Top Cybersecurity Risks in SaaS ERP Systems and How to Mitigate Them

As more businesses embrace cloud-based solutions, SaaS ERP (Software as a Service Enterprise Resource Planning) systems have become essential tools for managing everything from finances and HR to customer relationships and supply chains. The benefits are clear: real-time data access, scalability, and streamlined operations. But as more of your business moves to the cloud, it also opens the door to a variety of cybersecurity risks that can threaten the safety of your sensitive data and disrupt your operations. 

In this post, we’ll dive into some of the most common cybersecurity threats facing SaaS ERP systems today, and—most importantly—how you can protect your business from them. 

1. Data Breaches and Data Exfiltration 

Data is at the heart of your business. If a cybercriminal gains access to your SaaS ERP system, they could steal financial records, customer information, or employee data, leading to financial loss, reputational damage, and even legal consequences. Unfortunately, data breaches are an ever-present threat for businesses of all sizes. 

How to Protect Your Business: 

• Encrypt Data: Make sure your sensitive data is encrypted both in transit (when it’s being transferred between systems) and at rest (when it’s stored on servers). 

• Implement Multi-Factor Authentication (MFA): Adding an extra layer of protection with MFA ensures that even if login credentials are stolen, an attacker still won’t get access. 

• Regular Security Audits: Conduct routine audits of your SaaS ERP system to identify vulnerabilities and make sure everything is secure. 

2. Account Takeover and Credential Stuffing 

Cybercriminals often use stolen login credentials from past data breaches to gain access to your system. These credential stuffing attacks exploit weak or reused passwords to take over accounts and compromise sensitive data, often with minimal detection. 

How to Protect Your Business: 

• Enforce Strong Password Policies: Require strong, unique passwords for all users, especially administrators. 

• Account Lockouts: Set up automatic account lockouts after a certain number of failed login attempts to block brute force or credential stuffing attacks. 

• Password Managers: Encourage employees to use password managers to create and securely store complex passwords. 

3. Insider Threats 

When you think of cybersecurity risks, external hackers usually come to mind. However, insider threats—whether intentional or accidental—can be just as dangerous. Employees, contractors, or vendors with access to your ERP system could misuse their privileges to steal data or cause harm. 

How to Protect Your Business: 

• Role-Based Access Control (RBAC): Limit access to sensitive data based on each user’s role within the organization. Only give access to what’s necessary for them to do their job. 

• Monitor User Activity: Use monitoring tools to track and flag any unusual behavior in your ERP system. 

• Employee Training: Ensure your team understands the risks of insider threats and fosters a culture of security awareness. 

4. Lack of Data Backups and Disaster Recovery Plans 

Even though SaaS ERP systems are hosted in the cloud, you still need to take responsibility for backing up your data. Data loss, whether caused by cyberattacks, human error, or system failure, can have devastating consequences if you don’t have a backup and a recovery plan in place. 

How to Protect Your Business: 

• Automated Backups: Set up automatic backups for your ERP data, and make sure the backups are stored securely (preferably off-site or across multiple cloud regions). 

• Disaster Recovery Plans: Develop a disaster recovery plan and test it regularly to ensure you can restore your ERP system quickly in the event of an attack or failure. 

• Redundancy: Consider using multiple cloud providers or locations for data storage to prevent a single point of failure. 

5. Third-Party Vendor Risks 

Many SaaS ERP systems integrate with third-party tools like payment processors, cloud storage providers, or CRM systems. These third-party vendors can introduce vulnerabilities if their security practices aren’t up to par. 

How to Protect Your Business: 

• Conduct Third-Party Risk Assessments: Before integrating with a new vendor, thoroughly assess their security protocols to ensure they meet your standards. 

• Establish Vendor Security Agreements: Have clear, written agreements in place that outline security expectations, including data protection and breach notification policies. 

• Ongoing Monitoring: Regularly review your vendors’ security practices and stay alert to any potential risks. 

6. Inadequate Patch Management 

Software vulnerabilities are often fixed with security patches. If your SaaS ERP provider fails to release or apply updates promptly, your system could remain exposed to known security threats, putting your business at risk. 

How to Protect Your Business: 

• Automated Patching: Set up your ERP system to automatically apply security patches as soon as they are released to stay protected from emerging threats. 

• Patch Management Policies: Develop and enforce a patch management policy that prioritizes critical updates and ensures regular checks for new patches. 

7. Misconfiguration of Cloud Resources 

Cloud-based systems, including SaaS ERP, offer flexibility and scalability—but this can also lead to misconfigurations that inadvertently expose your data. For example, leaving open ports or weak access controls can make it easier for attackers to access your system. 

How to Protect Your Business: 

• Follow Cloud Security Best Practices: Disable unnecessary ports, use VPNs for secure connections, and regularly review access permissions to ensure they’re appropriate. 

• Automated Security Configuration Tools: Use tools that can automatically check your cloud environment for misconfigurations and alert you if any issues are detected. 

Conclusion 

SaaS ERP systems provide immense value to businesses, but they also come with a unique set of cybersecurity risks. To keep your business data safe, it’s essential to take a proactive approach to security. Implement strong data protection measures such as encryption, multi-factor authentication, and role-based access, and regularly audit your system for vulnerabilities. 

Additionally, ensure your team is educated on security best practices, and don’t overlook the importance of data backups and disaster recovery plans. 

By addressing these cybersecurity risks head-on, you can safeguard your SaaS ERP platform from costly data breaches, downtime, and reputational damage. 

Is Your SaaS ERP Secure? 
Take action today by reviewing your ERP security posture and implementing these best practices to keep your business safe from cyber threats.