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Terraform Security Best Practices: Infrastructure as Code Done Right

Secure your infrastructure from code to cloud with battle-tested Terraform patterns

•by hacker1db

Terraform Security Best Practices: Infrastructure as Code Done Right

After managing Terraform deployments across hundreds of cloud environments, I've learned that Infrastructure as Code security isn't just about writing secure configurations—it's about building security into every layer of your IaC pipeline.

The Security-First Terraform Approach

Why Terraform Security Matters

When your infrastructure is defined in code, a single misconfiguration can expose entire environments. I've seen companies lose millions due to accidentally public S3 buckets, overly permissive security groups, and leaked credentials in state files.

Here's my systematic approach to securing Terraform from development to production.

State Management Security

Remote State with Proper Encryption

Never store Terraform state locally or in version control. Here's my secure backend configuration:

# terraform/backend.tf
terraform {
  backend "s3" {
    bucket               = "mycompany-terraform-state-prod"
    key                  = "infrastructure/prod/terraform.tfstate"
    region               = "us-west-2"
    encrypt              = true
    kms_key_id          = "arn:aws:kms:us-west-2:123456789012:key/12345678-1234-1234-1234-123456789012"
    dynamodb_table      = "terraform-state-lock"
    workspace_key_prefix = "workspaces"
    
    # Additional security
    versioning = true
    
    # Prevent accidental deletion
    lifecycle {
      prevent_destroy = true
    }
  }
  
  required_providers {
    aws = {
      source  = "hashicorp/aws"
      version = "~> 5.0"
    }
  }
  
  required_version = ">= 1.0"
}

Secure State Bucket Configuration

# terraform/state-bucket.tf
resource "aws_s3_bucket" "terraform_state" {
  bucket = "mycompany-terraform-state-${var.environment}"
  
  tags = {
    Name        = "Terraform State"
    Environment = var.environment
    Purpose     = "Infrastructure State Storage"
  }
}

resource "aws_s3_bucket_public_access_block" "terraform_state" {
  bucket = aws_s3_bucket.terraform_state.id

  block_public_acls       = true
  block_public_policy     = true
  ignore_public_acls      = true
  restrict_public_buckets = true
}

resource "aws_s3_bucket_encryption" "terraform_state" {
  bucket = aws_s3_bucket.terraform_state.id

  rule {
    apply_server_side_encryption_by_default {
      kms_master_key_id = aws_kms_key.terraform_state.arn
      sse_algorithm     = "aws:kms"
    }
    bucket_key_enabled = true
  }
}

resource "aws_s3_bucket_versioning" "terraform_state" {
  bucket = aws_s3_bucket.terraform_state.id
  
  versioning_configuration {
    status = "Enabled"
  }
}

resource "aws_s3_bucket_lifecycle_configuration" "terraform_state" {
  depends_on = [aws_s3_bucket_versioning.terraform_state]
  bucket     = aws_s3_bucket.terraform_state.id

  rule {
    id     = "terraform_state_lifecycle"
    status = "Enabled"

    noncurrent_version_expiration {
      noncurrent_days = 90
    }

    abort_incomplete_multipart_upload {
      days_after_initiation = 7
    }
  }
}

# KMS key for state encryption
resource "aws_kms_key" "terraform_state" {
  description             = "KMS key for Terraform state encryption"
  deletion_window_in_days = 7
  enable_key_rotation     = true

  policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Sid    = "Enable IAM User Permissions"
        Effect = "Allow"
        Principal = {
          AWS = "arn:aws:iam::${data.aws_caller_identity.current.account_id}:root"
        }
        Action   = "kms:*"
        Resource = "*"
      },
      {
        Sid    = "Allow Terraform access"
        Effect = "Allow"
        Principal = {
          AWS = aws_iam_role.terraform_execution.arn
        }
        Action = [
          "kms:Decrypt",
          "kms:DescribeKey",
          "kms:Encrypt",
          "kms:GenerateDataKey",
          "kms:ReEncrypt*"
        ]
        Resource = "*"
      }
    ]
  })

  tags = {
    Name = "terraform-state-key"
  }
}

resource "aws_kms_alias" "terraform_state" {
  name          = "alias/terraform-state"
  target_key_id = aws_kms_key.terraform_state.key_id
}

# State locking with DynamoDB
resource "aws_dynamodb_table" "terraform_state_lock" {
  name           = "terraform-state-lock"
  billing_mode   = "PAY_PER_REQUEST"
  hash_key       = "LockID"

  attribute {
    name = "LockID"
    type = "S"
  }

  server_side_encryption {
    enabled     = true
    kms_key_arn = aws_kms_key.terraform_state.arn
  }

  point_in_time_recovery {
    enabled = true
  }

  tags = {
    Name = "terraform-state-lock"
  }
}

Secrets Management

Never Hardcode Secrets

# ❌ NEVER DO THIS
resource "aws_db_instance" "bad_example" {
  allocated_storage = 20
  engine            = "mysql"
  engine_version    = "5.7"
  instance_class    = "db.t3.micro"
  
  # DON'T HARDCODE CREDENTIALS!
  username = "admin"
  password = "supersecret123"  # This will be in state file!
}

# ✅ DO THIS INSTEAD
resource "aws_db_instance" "good_example" {
  allocated_storage = 20
  engine            = "mysql"
  engine_version    = "5.7"
  instance_class    = "db.t3.micro"
  
  # Use managed passwords
  manage_master_user_password = true
  
  # Or reference from external secrets manager
  username = var.db_username
  password = data.aws_secretsmanager_secret_version.db_password.secret_string
}

data "aws_secretsmanager_secret" "db_password" {
  name = "prod/database/master-password"
}

data "aws_secretsmanager_secret_version" "db_password" {
  secret_id = data.aws_secretsmanager_secret.db_password.id
}

Secure Variable Handling

# variables.tf
variable "db_username" {
  description = "Database master username"
  type        = string
  sensitive   = true
}

variable "environment" {
  description = "Environment name"
  type        = string
  
  validation {
    condition = contains([
      "dev", 
      "staging", 
      "prod"
    ], var.environment)
    error_message = "Environment must be dev, staging, or prod."
  }
}

variable "allowed_cidr_blocks" {
  description = "CIDR blocks allowed to access resources"
  type        = list(string)
  
  validation {
    condition = length(var.allowed_cidr_blocks) > 0
    error_message = "At least one CIDR block must be specified."
  }
  
  validation {
    condition = alltrue([
      for cidr in var.allowed_cidr_blocks : 
      can(regex("^([0-9]{1,3}\\.){3}[0-9]{1,3}/[0-9]{1,2}$", cidr))
    ])
    error_message = "All CIDR blocks must be valid IPv4 CIDR notation."
  }
}

Network Security Patterns

VPC Security Best Practices

# vpc.tf - Secure VPC configuration
resource "aws_vpc" "main" {
  cidr_block           = var.vpc_cidr
  enable_dns_hostnames = true
  enable_dns_support   = true

  tags = {
    Name = "${var.project_name}-vpc-${var.environment}"
  }
}

# Private subnets for application tier
resource "aws_subnet" "private" {
  count = length(var.availability_zones)

  vpc_id            = aws_vpc.main.id
  cidr_block        = cidrsubnet(var.vpc_cidr, 8, count.index + 1)
  availability_zone = var.availability_zones[count.index]

  # Never auto-assign public IPs to private subnets
  map_public_ip_on_launch = false

  tags = {
    Name = "${var.project_name}-private-${var.availability_zones[count.index]}"
    Type = "Private"
  }
}

# Public subnets only for load balancers
resource "aws_subnet" "public" {
  count = length(var.availability_zones)

  vpc_id            = aws_vpc.main.id
  cidr_block        = cidrsubnet(var.vpc_cidr, 8, count.index + 101)
  availability_zone = var.availability_zones[count.index]

  # Only auto-assign public IPs in public subnets
  map_public_ip_on_launch = true

  tags = {
    Name = "${var.project_name}-public-${var.availability_zones[count.index]}"
    Type = "Public"
  }
}

# Internet Gateway only for public subnets
resource "aws_internet_gateway" "main" {
  vpc_id = aws_vpc.main.id

  tags = {
    Name = "${var.project_name}-igw"
  }
}

# NAT Gateways for private subnet internet access
resource "aws_eip" "nat" {
  count = length(aws_subnet.public)

  domain = "vpc"
  
  depends_on = [aws_internet_gateway.main]

  tags = {
    Name = "${var.project_name}-nat-eip-${count.index + 1}"
  }
}

resource "aws_nat_gateway" "main" {
  count = length(aws_subnet.public)

  allocation_id = aws_eip.nat[count.index].id
  subnet_id     = aws_subnet.public[count.index].id

  depends_on = [aws_internet_gateway.main]

  tags = {
    Name = "${var.project_name}-nat-${count.index + 1}"
  }
}

Security Groups with Least Privilege

# security-groups.tf
# Web tier security group - only allow necessary ports
resource "aws_security_group" "web_tier" {
  name_prefix = "${var.project_name}-web-"
  vpc_id      = aws_vpc.main.id

  # Inbound rules
  ingress {
    description = "HTTPS from ALB"
    from_port   = 443
    to_port     = 443
    protocol    = "tcp"
    security_groups = [aws_security_group.alb.id]
  }

  ingress {
    description = "HTTP from ALB"
    from_port   = 80
    to_port     = 80
    protocol    = "tcp"
    security_groups = [aws_security_group.alb.id]
  }

  # Outbound rules - be specific
  egress {
    description = "HTTPS to internet"
    from_port   = 443
    to_port     = 443
    protocol    = "tcp"
    cidr_blocks = ["0.0.0.0/0"]
  }

  egress {
    description = "Database access"
    from_port   = 3306
    to_port     = 3306
    protocol    = "tcp"
    security_groups = [aws_security_group.database.id]
  }

  lifecycle {
    create_before_destroy = true
  }

  tags = {
    Name = "${var.project_name}-web-sg"
  }
}

# Database security group - very restrictive
resource "aws_security_group" "database" {
  name_prefix = "${var.project_name}-db-"
  vpc_id      = aws_vpc.main.id

  # Only allow access from web tier
  ingress {
    description = "MySQL from web tier"
    from_port   = 3306
    to_port     = 3306
    protocol    = "tcp"
    security_groups = [aws_security_group.web_tier.id]
  }

  # No outbound rules needed for RDS
  lifecycle {
    create_before_destroy = true
  }

  tags = {
    Name = "${var.project_name}-db-sg"
  }
}

# ALB security group
resource "aws_security_group" "alb" {
  name_prefix = "${var.project_name}-alb-"
  vpc_id      = aws_vpc.main.id

  ingress {
    description = "HTTPS from internet"
    from_port   = 443
    to_port     = 443
    protocol    = "tcp"
    cidr_blocks = ["0.0.0.0/0"]
  }

  ingress {
    description = "HTTP from internet (redirect to HTTPS)"
    from_port   = 80
    to_port     = 80
    protocol    = "tcp"
    cidr_blocks = ["0.0.0.0/0"]
  }

  egress {
    description = "All outbound traffic"
    from_port   = 0
    to_port     = 0
    protocol    = "-1"
    cidr_blocks = ["0.0.0.0/0"]
  }

  lifecycle {
    create_before_destroy = true
  }

  tags = {
    Name = "${var.project_name}-alb-sg"
  }
}

IAM Security Best Practices

Least Privilege IAM Policies

# iam.tf
# Application execution role with minimal permissions
resource "aws_iam_role" "app_execution" {
  name = "${var.project_name}-app-execution-${var.environment}"

  assume_role_policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Action = "sts:AssumeRole"
        Effect = "Allow"
        Principal = {
          Service = "ec2.amazonaws.com"
        }
        Condition = {
          StringEquals = {
            "aws:RequestedRegion" = var.aws_region
          }
        }
      }
    ]
  })

  tags = {
    Name = "${var.project_name}-app-execution-role"
  }
}

# Custom policy with specific permissions
resource "aws_iam_policy" "app_policy" {
  name = "${var.project_name}-app-policy-${var.environment}"

  policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Sid    = "CloudWatchLogs"
        Effect = "Allow"
        Action = [
          "logs:CreateLogGroup",
          "logs:CreateLogStream",
          "logs:PutLogEvents"
        ]
        Resource = "arn:aws:logs:${var.aws_region}:${data.aws_caller_identity.current.account_id}:log-group:/aws/${var.project_name}/*"
      },
      {
        Sid    = "SecretManagerAccess"
        Effect = "Allow"
        Action = [
          "secretsmanager:GetSecretValue"
        ]
        Resource = [
          "arn:aws:secretsmanager:${var.aws_region}:${data.aws_caller_identity.current.account_id}:secret:${var.environment}/${var.project_name}/*"
        ]
      },
      {
        Sid    = "ParameterStoreAccess"
        Effect = "Allow"
        Action = [
          "ssm:GetParameter",
          "ssm:GetParameters"
        ]
        Resource = [
          "arn:aws:ssm:${var.aws_region}:${data.aws_caller_identity.current.account_id}:parameter/${var.environment}/${var.project_name}/*"
        ]
      }
    ]
  })
}

resource "aws_iam_role_policy_attachment" "app_policy" {
  role       = aws_iam_role.app_execution.name
  policy_arn = aws_iam_policy.app_policy.arn
}

# Cross-account access with conditions
resource "aws_iam_role" "cross_account_read" {
  name = "${var.project_name}-cross-account-read"

  assume_role_policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Effect = "Allow"
        Principal = {
          AWS = "arn:aws:iam::${var.trusted_account_id}:root"
        }
        Action = "sts:AssumeRole"
        Condition = {
          StringEquals = {
            "sts:ExternalId" = var.external_id
          }
          IpAddress = {
            "aws:SourceIp" = var.trusted_ip_ranges
          }
          DateGreaterThan = {
            "aws:CurrentTime" = "2024-01-01T00:00:00Z"
          }
          DateLessThan = {
            "aws:CurrentTime" = "2024-12-31T23:59:59Z"
          }
        }
      }
    ]
  })
}

Service-Specific IAM Patterns

# Lambda execution role with specific permissions
resource "aws_iam_role" "lambda_execution" {
  name = "${var.project_name}-lambda-execution"

  assume_role_policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Action = "sts:AssumeRole"
        Effect = "Allow"
        Principal = {
          Service = "lambda.amazonaws.com"
        }
      }
    ]
  })
}

resource "aws_iam_policy" "lambda_policy" {
  name = "${var.project_name}-lambda-policy"

  policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Effect = "Allow"
        Action = [
          "logs:CreateLogGroup",
          "logs:CreateLogStream", 
          "logs:PutLogEvents"
        ]
        Resource = "arn:aws:logs:*:*:*"
      },
      {
        Effect = "Allow"
        Action = [
          "s3:GetObject"
        ]
        Resource = "${aws_s3_bucket.app_bucket.arn}/*"
        Condition = {
          StringLike = {
            "s3:prefix" = ["uploads/*", "public/*"]
          }
        }
      }
    ]
  })
}

# ECS task execution role
resource "aws_iam_role" "ecs_task_execution" {
  name = "${var.project_name}-ecs-task-execution"

  assume_role_policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Action = "sts:AssumeRole"
        Effect = "Allow"
        Principal = {
          Service = "ecs-tasks.amazonaws.com"
        }
      }
    ]
  })
}

resource "aws_iam_role_policy_attachment" "ecs_task_execution" {
  role       = aws_iam_role.ecs_task_execution.name
  policy_arn = "arn:aws:iam::aws:policy/service-role/AmazonECSTaskExecutionRolePolicy"
}

# Custom ECS task role for application permissions
resource "aws_iam_role" "ecs_task" {
  name = "${var.project_name}-ecs-task"

  assume_role_policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Action = "sts:AssumeRole"
        Effect = "Allow"
        Principal = {
          Service = "ecs-tasks.amazonaws.com"
        }
      }
    ]
  })
}

Resource Security Configuration

S3 Bucket Security

# s3.tf - Comprehensive S3 security
resource "aws_s3_bucket" "app_bucket" {
  bucket = "${var.project_name}-${var.environment}-${random_id.bucket_suffix.hex}"

  tags = {
    Name        = "${var.project_name}-app-bucket"
    Environment = var.environment
  }
}

resource "random_id" "bucket_suffix" {
  byte_length = 4
}

# Block all public access
resource "aws_s3_bucket_public_access_block" "app_bucket" {
  bucket = aws_s3_bucket.app_bucket.id

  block_public_acls       = true
  block_public_policy     = true
  ignore_public_acls      = true
  restrict_public_buckets = true
}

# Enable encryption
resource "aws_s3_bucket_server_side_encryption_configuration" "app_bucket" {
  bucket = aws_s3_bucket.app_bucket.id

  rule {
    apply_server_side_encryption_by_default {
      kms_master_key_id = aws_kms_key.s3_key.arn
      sse_algorithm     = "aws:kms"
    }
    bucket_key_enabled = true
  }
}

# Enable versioning
resource "aws_s3_bucket_versioning" "app_bucket" {
  bucket = aws_s3_bucket.app_bucket.id
  
  versioning_configuration {
    status = "Enabled"
  }
}

# MFA delete protection (requires manual setup)
resource "aws_s3_bucket_mfa_delete" "app_bucket" {
  bucket = aws_s3_bucket.app_bucket.id
  mfa    = var.enable_mfa_delete ? "Enabled" : "Disabled"
}

# Lifecycle policy
resource "aws_s3_bucket_lifecycle_configuration" "app_bucket" {
  depends_on = [aws_s3_bucket_versioning.app_bucket]
  bucket     = aws_s3_bucket.app_bucket.id

  rule {
    id     = "main"
    status = "Enabled"

    expiration {
      days = 365
    }

    noncurrent_version_expiration {
      noncurrent_days = 30
    }

    abort_incomplete_multipart_upload {
      days_after_initiation = 7
    }
  }
}

# Bucket policy with strict access controls
resource "aws_s3_bucket_policy" "app_bucket" {
  bucket = aws_s3_bucket.app_bucket.id

  policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Sid       = "DenyInsecureConnections"
        Effect    = "Deny"
        Principal = "*"
        Action    = "s3:*"
        Resource = [
          aws_s3_bucket.app_bucket.arn,
          "${aws_s3_bucket.app_bucket.arn}/*"
        ]
        Condition = {
          Bool = {
            "aws:SecureTransport" = "false"
          }
        }
      },
      {
        Sid       = "DenyUnencryptedUploads"
        Effect    = "Deny"
        Principal = "*"
        Action    = "s3:PutObject"
        Resource  = "${aws_s3_bucket.app_bucket.arn}/*"
        Condition = {
          StringNotEquals = {
            "s3:x-amz-server-side-encryption" = "aws:kms"
          }
        }
      }
    ]
  })
}

# Notification for security events
resource "aws_s3_bucket_notification" "app_bucket" {
  bucket = aws_s3_bucket.app_bucket.id

  cloudwatch_configuration {
    cloudwatch_configuration_id = "security-events"
    filter_prefix               = "logs/"
    filter_suffix               = ".log"
    events                      = ["s3:ObjectCreated:*", "s3:ObjectRemoved:*"]
  }
}

RDS Security Configuration

# rds.tf - Secure RDS configuration
resource "aws_db_subnet_group" "main" {
  name       = "${var.project_name}-db-subnet-group"
  subnet_ids = aws_subnet.private[*].id

  tags = {
    Name = "${var.project_name}-db-subnet-group"
  }
}

resource "aws_db_parameter_group" "main" {
  family = "mysql8.0"
  name   = "${var.project_name}-db-params"

  # Security-focused parameters
  parameter {
    name  = "log_bin_trust_function_creators"
    value = "0"
  }

  parameter {
    name  = "general_log"
    value = "1"
  }

  parameter {
    name  = "slow_query_log"
    value = "1"
  }

  parameter {
    name  = "long_query_time"
    value = "2"
  }
}

resource "aws_db_instance" "main" {
  identifier = "${var.project_name}-${var.environment}"

  allocated_storage     = var.db_allocated_storage
  max_allocated_storage = var.db_max_allocated_storage
  storage_type          = "gp3"
  storage_encrypted     = true
  kms_key_id           = aws_kms_key.rds_key.arn

  engine         = "mysql"
  engine_version = "8.0.35"
  instance_class = var.db_instance_class

  # Use AWS managed password
  manage_master_user_password = true

  db_name  = var.db_name
  username = var.db_username

  vpc_security_group_ids = [aws_security_group.database.id]
  db_subnet_group_name   = aws_db_subnet_group.main.name
  parameter_group_name   = aws_db_parameter_group.main.name

  # Security settings
  publicly_accessible    = false
  multi_az              = var.environment == "prod" ? true : false
  backup_retention_period = var.environment == "prod" ? 30 : 7
  backup_window         = "03:00-04:00"
  maintenance_window    = "Sun:04:00-Sun:05:00"

  # Enable logging
  enabled_cloudwatch_logs_exports = ["error", "general", "slow_query"]

  # Enable automatic minor version upgrades
  auto_minor_version_upgrade = true

  # Performance Insights
  performance_insights_enabled = true
  performance_insights_kms_key_id = aws_kms_key.rds_key.arn
  performance_insights_retention_period = 7

  # Monitoring
  monitoring_interval = 60
  monitoring_role_arn = aws_iam_role.rds_enhanced_monitoring.arn

  deletion_protection = var.environment == "prod" ? true : false

  tags = {
    Name = "${var.project_name}-database"
  }
}

# Enhanced monitoring role
resource "aws_iam_role" "rds_enhanced_monitoring" {
  name = "${var.project_name}-rds-enhanced-monitoring"

  assume_role_policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Action = "sts:AssumeRole"
        Effect = "Allow"
        Principal = {
          Service = "monitoring.rds.amazonaws.com"
        }
      }
    ]
  })
}

resource "aws_iam_role_policy_attachment" "rds_enhanced_monitoring" {
  role       = aws_iam_role.rds_enhanced_monitoring.name
  policy_arn = "arn:aws:iam::aws:policy/service-role/AmazonRDSEnhancedMonitoringRole"
}

Security Scanning and Validation

Terraform Security Automation

#!/bin/bash
# security-scan.sh - Automated security scanning pipeline

set -e

echo "🔍 Starting Terraform Security Scan..."

# 1. Format check
echo "📝 Checking Terraform formatting..."
terraform fmt -check -recursive

# 2. Validate configuration
echo "✅ Validating Terraform configuration..."
terraform validate

# 3. Run tfsec for security issues
echo "🔒 Running tfsec security scan..."
tfsec . --format json --out tfsec-results.json
tfsec . --format checkstyle --out tfsec-results.xml

# 4. Run Checkov for compliance
echo "📋 Running Checkov compliance scan..."
checkov -d . --framework terraform --output json --output-file checkov-results.json
checkov -d . --framework terraform --output cli

# 5. Run Terrascan
echo "🎯 Running Terrascan..."
terrascan scan -t aws -f . --output json > terrascan-results.json

# 6. Run custom security checks
echo "🔧 Running custom security checks..."
python3 custom-security-checks.py

# 7. Generate security report
echo "📊 Generating security report..."
python3 generate-security-report.py

echo "✅ Security scan completed. Check results in security-report.html"

Custom Security Validation Script

#!/usr/bin/env python3
"""
Custom Terraform Security Checks
"""
import json
import os
import re
import sys
from pathlib import Path

class TerraformSecurityChecker:
    def __init__(self):
        self.issues = []
        self.warnings = []
        
    def check_hardcoded_secrets(self):
        """Check for hardcoded secrets in Terraform files"""
        secret_patterns = [
            r'password\s*=\s*["\'][^"\']{8,}["\']',
            r'secret\s*=\s*["\'][^"\']{16,}["\']',
            r'api_key\s*=\s*["\'][^"\']{20,}["\']',
            r'private_key\s*=\s*["\'].*BEGIN.*PRIVATE.*KEY["\']'
        ]
        
        for tf_file in Path('.').rglob('*.tf'):
            content = tf_file.read_text()
            
            for pattern in secret_patterns:
                matches = re.findall(pattern, content, re.IGNORECASE)
                if matches:
                    self.issues.append({
                        'file': str(tf_file),
                        'issue': 'Hardcoded secret detected',
                        'details': f'Pattern: {pattern}',
                        'severity': 'HIGH'
                    })
    
    def check_public_access(self):
        """Check for resources that might be publicly accessible"""
        public_patterns = [
            r'cidr_blocks\s*=\s*\[.*"0\.0\.0\.0/0".*\]',
            r'publicly_accessible\s*=\s*true',
            r'map_public_ip_on_launch\s*=\s*true'
        ]
        
        for tf_file in Path('.').rglob('*.tf'):
            content = tf_file.read_text()
            
            for pattern in public_patterns:
                matches = re.findall(pattern, content)
                if matches:
                    self.warnings.append({
                        'file': str(tf_file),
                        'issue': 'Potential public access',
                        'details': f'Pattern: {pattern}',
                        'severity': 'MEDIUM'
                    })
    
    def check_encryption_settings(self):
        """Check for missing encryption settings"""
        encryption_checks = [
            ('aws_s3_bucket', 'server_side_encryption_configuration'),
            ('aws_db_instance', 'storage_encrypted'),
            ('aws_ebs_volume', 'encrypted'),
            ('aws_rds_cluster', 'storage_encrypted')
        ]
        
        for tf_file in Path('.').rglob('*.tf'):
            content = tf_file.read_text()
            
            for resource_type, encryption_attr in encryption_checks:
                # Find resource blocks
                resource_pattern = f'resource\s+"{resource_type}"\s+"\w+"\s*\{{'
                resources = re.findall(resource_pattern, content)
                
                if resources and encryption_attr not in content:
                    self.issues.append({
                        'file': str(tf_file),
                        'issue': f'Missing encryption for {resource_type}',
                        'details': f'Missing {encryption_attr}',
                        'severity': 'HIGH'
                    })
    
    def check_default_security_groups(self):
        """Check for usage of default security groups"""
        for tf_file in Path('.').rglob('*.tf'):
            content = tf_file.read_text()
            
            if 'security_groups = ["default"]' in content:
                self.issues.append({
                    'file': str(tf_file),
                    'issue': 'Using default security group',
                    'details': 'Default security groups should not be used',
                    'severity': 'MEDIUM'
                })
    
    def generate_report(self):
        """Generate security report"""
        print("🔍 TERRAFORM SECURITY CHECK RESULTS")
        print("=" * 50)
        
        print(f"\n❌ CRITICAL ISSUES ({len(self.issues)}):")
        for issue in self.issues:
            print(f"  File: {issue['file']}")
            print(f"  Issue: {issue['issue']}")
            print(f"  Details: {issue['details']}")
            print(f"  Severity: {issue['severity']}\n")
        
        print(f"⚠️  WARNINGS ({len(self.warnings)}):")
        for warning in self.warnings:
            print(f"  File: {warning['file']}")
            print(f"  Issue: {warning['issue']}")
            print(f"  Details: {warning['details']}")
            print(f"  Severity: {warning['severity']}\n")
        
        # Return non-zero exit code if critical issues found
        if self.issues:
            print("❌ Security check failed due to critical issues")
            return 1
        else:
            print("✅ No critical security issues found")
            return 0

if __name__ == "__main__":
    checker = TerraformSecurityChecker()
    
    checker.check_hardcoded_secrets()
    checker.check_public_access()
    checker.check_encryption_settings()
    checker.check_default_security_groups()
    
    exit_code = checker.generate_report()
    sys.exit(exit_code)

CI/CD Pipeline Security

GitHub Actions Terraform Security Workflow

# .github/workflows/terraform-security.yml
name: Terraform Security Scan

on:
  pull_request:
    paths:
      - 'terraform/**'
  push:
    branches:
      - main

jobs:
  security-scan:
    runs-on: ubuntu-latest
    
    steps:
    - name: Checkout code
      uses: actions/checkout@v4
      
    - name: Setup Terraform
      uses: hashicorp/setup-terraform@v3
      with:
        terraform_version: ~1.6.0
        
    - name: Terraform Format Check
      run: terraform fmt -check -recursive
      
    - name: Terraform Init
      run: terraform init -backend=false
      
    - name: Terraform Validate
      run: terraform validate
      
    - name: Run tfsec
      uses: aquasecurity/tfsec-action@v1.0.3
      with:
        soft_fail: false
        format: sarif
        output: tfsec.sarif
        
    - name: Upload tfsec results to GitHub Security
      uses: github/codeql-action/upload-sarif@v3
      with:
        sarif_file: tfsec.sarif
        
    - name: Run Checkov
      uses: bridgecrewio/checkov-action@master
      with:
        directory: .
        framework: terraform
        output_format: sarif
        output_file_path: checkov.sarif
        
    - name: Upload Checkov results
      uses: github/codeql-action/upload-sarif@v3
      with:
        sarif_file: checkov.sarif
        
    - name: Run custom security checks
      run: |
        python3 scripts/custom-security-checks.py
        
    - name: Terraform Plan Security Review
      env:
        AWS_ACCESS_KEY_ID: ${{ secrets.AWS_ACCESS_KEY_ID }}
        AWS_SECRET_ACCESS_KEY: ${{ secrets.AWS_SECRET_ACCESS_KEY }}
      run: |
        terraform plan -out=tfplan
        terraform show -json tfplan > tfplan.json
        python3 scripts/analyze-terraform-plan.py tfplan.json

Plan Analysis Script

#!/usr/bin/env python3
"""
Analyze Terraform plan for security implications
"""
import json
import sys

class TerraformPlanAnalyzer:
    def __init__(self, plan_file):
        with open(plan_file, 'r') as f:
            self.plan = json.load(f)
        self.security_concerns = []
    
    def analyze_resource_changes(self):
        """Analyze planned resource changes for security implications"""
        if 'resource_changes' not in self.plan:
            return
            
        for change in self.plan['resource_changes']:
            resource_type = change['type']
            change_action = change['change']['actions'][0]
            
            # Check for security-sensitive resources being created/modified
            if resource_type in ['aws_security_group', 'aws_iam_policy', 'aws_s3_bucket']:
                if change_action in ['create', 'update']:
                    self.analyze_security_resource(change)
    
    def analyze_security_resource(self, change):
        """Analyze specific security-sensitive resource changes"""
        resource_type = change['type']
        after_values = change['change'].get('after', {})
        
        if resource_type == 'aws_security_group':
            self.check_security_group_rules(change['name'], after_values)
        elif resource_type == 'aws_iam_policy':
            self.check_iam_policy(change['name'], after_values)
        elif resource_type == 'aws_s3_bucket':
            self.check_s3_bucket(change['name'], after_values)
    
    def check_security_group_rules(self, sg_name, values):
        """Check security group rules for overly permissive access"""
        ingress_rules = values.get('ingress', [])
        
        for rule in ingress_rules:
            cidr_blocks = rule.get('cidr_blocks', [])
            from_port = rule.get('from_port')
            to_port = rule.get('to_port')
            
            # Check for 0.0.0.0/0 access
            if '0.0.0.0/0' in cidr_blocks:
                # SSH access from anywhere
                if from_port == 22 or to_port == 22:
                    self.security_concerns.append({
                        'resource': sg_name,
                        'issue': 'SSH access from 0.0.0.0/0',
                        'severity': 'HIGH',
                        'recommendation': 'Restrict SSH access to specific IP ranges'
                    })
                
                # RDP access from anywhere  
                if from_port == 3389 or to_port == 3389:
                    self.security_concerns.append({
                        'resource': sg_name,
                        'issue': 'RDP access from 0.0.0.0/0', 
                        'severity': 'HIGH',
                        'recommendation': 'Restrict RDP access to specific IP ranges'
                    })
    
    def check_iam_policy(self, policy_name, values):
        """Check IAM policies for overly broad permissions"""
        policy_document = values.get('policy')
        
        if policy_document:
            try:
                policy = json.loads(policy_document)
                statements = policy.get('Statement', [])
                
                for statement in statements:
                    actions = statement.get('Action', [])
                    resources = statement.get('Resource', [])
                    
                    # Check for wildcard permissions
                    if '*' in actions and '*' in resources:
                        self.security_concerns.append({
                            'resource': policy_name,
                            'issue': 'Overly broad IAM policy with * actions and * resources',
                            'severity': 'HIGH',
                            'recommendation': 'Use least privilege principle with specific actions and resources'
                        })
            except json.JSONDecodeError:
                pass
    
    def generate_report(self):
        """Generate security analysis report"""
        print("🔍 TERRAFORM PLAN SECURITY ANALYSIS")
        print("=" * 50)
        
        if not self.security_concerns:
            print("✅ No security concerns found in the Terraform plan")
            return 0
        
        print(f"⚠️  Found {len(self.security_concerns)} security concerns:\n")
        
        for concern in self.security_concerns:
            print(f"Resource: {concern['resource']}")
            print(f"Issue: {concern['issue']}")  
            print(f"Severity: {concern['severity']}")
            print(f"Recommendation: {concern['recommendation']}\n")
        
        # Fail if high severity issues found
        high_severity = [c for c in self.security_concerns if c['severity'] == 'HIGH']
        if high_severity:
            print(f"❌ Found {len(high_severity)} HIGH severity security issues")
            return 1
        
        return 0

if __name__ == "__main__":
    if len(sys.argv) != 2:
        print("Usage: python3 analyze-terraform-plan.py <plan.json>")
        sys.exit(1)
    
    analyzer = TerraformPlanAnalyzer(sys.argv[1])
    analyzer.analyze_resource_changes()
    exit_code = analyzer.generate_report()
    sys.exit(exit_code)

Key Takeaways

Securing Terraform requires a layered approach:

Development Phase

  • Never hardcode secrets - use external secret managers
  • Validate inputs - use variable validation rules
  • Follow least privilege - especially for IAM policies
  • Enable encryption - for all data at rest and in transit

Pipeline Phase

  • Automated scanning - integrate multiple security tools
  • Plan analysis - review changes before deployment
  • Security gates - fail builds on critical issues
  • State protection - secure backend configuration

Runtime Phase

  • Continuous monitoring - watch for configuration drift
  • Regular audits - review and update security posture
  • Incident response - have playbooks for security events

Remember: Infrastructure as Code amplifies both good and bad practices. A single misconfigured resource can create massive security exposure, but proper IaC security practices create a strong foundation for your entire cloud environment.

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