Why Your AWS Setup May Not Meet SOC 2 Standards

Ensure your SaaS company’s AWS infrastructure is compliant and secure.

As a SaaS company leveraging AWS infrastructure, achieving SOC 2 compliance is crucial for building customer trust and ensuring data security. This is specially true when you want to move up market. However, many organizations overlook specific requirements, leaving them vulnerable to security breaches and compliance violations. This blog post delves into the often-missed SOC 2 requirements within AWS setups, provides a checklist for self-assessment, and emphasizes the urgency of addressing these gaps.

Commonly Missed SOC 2 Requirements in AWS Setups

Understanding where your AWS setup may fall short is the first step toward achieving full SOC 2 compliance. Below are some of the most commonly overlooked areas:

A quick discalaimer that this article is not providing an exaoustive list. Your infrastructure may differ in many ways (for the good or the bad). If you have any doubts on whether your setup makes sense or not, please reach out for a free consultation.

1. Access Control

Issue: Inadequate management of user access rights can lead to unauthorized access to sensitive data. Your auditor will be very picky about this one. You will even have to provide proofs of the matter.

Example solutions:

• Implement Role-Based Access Control (RBAC) using AWS Identity Center.

• Regularly review and update user permissions.

• Use multi-factor authentication (MFA) for all privileged accounts.

2. Data Encryption

Issue: Failure to encrypt data at rest and in transit exposes data to potential interception and breaches.

Example solutions:

• Utilize AWS Key Management Service (KMS) for managing encryption keys.

• Enable encryption for all storage services like S3, EBS, and RDS.

• Use SSL/TLS certificates for data in transit.

⚠️ Warning: most people fall for the trap of only adding TLS for their ingress traffic. If someone breaches your SaaS internal network, you will not prevent eavedropping then. Hence, the need to encrypt communication even within the network.

3. Monitoring and Logging

Issue: Insufficient logging and monitoring make it difficult to detect and respond to security incidents.

Example solutions:

• Activate AWS CloudTrail for API call logging.

• Use Amazon CloudWatch for monitoring system performance and setting up alerts.

• Retain logs for an appropriate period as per compliance requirements.

💡 Tip: Using a third party monitoring & logging (Splunk, Newrelic, Datadog, Dynatrace, etc.) tool to provide the same functionalities is also allowed.

4. Change Management

Issue: Uncontrolled changes to the infrastructure can introduce vulnerabilities.

Solution:

• Implement a formal change management process.

• Use AWS Config to track configuration changes.

• Employ Infrastructure as Code (IaC) tools like AWS CloudFormation for controlled deployments.

💡 Tip: Using an SCM is highly recommended. It may sound weird in this day & age, but there are products out there still not storing their code base in a SCM tool. Then, a comprehensive change management process can be used with PRs, deployment approvals, etc.

5. Incident Response

Issue: Lack of a defined incident response plan hampers effective handling of security incidents.

Solution:

• Develop and document an incident response plan.

• Use AWS Security Hub to centralize security findings.

• Conduct regular incident response drills.

Self-Assessment Checklist

Use the following checklist to make an easy and quick evaluation of your AWS setup against SOC 2 requirements:

1. Access Control

• Have you defined user roles and permissions?

• Is MFA enabled for all users?

• Do you conduct regular access reviews?

2. Data Encryption

• Is all data at rest encrypted?

• Do you use SSL/TLS for data in transit?

• Are encryption keys securely managed?

3. Monitoring and Logging

• Is AWS CloudTrail enabled in all regions?

• Do you monitor logs regularly?

• Are alerts configured for suspicious activities?

4. Change Management

• Do you have a documented change management process?

• Is AWS Config used to monitor changes?

• Are changes tested in a staging environment before production deployment?

5. Incident Response

• Is there a formal incident response plan?

• Do you use AWS Security Hub or equivalent tools?

• Are staff trained on incident response procedures?

This should give you a quick idea of whether you are on the right track or not.

The Importance of Promptly Addressing Compliance Gaps

Failing to meet SOC 2 standards can have severe repercussions:

• Legal and Financial Risks: Non-compliance can result in hefty fines and legal actions.

• Reputational Damage: Security incidents erode customer trust and can lead to loss of business.

• Operational Disruptions: Security breaches can disrupt services, leading to downtime and lost revenue.

Why Act Now?

• Evolving Threat Landscape: Cyber threats are becoming more sophisticated; delays increase vulnerability.

• Customer Demands: Clients are increasingly requiring proof of compliance before doing business.

• Competitive Advantage: Achieving SOC 2 compliance sets you apart in the market.

SOC 2 compliance is not just a regulatory checkbox but a commitment to security and excellence. By understanding and addressing the gaps in your AWS setup, you safeguard your SaaS company against risks and build a foundation of trust with your customers.

Even if you don't go for the certification, adhering to these controls can help you boost your company confidence in a forever changing security threat landscape.

Need Expert Assistance?

If you got an headache whie going through this post, Contact us today to secure your AWS infrastructure and achieve SOC 2 compliance with no stress.