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What Is SOC 2 Compliance? | The Importance of SOC 2 Compliance

  • By Gcore
  • August 16, 2023
  • 15 min read
What Is SOC 2 Compliance? | The Importance of SOC 2 Compliance

In an era when a single data breach can cripple a company overnight, SOC 2 (pronounced “sock two”) isn’t just an advanced security measure—it can set your company apart by demonstrating your commitment to this security gold standard. SOC 2 not only shields your customer data from lurking threats, but can even help to pull in high-value deals in a competitive market by assuring customers that you manage and protect customer data with exceptional care. This article will explain everything you need to know about SOC 2 compliance, including its definition, significance, and the process to obtain SOC 2 certification, helping you to empower your organization’s growth strategy.

What Is SOC 2 Compliance?

SOC 2, also known as System and Organization Controls 2, is an auditing standard that evaluates the internal security controls of service organizations, especially those that handle customer data in cloud environments, such as healthcare and finance. It is a voluntary measure that serves as proof that the certificate holder adheres to the highest online security standards relevant to their industry and operations, and was developed with technology companies in mind.

Clients today, cognizant of the critical nature of their data, demand the highest standards of security. For example, a telemedicine company needs to keep patients’ medical records completely confidential and protected, and banks need to ensure that account numbers and passwords are subject to the strictest security standards. Failing to meet these requirements can lead to dire consequences for customers in the event of a breach, including financial loss, identity theft, embarrassment, and even blackmail. If there’s even a hint that an organization’s systems might not meet the most stringent standards, clients and customers are likely to seek out alternative partners who can assure the safety and confidentiality of their sensitive information. Nobody chooses a bank with lax security measures! Thus, compliance with this American Institute of Certified Public Accountants (AICPA) framework is a smart business move for maintaining trust, retaining clients, and preserving industry reputation.

SOC 2 Report Types

SOC 2 compliance includes two types of reports: Type I, which assesses the suitability of controls’ design, and Type II, which examines the operational effectiveness of these controls over a specified period. For telemedicine, a Type I report would evaluate whether the design of controls aligns with industry standards. This means assessing whether the platform’s security measures, such as data encryption during transmission and user authentication, are appropriately designed to protect patients’ sensitive medical information. A Type II report would go further, examining the ongoing effectiveness of these controls over a specific time frame, usually six to twelve months. This analysis ensures that the telemedicine platform consistently maintains the security measures it claims to have in place.

If we look at online banking, a Type I report would scrutinize whether the system’s controls are appropriately designed to safeguard users’ financial data. This might involve assessing the encryption of transactions, access controls, and fraud detection mechanisms. Meanwhile, a Type II report for online banking would delve into whether these controls are consistently effective in real-world scenarios. It would look at whether the platform successfully prevents unauthorized access, protects against fraudulent activities, and secures transactions over the assessed time period.

Why Is SOC 2 Compliance Important?

Across industries, SOC 2 compliance shows an organization’s unwavering commitment to data protection. Its relevance is especially pronounced in sectors like healthcare and finance, where strict data management regulations exist.

In healthcare, SOC 2 compliance is a pivotal tool because it proves alignment with HIPAA (the Health Insurance Portability and Accountability Act,) which in turn ensures patient health data confidentiality through rigorous security assessments and adherence to industry standards. Similarly, in finance, SOC 2 compliance showcases adherence to the Sarbanes-Oxley Act (SOX) and the Gramm-Leach-Bliley Act (GLBA.) These federal mandates safeguard customer financial data integrity.

The importance of data security is further accentuated by client demands for robust personal information protection in all their online activities; organizations that fail to comply risk losing their clients to the competition. This is true for organizations across industries, including tech, retail, telecom, and e-commerce—in fact, in every context where client information is handled.

Who Uses SOC 2 and Who Can Perform a SOC Audit?

SOC 2 is a valuable compliance protocol for a wide range of organizations, including data centers, SaaS companies, and MSPs. These organizations typically handle sensitive data on behalf of their clients, so it is important for the organizations to demonstrate that they have implemented adequate security controls. Small businesses and entities that operate outside regulatory frameworks or don’t deal with critical or private data may not find SOC 2 compliance to be necessary.

A SOC 2 audit is conducted on behalf of a company by an independent auditor, generally a CPA (Certified Public Accountant.) Such auditors can be found in online directories, as well as by contacting AICPA directly. The auditor will then issue a report that details their findings in terms of investigation scope, the service organization’s responsibilities, the service auditor’s responsibilities, inherent limitations, the auditor’s opinion, a description of tests of controls, and restricted use.

This is what a SOC report looks like:

What an SOC 2 report looks like

You can find out if a business is SOC 2 compliant by reviewing their audit report, which outlines the controls and processes they have in place to safeguard sensitive data. Additionally, you should inquire about their assessment scope, testing methods, and any identified vulnerabilities. This information will give you a clear picture of their commitment to data security and regulatory compliance.

What Are the SOC 2 Trust Services Criteria?

SOC 2 Trust Services Criteria

The SOC 2 compliance process evaluates an organization’s adherence to five Trust Services Criteria (TSC): security, availability, confidentiality, privacy, and processing integrity. Companies can choose which criteria to include in their audit. Let’s look at each of the five TSC in turn, and see which are relevant to your organization.

Security

The security criterion, often referred to as the “common criterion,” is the fundamental component of a SOC 2 assessment. It establishes comprehensive security standards for the organization, encompassing controls for availability, confidentiality, privacy, and processing integrity. It emphasizes robust access restrictions to deter harmful attacks, data removal, unauthorized adjustments, or data disclosure.

This criterion is crucial for organizations seeking to bolster their overall security posture, making it essential for those dealing with sensitive data, such as personal or financial information. Companies that prioritize robust access controls and protection against cyber threats should utilize the security criterion. On the other hand, smaller businesses with minimal data exposure might find the comprehensive security standards overly complex for their needs.

Availability

Ensuring the availability of systems is paramount for organizations that promise their customers seamless access to data and services at critical moments. The availability criterion focuses on aspects including network performance, downtime management, and security incident handling.

For organizations that emphasize uninterrupted access to data and services, the availability criterion is vital. This applies to companies in sectors like e-commerce, finance, and healthcare, where downtime can have significant repercussions. Utilizing the availability criterion makes sense for businesses that need to handle unexpected surges in demand and maintain a high level of service reliability. However, companies with less emphasis on immediate access, like those dealing with non-essential products, might find the detailed focus on network performance and downtime management less relevant.

Confidentiality

With the confidentiality criterion, organizations prioritize safeguarding confidential information that they have agreed to protect for their customers, such as proprietary business plans, financial details, or healthcare information. SOC 2 compliance obligations involve adopting methods to flag private information as it is created or received and establishing policies for its storage. Additionally, organizations must have strategies in place for securely erasing confidential information when it is no longer needed.

The confidentiality criterion is essential for organizations entrusted with safeguarding sensitive information. Industries like legal, finance, and intellectual property management, where confidential data is a core asset, should seriously consider this criterion, as should businesses dealing with proprietary information. Conversely, businesses that mainly handle publicly available information might find the rigorous confidentiality standards excessive and not directly applicable to their operations.

Privacy

The privacy criterion centers on the secure collection, storage, and handling of customers’ personal information. SOC 2 compliance ensures that organizations protect sensitive customer data, such as names, addresses, or purchase history, instilling confidence in customers about how their personal information is handled.

The privacy criterion is critical for organizations that collect and manage customers’ personal information. Companies in sectors such as e-commerce, social media, and healthcare that process customer data extensively should embrace the privacy criterion. It assures customers that their personal information is treated securely and transparently. Conversely, businesses that do not handle sensitive personal data in significant quantities might find the privacy criterion’s focus on personal information management less relevant and might not require its stringent measures.

Processing Integrity

The processing integrity criterion ensures that organizations deliver services accurately, on time, without delays, and without unauthorized access. It focuses on detecting and resolving processing errors promptly, maintaining incident-free data storage and management, and preventing unauthorized manipulation of system inputs and outputs.

The processing integrity criterion is particularly important for organizations that provide services requiring accurate and timely delivery. Sectors like financial services, logistics, and telecommunications benefit from maintaining high standards of processing integrity. This criterion is ideal for businesses that need to ensure their systems and processes are error-free and secure against unauthorized access. Conversely, companies with less time-sensitive services may not need the same level of focus on immediate processing accuracy and may find the processing integrity criterion less applicable to their operations.

Key Benefits of SOC 2 Compliance

SOC 2 compliance offers organizations reap several significant advantages that enhance their overall security outlook and foster trust with customers and partners:

  • Enhances operational visibility and monitoring: SOC 2 compliance provides organizations with a comprehensive view of their security measures and internal controls, enabling proactive monitoring, swift threat detection, risk mitigation, and informed decision making.
  • Strengthens protection against unauthorized access: SOC 2 compliance assures customers that their sensitive data is handled securely and protected from unauthorized access. Robust security controls, access management, and encryption safeguard data throughout its lifecycle.
  • Improves security posture and risk management: SOC 2 compliance identifies areas for improvement and encourages the implementation of best practices, enhancing overall security posture and cybersecurity resilience.
  • Builds trust with third-party stakeholders: SOC 2 compliance demonstrates an organization’s commitment to data security, instilling confidence in customers, partners, and stakeholders, paving the way for business expansion and strategic partnerships.
  • Streamlines regulatory compliance efforts: SOC 2 compliance overlaps with other frameworks, allowing organizations to leverage efforts for meeting multiple regulatory standards. Compliance mapping further simplifies meeting industry-specific regulations.

Comparing SOC 2 With Other Security Certifications

Organizations often seek various security certifications to demonstrate their commitment to safeguarding sensitive information and meeting industry standards. Each certification offers a unique approach to evaluating security controls and can help organizations improve their overall cybersecurity position.

Let’s compare SOC 2 to some other security certifications.

SOC 1 vs. SOC 2 vs. SOC 3

The Service Organization Control (SOC) reporting framework developed by the American Institute of Certified Public Accountants (AICPA) includes SOC 1, SOC 2, and SOC 3 reports:

  • SOC 1 focuses on internal controls over financial reporting, ensuring the accuracy and integrity of financial information for user entities.
  • SOC 2 is geared towards technology companies and evaluates internal controls related to the TSC, with SOC 2 reports often being distributed publicly to demonstrate an organization’s commitment to information security.
  • SOC 3 represents a modification of SOC 2, delivering SOC 2 outcomes in a format that’s easy for the general public to digest.

While SOC 2 and SOC 3 primarily focus on controls related to technology services, SOC 1 addresses controls relevant to financial reporting. Organizations may opt to undergo SOC 1, SOC 2, or both audits, depending on their business operations and customer demands.

SOC 1 vs. SOC 2 vs. SOC 3

SOC 2 vs. SOX

SOC 2 and the Sarbanes-Oxley Act (SOX) serve different purposes and have distinct compliance requirements. SOX is a U.S. federal law aimed at preventing accounting and securities fraud, specifically targeting financial reporting practices at public companies.

Compliance with SOX is mandatory for publicly traded companies, while SOC 2 is a voluntary certification. Thus, while SOC 2 is often pursued by SaaS providers and technology companies to showcase their dedication toward data security, SOX compliance aims to protect investors and the general public by ensuring the accuracy and reliability of financial disclosures. These distinct objectives make SOC 2 and SOX vital in their respective domains while addressing diverse aspects of organizational operations.

SOC 2 vs. ISO 27001

Comparing SOC 2 and ISO 27001

Both SOC 2 and ISO 27001 are widely recognized frameworks for evaluating and improving an organization’s cybersecurity posture. ISO 27001 is an international standard for information security management systems (ISMS), providing a framework for organizations to protect the confidentiality, integrity, and availability of information. It focuses on developing and maintaining an ISMS, allowing organizations to choose controls that align with their specific needs and industry standards. In this way, ISO 27001 differs from SOC’s focus on evaluating an organization’s current security controls, based on compliance with the TSC.

How to Implement SOC 2 Compliance

SOC 2 Implementation Process Flow

Implementing SOC 2 compliance can be a complex process, but with the right approach and tools, it can be streamlined and efficient. Here’s how your organization can implement SOC 2 compliance, in eight simple steps:

Step 1: Assessing and Addressing Control Gaps Through a SOC 2 Readiness Assessment

Navigating the complex landscape of SOC 2 compliance can be overwhelming, especially with the abundance of terminology and many optional standards to consider. To ensure SOC compliance, organizations can seek guidance from SOC 2 providers who will help to tailor the compliance process to specific needs, saving valuable time.

The SOC 2 readiness assessment acts as a pre-audit check, preparing the organization for the official compliance audit or validating its current readiness. This assessment is designed to identify potential areas of non-compliance and evaluate current practices against the required criteria.

What the Readiness Assessment Offers

By performing a readiness assessment, organizations gain:

  • A comprehensive list of observations and recommendations for improvement.
  • Documentation of “control” practices that align with compliance criteria.
  • Detailed information on the audit evidence required and the auditor’s test procedures, ensuring transparency throughout the audit process.

Understanding the Purpose and Type of SOC 2 Report

Before embarking on your SOC 2 compliance journey, clarify the purpose of the SOC 2 report. Consider the specific reasons driving the organization’s commitment to SOC 2 compliance, such as meeting customer demands for heightened security measures, strengthening the organization’s security posture to safeguard against data breaches, and protecting the organization’s reputation, or expanding into new markets where SOC 2 compliance is valued.

Choosing the appropriate SOC 2 report type is equally important; Type I and Type II are available. As mentioned above:

  • The SOC 2 Type I report affirms that your internal controls meet the SOC 2 checklist requirements at a specific point in time, providing a snapshot of the organization’s compliance status.
  • The SOC 2 Type II report confirms that your controls have been effective over a specific period, showcasing continuous compliance.

Select the report type based on your customers’ requirements, project timelines, and the level of detail needed for your controls.

Step 2: Selecting Relevant Trust Services Criteria (TSC) Aligned with Customer Needs

Defining the scope of your SOC 2 audit showcases your organization’s understanding of data security requirements in accordance with SOC 2 compliance standards. Neglecting to incorporate relevant TSC within your SOC 2 scope can lead to heightened cybersecurity risks and significant business repercussions. It is essential to conduct a thorough assessment and ensure all relevant criteria are considered to maintain the integrity of your compliance efforts.

To begin, assess the type of data your organization handles, and whether that involves storing or transmitting sensitive information. Consider the regulatory requirements applicable to your industry, as they will influence the criteria selection. Invariably, the Security TSC is a fundamental requirement for every organization undergoing a SOC 2 audit. However, beyond security, different organizations focus on different TSCs (or a combination of multiple TSCs) to fulfill their SOC 2 compliance journey.

Examples of Catering to Customer Needs

Understanding your customers’ specific needs is crucial in tailoring your SOC 2 compliance approach. Above, under “What Are the SOC 2 Service Trust Criteria?” we discussed specific examples of aligning TSC selection with customer requirements.

Step 3: Optimizing Efficiency and Cost-Effectiveness with Compliance Automation Software

To streamline the compliance process and enhance efficiency while keeping costs in check, organizations looking to ensure their SOC 2 compliance in house can leverage the benefits of compliance automation software. This powerful tool automates various aspects of compliance, offering a centralized platform that simplifies readiness assessments, evidence collection, policy templates, and the overall audit management process.

Why Automation? Continuous Monitoring Practices

Achieving SOC 2 compliance is not a one-time event; rather, it is an ongoing process that demands continuous vigilance—especially for Type II reports. Establishing a robust continuous monitoring practice ensures that your organization maintains compliance standards throughout the year and remains well-prepared for annual SOC 2 audits. With continuous monitoring in place, you can proactively identify and address security gaps, promptly respond to changes, and maintain a strong security posture.

A well-designed continuous monitoring practice should adhere to the following principles:

  • Seamless evidence collection: The monitoring practice should simplify the process of gathering and managing evidence, reducing manual efforts and saving time.
  • Alert mechanism: An effective monitoring practice should have an alert system that promptly notifies you of any control deployment failures or errors, enabling quick corrective action.
  • Minimal impact on productivity: Monitoring measures should not hinder your employees’ productivity but rather operate in the background while efficiently safeguarding your systems.
  • Comprehensive insights: The monitoring system should provide both an overall view and a detailed, entity-level understanding of your organization’s information security health at any given moment.
  • Scalability: As your organization grows, your monitoring practice should be able to adapt and scale effortlessly to meet evolving compliance requirements.

Selecting the Right Compliance Automation Software

When considering compliance automation software options, you should focus on solutions that are compatible with SOC 2 and align with your organization’s unique needs. Choosing the right compliance automation software includes factors like required features, compatibility with relevant compliance frameworks, ease of use, and the availability of robust customer support. Additionally, it’s important to note that while some tools may claim automation, it’s crucial to ensure they truly streamline processes. If they require extensive manual work, they would offer no greater advantage or benefits than organizing an Excel spreadsheet from scratch.

Carefully considering these factors can help you shortlist and ultimately select the right compliance automation software that ensures efficiency, compliance, and peace of mind for your organization.

Step 4: Partnering With a Licensed CPA Firm Offering Integrated Compliance Automation

Selecting the right Certified Public Accountant (CPA) firm for your SOC 2 audit is a major decision that significantly impacts the success of your compliance journey. To ensure a seamless and efficient audit process, consider a licensed CPA firm that also provides compliance automation software, offering an all-in-one solution. Note that doing so would make Step 3 redundant.

Factors to consider when choosing a licensed CPA firm for a SOC 2 audit include:

  • Industry-specific expertise: Look for a CPA firm with experience in auditing companies similar to yours in terms of size and sector. This expertise ensures that the audit team understands your unique security needs and can tailor the assessment accordingly.
  • Time period of assessment: SOC 2 Type II reports require evaluation over a specific period. Clarify with the CPA firm the general timeframe and assessment period they follow to align expectations.
  • Process and scope management: Assess how the CPA firm manages the SOC 2 audit process. Ensure they adhere to the latest AICPA guidelines and have a clear, well-defined process and scope for conducting audits.
  • Flexibility and collaboration: Find a CPA firm that offers a flexible approach and respects your organization’s strengths. Collaboration and a creative problem-solving mindset are vital for a successful audit experience.
  • Accountability and communication: Ensure the CPA firm is committed to timely responses and adhering to agreed-upon turnaround times. Effective communication is key to a smooth audit process.
  • Quality of team: Focus on the specific team that will be collaborating with you during the audit, not just the overall reputation of the firm. Interact with the delivery team and gauge their ability to understand your requirements.
  • References and success stories: Request references from organizations similar to your own and inquire about their experience with the CPA firm. Hearing from those who closely collaborated with the auditor can provide valuable insights.

Step 5: Thoroughly Reviewing Recent Organizational Changes for SOC 2 Audit Readiness

As your organization prepares for an upcoming SOC 2 audit, it’s important to conduct a comprehensive review of recent organizational changes. Examining personnel, services, and tools helps ensure that your assessment accurately reflects your current operations.

Ideally, start the review process six months before your scheduled SOC 2 audit. This timeline allows sufficient time to address any potential control gaps or discrepancies before the audit begins.

Personnel Changes

Review all personnel changes that occurred within the twelve months leading up to the audit. This includes new hires, terminations, promotions, role changes, and transfers within your organization.

To obtain personnel change information:

  • Review your human resources records—including employment contracts, offer letters, and employee profiles—to identify any recent personnel changes.
  • Analyze access control logs and permissions to verify that former employees’ access was revoked promptly.

Service Offerings and Modifications

Examine any updates or modifications to the services your organization provides to clients since the last audit. This review ensures that your control practices align with your current service offerings.

To obtain service offering information:

  • Consult your service descriptions and marketing materials to understand any changes or expansions in your service offerings.
  • Analyze recent client contracts and agreements to identify any service modifications or additions.

Tooling and Technology Updates

Assess changes to your technology infrastructure, including software and tools used within your organization. This step helps to identify potential impacts on your internal controls.

To obtain technology update information:

  • Access IT change logs to identify recent updates, installations, or changes to software and tools in your technology stack.
  • Consult with your IT team or system administrators to gather information about any technology updates or upgrades.

Involvement of Key Stakeholders

Conduct the review with a team of individuals who are familiar with your organization’s operations and controls. This team should include representatives from various departments, including IT, HR, and compliance. Their insights will contribute to a more comprehensive and accurate review.

Use a Variety of Data Sources and Document Your Findings

Consider additionally utilizing data sources such as incident reports, customer feedback, and vendor contracts. These sources can provide valuable context and insights into the effectiveness of your control practices.

Document the results of the review in a comprehensive report. This report should include the findings related to personnel, services, and tools. It should also highlight any potential control gaps or areas for improvement. Review this report with management and use it as a basis for making necessary changes to your control practices.

Step 6: Creating a Timeline and Delegate Tasks to Obtain a System Description

Compliance automation software can also be used to create a structured timeline, delegate tasks efficiently, and generate a system description—the important information gathered as part of the audit.

  1. Identify and structure tasks: Initiate the compliance journey by thoroughly identifying all essential tasks required for SOC 2 compliance. Break down the compliance requirements into actionable items encompassing data gathering, policy updates, evidence collection, and process documentation. With the compliance automation software, craft a comprehensive checklist of tasks, providing a clear roadmap for your compliance efforts.
  2. Strategically delegate tasks: Assign tasks to team members based on their skills, expertise, and availability. The compliance automation software simplifies task allocation, providing a clear overview of each team member’s workload.
  3. Leverage software features for progress tracking and communication: Utilize the compliance automation software’s features to closely monitor task progress and facilitate seamless communication among team members. The project dashboard can provide real-time insights into task statuses and proactively identify potential bottlenecks and delays. The software fosters smooth communication channels, promoting collaboration and stakeholder awareness.
  4. Ensure regular timeline and task review: Regularly review the compliance timeline and task progress to ensure that compliance efforts stay on track. The compliance automation software aids this process with automated notifications and reminders, ensuring team members adhere to established timelines.
  5. Seek clarification as needed: Throughout the audit process, consult with auditors whenever questions or concerns arise. Rely on their expertise and guidance to ensure that your organization meets all the necessary requirements to achieve SOC 2 compliance.

Step 7: Issuing a Report

Once the SOC 2 audit process is successfully completed, the next critical step is the issuance of the audit report. The report is formally issued to your organization by the auditor or CPA firm. The report highlights your organization’s adherence to the TSC and the effectiveness of your internal controls. As the service organization, it is your responsibility to share this report with your customers in an appropriate manner, ensuring transparency and integrity in its communication.

Understand the Report’s Scope

Before distributing the report to customers, it is essential that you are thoroughly familiar with its scope and implications. The report provides valuable insights into your organization’s security, availability, processing integrity, confidentiality, and privacy controls. Ensure that you fully understand the report’s content to effectively communicate its significance to your customers.

When sharing the audit report with customers, be completely transparent. Present the report in its entirety, without any omissions or alterations that might mislead or deceive end users regarding its purpose or scope. Providing an accurate representation of the audit findings builds trust with customers and demonstrates your commitment to compliance and data security.

Compliance with Terms and Conditions

Adhere to the terms and conditions set forth by the audit firm regarding the report’s distribution. Ensure that it is shared in a manner that aligns with those stipulations, reflecting the report’s true intent and purpose. Avoid sharing an incomplete or misleading version that may undermine the report’s validity or compromise its integrity.

Addressing Customer Queries

Be prepared to address any queries or concerns raised by customers regarding the audit report. Clear communication and a willingness to discuss the report’s contents and implications demonstrate your commitment to customer satisfaction and a proactive approach to data security.

Step 8: Addressing and Resolving Any Audit Findings

To ensure a seamless SOC 2 compliance process, it’s essential to promptly address any audit findings. Begin by thoroughly reviewing the findings from the SOC 2 audit. Assess control deficiencies and areas requiring improvement to gain insights into your organization’s compliance status.

Finally, collaborate with key stakeholders, including IT, HR, and compliance representatives, to develop effective solutions for each identified deficiency. Implement corrective actions and assign responsibilities to the relevant teams or individuals. By proactively addressing and rectifying previous findings, your organization showcases its commitment to maintaining robust controls and data security. This proactive approach not only prepares your organization for the next SOC 2 audit but also instills confidence and trust in your customers.

Conclusion

Prioritizing SOC 2 compliance not only meets customer demands but also demonstrates your dedication to maintaining a high level of information security, building trust with customers and stakeholders, and protecting your brand reputation. By achieving SOC 2 certification, your organization gains a competitive advantage in industries where data privacy and security are paramount concerns.

Gcore utilizes modern methods to offer reliable, multi-level protection for all types of information. Our infrastructure adheres to global security requirements, and our certificates validate this commitment.

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Safeguarding your website against DDoS attacks is essential to preventing the following serious outcomes:Downtime: DDoS attacks can exhaust server resources (CPU, RAM, throughput), taking websites offline and making them unavailable to end users.Loss of business/customers: Frustrated users will leave, and many won’t return after failed checkouts or broken sessions.Financial losses: By obstructing online sales, DDoS attacks can cause businesses to suffer substantial loss of revenue.Reputational damage: Websites or businesses that suffer repeated unmitigated DDoS attacks may cause customers to lose trust in them.Loss of SEO rankings: A website could lose its hard-won SEO ranking if it experiences extended downtime due to DDoS attacks.Disaster recovery costs: DDoS disaster recovery costs can escalate quickly, encompassing hardware replacement, software upgrades, and the need to hire external specialists.Solution #1: Implement dedicated DDoS protection to safeguard your infrastructureAdvanced DDoS protection measures are customized solutions designed to protect your servers and infrastructure against DDoS attacks. DDoS protection helps defend against malicious traffic designed to crash servers and interrupt service.Solutions like Gcore DDoS Protection continuously monitor incoming traffic for suspicious patterns, allowing them to automatically detect and mitigate attacks in real time. If your resources are attacked, the system filters out harmful traffic before it reaches your servers. This means that real users can access your website without interruption, even during an attack.For example, a financial services provider could be targeted by cybercriminals attempting to disrupt services with a large-scale volumetric DDoS attack. With dedicated DDoS protection, the provider can automatically detect and filter out malicious traffic before it impacts users. Customers can continue to log in, check balances, and complete transactions, while the system adapts to the evolving nature of the attack in the background, maintaining uninterrupted service.The protection scales with your business needs, automatically adapting to higher traffic loads or more complex attacks. Up-to-date reports and round-the-clock technical support allow you to keep track of your website status at all times.Solution #2: Enable WAAP to protect your websiteGcore WAAP (web application and API protection) is a comprehensive solution that monitors, detects, and mitigates cyber threats, including DDoS layer 7 attacks. WAAP uses AI-driven algorithms to monitor, detect, and mitigate threats in real time, offering an additional layer of defense against sophisticated attackers. Once set up, the system provides powerful tools to create custom rules and set specific triggers. For example, you can specify the conditions under which certain requests should be blocked, such as sudden spikes in API calls or specific malicious patterns common in DDoS attacks.For instance, an e-commerce platform during a major sale like Black Friday could be targeted by bots attempting to flood the site with fake login or checkout requests. WAAP can differentiate between genuine users and malicious bots by analyzing traffic patterns, rate of requests, and attack behaviors. It blocks malicious requests so that real customers can continue to complete transactions without disruption.Solution #3: Connect to a CDN to strengthen defenses furtherA trustworthy content delivery network (CDN) is another valuable addition to your security stack. A CDN is a globally distributed server network that ensures efficient content delivery. CDNs spread traffic across multiple global edge servers, reducing the load on the origin server. During a DDoS attack, a CDN with DDoS protection can protect servers and end users. It filters traffic at the edge, blocking threats before they ever reach your infrastructure. Caching servers within the CDN network then deliver the requested content to legitimate users, preventing network congestion and denial of service to end users.For instance, a gaming company launching a highly anticipated multiplayer title could face a massive surge in traffic as players around the world attempt to download and access the game simultaneously. This critical moment also makes the platform a prime target for DDoS attacks aimed at disrupting the launch. A CDN with integrated DDoS protection can absorb and filter out malicious traffic at the edge before it reaches the core infrastructure. Legitimate players continue to enjoy fast downloads and seamless gameplay, while the origin servers remain stable and protected from overload or downtime.In addition, Super Transit intelligently routes your traffic via Gcore’s 180+ point-of-presence global network, proactively detecting, mitigating, and filtering DDoS attacks. Even mid-attack, users experience seamless access with no interruptions. They also benefit from an enhanced end-user experience, thanks to shorter routes between users and servers that reduce latency.Taking the next steps to protect your websiteDDoS attacks pose significant threats to websites, but a proactive approach is the best way to keep your site online, secure, and resilient. Regardless of your industry or location, it’s crucial to take action to safeguard your website and maintain its uninterrupted availability.Enabling Gcore DDoS protection is a simple and proven way to boost your digital infrastructure’s resiliency against different types of DDoS attacks. Gcore DDoS protection also integrates with other security solutions, including Gcore WAAP, which protects your website and CDNs. These tools work seamlessly together to provide advanced website protection, offering improved security and performance in one intuitive platform.If you’re ready to try Gcore Edge Security, fill in the form below and one of our security experts will be in touch for a personalized consultation.

From reactive to proactive: how AI is transforming WAF cybersecurity solutions

While digital transformation in recent years has driven great innovation, cyber threats have changed in parallel, evolving to target the very applications businesses rely on to thrive. Traditional web application security measures, foundational as they may be, are no longer effective in combating sophisticated attacks in time. Enter the next generation of WAFs (web application firewalls) powered by artificial intelligence.Next-generation WAFs, often incorporated into WAAP solutions, do much more than respond to threats; instead, they will use AI and ML-powered techniques to predict and neutralize threats in real time. This helps businesses to stay ahead of bad actors by securing applications, keeping valuable data safe, and protecting hard-earned brand reputations against ever-present dangers in an expanding digital world.From static to AI-powered web application firewallsTraditional WAFs were relied on to protect web applications against known threats, such as SQL injection and cross-site scripting. They’ve done a great job as the first line of defense, but their reliance on static rules and signature-based detection means they struggle to keep up with today’s fast-evolving cyber threats. To understand in depth why traditional WAFs are no longer sufficient in today’s threat landscape, read our ebook.AI and ML have already revolutionized what a WAF can do. AI/ML-driven WAFs can examine vast streams of traffic data and detect patterns, including new threats, right at the emergence stage. The real-time adaptability that this allows is effective even against zero-day attacks and complex new hacking techniques.How AI-powered WAP proactively stops threatsOne of the most significant advantages of AI/ML-powered WAFs is proactive identification and prevention capabilities. Here's how this works:Traffic pattern analysis: AI systems monitor both incoming and outgoing traffic to set up baselines for normal behavior. This can then allow for the detection of anomalies that could show a zero-day attack or malicious activity.Real-time decision making: Machine learning models keep learning from live traffic and detect suspicious activities on the go sans waiting for any updates in the rule set. This proactive approach ensures that businesses are guarded from emerging threats before they escalate.Heuristic tagging and behavioral insights: Advanced heuristics used by AI-driven systems tag everything from sessionless clients to unusual request frequencies. It helps administrators classify potential bots or automated attacks much faster.Ability to counter zero-day attacks: Traditional WAF solutions can only mitigate attacks that are already in the process of accessing sensitive areas. AI/ML-powered WAFs, on the other hand, can use data to identify and detect patterns indicative of future attacks, stopping attackers in their tracks and preventing future damage.Intelligent policy management: Adaptive WAFs detect suspicious activity and alert users to misconfigured security policies accordingly. They reduce the need for manual configuration while assuring better protection.Integrated defense layers: One of the strongest features of AI/ML-powered systems is the ease with which they integrate other layers of security, including bot protection and DDoS mitigation, into a connected architecture that protects several attack surfaces.User experience and operational impactAI-driven WAFs improve the day-to-day operations of security teams by transforming how they approach threat management. With intuitive dashboards and clearly presented analytics, as offered by Gcore WAAP, these tools empower security professionals to quickly interpret complex data, streamline decision-making, and respond proactively to threats.Instead of manually analyzing vast amounts of traffic data, teams now receive immediate alerts highlighting critical security events, such as abnormal IP behaviors or unusual session activity. Each alert includes actionable recommendations, enabling rapid adjustments to security policies without guesswork or delay.By automating the identification of sophisticated threats such as credential stuffing, scraping, and DDoS attacks, AI-powered solutions significantly reduce manual workloads. Advanced behavioral profiling and heuristic tagging pinpoint genuine threats with high accuracy, allowing security teams to concentrate their efforts where they're most needed.Embracing intelligent security with Gcore’s AI-driven WAAPOur AI-powered WAAP solution provides intelligent, interrelated protection to empower companies to actively outperform even the most sophisticated, ever-changing threats by applying advanced traffic analysis, heuristic tagging, and adaptive learning. With its cross-domain functionality and actionable security insights, this solution stands out as an invaluable tool for both security architects and strategic decision-makers. It combines innovation and practicality to address the needs of modern businesses.Curious to learn more about WAAP? Check out our ebook for cybersecurity best practices, the most common threats to look out for, and how WAAP can safeguard your businesses’ digital assets. Or, get in touch with our team to learn more about Gcore WAAP.Learn why WAAP is essential for modern businesses with a free ebook

How AI helps prevent API attacks

APIs have become an integral part of modern digital infrastructure, and it can be easy to take their security for granted. But, unfortunately, APIs are a popular target for attackers. Hackers can use APIs to access crucial data and services, and breaching APIs allows attackers to bypass traditional security controls.Most companies focus on speed of development and deployment ahead of security when crafting APIs, making them vulnerable to issues like insecure authentication, poor validation, or misconfigured endpoints, which attackers can abuse. Additionally, the interconnected nature of APIs creates multiple endpoints, widening the attack surface and creating additional points of entry that attackers can exploit.As threats evolve and the attack surface grows to include more API endpoints, integrating AI threat detection and mitigation is an absolute must for businesses to take serious, deliberate action against API cyberattacks. Let’s find out why.Staying ahead of zero-day API attacksOf all the cyber attacks that commonly threaten APIs, zero-day attacks, leveraging unknown vulnerabilities, are probably the toughest to defeat. Traditional solutions rely more on the existence of preconfigured rules or signatures along with human interference to detect and block such attacks. This approach often fails against novel threats and can block legitimate traffic, leaving applications vulnerable and making APIs inaccessible to users.APIs must balance between allowing legitimate users access and maintaining security. AI and ML technologies excel at identifying zero-day attacks based on pattern and behavior analysis rather than known signatures. For instance, heuristic algorithms can detect anomalies, such as sudden spikes in unusual traffic or behaviors indicative of malicious intent.Consider the following example: A certain IP address makes an abnormally large number of requests to a rarely accessed endpoint. Even without prior knowledge of the IP or attack vector, an AI/ML-enhanced solution can flag the activity as suspicious and block it proactively. Using minimal indicators, such as frequency patterns or traffic anomalies, AI can stop attackers before they fully exploit vulnerabilities. Additionally, this means that only suspicious IPs are blocked, and legitimate users can continue to access APIs unimpeded.The risks of shadow APIsOne of the biggest risks is shadow APIs, which are endpoints that exist but aren't documented or monitored. These can arise from configuration mistakes, forgotten updates, or even rogue development practices. These unknown APIs are the ideal target for Layer 7 attacks, as they are often left undefended, making them easy targets.AI-powered API discovery tools map both known and unknown API endpoints, enabling the grouping and management of these endpoints so sensitive APIs can be properly secured. This level of visibility is critical to securing systems against API-targeting attacks; without it, businesses are left in the dark.API discovery as a critical security practiceWAAP with AI/ML capabilities excels in API security because it accurately checks and analyzes API traffic. The Gcore API discovery engine offers 97 to 99 percent accuracy, mapping APIs in users’ domains and using data to recommend policies to help secure APIs.How heuristics enhance WAAP AI capabilities to protect APIsWhile AI and ML form the backbone of modern WAAPs, heuristic methods complement them in enhancing detection accuracy. Heuristics allow the system to inspect granular behaviors, such as mouse clicks or scrolling patterns, which distinguish legitimate users from bots.For example, most scraping attacks involve automated scripts that interact with APIs in predictable and repetitive manners. In those cases, WAAP can use request patterns or user action monitoring to identify the script with high accuracy. Heuristics may define bots by checking how users interact with page elements, such as buttons or forms, and flagging those that behave unnaturally.This layered approach ensures that the most sophisticated automated attack attempts are caught in the net and mitigated without affecting legitimate traffic.Protect your APIs with the click of a button using Gcore WAAPAI offers proactive, intelligent solutions that can address the modern complexities of cybersecurity. These technologies empower organizations to secure APIs against even the most sophisticated threats, including zero-day vulnerabilities and undiscovered APIs.Interested in protecting your APIs with WAAP? Download our ebook to discover cybersecurity best practices, the most prevalent threats, and how WAAP can protect your business’s digital infrastructure, including APIs. Or, reach out to our team to learn more about Gcore WAAP.Discover why WAAP is a must-have for API protection

11 simple tips for securing your APIs

A vast 84% of organizations have experienced API security incidents in the past year. APIs (application programming interfaces) are the backbone of modern technology, allowing seamless interaction between diverse software platforms. However, this increased connectivity comes with a downside: a higher risk of security breaches, which can include injection attacks, credential stuffing, and L7 DDoS attacks, as well as the ever-growing threat of AI-based attacks.Fortunately, developers and IT teams can implement DIY API protection. Mitigating vulnerabilities involves using secure coding techniques, conducting thorough testing, and applying strong security protocols and frameworks. Alternatively, you can simply use a WAAP (web application and API protection) solution for specialized, one-click, robust API protection.This article explains 11 practical tips that can help protect your APIs from security threats and hacking attempts, with examples of commands and sample outputs to provide API security.#1 Implement authentication and authorizationUse robust authentication mechanisms to verify user identity and authorization strategies like OAuth 2.0 to manage access to resources. Using OAuth 2.0, you can set up a token-based authentication system where clients request access tokens using credentials. # Requesting an access token curl -X POST https://yourapi.com/oauth/token \ -d "grant_type=client_credentials" \ -d "client_id=your_client_id" \ -d "client_secret=your_client_secret" Sample output: { "access_token": "eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9...", "token_type": "bearer", "expires_in": 3600 } #2 Secure communication with HTTPSEncrypting data in transit using HTTPS can help prevent eavesdropping and man-in-the-middle attacks. Enabling HTTPS may involve configuring your web server with SSL/TLS certificates, such as Let’s Encrypt with nginx. sudo certbot --nginx -d yourapi.com #3 Validate and sanitize inputValidating and sanitizing all user inputs protects against injection and other attacks. For a Node.js API, use express-validator middleware to validate incoming data. app.post('/api/user', [ body('email').isEmail(), body('password').isLength({ min: 5 }) ], (req, res) => { const errors = validationResult(req); if (!errors.isEmpty()) { return res.status(400).json({ errors: errors.array() }); } // Proceed with user registration }); #4 Use rate limitingLimit the number of requests a client can make within a specified time frame to prevent abuse. The express-rate-limit library implements rate limiting in Express.js. const rateLimit = require('express-rate-limit'); const apiLimiter = rateLimit({ windowMs: 15 * 60 * 1000, // 15 minutes max: 100 }); app.use('/api/', apiLimiter); #5 Undertake regular security auditsRegularly audit your API and its dependencies for vulnerabilities. Runnpm auditin your Node.js project to detect known vulnerabilities in your dependencies.  npm audit Sample output: found 0 vulnerabilities in 1050 scanned packages #6 Implement access controlsImplement configurations so that users can only access resources they are authorized to view or edit, typically through roles or permissions. The two more common systems are Role-Based Access Control (RBAC) and Attribute-Based Access Control (ABAC) for a more granular approach.You might also consider applying zero-trust security measures such as the principle of least privilege (PoLP), which gives users the minimal permissions necessary to perform their tasks. Multi-factor authentication (MFA) adds an extra layer of security beyond usernames and passwords.#7 Monitor and log activityMaintain comprehensive logs of API activity with a focus on both performance and security. By treating logging as a critical security measure—not just an operational tool—organizations can gain deeper visibility into potential threats, detect anomalies more effectively, and accelerate incident response.#8 Keep dependencies up-to-dateRegularly update all libraries, frameworks, and other dependencies to mitigate known vulnerabilities. For a Node.js project, updating all dependencies to their latest versions is vital. npm update #9 Secure API keysIf your API uses keys for access, we recommend that you make sure that they are securely stored and managed. Modern systems often utilize dynamic key generation techniques, leveraging algorithms to automatically produce unique and unpredictable keys. This approach enhances security by reducing the risk of brute-force attacks and improving efficiency.#10 Conduct penetration testingRegularly test your API with penetration testing to identify and fix security vulnerabilities. By simulating real-world attack scenarios, your organizations can systematically identify vulnerabilities within various API components. This proactive approach enables the timely mitigation of security risks, reducing the likelihood of discovering such issues through post-incident reports and enhancing overall cybersecurity resilience.#11 Simply implement WAAPIn addition to taking the above steps to secure your APIs, a WAAP (web application and API protection) solution can defend your system against known and unknown threats by consistently monitoring, detecting, and mitigating risks. With advanced algorithms and machine learning, WAAP safeguards your system from attacks like SQL injection, DDoS, and bot traffic, which can compromise the integrity of your APIs.Take your API protection to the next levelThese steps will help protect your APIs against common threats—but security is never one-and-done. Regular reviews and updates are essential to stay ahead of evolving vulnerabilities. To keep on top of the latest trends, we encourage you to read more of our top cybersecurity tips or download our ultimate guide to WAAP.Implementing specialized cybersecurity solutions such as WAAP, which combines web application firewall (WAF), bot management, Layer 7 DDoS protection, and API security, is the best way to protect your assets. Designed to tackle the complex challenges of API threats in the age of AI, Gcore WAAP is an advanced solution that keeps you ahead of security threats.Discover why WAAP is a non-negotiable with our free ebook

What are zero-day attacks? Risks, prevention tips, and new trends

Zero-day attack is a term for any attack that targets a vulnerability in software or hardware that has yet to be discovered by the vendor or developer. The term “zero-day” stems from the idea that the developer has had zero days to address or patch the vulnerability before it is exploited.In a zero-day attack, an attacker finds a vulnerability before a developer discovers and patches itThe danger of zero-day attacks lies in their unknownness. Because the vulnerabilities they target are undiscovered, traditional defense mechanisms or firewalls may not detect them as no specific patch exists, making attack success rates higher than for known attack types. This makes proactive and innovative security measures, like AI-enabled WAAP, crucial for organizations to stay secure.Why are zero-day attacks a threat to businesses?Zero-day attacks pose a unique challenge for businesses due to their unpredictable nature. Since these exploits take advantage of previously unknown vulnerabilities, organizations have no warning or time to deploy a patch before they are targeted. This makes zero-day attacks exceptionally difficult to detect and mitigate, leaving businesses vulnerable to potentially severe consequences. As a result, zero-day attacks can have devastating consequences for organizations of all sizes. They pose financial, reputational, and regulatory risks that can be difficult to recover from, including the following:Financial and operational damage: Ransomware attacks leveraging zero-day vulnerabilities can cripple operations and lead to significant financial losses due to data breach fines. According to recent studies, the average cost of a data breach in 2025 has surpassed $5 million, with zero-day exploits contributing significantly to these figures.Reputation and trust erosion: Beyond monetary losses, zero-day attacks erode customer trust. A single breach can damage an organization’s reputation, leading to customer churn and lost opportunities.Regulatory implications: With strict regulations like GDPR in the EU and similar frameworks emerging globally, organizations face hefty fines for data breaches. Zero-day vulnerabilities, though difficult to predict, do not exempt businesses from compliance obligations.The threat is made clear by recent successful examples of zero-day attacks. The Log4j vulnerability (Log4Shell), discovered in 2021, affected millions of applications worldwide and was widely exploited. In 2023, the MOVEit Transfer exploit was used to compromise data from numerous government and corporate systems. These incidents demonstrate how zero-day attacks can have far-reaching consequences across different industries.New trends in zero-day attacksAs cybercriminals become more sophisticated, zero-day attacks continue to evolve. New methods and technologies are making it easier for attackers to exploit vulnerabilities before they are discovered. The latest trends in zero-day attacks include AI-powered attacks, expanding attack surfaces, and sophisticated multi-vendor attacks.AI-powered attacksAttackers are increasingly leveraging artificial intelligence to identify and exploit vulnerabilities faster than ever before. AI tools can analyze vast amounts of code and detect potential weaknesses in a fraction of the time it would take a human. Moreover, AI can automate the creation of malware, making attacks more frequent and harder to counter.For example, AI-driven malware can adapt in real time to avoid detection, making it particularly effective in targeting enterprise networks and cloud-based applications. Hypothetically, an attacker could use an AI algorithm to scan for weaknesses in widely used SaaS applications, launching an exploit before a patch is even possible.Expanding attack surfacesThe digital transformation continues to expand the attack surface for zero-day exploits. APIs, IoT devices, and cloud-based services are increasingly targeted, as they often rely on interconnected systems with complex dependencies. A single unpatched vulnerability in an API could provide attackers with access to critical data or applications.Sophisticated multi-vector attacksCybercriminals are combining zero-day exploits with other tactics, such as phishing or social engineering, to create multi-vector attacks. This approach increases the likelihood of success and makes defense efforts more challenging.Prevent zero-day attacks with AI-powered WAAPWAAP solutions are becoming a cornerstone of modern cybersecurity, particularly in addressing zero-day vulnerabilities. Here’s how they help:Behavioral analytics: WAAP solutions use behavioral models to detect unusual traffic patterns, blocking potential exploits before they can cause damage.Automated patching: By shielding applications with virtual patches, WAAP can provide immediate protection against vulnerabilities while a permanent fix is developed.API security: With APIs increasingly targeted, WAAP’s ability to secure API endpoints is critical. It ensures that only authorized requests are processed, reducing the risk of exploitation.How WAAP stops AI-driven zero-day attacksAI is not just a tool for attackers—it is also a powerful ally for defenders. Machine learning algorithms can analyze user behavior and network activity to identify anomalies in real time. These systems can detect and block suspicious activities that might indicate an attempted zero-day exploit.Threat intelligence platforms powered by AI can also predict emerging vulnerabilities by analyzing trends and known exploits. This enables organizations to prepare for potential attacks before they occur.At Gcore, our WAAP solution combines these features to provide comprehensive protection. By leveraging cutting-edge AI and machine learning, Gcore WAAP detects and mitigates threats in real time, keeping web applications and APIs secure even from zero-day attacks.More prevention techniquesBeyond WAAP, layering protection techniques can further enhance your business’ ability to ward off zero-day attacks. Consider the following measures:Implement a robust patch management system so that known vulnerabilities are addressed promptly.Conduct regular security assessments and penetration testing to help identify potential weaknesses before attackers can exploit them.Educate employees about phishing and other social engineering tactics to decease the likelihood of successful attacks.Protect your business against zero-day attacks with GcoreZero-day attacks pose a significant threat to businesses, with financial, reputational, and regulatory consequences. The rise of AI-powered cyberattacks and expanding digital attack surfaces make these threats even more pressing. Organizations must adopt proactive security measures, including AI-driven defense mechanisms like WAAP, to protect their critical applications and data. By leveraging behavioral analytics, automated patching, and advanced threat intelligence, businesses can minimize their risk and stay ahead of attackers.Gcore’s AI-powered WAAP provides the robust protection your business needs to defend against zero-day attacks. With real-time threat detection, virtual patching, and API security, Gcore WAAP ensures that your web applications remain protected against even the most advanced cyber threats, including zero-day threats. Don’t wait until it’s too late—secure your business today with Gcore’s cutting-edge security solutions.Discover how WAAP can help stop zero-day attacks

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