Journal of Engineering Research and Reports

Cloud misconfigurations in financial Software-as-a-Service (SaaS) applications pose significant cybersecurity risks, leading to data breaches, financial losses, and reputational harm. This study utilizes data from the Cloud Security Alliance (CSA) Top Threats Dataset, Verizon Data Breach Investigations Report (DBIR), and the MITRE ATT&CK Framework to examine the causes and types of misconfigurations, analyze their financial impact, and evaluate the effectiveness of mitigation strategies. A Chi-Square Test for Independence, Ordinary Least Squares (OLS) Regression, and Kaplan-Meier Survival Analysis were employed to quantify these risks. Findings indicate that IAM errors (183 occurrences) and exposed APIs (156 occurrences) are the most frequent misconfigurations, with high-severity misconfigurations resulting in an average financial loss of $7.6M and regulatory fines of $2.5M. Implementation of Zero Trust Architecture, Cloud Security Posture Management (CSPM), and strict IAM controls reduced breach probability from 70% to 40%. This study examines cloud misconfigurations in financial SaaS applications using datasets from 2018 to 2024, providing a risk quantification of security threats and a financial impact assessment of breaches. Findings reveal that IAM errors and exposed APIs are the most frequent misconfigurations, causing severe financial losses. The effectiveness of Zero Trust and CSPM in reducing breach probability is analyzed. Future research should explore AI-driven security solutions for real-time misconfiguration detection and automated risk prevention in cloud environments. Recommendations include automating security controls, enforcing Zero Trust policies, integrating security training, and strengthening regulatory compliance.