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Why SOC 2 Compliance Matters for SSO Providers

Understanding the importance of SOC 2 certification when choosing an SSO provider for your enterprise.

M
Marcus Johnson
Customer Success
December 28, 2023
5 min read

Introduction

When evaluating SSO providers, you'll often see "SOC 2 Certified" or "SOC 2 Type II Compliant" badges. But what does this actually mean, and why should you care? This article demystifies SOC 2 compliance and explains why it's crucial when selecting an authentication provider.

What is SOC 2?

SOC 2 (Service Organization Control 2) is an auditing framework developed by the American Institute of Certified Public Accountants (AICPA). It evaluates how well a service organization manages data to protect the privacy and interests of its clients.

The Trust Service Criteria

SOC 2 audits evaluate organizations against five "Trust Service Criteria":

  • Security (Required)
  • - Protection against unauthorized access

    - System monitoring and incident response

    - Logical and physical access controls

  • Availability
  • - System uptime and performance

    - Disaster recovery capabilities

    - Capacity planning

  • Processing Integrity
  • - System processing is complete, accurate, and timely

    - Data validation and error handling

  • Confidentiality
  • - Protection of confidential information

    - Data encryption and access restrictions

  • Privacy
  • - Collection, use, and disposal of personal information

    - Consent management

    Type I vs Type II

    • SOC 2 Type I: Point-in-time assessment—controls are designed appropriately
    • SOC 2 Type II: Period assessment (typically 12 months)—controls are operating effectively

    Type II is significantly more rigorous and valuable because it proves consistent compliance over time.

    Why SOC 2 Matters for SSO

    Your SSO provider is the gateway to your applications. They handle:

    • User credentials and authentication sessions
    • Access tokens and security assertions
    • User identity data
    • Integration with your identity provider

    This makes them a prime target for attackers and a critical link in your security chain.

    Risk Factors Without SOC 2

    Choosing a non-SOC 2 compliant SSO provider introduces several risks:

    Security Risks:

    • No third-party validation of security controls
    • Unknown data handling practices
    • Potentially inadequate incident response
    • Weaker access controls to customer data

    Business Risks:

    • May fail your vendor security assessments
    • Could block enterprise deals
    • Increases your own compliance burden
    • Creates liability in case of breach

    Operational Risks:

    • Unknown uptime guarantees
    • Unclear disaster recovery capabilities
    • Potential service disruptions

    What to Look for in a SOC 2 Report

    When evaluating an SSO provider's SOC 2 compliance, ask for:

    1. The Full Report

    Not just the marketing badge—request the actual audit report. Reputable providers will share this under NDA.

    2. Type II Certification

    Type I is a starting point, but Type II demonstrates ongoing compliance. Ask when they achieved Type II and the period covered.

    3. Covered Criteria

    Which of the five Trust Service Criteria were included? For SSO providers, you want at least:

    • Security (required)
    • Availability
    • Confidentiality

    4. Exception Notes

    Check if there were any exceptions or findings noted by the auditor. A few minor exceptions are common, but significant findings are red flags.

    5. Report Freshness

    SOC 2 reports should be recent. A report from 3+ years ago may not reflect current practices.

    Questions to Ask Your SSO Provider

    Before signing with an SSO provider, ask these SOC 2-related questions:

  • Do you have SOC 2 Type II certification?
  • Can we receive a copy of your most recent SOC 2 report?
  • Which Trust Service Criteria are covered?
  • When was your last audit completed?
  • Were there any exceptions noted?
  • What's your audit cycle (annual, continuous)?
  • Do you undergo any other security certifications (ISO 27001, etc.)?
  • Beyond SOC 2: Additional Compliance Considerations

    While SOC 2 is important, it's not the only compliance consideration:

    Industry-Specific Standards

    • PCI DSS - If handling payment data
    • HIPAA - If processing healthcare information
    • FedRAMP - For US government contracts

    International Standards

    • ISO 27001 - International security management standard
    • GDPR - European data protection regulation
    • Privacy Shield/SCCs - Data transfer mechanisms

    Regional Requirements

    • CCPA - California Consumer Privacy Act
    • LGPD - Brazilian data protection law
    • PIPEDA - Canadian privacy law

    SecurePie's Compliance Commitment

    At SecurePie, we take compliance seriously:

    • SOC 2 Type II Certified - Audited annually
    • All Five Trust Criteria - Complete coverage
    • Transparent Reports - Available to customers under NDA
    • Continuous Compliance - Automated monitoring and evidence collection
    • Security-First Culture - Compliance is baked into our processes

    We believe every customer deserves enterprise-grade security, and that starts with rigorous compliance standards.

    Conclusion

    SOC 2 compliance isn't just a checkbox—it's a signal that an SSO provider takes security seriously. When your SSO provider handles your authentication, they become a critical part of your security infrastructure. Don't settle for vendors who can't demonstrate third-party validated security practices.

    Ask the hard questions, review the reports, and choose a provider that meets your compliance requirements. Your security team—and your auditors—will thank you.

    Questions about our security practices? Contact our team or visit our Security page for more information.

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