Low-Code Security: What IT Teams Must Know

Low-code platforms are changing how Australian businesses build software, but they come with security risks that can't be ignored. Here's what you need to know:

• Popularity: 84% of businesses use low-code tools, and by 2025, 70% of new apps will rely on them.
• Risks: These platforms often involve "citizen developers" with limited security knowledge, leading to vulnerabilities like data leaks, weak access controls, and shadow IT.
• Common Issues: Poorly secured APIs, platform-generated code flaws, and skipped security checks due to fast development cycles.
• Compliance: Australian organisations must align with the Privacy Act 1988 and Australian Privacy Principles, especially for personal data handling.
• Solutions: Secure design, role-based access controls, encryption, and regular monitoring are essential. Hiring low-code security experts can help bridge skill gaps.

Low-code development is fast, but without proper security measures, it can expose organisations to costly breaches and compliance issues. This guide explains how IT teams can address these challenges effectively.

OWASP Low-Code No-Code Top 10

Main Security Risks in Low-Code Development

Low-code platforms bring a range of vulnerabilities that Australian IT teams need to tackle. These risks stem not only from technical flaws but also from the involvement of citizen developers. Below, we explore how data leaks, code vulnerabilities, and shadow IT contribute to these challenges.

Data Leaks and Poor Access Controls

Low-code platforms often fail to follow the principle of least privilege, granting users overly broad permissions. This opens the door to both accidental and intentional data exposure. For instance, a marketing team member might unintentionally gain access to financial records, or a contractor could retain administrative privileges long after their project ends.

Weak authentication measures can make things worse. Without robust multi-factor authentication or secure session management, bad actors can exploit integration points to access sensitive data. Data leaks may also occur through unsecured API endpoints, unencrypted storage, or insecure transmission protocols. Additionally, unexpected interactions between components can create further vulnerabilities.

Citizen developers, who typically lack formal security training, can inadvertently expose sensitive data or integrate with insecure APIs, making organisations even more susceptible to breaches.

Code Attacks and Security Flaws

The automated code generated by low-code platforms can sometimes introduce serious vulnerabilities, including those outlined in the OWASP Top 10, such as Cross-Site Scripting (XSS) and SQL injection. XSS (CWE-80) is particularly concerning, with AI tools failing to adequately defend against it in 86% of tested code samples. Similarly, Java-based AI-generated code has a failure rate of 72%.

"Speed without security is a risk you can't afford." – Veracode

When low-code apps connect to external services, they can inherit vulnerabilities like unauthorised data access, insecure APIs, or outdated components. External connectors also create additional injection points and may allow unencrypted data to pass through, compounding the risks.

Shadow IT and Missing Oversight

Beyond technical issues, low-code platforms introduce organisational challenges. The ease of use encourages shadow IT - the use of unsanctioned tools and apps. Studies show that 80% of employees use unauthorised tools, and 41% develop technology without IT oversight. This bypassing of established security protocols leads to unpredictable compliance and security risks.

The financial stakes are high. In 2023, the global average cost of a data breach hit A$4.45 million. Non-compliance with regulations like the GDPR can result in fines as steep as €20 million or 4% of annual revenue. For Australian businesses governed by the Privacy Act 1988, these risks are especially critical.

Another hidden threat comes from phantom couplings. These occur when unsanctioned apps pull data from official IT systems without IT teams knowing. Such invisible dependencies can cause major disruptions when updates or changes are made to these systems.

"As cybersecurity risks have increased over the years, developers have been trained to incorporate security into the coding process so that security is built in, not bolted on. Citizen developers, however, have no such training or awareness of security issues." – Yair Finzi, CEO & Co-Founder, Nokod Security LTD

Traditional security scanners often fail to detect shadow applications. These tools typically rely on proprietary logic and lack integration into runtime environments. As a result, many of these apps remain hidden until a breach or audit reveals them.

How to Secure Low-Code Applications

When it comes to tackling the security challenges of low-code platforms, Australian IT teams need to take a proactive approach. Security should be baked into every stage of the development process, not treated as an afterthought.

Start with Secure Design and Regular Reviews

The first step to securing low-code applications is to prioritise secure design from the outset. Threat modelling exercises, conducted early in the development lifecycle, can simulate potential attack scenarios and help identify vulnerabilities before a single line of code is written.

"Security by Design Principles flip this script. They invite safety considerations to the kickoff meeting and ensure that every user story, architecture diagram, and line of code stands on a stable, defensive foundation."

• Nick Kirtley, Threat-Modeling.com

Clear security requirements should be defined during the project planning phase. This includes identifying which data needs protection, determining who should have access, and outlining how the data will be managed throughout the application's lifecycle. Shifting from monolithic designs to microservices or component-based architectures can also make updates easier and reduce dependency-related risks.

Regular code and design reviews should be embedded into the development process to ensure security remains a priority. These checkpoints can help identify issues early, particularly within shared code components. Any vulnerabilities found should be patched promptly.

Adopting Privacy by Design principles is another smart move. By focusing on data minimisation - collecting only the information that’s absolutely necessary - and designing for graceful failure, you can reduce risks. Features like automatic failover, redundant data storage, and segmented networks can help limit the impact of any disruptions.

Once the design is secure, the focus shifts to implementing strong access controls and encryption.

Set Up Strong Access Controls and Encryption

Role-Based Access Control (RBAC) is a must for low-code applications. Assign permissions based on specific roles, ensuring users only access what they need. This applies to both application features and data.

Multi-factor authentication (MFA) should also be mandatory for all users. Adding this extra layer of verification significantly reduces the risk of unauthorised access.

"User access controls play a crucial role in protecting sensitive data. Implementing strong authentication mechanisms, such as multi-factor authentication, ensures that only authorised users can access critical functionality and data."

• Andrew Silberman, Zenity

Encryption is another cornerstone of security. Protect data at rest and in transit using industry-standard protocols like TLS 1.3 and AES-GCM. Strong cryptographic key management is essential, covering the entire lifecycle of your keys.

For organisations that want tighter control over data, platforms offering self-hosting or hybrid security agents are worth considering. These options allow you to keep data within your network or Virtual Private Cloud (VPC) while still benefiting from cloud-hosted services.

Sensitive information like API keys and database credentials should never be hardcoded. Instead, use environment-specific configurations and dedicated secrets management tools to keep them secure.

Monitor and Handle Security Issues

Even with strong design and access measures, continuous monitoring is critical for maintaining security. Real-time monitoring systems provide visibility into your application's security status, flagging suspicious activities, unauthorised access attempts, and unusual user behaviour through logs, alerts, and anomaly detection.

The average time to detect and contain a breach is a staggering 274 days, with cloud environments taking an average of 29 days longer than on-premises systems. This underscores the importance of proactive monitoring.

Integrity controls are particularly effective for reducing detection times. These controls continuously monitor critical systems for unauthorised changes, comparing files, settings, configurations, and software against a "known good" baseline.

"Integrity controls continuously monitor critical systems for unauthorised modifications. By validating the integrity of files, settings, configurations, and software, these controls can detect real-time deviations that other tools missed."

• Mark Allers, VP of Business Development at Cimcor

Research shows that practices like configuration baselining, change control, and release management can automatically identify up to 91% of security incidents. However, these practices are often overlooked or poorly implemented.

To stay ahead of vulnerabilities, integrate automated security testing into your workflow. Tools like Static, Dynamic, and Interactive Application Security Testing can help identify issues early and consistently. Additionally, having a well-defined incident response plan ensures swift action against threats based on risk levels.

Regular security audits, penetration testing, and vulnerability scans are also essential. Use frameworks like OWASP to guide these efforts, and take full advantage of platform-provided audit logs to track changes and user activity. This level of oversight is key for both compliance and security.

Compliance Rules for Australian Organisations

Australian IT teams are navigating an increasingly strict regulatory environment, with a staggering 388% rise in data breaches affecting 1.8 million Australians in early 2024. This makes compliance not just important, but absolutely critical. A major part of this challenge is understanding and adhering to the Australian Privacy Principles (APPs).

Australian Privacy Principles (APPs) Explained

The Australian Privacy Principles (APPs), established under the Privacy Act 1988, are the cornerstone of privacy protection in Australia. These 13 principles dictate how organisations should collect, use, disclose, and store personal data throughout its lifecycle. They apply to Australian Government agencies, private health service providers, and private sector organisations with an annual turnover of $3 million or more. Even smaller entities must comply if they trade in personal information or operate residential tenancy databases.

For low-code platforms, compliance with the APPs is particularly complex. Personal information here extends beyond obvious user data to include behavioural data, which also needs to be handled in line with these principles.

Some key APPs relevant to low-code platforms include:

Low-code platforms face unique challenges due to their automated workflows, shared infrastructures, and intricate data processes. Adopting Privacy by Design - focusing on data minimisation and strong controls from the start - can help manage these risks. The Privacy and Other Legislation Amendment Act 2024, passed late last year, introduces key changes such as a statutory tort for serious privacy breaches and criminal penalties for doxing, with most provisions taking effect in 2025.

Meeting Data Residency and Security Rules

Data residency and sovereignty requirements add another layer of complexity for Australian organisations. Residency rules require that data be stored within Australia, while sovereignty ensures that data complies with Australian laws, no matter where it is stored.

"Data sovereignty isn't a one-time policy - it's a practice that spans legal, IT, and procurement. In the era of cloud-native architectures and AI models trained on enterprise data, organisations that don't bake sovereignty into design risk legal noncompliance and operational disruption."
– Stonefly

Relevant legislation includes the Privacy Act 1988, the Security of Critical Infrastructure Act 2018 (SOCI Act), and the Australian Signals Directorate's Information Security Manual (ISM), which offers a framework for securing IT systems and data.

Government agencies have additional hosting requirements under the Whole-of-Government Hosting Strategy. Over 42% of Federal Government agencies now rely on Australian-owned, Certified Strategic providers to manage sensitive information. Following these rules not only ensures compliance but also strengthens the security of low-code platforms.

Practical steps for meeting these requirements include:

• Mapping data flows and storage locations.
• Classifying data by sensitivity and regulatory obligations.
• Choosing cloud providers that offer region-specific hosting with Australian ownership.
• Implementing technical controls like geo-fencing and region-locked storage to prevent unauthorised data transfers.

Running Regular Compliance Checks

Staying compliant isn’t a one-time task - it requires constant monitoring and regular audits. Just like continuous security monitoring is essential, having a Compliance Management System (CMS) in place provides the framework needed to manage legal and regulatory requirements effectively.

"A CMS is a structured framework or software designed to help businesses manage their legal and regulatory obligations, industry standards, and internal policies. It provides tools to identify, assess, monitor, and report on compliance risks, ensuring your organisation adheres to all necessary rules and laws. Think of it as your centralised hub for all things compliance."
– Sentrient

A strong CMS helps centralise compliance efforts, automates alerts for regulatory changes, and offers secure tools for reporting and document management. IT teams should ensure their CMS supports Australian-specific regulations, such as the Privacy Act and Work Health and Safety (WHS) standards.

Organisations must also be prepared for Australian Competition and Consumer Commission (ACCC) compliance checks, which may require providing specific documents or information within 21 days. Using a CMS can make it easier to generate audit-ready reports and maintain detailed records like data flow diagrams and audit logs, ensuring you're always ready for regulatory reviews.

Hiring Experts for Low-Code Security

With Australian cybersecurity regulations becoming stricter and new obligations set to take effect in 2025, IT teams are under increasing pressure to secure their low-code applications. As discussed earlier, low-code environments come with unique vulnerabilities, and addressing these often requires specialised expertise. Meeting compliance standards while ensuring strong security can be too complex for internal teams alone, making external experts a practical solution. This growing need highlights the value of tapping into freelance talent to fill internal skill gaps.

Why Bring in Low-Code Security Experts?

The use of freelancers is on the rise. Currently, 78% of companies already work with remote experts, and 59% plan to expand their freelance workforce. The financial advantages are clear - freelancers can cut overhead costs by 30–50% compared to hiring full-time employees, as businesses save on benefits, office space, and long-term salary commitments.

Low-code security experts need a specific skill set. This includes hands-on experience with low-code platforms, strong database and programming skills to enhance platform functionality and identify vulnerabilities, analytical thinking, attention to detail, and the ability to collaborate effectively. When choosing candidates, focus on those who have proven experience in building secure and efficient low-code applications.

How Talentblocks Can Assist

Navigating the complexities of low-code security often requires a specialised approach, and that's where platforms like Talentblocks come into play. Talentblocks connects Australian organisations with professionals skilled in solution architecture, data engineering, and business analysis - key areas for secure low-code development.

Through Talentblocks, hiring freelancers becomes not only flexible but also cost-effective. You can engage experts on an hourly basis, with typical rates ranging from A$44 to A$110 for data specialists. For larger projects, costs can range from A$5,000 to A$50,000, or you can opt for monthly retainers starting at A$3,000 and going up to A$10,000. A trial period or smaller project is an excellent way to evaluate a freelancer's capabilities before committing to more significant tasks.

The platform’s transparent pricing and dynamic skill rating system make it easier to find professionals with expertise in areas like role-based access controls, data masking, encryption, network policies, single sign-on integration, and compliance frameworks tailored to Australian needs. For organisations navigating local regulations, Talentblocks can connect you with experts familiar with the Australian Privacy Principles and data residency obligations. These professionals can also ensure vendor onboarding processes meet requirements for handling personal information.

Managing remote security experts is simplified with clear communication protocols and collaboration tools, enabling seamless coordination across time zones. With 90% of business leaders now recognising digital talent platforms as essential for building a blended workforce, Talentblocks offers a flexible and low-risk way to access the specialised skills you need. By integrating these experts into your team, you can strengthen your organisation's security measures while staying compliant with Australian regulations.

Conclusion

Low-code platforms are reshaping how Australian organisations operate, with the market expected to hit $50 billion by 2028. But this rapid expansion isn't without its challenges. Security remains a pressing concern, especially when Australian organisations manage to block only 58% of cyberattacks, and small to medium businesses face average losses of $46,000 per incident. These numbers highlight the urgency of addressing vulnerabilities.

As security expert Andrew Silberman says, "Security is not a one-time effort but an ongoing commitment to safeguarding the integrity and confidentiality of the application and its users". This underscores the need to prioritise security from the outset of low-code development, rather than treating it as an afterthought. Steps like embedding security into design and maintaining vigilant monitoring are crucial.

To tackle the risks, Australian IT teams should focus on key measures. These include enforcing robust access controls with role-based permissions and multi-factor authentication, securing data through encryption and careful platform selection, and implementing centralised governance to curb shadow IT. The OWASP Low-Code/No-Code Top 10 offers practical guidance for addressing common vulnerabilities, such as account impersonation and inadequate security logging. Additionally, adhering to regulations like the Privacy Act 1988 and the Notifiable Data Breaches scheme is essential for maintaining customer trust and aligning with the 2023–2030 Australian Cyber Security Strategy.

With 75% of Australian organisations acknowledging they could enhance their cyber defences with more resources, bringing in specialised security expertise is becoming increasingly important. Whether through platforms like Talentblocks or direct recruitment, having the right professionals on board can make all the difference. These experts complement the secure design and governance practices necessary for a safe low-code environment.

FAQs

What security practices should Australian IT teams follow to safeguard low-code applications from data breaches and unauthorised access?

To keep low-code applications secure, Australian IT teams should prioritise multi-factor authentication (MFA) and ensure data encryption for data both at rest and in transit. These steps are critical in reducing the chances of data breaches and unauthorised access.

Following a recognised cybersecurity framework, like the Information Security Manual (ISM), is another key move. It helps manage risks while aligning with national security requirements. Additionally, conducting regular security audits, providing ongoing staff training on data privacy, and adhering to the Australian Privacy Act 1988 are all vital for maintaining robust data protection and meeting regulatory obligations.

Focusing on these strategies allows organisations to protect sensitive data effectively while keeping their low-code applications secure.

How can organisations manage the risks of shadow IT in low-code platforms effectively?

To address shadow IT risks in low-code platforms, organisations should focus on a few key strategies. Start with implementing strict access controls to ensure only authorised users can access sensitive systems. Integrate these platforms with your existing security frameworks to create a cohesive defence system. Regularly monitoring activity through audit logs is another critical step - it helps maintain visibility and safeguard important data.

Equally vital is educating employees about security policies. Clear communication and training can prevent unintentional risks. Encouraging collaboration between IT teams and business units can also bridge gaps. When goals are aligned, shadow IT can transform from a challenge into a chance to drive innovation, all while staying compliant and reducing potential risks.

How can Australian businesses ensure compliance with the Privacy Act 1988 when using low-code platforms?

To meet the requirements of the Privacy Act 1988, Australian businesses must adhere to the Australian Privacy Principles (APPs). These principles set the standards for how personal information should be collected, used, and stored. Key responsibilities include implementing robust data protection measures, maintaining clear and accessible privacy policies, and performing regular privacy impact assessments to identify and address potential risks.

Businesses with an annual turnover exceeding $3 million AUD are legally obligated to comply with the Act. When incorporating low-code platforms into operations, it’s crucial to ensure they align with strict privacy and confidentiality standards. This helps protect personal data from unauthorised access or misuse. By focusing on compliance, organisations not only minimise risks but also strengthen customer trust.