbes reports that the top security risks of using third-party SaaS providers include authenticated access, data leaks, and control of data backup, with SaaS providers processing the customer data of hundreds and thousands of organisations. “You do not have to be a rocket scientist to work out that this will make them a significant target for cybercriminals.”

“SaaS applications are certainly very convenient and offer much to the market. However, the risks are immense and need to be managed. This is where a skilled managed services provider (MSP) comes into the picture with the necessary skills and depth of knowledge to protect your business against potentially deadly breaches. MSP’s remove the heavy lifting from your technology implementations; they can ensure your SaaS applications are integrated into your network for authenticated access.”

The shared responsibility model

Searle says it is important to remember that if Microsoft 365, Salesforce, or Google Workspace data is lost, it is your responsibility to recover it – not the vendor’s. “This is the shared responsibility model between SaaS vendors and their customers, like your organisation, that puts the burden of protection squarely on your shoulders. Again, this is where an MSP can add immense value by backing up IP and sensitive information into an agnostic system that ensures that SaaS weak links do not damage your business’ positioning and inevitably your reputation.”

Stuck between a rock and a hard place

He notes that this is exactly where the average SME is with regards to SaaS applications. “Firstly, you cannot live without them, but secondly, they are the most likely source of illicit entry into your systems for malicious reasons. If you are bringing a third-party SaaS provider on board, there are several things you can do, beginning with a due diligence of the supplier.”

“You would also be wise to stay on top of what SaaS providers your employees are using. You can achieve this via regular audits, monitoring and implementing strict security policies that link access into your business’ authentication mechanisms, such as Active Directory. You must also consider deploying agnostic backup solutions for data protection, not forgetting to factor in the possibility of supply chain attacks.

“You can do all these things, but if you want to show good business sense, you will stick to the essentials of running your business, get a top MSP on board, and let them take away these issues and run with them. These activities are core to an MSP’s ongoing success in business. The aim is to provide you with the time and head space (not cluttered by security and tech worries) to focus on running your business, while highly specialised IT professionals keep it operational and safe,” concludes Searle.

For more information, contact LanDynamix, 0861 225 553, [email protected], www.landynamix.co.za


Credit(s)




Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Highest increase in global cyberattacks in two years
Information Security News & Events
Check Point Global Research released new data on Q2 2024 cyber-attack trends, noting a 30% global increase in Q2 2024, with Africa experiencing the highest average weekly per organisation.

Read more...
Cybersecurity a challenge in digitalising OT
Kaspersky Information Security Industrial (Industry)
According to a study by Kaspersky and VDC Research on securing operational technology environments, the primary risks are inadequate security measures, insufficient resources allocated to OT cybersecurity, challenges surrounding regulatory compliance, and the complexities of IT/OT integration.

Read more...
Cybersecurity in South Africa
Information Security
According to the Allianz Risk Barometer 2025, cyber incidents, including ransomware attacks, data breaches and IT outages, are now the top global business risk, marking their fourth year at the top.

Read more...
Are AI agents a game-changer?
Information Security
While AI-powered chatbots have been around for a while, AI agents go beyond simple assistants, functioning as self-learning digital operatives that plan, execute, and adapt in real time. These advancements do not just enhance cybercriminal tactics, they may fundamentally change the battlefield.

Read more...
Disaster recovery vs cyber recovery
Information Security
Disaster recovery centres on restoring IT operations following events like natural disasters, hardware failures or accidents, while cyber recovery is specifically tailored to address intentional cyberthreats such as ransomware and data breaches.

Read more...
From the editor's desk: Showtime for Securex
Technews Publishing News & Events
We have once again reached the time of year when the security industry focuses on Securex. This issue includes a short preview, with more coming online and via our special Securex Preview news briefs. ...

Read more...
Chubbsafes celebrates 190 years
Gunnebo Safe Storage Africa News & Events Security Services & Risk Management
Chubbsafes marks its 190th anniversary in 2025 and as a highlight of the anniversary celebrations it is launching the Chubbsafes 1835, a limited edition 190th-anniversary collector’s safe.

Read more...
New law enforcement request portal
News & Events Security Services & Risk Management
inDrive launches law enforcement request portal in South Africa to support safety investigations. New portal allows authorised South African law enforcement officials to securely request user data related to safety incidents.

Read more...
Continuous AML risk monitoring
Access Control & Identity Management Security Services & Risk Management Financial (Industry)
AU10TIX, launched continuous risk monitoring as part of its advanced anti-money laundering (AML) solution, empowering businesses to detect behavioural anomalies and emerging threats as they arise.

Read more...
Back-up securely and restore in seconds
Betatrac Telematic Solutions Editor's Choice Information Security Infrastructure
Betatrac has a solution that enables companies to back-up up to 8 TB of data onto a device and restore it in 30 seconds in an emergency, called Rapid Access Data Recovery (RADR).

Read more...