If you search for "securing Web services" on the Microsoft product support website, you'll get a nice set of articles on how to configure your Web server for the SSL encryption standard and how to install an SSL certificate.
There's also a great article by Matt Powell titled "Defending Your XML Web Service Against Hackers." Key issues that Powell addresses are spoofing, denial-of-service attacks and exploitable bugs.
Powell points to two issues to consider when creating Web services: buffer overflows and SQL-injection attacks. Buffer overflows are, of course, one of the most common security problems on the Internet today. They happen because a programmer has written a piece of code that assumes some piece of data will never be longer than, say, 256 characters.
To exploit the bug, an attacker provides a block of data that's much longer
Even if you have a secure Web server and a secure Web services application, it's important to remember that many of these services are nothing more than glorified order-entry systems. Unless you have additional controls on those orders, you can run into more traditional security problems. Guard against them!
For example, many businesses have some kind of fraud-detection system running on their credit card processing engine, which means that suspicious-looking transactions are blocked until they can be manually reviewed. If you are accepting XML-enabled purchase orders through a Web services application, you should have suitable antifraud systems in place on the Web service as well. Simple systems establish a maximum number of dollars and transactions per customer per month, and prohibit certain items to be sent to certain geographical regions (such as Nigeria) without explicit authorization.
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