PUBlished on
March 11, 2024
updated on
November 5, 2025

SaaS Under Siege: Nation-State Actors Target Identities

ANDREW LATHAM

Just as bank robbers target banks, nation-state actors now focus on identities within SaaS platforms because that’s where the valuable data is. It’s also easier than compromising traditional endpoints.

In February 2024, the Five Eyes (FVEY) intelligence alliance (Australia, Canada, New Zealand, the United Kingdom, and the United States) issued a warning about a cyber espionage group associated with the Russian intelligence service. This group has shifted from using traditional endpoint-focused malware to targeting identities within SaaS platforms as their primary method to gain initial access.

The full advisory can be found here.

A closer look

Nation-state actors have realized what we at Obsidian Security and, unfortunately, eCrime adversaries (such as Scattered Spider) have known for quite some time now:

  1. Organizations, both private and public, and governmental agencies are entrusting their data to SaaS and public cloud services. Not planning or transitioning, but already there.
  2. Targeted attacks on end users are an easy way to gain initial access, bypassing MFA, using well-established techniques such as Adversary in the Middle (AiTM) attacks, SIM Swapping and MFA Push Fatigue.
  3. Owning a user’s credentials/session allows an adversary to easily move laterally by way of the “federated” trust relationship that other applications have established with an organization’s Identity Provider (IdP). This includes the ability to jump from SaaS to on-premises through VPN services; something Obsidian has seen actively being used by adversaries today.

As a result, these nation-state actors are finding it easier to gain initial access to these platforms, for two key reasons:

The “shared security model” is not widely understood

Many organizations use 3rd-party SaaS platforms to transfer risk to the vendor. They assume the vendor secures their information, acting as custodian within the application. However, this assumption is incorrect. The “shared security model” mandates that subscribers set up their tenancy securely. Subscribers are responsible for ensuring secure access to their information. This misunderstanding often leads organizations to underestimate required security resources for monitoring and securing their SaaS tenancy.

SaaS security is unique

Its browser-based access and async session management require storing session tokens in the user’s browser and sending them with each request. This exposes active session tokens to theft by malware and AiTM attacks.

At Obsidian, we focus intensely on these SaaS attacks. We detect and respond to them before they gain popularity among eCrime actors and now nation-state operators. Obsidian handles dozens of active global Incident Response cases weekly involving these tactics.

Alarmingly, strategies like AiTM and MFA Push Fatigue succeed in over 51% of SaaS breaches. The remaining 49% involve SIM Swapping, Integration Abuse, and Endpoint Compromise.

Data from Obsidian platform & incident response engagements from August 2022 to August 2023.

Obsidian’s approach

Obsidian provides comprehensive threat detection and prevention capabilities. Traditional SSPM vendors focus mainly on Posture Management, covering just 15% of breaches. Obsidian addresses the remaining 85% from residual risk in SaaS security incidents.

As highlighted by the recent Five Eyes advisory, Obsidian’s SaaS threat modeling swiftly identifies session theft and triggers response workflows or playbooks, or can proactively suspend compromised accounts. Conventional tools like Endpoint Detection and Response (EDR), Cloud Access Security Broker (CASB), or Secure Access Service Edge (SASE) lack the capability to offer such comprehensive protection.

Learn more about why nation-state actors target identities, SaaS attacks, gain deeper insights, and remediation advice on our blog. Or get in touch with us to assess your environment for risks of SaaS threats.

To explore more  on these types of SaaS-specific attacks, and gain deeper insights and remediation advice visit on our website.

Frequently Asked Questions (FAQs)

Why are nation-state actors increasingly targeting identities within SaaS platforms?

Nation-state actors have shifted their focus to SaaS identities because organizations now store valuable data in these cloud-based services, and gaining access via identities is often easier than compromising traditional endpoints. Attackers leverage techniques like Adversary-in-the-Middle (AiTM) attacks, SIM swapping, and MFA push fatigue to bypass security controls and obtain credentials or session tokens. This enables them to move laterally across integrated platforms and reach further into an organization’s environment.

How do adversaries bypass Multi-Factor Authentication (MFA) in SaaS attacks?

Attackers often use sophisticated methods such as Adversary-in-the-Middle (AiTM) attacks, SIM Swapping, and pushing excessive MFA prompts (MFA Push Fatigue) to trick users into granting access or to intercept authentication tokens. These techniques allow them to access accounts even when MFA is enabled, making traditional security measures less effective in the SaaS environment.

What is the “shared security model” in SaaS, and why is it often misunderstood?

The shared security model requires that while SaaS vendors secure their applications, subscribers are responsible for configuring and managing security settings, such as access controls and identity protections, within their tenancy. Many organizations mistakenly assume the vendor handles all security aspects, leading to gaps in monitoring and securing user accounts and data, which adversaries can exploit.

What are the most common attack techniques used against SaaS platforms?

According to Obsidian’s incident response data, over 51% of SaaS breaches result from AiTM and MFA Push Fatigue attacks. The rest are primarily due to SIM Swapping, integration abuse, and endpoint compromises. These methods focus on stealing session tokens or credentials to gain unauthorized access to SaaS environments.

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