Product security is becoming more relevant as cyberattacks become more common. In 2024 alone, attacks on Internet of Things (IoT) devices jumped 107% in the first five months, according to SonicWall’s mid-year threat report.
Entrepreneurs often overlook product security when validating product ideas, prioritizing ease of use over identifying security risks. But if you can’t prevent hackers from stealing data or creating counterfeit products, your business can lose customers and money.
Ahead, you’ll learn what product security is, how it differs from application security, why it matters, and steps to take to build a more secure business that customers can trust.
Table of contents
What is product security?
Product security is a company-wide approach to securely building, shipping, and supporting products and services.
Businesses integrate these practices across all departments—from research and development to procurement and customer service—ensuring products resist tampering, cyberattacks, theft, and counterfeiting at every stage in the product life cycle.
This matters because the average cost of a data breach rose to $4.8 million in 2024, up 10% from the previous year, according to IBM.
By having a shared playbook for identifying and closing security gaps, product security enables different teams to find vulnerabilities early and protect the business from costly disruptions.
Product security vs. application security: What’s the difference?
Product security and application security (AppSec) share the same goal: to keep attackers out. But, they tackle two different risk areas.
Product security fortifies the device and its ecosystem, while AppSec hardens the code running on it.
| Product security | Application security | |
|---|---|---|
| Scope | Entire device ecosystem and services | Application code and data surface |
| Objective | Resist tampering, verify firmware, guard data | Eliminate code flaws, protect user data |
| Approach | Hardware threat modeling and OTA updates | CI/CD scans and rapid patches |
| Responsibility | PSIRT, hardware, supply-chain teams | DevSecOps and software engineers |
| Challenges | Long life cycles, costly physical recalls | Fast releases and vulnerable dependencies |
- Scope
-
- Product security covers your entire network of connected devices. It guards your hardware, cloud back end, mobile apps, and any supporting services.
- AppSec concentrates only on the software layer, like the code, data flows, ecommerce APIs, and user interactions. It does not cover hardware or supply chain issues.
- Objective
-
- Product security keeps a device tamper-resistant, its firmware signed and verified, and any data it stores or transmits intact. For example, a smart thermostat mounted in a customer’s living room must resist physical meddling and protect temperature schedules and personal data for many years as it stays on the wall.
- AppSec ensures the application is free of flaws that leak sensitive data. BlackDuck’s 2025 Open Source Security and Risk Analysis Report found vulnerabilities in 86% of audited codebases, highlighting the need for continuous monitoring.
- Approach
-
- Product security starts with threat modeling and secure-element protections like signed firmware and software bill of materials (SBOM) checks. Various teams conduct stress tests, such as lab-based penetration testing and over-the-air (OTA) update simulations, to uncover weaknesses. If a vulnerability is discovered, the Product Security Incident Response Team (PSIRT) manages the response and coordinates patching.
- AppSec teams use STRIDE-style threat models and secure coding rules throughout CI/CD (continuous integration and continuous deployment) processes. Static and dynamic application security testing (SAST/DAST) scans and dependency checks are applied to every build. Runtime protections and hot-fixes help block exploits and enable patching within hours.
- Responsibility
-
- Product security involves everyone from hardware engineers, supply chain managers, compliance, and a dedicated PSIRT.
- AppSec lives under software engineering and development, security, and operations (DevSecOps).
- Challenges
-
- Product security teams face challenges from long device lifecycles, complex supply chains, and consumers who leave devices exposed. Attackers can physically damage devices and there is a high cost for recalls. A 2017 Allianz Global Corporate & Specialty study found that the average cost of a product recall is $12 million.
- AppSec deals with fast release cadences (between one and two weeks) and open-source dependencies. Undocumented or shadow APIs, microservices, and legacy systems also widen the attack surface and complicate end-to-end visibility.
Why is product security important?
- It reduces risk
- It protects customer data
- It safeguards your business reputation
- It improves efficiency
- It helps you avoid financial and legal repercussions
- It helps ensure product reliability and longevity
- It facilitates innovation
Here’s why investing in product security is vital for your business:
It reduces risk
Without product security, devices are vulnerable to tampering, data theft and counterfeit attacks. These risks threaten more than customers; they can disrupt your business, damage your reputation, and create costly compliance failures.
Proactive product security identifies vulnerabilities early and reduces the impact of potential attacks throughout a product’s lifecycle.
It protects customer data
Customers trust you to keep their information safe. A security breach can compromise customer data, leading to data theft, privacy violations, and a loss of customer trust that’s hard to recover.
Enforcing disciplined ecommerce data management shows your commitment to customer privacy and helps turn users into loyal brand ambassadors.
It safeguards your business reputation
News of a security breach spreads fast—especially when it involves hacked devices or exposed customer data. Compromised operational security can lead to customer churn, stock price drops, and a damaged brand reputation for years.
Conversely, a reputation for creating secure products can set your brand apart, attracting security-conscious buyers and opening doors to high-value business-to-business (B2B) contracts.
It improves efficiency
When development, security, and operations teams share a unified DevSecOps platform, they no longer have to juggle separate tools and chase endless approvals. Work flows from idea to release.
According to Forrester’s 2024 Total Economic Impact study on GitLab, this single-lane approach can cut security-task time by five times and boost developer output by four times. By integrating product security early in the development cycle, teams can protect their product while streamlining workflow.
It helps you avoid financial and legal repercussions
Regulators are becoming less patient. Ireland’s EDPB fined Meta €1.2 billion in 2023 for privacy failures, and GDPR enforcement is only intensifying.
Fixing vulnerabilities during development is far cheaper than retrofitting controls (and paying nine-figure penalties) after you launch.
💡 Tip: Stay ahead of evolving ecommerce laws and create strong security policies with Shopify’s free policy generator.
It helps ensure product reliability and longevity
Unaddressed security vulnerabilities can lead to malfunctions, downtimes, or malicious actors hijacking your products. This is particularly critical in sectors like health care, automotive, or industrial control, where a security lapse can endanger lives.
Robust product security ensures your devices operate as intended, improving product reliability, longevity, and your brand’s reputation for quality.
It facilitates innovation
Innovation thrives on confidence, and investing in product security can help provide it.
PwC’s 2024 Global Digital Trust Insights survey found that the top 5% of “digital-trust stewards,” or brands prioritizing cybersecurity, are six times more likely to launch transformative tech initiatives.
Strong security gives leaders confidence to explore new markets and business opportunities without fear of the next breach.
Product security framework
Improving product security requires a holistic approach that addresses hardware, software, and process vulnerabilities. Use this framework to identify common security challenges and fortify your products:
- Threat modeling
- Secure design principles
- Secure development lifecycle
- Vulnerability management
- Supply chain security
- Secure deployment
- Security incident report
- Continuous monitoring
- Training and awareness
Threat modeling
Traditional security testing can come too late, making flaws expensive to fix. Additionally, getting non-security stakeholders like designers and product managers to get involved can be difficult.
Start threat modeling early by diagramming your product’s data flows and trust boundaries. Loop in the full product team and use frameworks like STRIDE (spoofing, tampering, repudiation, information disclosure, denial of service, elevation of privilege) to brainstorm potential attacks.
Make it collaborative. Use visual tools and try chaos engineering tactics like “attack your own product” sessions to build awareness.
Secure design principles
Product security starts at the whiteboard. The National Institute of Standards and Technology’s Secure Software Development Framework is a good place to start. It’s designed to cut the number of shipped defects, limit the impact of ones that slip through, and create a common security language with customers and regulators.
For example, the SSDF suggests the following actions:
| SSDF pillar | Action |
|---|---|
| PO — Prepare the org |
|
| PS — Protect the software |
|
| PW — Produce well-secured software |
|
| RV — Respond to vulnerabilities |
|
Adopting these controls during design slashes rework costs in the future. According to IBM’s System Science Institute, it can cost four to five times as much to fix a bug after launch, and up to 100 times more during the maintenance phase. Align your design principles with your broader product development strategy to keep scope realistic.
Secure development lifecycle (SDL)
Development teams sometimes view security measures as obstacles that slow releases. But this can lead to critical vulnerabilities later.
Use frameworks like Microsoft’s SDL or OWASP SAMM to build security into every development phase. Include practices like code reviews for security flaws, using pre-approved secure libraries, and static code analysis. Make the value clear: Building security in is faster than fixing data breaches post-launch.
This general principle of developing products with security in mind applies to non-technological products, too. Gloria Hwang started Thousand, a bike helmet company, with the goal of saving 1,000 lives through protective wear. For many, including herself, the aesthetics of current helmets on the market dissuade people from wearing them. She set out to change this.
“For convenience, we have our PopLock, an anti-theft feature that allows you to lock up your helmet and leave it,” Gloria says on an episode of the Shopify Masters podcast. “We’ve got MIPS technology in some of our products. For us, it’s about designing around tenets of safety, style, and convenience.”
Vulnerability management
The sheer volume of components in modern products—from firmware to application programming interfaces (APIs)—makes it difficult to identify all potential vulnerabilities through manual testing. It also means quality assurance practices are a must.
Implement regular vulnerability scanning and penetration testing using automated tools that scan your entire product stack, like Rapid7 Nexpose, ZAP, and Nessus Vulnerability Scanner.
Prioritize findings based on risk, and establish a vulnerability management process that tracks, assigns, and verifies fixes. This proactive approach helps you stay ahead of attackers probing for weaknesses.
Supply chain security
Ivanti’s 2025 State of Cybersecurity report found that just one in three organizations feels prepared to protect themselves against software supply chain threats. Verizon’s 2024 DBIR also shows 15% of breaches already involve a third-party or software supply chains, up 68% year over year.
Attackers can hijack a single trusted vendor and cascade into thousands of downstream environments. To mitigate this risk:
- Score suppliers on secure-development practices like multifactor code signing, reproducible builds, and vulnerability disclosure policies.
- Monitor vendor activity using attack surface management or threat-intel feeds. Watch for signs of compromise across IPs, Git repos, and cloud buckets.
- Map controls to trusted frameworks like NIST C-SCRM, ISO 27036, and (for EU ops) NIS2 Article 18 supply-chain requirements.
- Review your insurance coverage as many cyber policies won’t cover “acts of war” and supply-chain attacks.
Secure deployment
Secure deployment and configurations are critical for preventing data breaches and maintaining compliance. It covers everything from CI/CD pipeline hardening, infrastructure-as-code (IaC) scanning, and secrets management. As of 2024, misconfiguration errors in production environments caused roughly 10% of all verified breaches.
Some fundamentals of secure deployment are
- Secure Development Lifecycle (SDLC). Integrates security practices throughout all development phases.
- DevSecOps principles. Promote “shift-left” security by embedding security early in development.
- Infrastructure as Code (IaC). Enables consistent, version-controlled infrastructure that’s easier to audit, test, and secure.
Tools like Ansible and Puppet automate configuration management. Standards like CIS Benchmarks and NIST guidelines establish security baselines for secure deployment.
Security incident response
No security product is impenetrable. For product manufacturers—particularly those who make industrial equipment—providing quick patches without disrupting operations can be a major hurdle.
To avoid being caught flat-footed, develop a robust security incident response plan covering detection, containment, eradication, and recovery.
Design products with secure, remote update capabilities to speed up patching. Also, consider running regular drills to test and improve your response times. Prepare clear communication protocols to notify customers promptly and help your company meet ethical obligations and regulatory mandates.
Continuous monitoring
Continuous monitoring is an automated approach where organizations constantly track their IT systems and networks to detect security threats.
Gartner predicts that by 2026, organizations that prioritize their investments based on a continuous exposure management program will be three times less likely to suffer a breach.
There are three main types of continuous monitoring:
- Application monitoring. Tracks metrics like transactions per second, error rates, system uptime, and availability to identify software bugs and performance bottlenecks.
- Infrastructure monitoring. Covers storage, network, and physical/virtual devices, helping teams troubleshoot issues, optimize usage, reduce costs, and plan capacity.
- Network monitoring. Tracks firewalls, switches, routers, and other devices to analyze bandwidth utilization, packet losses, delays, and potential intrusions.
Overall, the goal is to reduce cybersecurity risks by establishing performance benchmarks and identifying anomalies.
Training and awareness
People are still the weakest link in product security. Verizon’s 2024 Data Breach Investigations Report found that the human element drove 68% of breaches, roughly the same as its 2023 findings.
Run a company-wide phishing assessment to establish current risk, then schedule monthly adaptive simulations that get harder as users improve. Require employees and vendors to complete security training before granting access to your network. Reinforce good behavior through microbonuses or shout-outs.
Product security tools every organization needs
- Vulnerability scanners
- Static and dynamic analysis tools
- Penetration testing tools
- Payment gateway and fraud detection tools
- Threat intelligence platforms
- Cloud security tools
- Web Application Firewalls (WAF) and Distributed Denial of Service (DDoS) protection
- Email protection tools
- Physical security management tools
Vulnerability scanners
Vulnerability scanners sweep servers, laptops, and network gear for missing patches or risky settings, then rank threats by how urgent they are. These scanners run continuously to predict and prevent attacks and help security teams prioritize fixes before attackers strike.
For example, a weekly Nessus scan can spot an old Log4j file before an attacker does. Tenable, a popular exposure management solution, serves 65% of the Fortune 500 to help them with vulnerability scanning.
Static and dynamic analysis tools
Static Application Security Testing (SAST) and Dynamic Application Security Testing (DAST) are automated solutions that detect vulnerabilities and potential threats in software applications.
- SAST finds vulnerabilities in the source code. Top tools are Checkmarx, Spectral, and Veracode.
- DAST tests the application at runtime. The best tools are Jit, Acunetix, and Akto.
Neither static nor dynamic testing alone can catch every vulnerability. That’s why organizations combine the two to guarantee complete coverage. Deploy static analysis tools directly within your development environment (IDE) or CI/CD pipeline to detect and remediate issues immediately.
Penetration testing tools
These tools simulate real world cyberattacks against systems, applications, and infrastructure. A pen tester sets goals and analyzes the network to find weak spots and entry points before attackers do.
Also known as “ethical hacking,” penetration testing tools help protect customer data, comply with regulatory standards like PCI-DSS and GDPR, and prevent downtime.
Some of the top penetration testing tools are:
- Rapid7 (An open-source framework)
- Burp Suite by PortSwigger
- Wireshark
Payment gateway and fraud detection tools
Payment gateways and fraud detection tools work together to secure online transactions and protect against unauthorized charges. A payment gateway encrypts sensitive information like credit card details. Fraud detection tools complement them by identifying fraudulent transactions.
These payment security tools are becoming more relevant as global ecommerce payment fraud losses are projected to reach over $100 billion by 2029. With AI and machine learning, fraud tools can identify patterns that signal abuse or theft, reducing manual review.
Shopify Payments, for example, includes built-in fraud analysis that flags fraudulent orders. Shopify Protect also provides additional ecommerce security for eligible Shop Pay orders against fraudulent and unrecognized chargebacks.
Threat intelligence platforms
A Threat Intelligence Platform (TIP) helps organizations understand, anticipate, and respond to cyberthreats faster. With more than 600 million attacks daily, the volume of threats is overwhelming and organizations are under pressure to keep up.
A TIP guides the entire incident response, from detection to remediation. It automatically collects and organizes threat intelligence from server logs, event management solutions, and commercial threat intelligence feeds. Then, the platform turns that data into digestible information for stakeholders to act on.
Some top tools include:
- Recorder Future Intelligence Cloud for large-scale collection and risk scoring.
- CrowdStrike Falcon X for threat intel with endpoint protection adversary profiles.
- Microsoft Defender Threat Intelligence for cloud-scale mapping of attacker infrastructure (used in the Volt Typhoon case).
Cloud security tools
These tools protect data, applications, and infrastructure in cloud computing environments across infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) environments. They address concerns like data privacy, unauthorized access, and vulnerabilities through continuous monitoring and real-time protection.
Some notable cloud security tools include:
- Trivy. Versatile security scanner for container images, filesystems, Git repositories, and more.
- AWS GuardDuty & Security Hub. Native threat-detection and cloud security posture management (CSPM) for AWS workloads.
- Orca Security. Side-scanning for vulnerabilities and exposed secrets without installing agents.
Web Application Firewalls (WAF) and Distributed Denial of Service (DDoS) protection
WAF and DDoS protection tools defend your systems against some of the most common and disruptive attacks.
WAFs filter and monitor traffic between applications and the internet, blocking common attacks like SQL injection, cross-site scripting (XSS), DDoS, and file inclusion exploits. A WAF provides protection against OWASP Top 10 vulnerabilities.
DDoS protection tools guard against large scale attacks that attempt to disrupt normal traffic to a targeted server or network by sending it a ton of internet traffic from multiple sources. DDoS protection tools can recognize abnormal traffic patterns and defuse attack traffic using distributed networks. According to Zayo data, the average DDoS attack costs $6,000 per minute and lasted around 68 minutes in 2023.
Together, WAFs and DDoS solutions help ensure availability, protect sensitive data, and keep services running during high-risk events.
Email protection tools
Email is one of the most common entry points for cyberattacks, making email protection software essential for defending organizations. For example, fraudsters tricked a finance worker at a Hong Kong–based company into transferring $25 million after participating in a video conference with colleagues that turned out to be deepfake recreations.
Most cloud-based email protection tools include secure archiving, business continuity, and centralized policy management—without the need for upfront hardware costs.
Other features these tools include are:
- Malware and spam protection
- Advanced threat protection against phishing and business email compromise
- Data leak prevention through content scanning
- Secure messaging capabilities without requiring encryption key management
- Secure large file transfer (up to two gigabytes) with proper security controls
Physical security management tools
Modern physical security tools help protect your facilities, inventory and infrastructure from unauthorized access and theft. Security systems have evolved from standalone devices like surveillance cameras and alarms to interconnected networks with access control, identification, and even community.
The right physical security management tools support the Five D’s of physical security:
- Deter threats with secure storage
- Detect unauthorized access via RFID tracking
- Deny access through customizable permissions
- Delay threats during emergencies
- Defend facilities by managing security equipment
Platforms like SecuriThings integrate anti-theft devices from multiple vendors into a unified system to centralize monitoring and provide real-time alerts for vulnerabilities.
5 tips on improving product security
1. Adopt a security-first mindset
Being “security-first” means considering risk for every decision you make, from product roadmapping to vendor selection. Instead of treating security as a final checkpoint, build it into daily decision-making.
Consider AI-powered tools to help detect and resolve threats. While the cost of a breach now averages around $5 million, organizations can save up to $2.22 million by integrating AI and automation into their product security practices.
To adopt a security-first approach, you can:
- Add a security reviewer to every pull request
- Run threat-model workshops before major feature builds
- Track SBOMs (software bills of materials) for all third-party code
2. Maintain up-to-date systems
Unpatched flaws are a hacker’s favorite door. Some 60% of breaches trace back to unpatched vulnerabilities, and 32% of attacks now start that way. Most famously, Equifax left an Apache Struts patch unapplied for two months in 2017 and exposed over 147 million consumers.
A few ways to keep your system up to date include:
- Use an automated patch management platform to push OS and application fixes as soon as vendors release them.
- Run daily vulnerability scans and escalate any known exploited vulnerabilities to your “patch now” list.
- Automate dependency and SBOM updates in CI/DF.
- Schedule periodic reviews against account-level security best practices.
3. Leverage industry best practices
Align with proven frameworks like NIST CSF v2, ISO 27001, CIS Controls, and OWASP ASVS. These standards and best practices provide a roadmap of measurable controls without starting from scratch.
Verizon DBIR saw a 180% year-over-year jump in breaches that began with exploited vulnerabilities like MOVEit, which suggests organizations should adopt the disciplined vulnerability-management controls spelled out in CIS Control 7
4. Strengthen payment and data security
Juniper Research reports that ecommerce fraud will exceed $107 billion in 2029. Work with a payment provider like Shopify Payments that offers features like:
- Advanced encryption: So all payment data is securely transmitted and stored.
- Fraud detection: Uses measures such as 3D Secure checkout and strong customer authentication to prevent unauthorized transactions.
- PCI compliance: All Shopify card readers are PCI compliant, adhering to industry standards for secure payment processing.
5. Enhance physical security measures for inventory and logistics
Retailers reported a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019, and a 90% increase in dollar loss due to shoplifting within the same time period. Reducing shrink should become a top priority for retailers, as it’s a multibillion dollar problem in the industry.
Some tactics you can use are:
- RFID and real-time inventory analytics. Tag high-value SKUs and integrate readers with your warehouse management system and retail operating system so mis-scans surface quickly.
- AI video analytics and CCTV. Layer object-tracking models to flag “sweeping” behavior, ORC bag drops, or doors held open after hours.
- Geofenced GPS/IoT trackers on outbound pallets. Set an auto-alert if a shipment deviates from the defined corridor or lingers too long at an unscheduled stop.
📚 Read: What Is Loss Prevention? Strategies and Examples (2025)
Product security FAQ
What is product security vs. application security?
Product security protects physical devices and their embedded software throughout their life cycle. Application security deals exclusively with securing standalone software applications, such as web or mobile apps.
Why is product security important?
Product security is important because it protects customer data and trust, safeguards your business reputation, avoids financial and legal repercussions from breaches, and ensures the reliability and longevity of your products.
What is a product security engineer?
A product security engineer designs, reviews, and tests software and hardware products for vulnerabilities. They conduct threat modeling, create secure coding practices, fix patches, and build automated security testing into the CI/CD pipeline.
Is a VPN a security product?
Yes, a Virtual Private Network (VPN) is a security product. It encrypts traffic and masks IP addresses to protect data in transit. They only cover network-layer risks, however. Organizations need additional measures like endpoint hardening and MFA for complete brand protection.
