The Silent Threat in SaaS: Why Your Code’s Supply Chain Could Be Your Biggest Security Risk

Clone your ideal customer with AI

Interact, brainstorm and get feedback from your buyer twin.

Build Your twin

Most SaaS founders think about security in terms of firewalls, user authentication, and infrastructure protection. But the fastest-growing attack vector isn’t at your perimeter — it’s inside your code.

The modern SaaS product is built on open-source dependencies. Every package you import has its own dependencies, and each of those has more — creating a web of thousands of third-party contributors you’ve effectively given indirect access to your application.

Aaron Bray, CEO of Phylum, calls this “the software supply chain problem.” And it’s not hypothetical — it’s a risk affecting every company that ships code.

Lesson 1: The Hidden Depth of Your Dependencies

A single framework like React doesn’t just add a few files to your repo.

  • React + all transitive dependencies can pull in 7,000+ separate packages.

  • You’ll never get the exact same set twice — it changes based on other packages you install.

That means you’re not just trusting the React team — you’re trusting thousands of mostly anonymous maintainers scattered across the internet.

Consulting takeaway: If you don’t know exactly what’s in your code, you can’t secure it.

Lesson 2: Attacks Are Already Happening at Scale

Bray points to recent high-profile incidents:

  • EventStream compromise: A maintainer’s account was hacked, injecting code that stole cryptocurrency.

  • Typo-squatting: Attackers upload malicious packages with names one letter off from popular ones — netting thousands of accidental installs.

  • Dependency confusion: Attackers publish packages with the same name as private ones but with a higher version number, tricking automated systems into pulling the malicious version.

For SaaS founders: You may never see the attack coming — but your customers will see the impact.

Lesson 3: Traditional Security Tools Aren’t Enough

Most DevSecOps tools focus on:

  • Known vulnerabilities (CVEs)

  • Open-source license compliance

Phylum goes deeper — analyzing:

  • Author behavior: Has a maintainer abandoned the package? Have they been hacked?

  • Code changes over time: Looking for suspicious deviations from normal commit patterns.

  • Malicious heuristics: ML models to flag packages that look like known malicious code.

Consulting insight: Vulnerability scanning is table stakes — modern security demands behavioral analysis across your supply chain.

Lesson 4: Machine Learning Without the Buzzword Trap

One reason “AI-powered security” gets a bad rap? Too many tools just sprinkle the term on marketing copy.

Phylum’s approach:

  • Use unsupervised learning to detect anomalies — spotting outliers without needing to pre-label every “good” and “bad” example.

  • Combine ML with hard-coded heuristics from real-world attacks.

For SaaS teams: The future of secure development is hybrid — part algorithm, part domain expertise.

Lesson 5: Security Is Now a Go-To-Market Conversation

Phylum isn’t just selling to CISOs — they’re designing for the people who implement security:

  • Developers

  • Security engineers

  • DevOps/SRE teams

By building automation-friendly CLI tools and executive-facing dashboards, they’re able to integrate security directly into the software delivery process — not bolt it on after.

Consulting takeaway: If your SaaS sells into technical teams, product adoption depends on fitting into their workflow, not forcing new ones.

Lesson 6: The Future of Supply Chain Security Is Expanding

Bray predicts the next wave of risk and protection will move beyond code to:

  • Containers (which have similar dependency chains)

  • Internal proprietary code analysis

  • Full-spectrum supply chain tracing from internal commits to public dependencies

For SaaS founders: Expect your customers to start asking for proof of supply chain integrity in security questionnaires — and be ready with answers.

Why This Matters for SaaS & Tech Growth

The SaaS market is maturing — and security posture is becoming a competitive differentiator, not just a compliance checkbox.

Companies that can prove they understand and manage their software supply chain risk will:

  • Close enterprise deals faster.

  • Win customer trust earlier.

  • Avoid the reputational and financial damage of preventable breaches.

Ignoring this? It’s not a question of if you’ll have a supply chain incident — it’s when, and how bad.