ValuAdder Business Valuation Blog

In today’s business world, valuation software has become a crucial tool for owners, investors, and analysts looking to assess the worth of a business. However, not all valuation software is created equal. While many vendors offer web-based platforms for convenience, there are significant security risks involved that often go unnoticed. In this post, we’ll take a look at some of the security concerns with most web-based valuation software, and explain why desktop applications offer a much safer alternative.

1. Data Aggregation: A Goldmine for Cyber Criminals

One of the most glaring vulnerabilities of web-based valuation software is the sheer volume of sensitive data it aggregates. These platforms store highly confidential information about private businesses, including:

  • Owner names
  • Business addresses
  • Financial data
  • Valuation figures

This treasure trove of personal and financial data makes these vendors prime targets for cybercriminals. Imagine the value of this data in the wrong hands. Hackers could sell it to competitors looking to gain an edge, or worse, use it to extort business owners through ransom demands. The risks extend beyond just financial loss – criminals could even target business owners’ families for harm.

As these platforms collect and store more and more of this critical data, the appeal for cybercriminals only grows. The question is not if these platforms will be breached, but when.

Web-based / SaaS Software Breaches are Escalating

  • Reports show a 300% surge in attacks in 2023 – 2025.
  • Financial firms are prime targets because their data is both valuable and sensitive.
  • Extortion and data resale are real outcomes: once data is stolen, it often ends up in the hands of competitors, fraudsters, or extortionists.
  • Vendor dependence magnifies risk: when SaaS software fails, customers have little recourse.

Why these Breaches are Juicy for Criminals

  • Extortion: threaten harm unless ransom paid.
  • Data sale: sell business records to competitors or fraudsters.
  • Espionage: use business data for market intelligence.
  • Ransomware: lock business systems until paid.

Real World Breach Example – 2025 Salesforce OAuth Extortion Attack

  • What happened: hackers used UAuth integrations to siphon off data from Salesforce SaaS accounts.
  • Impact: about 1 billion records stolen, including customer financial data.
  • Extortion: criminals threatened leaks unless ransom paid, some data surfaced for sale.

2. Lack of Security Standard Compliance: A Recipe for Disaster

Another significant issue with web-based valuation software is the lack of adherence to industry security standards such as SOC 2, ISO 27001, PCI DSS. In a world where data breaches are increasingly common, compliance with best practices and security regulations is non-negotiable. Unfortunately, many web-based vendors fail to meet these standards or evade independent security verification.

This lack of certification places users’ data at risk, as their business-critical information is stored on servers that haven’t been properly vetted for vulnerabilities. Why? Because these vendors might not have the resources or expertise to secure their platforms against sophisticated cyberattacks, leaving customers exposed.

3. Shifting the Blame: Who Is Responsible When Things Go Wrong?

Another troubling aspect of most web-based valuation services is the way they handle security breaches. In the fine print of their terms of use, vendors typically disclaim any responsibility for data breaches or security failures. Instead, they shift the blame onto the customer.

When a cyberattack compromises sensitive data, the vendor often absolves itself from liability. This means that the business owner or user of the software is left to deal with the fallout. From financial damage to reputational harm, businesses are forced to pick up the pieces after their information is exposed or stolen. In essence, these vendors have devised a way to offload the risk of data breaches onto their customers, leaving users without recourse.

Web-based Software Vendor Policy: Vendor-first, Customer-last

This responsibility shifting and small print lack of disclosure reinforce the perception that web-based software vendors prioritize recurring revenue over customer protection.

4. Why Desktop Apps Are More Secure

Given the significant security risks with web-based software, desktop applications used for business valuation offer a much safer alternative. Here’s why:

Robust Security Infrastructure Backed by Apple and Microsoft

When you use a desktop app for business valuation, you benefit from the security infrastructure provided by major operating system developers like Apple and Microsoft. Both companies have invested billions of dollars into creating state-of-the-art security systems for their platforms.

Apple’s Security Protocols: Any software running on a Mac must comply with strict security protocols. The Apple Developer Program ensures that developers adhere to best practices, and apps must pass Apple’s rigorous notarization process before distribution. This process guarantees that the software is safe to install and free from malware before it ever reaches your Mac.

Microsoft’s SmartScreen Protection: On Windows, software must go through Microsoft’s SmartScreen, a security feature that verifies whether an app is safe before installation. Combined with Extended Validation (EV) Code Signing, this provides real-time verification of publisher identity and executable integrity, preventing malware and tampering.

More Control and Less Exposure

With desktop software, data is typically stored locally, on the user’s machine, rather than being transmitted and stored on external servers. This significantly reduces the chances of exposure in the event of a data breach. Desktop apps are also less vulnerable to online threats like ransomware or phishing attacks that target web-based platforms, since they don’t rely on constant cloud connectivity.

Proven Vendor Security Practices

Reputable desktop valuation software vendors are held to a much higher standard than their web-based counterparts. Because they must comply with the security standards set by major tech companies like Apple and Microsoft, these desktop applications offer a secure environment for handling sensitive business data. Their security measures are independently verified and tested regularly.

Independent PCI DSS Compliance

Unlike most SaaS valuation platforms, ValuAdder goes further by demonstrating Payment Card Industry Data Security Standard (PCI DSS) compliance, independently validated by VikingCloud™. This ensures that all payment transactions are protected under globally recognized security protocols. The clickable VikingCloud Trusted Commerce℠ seal provides real-time proof of compliance – a level of transparency and assurance conspicuously absent from other business valuation software vendors.

5. The Bottom Line: Protect Your Business with Desktop Valuation Software

While the convenience of web-based valuation software may seem appealing, the security risks are simply too great to ignore. From the aggregation of sensitive business data that attracts cybercriminals to the lack of security standard compliance and shifting of blame in the event of a breach, web-based vendors often leave users vulnerable.

On the other hand, desktop apps benefit from the robust, industry-leading security infrastructure provided by Apple and Microsoft. These platforms require vendors to meet high security standards, offering a much safer environment for storing and processing sensitive business information.

In a world where data breaches and cyberattacks are increasingly common, it’s essential to choose software that prioritizes security. If you are serious about protecting your own or your client’s business data, desktop valuation software is the clear and safer choice.

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