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No-code platforms are transforming software development in Australia, but they come with serious security risks. From weak authentication to uncontrolled app creation, these vulnerabilities can expose sensitive data, damage reputations, and lead to costly breaches. Here's a quick look at the top risks and how to fix them:
Why does this matter? Data breaches in Australia cost an average of A$4.45 million, and compliance with local laws like the Notifiable Data Breaches (NDB) scheme is mandatory. Fixing these risks is easier than you think with built-in tools on most no-code platforms. Dive in to learn how to secure your apps while staying competitive.
Weak authentication remains one of the top reasons behind security breaches in no-code applications. When authentication systems are poorly configured, they create an open door for cybercriminals.
Did you know that over 82% of security breaches are linked to weak authentication, like stolen or poorly chosen credentials? In 2020, more than 1,000 data breaches exposed over 155 million records, costing organisations an average of $3.86 million per incident.
For Australian businesses using no-code platforms, weak authentication can take many forms. Simple password policies often allow users to pick easily guessed credentials like "password123" or "company2025." Some no-code applications also lack safeguards like brute-force protection, leaving systems vulnerable to repeated password-guessing attacks. Even worse, hard-coded credentials in applications can create glaring vulnerabilities, giving attackers unrestricted access to crucial business systems. When authentication fails, it’s not just individual accounts at risk - entire databases containing customer details, financial records, and proprietary data could be exposed. Such breaches can severely damage a company’s reputation and trigger hefty regulatory penalties.
Under Australia’s Notifiable Data Breaches (NDB) scheme, organisations must assess within 30 calendar days whether a data breach involving unauthorised access to personal information qualifies as "eligible". A breach is considered eligible if it’s likely to cause serious harm to individuals due to unauthorised access, disclosure, or loss.
Weak authentication systems significantly increase the chances of unauthorised access, which could force businesses to report the incident under the NDB scheme. Without strong password policies or multi-factor authentication (MFA), organisations are at a higher risk of experiencing breaches that violate Australian privacy laws.
The good news? Strengthening authentication on no-code platforms doesn’t require advanced technical skills. Multi-factor authentication (MFA) is one of the most effective measures, with Microsoft reporting it could prevent 99.9% of account compromises.
Here are a few practical steps to improve authentication:
Today’s no-code platforms often come with built-in authentication tools, making it easier to implement secure systems. For example, platforms like Descope offer visual workflows and APIs that let businesses customise their user authentication processes without needing to write code. These tools allow features like passwordless login, biometric authentication, and adaptive security that adjusts based on user behaviour.
As Ofer Ben-David, EVP Engineering at Navan, explained:
Partnering with Descope has helped Navan enhance both our user onboarding experience and security posture. The flexible nature of Descope Flows enables us to adapt better to changing business or security needs without burdening our developers.
Strengthening authentication isn’t just about preventing breaches. It also builds customer trust and ensures smooth operations. Up next, let’s delve into how misconfigured settings can further compromise the security of no-code applications.
Misconfigured settings in no-code platforms can unintentionally expose sensitive business data, leaving it vulnerable to unauthorised access. Unlike deliberate cyberattacks, these exposures often arise from simple errors in configuration. Yet, the consequences for Australian businesses can be severe.
Getting data configuration right is a cornerstone of ensuring security in no-code environments.
The financial toll of data exposure is staggering. In 2023, the average cost of a data breach reached A$4.45 million, with organisations also facing steep fines for failing to comply with regulations.
Some common mistakes in no-code platforms include open access settings, insecure data migrations, and unprotected endpoints. For instance, leaving databases with default public access settings can expose customer records, financial details, or proprietary business information. When excessive permissions are granted, the risk multiplies.
The speed of no-code development adds another layer of risk. Citizen developers - those without formal coding expertise - might unknowingly leave sensitive information exposed, fail to secure API endpoints, or mismanage access controls. With Gartner predicting that 70% of applications will be built using low-code/no-code technologies by 2025, the need for oversight is more pressing than ever.
Australia's regulatory environment makes proper data configuration not just a best practice but a legal necessity. Between January and June 2024, the Office of the Australian Information Commissioner (OAIC) recorded 527 data breach notifications, the highest number since late 2020. Alarmingly, human error accounted for 30% of these breaches.
The Privacy Act Amendment Act 2024 has introduced stricter rules for transferring personal information overseas. Organisations must now ensure that recipient countries have adequate privacy protections. Misconfigurations in no-code applications that handle international data transfers could easily violate these requirements.
Penalties for serious privacy breaches are steep - up to A$50 million, or 3 times the benefit gained from the breach, or 30% of the company’s adjusted turnover during the period of non-compliance. Australian Privacy Commissioner Carly Kind has emphasised the growing expectations for organisations:
"It is no longer acceptable for privacy to be an afterthought; entities need to be taking a privacy-centric approach in everything they do."
The good news? Fixing configuration errors is relatively simple, thanks to built-in tools in most no-code platforms. These platforms often include integrated security features, making it easier to manage configurations systematically.
Role-Based Access Control (RBAC) is a key strategy. By limiting access based on user roles, RBAC ensures employees only see what’s relevant to their job responsibilities. Many no-code platforms offer visual interfaces for setting up RBAC, requiring little technical expertise.
Data encryption is another vital safeguard. Using AES encryption for stored data and SSL/TLS for data transmission can protect sensitive information, even when configuration errors occur. Many platforms make these features accessible through straightforward toggle options in their security settings.
Regular audits are equally important. By maintaining an up-to-date inventory of all no-code applications, organisations can monitor security settings and identify vulnerabilities during routine checks, rather than after a breach.
No-code platforms are increasingly prioritising secure default configurations. Many now offer pre-configured compliance modules and integrate with APIs designed to simplify security management. This empowers citizen developers to build secure applications without requiring deep expertise in security.
However, the fast pace of no-code development can compromise security if governance is lacking. Gartner projects that by 2024, 80% of application development will occur on low-code platforms. This makes it essential for organisations to implement clear policies for configuring data access, API connections, and user permissions.
Good governance also involves educating citizen developers. Instead of merely blocking non-compliant configurations, organisations should provide clear instructions on secure alternatives. This approach helps maintain development speed while safeguarding sensitive data.
The challenge extends beyond individual applications. As no-code adoption grows, organisations must track integrations with existing systems that handle sensitive data. A comprehensive approach ensures secure configurations across the entire technology stack.
Next, we’ll explore the risks of unsafe third-party connections in no-code environments.
Third-party integrations are the backbone of modern no-code applications, but they come with significant security risks when external services aren't thoroughly vetted.
The numbers speak for themselves. In 2024, 47% of organisations reported at least one data breach or cyberattack involving third-party network access. Including third-party vendors in your network pushes the risk of a data breach from 41% to a staggering 60%.
One example is the ransomware attack in February 2024 that compromised sensitive data through a third-party connection. This incident underscores how even a single weak link in your integrations can jeopardise an entire organisation's data infrastructure.
No-code platforms make it incredibly easy to connect various services, but this convenience can be a double-edged sword. A misconfigured API or an insecure third-party plugin can leave your systems wide open to attack. The shared responsibility model in cloud environments further complicates matters. While platform providers handle infrastructure security, the responsibility for securing data and connections falls squarely on the organisation. If a third-party vendor has inadequate security measures, the entire network becomes vulnerable.
In Australia, organisations must adhere to strict data protection laws, particularly when dealing with third-party connections. Under Australian Privacy Principle (APP) 11, companies are required to take reasonable steps to safeguard data against misuse, interference, loss, and unauthorised access or disclosure. This obligation extends to all third-party integrations.
The Notifiable Data Breaches (NDB) scheme adds another layer of urgency. If a data breach likely to cause serious harm occurs, organisations must notify the Office of the Australian Information Commissioner (OAIC) within 72 hours. When third-party connections are involved, meeting this deadline can be even more challenging.
Recent statistics from the OAIC highlight the scale of the problem. Between January and June 2023, 70% of reported breaches were due to malicious or criminal attacks, with 42% linked to cybersecurity incidents. Cases like the MediSecure and Outabox breaches in early 2024 demonstrate how vulnerabilities within supply chains can ripple across entire networks.
Verizon's 2024 Data Breach Investigations Report expanded the scope of third-party breaches, stating:
“We are introducing an expanded concept of a breach involving a third party that includes partner infrastructure being affected and direct or indirect software supply chain issues - including when an organisation is affected by vulnerabilities in third-party software.”
These challenges highlight the necessity of implementing strong third-party security measures, particularly in no-code environments.
While managing third-party risks may seem daunting, no-code platforms often provide tools to simplify the process. The key is to establish robust governance before making any connections.
With the average organisation now using 130 SaaS applications - a five-fold increase since 2021 - continuous monitoring has become essential. Security ratings and monitoring tools can help identify risks in real-time across your vendor ecosystem.
No-code platforms have made application development more accessible, but they've also broadened the scope of security risks. Citizen developers often lack the expertise to evaluate third-party integrations, making organisational oversight critical.
Software supply chain attacks are a growing concern. In 2021, 45% of organisations experienced at least one such attack. With their extensive plugin marketplaces, no-code platforms can inadvertently become pathways for these attacks.
Unvetted third-party integrations bring multiple risks: vulnerabilities in external code, compliance issues with data handling, and potential backdoors for malicious actors. The ease and speed of no-code development can sometimes lead to functionality being prioritised over security.
To address these risks, organisations need a proactive security program tailored for no-code applications. This should include maintaining an up-to-date inventory of all applications and their third-party connections.
In the next section, we’ll explore how excessive user permissions further compound security challenges in no-code applications.
Granting users more access than necessary is a common yet often overlooked risk in no-code applications. This over-permissioning can open the door to data breaches and unauthorised actions, creating a significant security vulnerability for organisations.
When users have excessive permissions, the risks go beyond simple unauthorised access. Attackers can exploit these privileges to impersonate account owners, gaining access to sensitive data and escalating their control within the system. This can result in misuse of authorisation, data leaks through oversharing, or exposure via unsecured endpoints.
No-code platforms have made app development accessible to a broader audience, but they also introduce new challenges in managing permissions. Without proper oversight, organisations may face issues like the accumulation of forgotten applications, which can become security liabilities over time.
These platforms often incorporate features like role-based access control (RBAC), granular permissions, identity integrations, conditional logic, and audit logs to manage access effectively. However, these tools are only as good as their implementation and ongoing management.
"Role-based permissions enable different users to access and perform specific tasks based on their assigned roles or responsibilities within an organisation." - Pargesoft Co UK
Striking the right balance between security and usability is essential. Teams need sufficient access to perform their tasks, but granting too much access increases vulnerability. Additionally, poor logging can obscure user activity, delaying the detection of breaches, while excessive logging can inadvertently expose sensitive application details. In fast-paced no-code environments, a structured approach to permission management is critical.
For Australian organisations, managing user permissions isn't just about security - it's also a legal obligation. Under the Privacy Act 1988, businesses must comply with the Notifiable Data Breaches (NDB) scheme. This requires mandatory reporting to both affected individuals and the Office of the Australian Information Commissioner (OAIC) when excessive permissions lead to unauthorised access.
To meet these requirements, businesses need robust monitoring systems that track user activities across platforms, applications, and networks. These systems should be fully auditable, allowing detailed investigations into potential breaches.
Addressing permission vulnerabilities starts with adopting the principle of least privilege - ensuring users only have access essential to their roles.
Here are some practical steps to enforce this principle:
Incorrect security settings on platforms can create vulnerabilities that cybercriminals exploit to access sensitive information or even compromise entire systems. In fact, more than 20% of all data breaches in 2022 were linked to misconfigurations. These issues often stem from errors in setup or missing configurations, leaving systems exposed to unauthorised access.
Misconfigured settings can open the door to attacks in several ways, such as sticking with default settings, enabling open database access, or mishandling cloud configurations.
"Security misconfigurations are particularly widespread in cloud environments and are often cited as the top vulnerability in the cloud." - Balbix
The fallout from these mistakes isn’t just technical. They can lead to data breaches, financial losses, reputational harm, and even legal consequences. For Australian businesses, this is a pressing issue due to the stringent requirements of local privacy laws.
Real-world incidents illustrate the risks well. For example, NASA faced a vulnerability in Atlassian JIRA when a misconfiguration in Global Permissions exposed sensitive data. These examples underscore why understanding and addressing such risks is essential - especially in no-code workflows, where regulatory compliance is critical.
No-code platforms come with their own set of security challenges. Their pre-built features, if improperly configured, can lead to unauthorised access and other vulnerabilities. While the drag-and-drop interface simplifies development, it can also create a misleading sense of security, concealing the underlying complexities and risks.
Another issue is configuration drift. As systems evolve, settings can unintentionally deviate from their original, secure state. This makes regular monitoring a must to maintain security across no-code applications and workflows.
Australian organisations are legally required to ensure their platform settings meet strict security standards. Under the Privacy Act 1988, businesses must take reasonable steps to protect personal information from misuse, interference, loss, or unauthorised access.
The Office of the Australian Information Commissioner (OAIC) treats breaches caused by misconfigurations seriously. From January to June 2024, cyber security incidents accounted for 38% of all reported data breaches. One notable case involved a third-party supplier managing a database migration. Two years after the migration, it was discovered that client data, including credit card numbers and government IDs, had been exposed and sold on the dark web due to configuration errors.
Given the risks tied to misconfigurations, addressing them quickly and effectively is crucial. Here’s how businesses can tackle the problem:
The Australian Cyber Security Centre also recommends implementing the Essential Eight - a set of baseline strategies to protect systems and data from cyber threats. These steps can help businesses not only secure their platforms but also meet compliance requirements effectively.
When no-code apps lack proper tracking mechanisms, it creates blind spots that make it difficult to identify suspicious activity, failed logins, or breaches in a timely manner.
Without sufficient activity tracking, malicious actions can go unnoticed. Recent Australian data highlights the seriousness of this issue: from January to June 2024, cyber security incidents were responsible for 38% of all data breaches. Human error accounted for 30%, while 5% involved rogue employees or insider threats. The decentralised nature of no-code workflows amplifies this risk, as it often reduces visibility and oversight.
No-code platforms present unique challenges when it comes to tracking. Non-technical users, who are often the creators of these applications, may not prioritise audit trails. This can lead to a proliferation of small, unmanaged apps operating without proper oversight. The distributed and user-driven nature of no-code development further weakens centralised control, making it harder to monitor who is building apps and how sensitive data is handled.
"Implement timely and repeated alerting when users or admins, or the application configuration, are in an unsafe state. Make the unsafe mode clear to the administrators on a regular basis." - Cyber.gov.au
Under Australia's Notifiable Data Breaches (NDB) scheme, organisations are required to assess potential breaches within 30 days. Poor activity tracking can delay breach detection, increasing the risk of non-compliance. For example, in the first half of 2024, Australian government agencies reported 63 data breaches, representing 12% of all notifications. Alarmingly, 87% of these breaches were identified more than 30 days after they occurred. Effective tracking is critical for meeting NDB requirements and ensuring compliance with the Privacy Act 1988, which mandates that organisations take reasonable steps to protect personal information from unauthorised access or modification.
Modern no-code platforms offer built-in compliance tools that make it easier to embed security features like data encryption, access controls, and audit trails into workflows. Many of these platforms also provide real-time regulatory updates through APIs. To improve activity tracking, consider these practical steps:
Additionally, establishing governance practices for low-code environments is crucial. Regular security assessments, robust access controls, and comprehensive staff training on secure data handling can significantly reduce risks. These measures not only help avoid potential fines - which can range from thousands to millions of dollars - but also enhance overall data security.
The rise of no-code app creation has brought about serious security challenges. Research indicates that shadow IT now makes up over half of IT spending. While no-code platforms boost productivity, they also lead to a surge in applications created without proper security checks or governance.
Citizen developers are transforming how businesses manage their digital operations. Gartner predicts that by 2025, 65% of all development activity will come from low-code platforms. This shift empowers business users to create applications, but many lack the necessary cybersecurity knowledge to do so safely.
No-code platforms often include embedded identities, which can escalate privileges and make user tracking difficult. Data frequently syncs across various services, creating uncontrolled flows that complicate compliance efforts. Many platforms prioritise ease of use over security, leading to exposed APIs and weak permission settings.
Shadow AI adds another layer of complexity. According to Obsidian Security, over half of organisations have at least one shadow AI application.
"You're consuming the software and therefore don't know about the source code, associated vulnerabilities or potentially the level of testing and rigor the platform has undergone." - Chris Hughes, Cloud Security Expert
This lack of transparency and oversight significantly increases data security risks.
Uncontrolled app creation often leads to blind spots that can expose sensitive information. The cloud-based nature of most no-code platforms amplifies the risk of data breaches, especially when non-technical users inadvertently introduce vulnerabilities. Security teams frequently lack visibility into these activities, making governance a daunting task.
These apps can create data flows that bypass standard security measures, increasing exposure risks. Citizen developers, without cybersecurity expertise, might use insecure authentication methods, weak access controls, or inadvertently cause data leaks. Gartner reports that shadow IT is responsible for around 30% of security breaches.
In Australia, uncontrolled app creation poses significant compliance challenges. The Notifiable Data Breaches (NDB) scheme mandates organisations to identify and report breaches within 30 days. However, shadow applications often evade standard monitoring, delaying detection.
The Australian Office of the Information Commissioner (OAIC) recorded a 19% rise in reported data breaches between July and December 2023. Secondary notifications - breaches involving third-party vendors - jumped from 29 in early 2023 to 121 in the latter half. Breaches of Australia's legal requirements can result in penalties of up to $15.65 million or 10% of annual turnover. The OAIC has signalled its intent to strengthen enforcement of NDB compliance, making the governance of no-code apps increasingly vital.
To address these risks, organisations can adopt several strategies to ensure secure no-code practices:
For businesses aiming to balance agility with security, Lightning Ventures offers tailored solutions to implement secure no-code development practices effectively.
No-code platforms are reshaping how Australian businesses approach software development, with Forrester predicting the low-code market will soar to $50 billion by 2028. But alongside this rapid growth comes a host of security risks that require immediate and proactive attention.
The seven key vulnerabilities - weak authentication, misconfigurations, unsafe third-party connections, excessive permissions, platform missettings, poor tracking, and unchecked app creation - pose serious threats. The potential fallout is significant, with data breaches costing an average of $4.24 million in 2021. Tackling these risks head-on is not optional - it’s essential.
Security must be a priority at every step of the development process. It’s not something that can be bolted on later. Research shows that over 99% of technologists have encountered vulnerabilities when security is an afterthought. Ensuring security is baked into every phase of development is the only way forward.
"A well-managed low code practice significantly decreases security concerns by standardising application delivery on a robust platform with secure best practices built in… Companies can set granular data loss prevention policies to apply across low code environments." - Ryan Cunningham, VP of Power Apps at Microsoft
Balancing speed with strong security is the ultimate challenge. As Mark Lambert, VP of products at ArmorCode, explains: "The top two benefits of low code/no code are speed of delivery and opening it up for 'business users' to self-service and develop workflows that meet their needs without needing to engage with IT. However, this is also the biggest potential pitfall".
A robust security strategy must cover all bases. This includes selecting platforms with features like Role-Based Access Control (RBAC) and encryption, enforcing multi-factor authentication, securing API keys in vaults, validating user inputs, maintaining detailed audit trails, and offering regular security training for developers.
For Australian businesses, navigating these challenges often requires expert support. Lightning Ventures specialises in crafting secure, compliant no-code solutions that combine speed with solid security foundations. Whether it’s custom app development, internal tools, or process automation, their expertise ensures security isn’t just an afterthought - it’s built into every project from the start.
Protecting your no-code applications and data when using third-party integrations requires a proactive approach. Start by ensuring secure communication protocols, like HTTPS, are always in place. These protocols encrypt data during transfer, keeping sensitive information safe from prying eyes.
It's also crucial to assess the security standards of third-party providers before integrating their services. Make sure they align with industry benchmarks to avoid unnecessary risks. Additionally, implement strong authentication measures and access controls to restrict who can interact with these integrations. Regularly monitoring their usage can help you spot any unauthorised activity early.
Lastly, don’t overlook the importance of keeping integrations up-to-date. Updates often address vulnerabilities and improve security, reducing the chances of exploitation. By taking these steps, you can better protect your no-code applications from potential risks associated with third-party services.
Australian businesses can meet data privacy requirements by adhering to the Australian Privacy Principles (APPs), as set out in the Privacy Act 1988. These principles guide companies in collecting, using, and storing personal information lawfully, transparently, and securely. A key step is obtaining clear and informed consent from individuals before collecting their data, along with providing straightforward explanations about how that data will be used.
To keep up with regulatory expectations, businesses should regularly review and update their data handling practices. Using compliance tools or APIs within no-code platforms can make it easier to track and ensure adherence to privacy standards in real-time. As privacy laws in Australia are undergoing reforms, including stricter penalties and expanded rights for individuals, staying informed and proactive about these changes is essential. Updating processes to reflect these reforms will help businesses avoid potential legal issues.
To reduce the risks associated with shadow IT in no-code environments, organisations need to take deliberate and thoughtful actions. Start by establishing clear guidelines around the use of no-code tools. These policies should outline what is acceptable, while also educating employees about potential risks such as data breaches or compliance violations. Regular training sessions can go a long way in reinforcing these rules and encouraging safer practices.
It's also a good idea to leverage asset discovery and management tools. These tools help identify unauthorised applications being used within the organisation, giving IT teams the visibility they need to evaluate risks and protect sensitive information. At the same time, they enable a controlled approach to leveraging no-code platforms without stifling innovation.
By combining education, well-defined policies, and the right technology, organisations can strike a balance between fostering flexibility and maintaining robust security.
