SaaS (Software as a Service) companies provide cloud-based software applications. The customers access these applications over the internet, often through a subscription model. These platforms enable businesses to handle large amounts of sensitive data and automate workflows for higher operational speed and efficiency.
Another key function that SaaS platforms offer is that they deliver important communications, often through email. They leverage email for a number of communication objectives. These may include product updates, customer support, billing, onboarding, etc.
Since they contain sensitive information, hackers often find them quite attractive to exploit. As a result, these platforms have become a common target for spoofing and phishing. Implementing DMARC, using an SPF tool, and leveraging other email authentication protocols can help you win this dangerous game.
Key takeaways:
- SaaS companies deal with large amounts of sensitive personal and business data.
- This makes them an attractive target for cybercrimes.
- SaaS companies can and should use DMARC to protect themselves and their customers.
- DMARC comes with many benefits. These may include less spam, more compliance, higher protection, better brand image, etc.
- You don’t need to manually implement DMARC. Many services are ready and willing to take care of that.
SaaS Industry Statistics
You have likely heard of popular SaaS companies like Salesforce, Adobe, and Notion. But did you know that:
The SaaS sector is rapidly expanding; the market is projected to reach $307 billion by 2026.
The estimates for the number of SaaS companies globally vary a lot, but they are mostly in tens or hundreds of thousands.
More than 2.2 million people are employed in this sector. The United States, India, the UK, France, and Germany are some of the leading hubs for SaaS innovation.
Why DMARC Is So Crucial for SaaS Companies
DMARC (Domain-based Message Authentication, Reporting, and Conformance) is a popular email authentication protocol. It is especially important for SaaS companies for a number of reasons.
Email As a Gateway to Clients
SaaS businesses depend on email for their interactions with clients. If attackers successfully spoof their domain, customers can become victims of cybercrimes. Clients are likely to trust anything coming from your legitimate domain. So they might feel safe to share credentials, download malware, or even make a payment. They believe they are communicating with you, and have no idea that it’s a hacker acting on your behalf.
Brand Reputation
A single phishing incident can ruin in a second what you built in a decade. Let’s imagine your domain becomes associated with cybercrime. Negative press and regulatory scrutiny are likely to follow. As a result, years of trust and respect will be lost faster than ever imagined.
Compliance and Deliverability
SaaS companies that send 5000+ daily emails must have proper email authentication in place. Implementing DMARC won’t just help you achieve and enjoy regulatory compliance. It will also help your emails reach the intended inbox instead of falling into the spam folder. emails reach inboxes, not spam folders. This is because authenticating outbound messages will build trust among mailbox service providers. This will encourage them to give your emails the green light.
The Technical Core of DMARC
DMARC is an advanced email authentication protocol. It builds on SPF (Sender Policy Framework) and DKIM (DomainKeys Identified Mail). Here’s how it works:
- SPF allows domain owners to specify which mail servers are authorized to send email on their behalf. It works by checking the sending server’s IP against a list of authorized domains in the domain’s DNS records.
- DKIM works differently. It uses cryptographic signatures to check that an email hasn’t been manipulated during transfer and is sent from the stated domain.
DMARC creates a bridge between these two and builds on them. DMARC:
- Requires that emails pass SPF and/or DKIM checks and that the domain in the “From” address aligns with those used in SPF/DKIM (identifier alignment).
- Publishes a DMARC policy in DNS that tells receiving mail servers how to deal with emails that fail authentication. It gives three possible options. You can just monitor (without enforcement). You can also choose ‘quarantine’ (directs unauthorized emails to the spam folder). Or, you can opt for immediate rejection of unauthorized emails, blocking them outright.
- Generates aggregate and forensic reports to help domain owners see who is sending emails on their behalf and what the emerging threats are.
Key Benefits of DMARC for SaaS Companies
Here are some important benefits that DMARC offers:
Keeps Phishers and Spoofers away
The correct DMARC setup can help prevent hackers from accessing and exploiting your domain to send fraudulent emails. This helps reduce the risk of phishing and credential theft.
With DMARC, you can stop fake emails sent on your behalf and enhance your brand image in your stakeholders’ eyes.
Improves Email Deliverability
When you have correctly implemented DMARC, important communications like product updates, password resets, and invoices actually reach the intended recipient instead of falling into the junk folder.
Gives the Necessary Level of Visibility
DMARC’s reporting gives SaaS companies the required insights into their overall email activity. This makes it easier to detect and address unauthorized use on time.
Ensures You Don’t Get Blocklisted
Anti-phishing measures and DMARC in particular are no longer an option but a mandatory requirement for many ESPs. When you implement DMARC, you will avoid being ‘disliked’ by ESPs for breaking the rules. Consequently, your domain or IP address will be less likely to be blocked.
Reduces Support Costs
The higher email deliverability, along with reduced spending on mitigation of phishing incidents, can help you save a significant amount of money. You will now have the necessary funds for your next successful marketing campaign.
Real-Time Threat Monitoring
Companies like PowerDMARC provide advanced threat monitoring 24/7/365. This will enable you to be faster, more informed, and more effective than the hackers. The result? The next phishing attack will be successfully prevented!
Such platforms often cover not just DMARC but many other key protocols like SPF, DKIM, BIMI, MTA-STS, TLS-RPT, etc. This makes it easier to set up and manage everything from a single interface. As a result, everything is more organized and structured than ever before. Automated reporting, one-click SPF flattening, and forensic report encryption are also sometimes included in such services. This means it’s easier to stay protected, comply with rules, and reach intended targets.
Summing Up
Today, all sectors and companies (not just SaaS-related ones) need DMARC. But some sectors are more vulnerable to cyberattacks than others, mainly because of the importance of the information they handle.
DMARC can effectively protect sensitive data across all sectors, from finance and transport to government and education. The benefits it offers definitely outweigh the challenges of its implementation. And what’s best, there are many platforms and services today that take care of everything DMARC-related, from setup to monitoring. Whether you choose to configure DMARC manually yourself or use hosted services, the objective is the same: to have DMARC correctly implemented and help it help you push hackers away!