Most companies don’t think about security until it’s too late. They assume their accounts payable (AP) automation system is secure—until they experience a data breach, a failed audit or become victims of fraud. The reality is many businesses are unknowingly exposed because they rely on integration-heavy tools that introduce weak points in their financial workflows.
At SquareWorks Consulting, we’ve built an integration-less AP automation solution designed specifically for NetSuite. Unlike competitors who don’t specialize in NetSuite, and instead rely on fragile API connections, middleware or third-party platforms, our solution is embedded within NetSuite, eliminating integration-related vulnerabilities. In this post, we’ll explore the hidden security risks in AP automation, why traditional integration-based solutions create compliance headaches and how an embedded approach drastically reduces risk.
Why Integrations Make AP Automation a Security Risk
Many AP automation vendors claim they integrate seamlessly with NetSuite. What they don’t tell you is these integrations require ongoing maintenance, introduce security gaps and increase the risk of data exposure. Here’s how:
- Integrations create multiple points of failure. Every time NetSuite updates, third-party AP automation providers must update their connectors, increasing the risk of sync failures and security vulnerabilities.
- Data moving between platforms increases attack surface. The more systems involved, the more entry points hackers have to exploit.
- NetSuite-native solutions like SquareWorks eliminate unnecessary external interactions. Instead of relying on connectors that require ongoing monitoring, our solution is pre-configured to operate securely within NetSuite.
Failing to update third-party integrations can have catastrophic consequences. The Equifax data breach in 2017 exposed over 100 million credit card applications simply because an available security patch wasn’t applied. This breach illustrates how external dependencies create vulnerabilities that companies often fail to address in time.
Payment Fraud: Eliminating NetSuite’s Built-in Security Gap
One of the biggest, most overlooked security risks in NetSuite is its default payment processing method—a method that can leave companies wide open to fraud in one of two ways:
- By default, NetSuite generates unsecured text files containing payment details, which must be manually uploaded to a bank portal.
- These files can be manipulated, intercepted or uploaded incorrectly, creating a huge risk of fraud.
How SquareWorks Solves This:
- We integrate directly with banks, eliminating the need for unsecured file transfers.
- No manual uploads mean no risk of tampering or interception.
- Competitors who rely on NetSuite’s default process leave this vulnerability wide open, exposing companies to unnecessary security risks.
Similar security flaws have led to major breaches. For example, in 2008, Heartland Payment Systems suffered a data breach due to vulnerabilities in third-party vendor systems, which compromised payment processing for all their clients. This highlights the danger of weak security controls in financial transactions and why direct integrations with banks are critical.
The Compliance Nightmare: More Integrations, More Audit Headaches
For industries that require strict compliance with SOX, GDPR, HIPAA or other regulatory frameworks, integration-heavy AP automation creates more challenges than solutions:
- More integrations mean more audit checkpoints. Every connection must be validated for compliance, creating additional documentation and security reviews.
- Breaks in the audit trail introduce compliance risks. If an external system fails to sync properly with NetSuite, auditors may flag missing or inconsistent financial records.
- SquareWorks simplifies compliance. Because we operate natively within NetSuite, all actions—approvals, invoices and payments—are tracked in a single, secure audit trail.
A real-world example: UK Finance Fraud Statistics showed in 2022 criminals stole over £1.2 billion through authorized and unauthorized fraud, much of it originating from security weaknesses in digital integrations and financial platforms. The takeaway is the less data moves between systems, the fewer opportunities exist for fraudsters to exploit security gaps.
Updating Connectors: The Security Hole No One Talks About
AP automation vendors who rely on integrations don’t just introduce security risks—they also create operational nightmares when NetSuite releases take place.
- Every NetSuite update means external connectors must be updated, requiring IT teams to manually validate that their AP automation system still functions correctly.
- If a connector update is missed or delayed, sync failures can lead to financial misstatements, duplicate payments or broken workflows.
- SquareWorks eliminates this risk because we are built directly into NetSuite—there’s nothing to update, patch or reconfigure every time NetSuite releases a new version.
A CIO at a midmarket distribution firm estimated they were spending thousands of dollars per year just to maintain integrations between their AP automation tool and NetSuite, not including the cost of fixing errors when those integrations broke.
Reducing Risk by Staying Inside NetSuite
The more systems involved in financial workflows, the higher the security risk. SquareWorks minimizes risk by ensuring all AP automation functions remain within NetSuite, without external dependencies. The benefits:
- No middleware, and fewer security vulnerabilities. Our competitors rely on third-party platforms who introduce additional risk—SquareWorks does not.
- No API sync failures for better financial accuracy. External AP automation platforms require constant syncing with NetSuite, leading to delays and potential mismatches.
- No file-based payments, resulting in stronger fraud protection. By eliminating unsecured payment file uploads, SquareWorks removes one of the biggest fraud risks in NetSuite.
Don’t Let Integrations Become Your Weakest Link
At first glance, many AP automation solutions seem secure—but a closer look reveals critical security flaws caused by external integrations, unsecured payment files and constant API maintenance. An integration-less, embedded solution isn’t just a convenience, it’s a security prerequisite. By keeping AP automation inside NetSuite, SquareWorks removes unnecessary vulnerabilities, simplifies compliance, and eliminates the risks of outdated connectors and unsecured payments.
So, before you choose an AP automation platform, ask yourself: Are you willing to accept the security risks of an integration-heavy solution, or do you want a system that’s built for security from the ground up?
Stay tuned for the next post in this series, where we’ll dive into the cost savings of an integration-less approach. Spoiler alert: it’s not just about the dollars you save—it’s about the headaches you avoid.
For more of Bernardo’s insights, you can follow him on LinkedIn here.
If you’re interested in learning more about how implementing financial automation within NetSuite can protect your organization from fraud and other financial missteps, check out our latest blog from SquareWorks here: https://squareworks.com/blog/unlock-financial-security-streamline-financial-operations-and-minimize-risks-with-netsuite/
