The hidden risks of SaaS for SMBs

Posted on Wednesday January 22, 2025

Software-as-a-Service (SaaS) tools are revolutionizing the way small and medium-sized businesses (SMBs) operate, offering unparalleled convenience and scalability. But behind this ease lies a growing risk: cybersecurity vulnerabilities that could threaten a business’s future.

Here’s why SMBs should pay attention to their SaaS security:

SaaS usage is growing rapidly

SMBs often rely on dozens of SaaS or web-based tools for performing day-to-day tasks. From employee onboarding software to social media management platforms, SaaS has made it easier than ever to scale operations.

However, every new account your team creates expands your “attack surface” — the points where hackers could potentially breach your systems. If left unmanaged, this sprawl becomes a significant vulnerability.

SaaS accounts are prime targets for cyberattacks

Hackers view SaaS accounts as low-hanging fruit. These accounts often contain valuable data such as customer information, financial records, and business strategies, but because SMBs may not have robust security measures in place, their SaaS accounts become easy targets. If you do not secure these tools, your business could face costly repercussions.

AI-powered SaaS is booming

The rise of generative AI applications, such as chatbots and content generators, has introduced more SaaS tools into the workplace. While these tools can be game-changers for efficiency, they also introduce new security risks. Many AI applications require access to sensitive company data to function effectively, making them potential gateways for cybercriminals.

Regulations are becoming stricter

Laws around data privacy and security, such as the General Data Protection Regulation and the California Consumer Privacy Act, apply to businesses of all sizes. Failing to secure your SaaS tools can lead to noncompliance, which may result in hefty fines or legal trouble. For SMBs operating on tight budgets, these consequences can be devastating.

What can you do to protect your SaaS ecosystem?

While securing your SaaS infrastructure may seem daunting, there are steps you can take to safeguard your business and its data.

• Take inventory – List all the SaaS tools your business uses and identify who has access to them. This will help you keep track of potential vulnerabilities and monitor user access.
• Implement strong passwords – Require your employees to use unique and complex passwords for each SaaS tool. Encourage the use of a password manager to make this easier.
• Use multifactor authentication (MFA) – Enable MFA where possible. This requires users to go through an additional step, such as entering a code or using biometric verification, before accessing SaaS tools.
• Regularly audit access – Ensure that only current employees have access to SaaS tools and revoke permissions when team members leave.
• Educate your team – Train your employees on safe SaaS usage, such as not sharing login information or installing unauthorized software.

Why SaaS security matters

For SMBs, a data breach isn’t just a technical issue, it’s a potential crisis that can shut them down. Losing customer trust or facing regulatory fines can set you back significantly. By taking proactive steps to safeguard your SaaS tools, you can protect your business, your customers, and your reputation.

Staying ahead of SaaS-related security challenges isn’t just for big corporations. SMBs have just as much to lose — and with the right approach, just as much to gain in resilience and trust.

Get in touch with our cybersecurity specialists today to learn more about safe SaaS usage and how we can help protect your business from potential threats.