Over the years, Software as a Service (SaaS) has become widely used across all industries for a variety of functions. However, moving data online comes with the risk of a data breach, which can be costly to a business and their reputation.

In 2025, IBM found that the average data breach cost was $4.4 million USD. Further yet, the use of artificial intelligence poses an additional risk. New global research from IBM and Ponemon Institute shows that AI is “greatly outpacing security and governance in favor of do-it-now adoption” and that ungoverned AI systems are more likely to be breached and more costly when they are.

In this article, we’ll dive into how you can assess a SaaS platform’s security and make the most informed, and safest, choice for your business.

When in doubt, ask. 

The SaaS vendor or reseller you’re working with should be an expert in their offerings. Ask them to explain the security of the software and show proof. Some SaaS providers will even offer detailed security whitepapers or a more thorough security assessment upon request. If they can’t answer your questions, that should be a red flag.

Some questions to highlight.

If you are talking to a vendor and don’t know what to ask, here are some questions to help guide the discussion:

• What sort of data encryption protocols does the platform follow?
• Is multi-factor authentication an option for user login? What about single sign-on?
• Does the platform allow granular permissions based on user roles?
• What is the vendor’s documented incident response process and how do they handle security breaches?
• What is the platform’s backup frequency, retention policy, and recovery time objective (RTO) in case of an outage?
• Do they have a vulnerability assessment for you to review? Do they conduct regular third-party penetration tests?
• Does the software have AI integrations? What AI access controls are in place?

Of course, depending on your industry and needs, there may be more questions you need to ask, but this list will provide you with a good starting point to determine the strength of a platform’s security.

Keep security certifications in mind. 

Industry standards mean that many SaaS applications should proudly disclose their security certifications. Some of the important ones to look out for include:

• ISO/IEC 27001 – the world’s best-known standard for information security management systems (ISMS). It provides companies of any size and from all sectors of activity with guidance for establishing, implementing, maintaining and continually improving an information security management system. Conformity with ISO/IEC 27001 means that a SaaS platform’s operations respect all the best practices and principles enshrined in this International Standard.
• SOC 2 Type II – the System and Organizations Control (SOC) framework’s series of reports offer some of the best ways to demonstrate effective information security controls. A SOC 2 Type II report confirms that a SaaS platform has robust controls for data security, availability, processing integrity, confidentiality, and privacy.
• PCI DSS – any platform that handles payment card data should be PCI compliant, just like your business has to be.

There are also industry-specific certifications, such as HIPAA for healthcare organizations that conduct electronic transactions, that should be taken into consideration as they apply to your organization.

In conclusion…

It’s critical that you assess any SaaS platform’s security before purchasing a subscription. Your business’ financial health and reputation depend on it. Asking the vendor tough questions and ensuring the necessary security accreditations are met is a strong first step in determining which platforms are safe for your business.