Enterprises can defend against XSS flaws by carefully filtering user input and output to remove the characters that are associated with scripts, including =<>'"();&. In the past, most organizations focused on controlling and filtering only the input. Certainly, that's a good idea. Still, an attacker could infiltrate an application via an unguarded input stream. Some enticing targets include magnetic stripes, Electronic Data Interchange...
feeds and paper-based postal mail that gets scanned in and converted via OCR. If Web applications start sending an attacker's malicious browser script, users are in jeopardy. To avoid this, filter the application output for malicious scripts as well. Of course, you should also filter for any legitimate browser scripts that are used and allow them to be sent to browsers. Certain data-pulling functions, however, should never have browser scripts. In these cases, filters should be applied before the final pages are composed and sent back to the browser.
Dig deeper on Application Attacks (Buffer Overflows, Cross-Site Scripting)
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