Third-Party Data Breaches What You Need to Know

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In today’s interconnected world, businesses rely heavily on third-party vendors and service providers to streamline their operations and drive innovation. However, when it comes to data security, handing over sensitive information to an external party can expose your company to a heightened risk of cyber threats. As a leading tech staff outsourcing company that recruits cybersecurity specialists and software architects, we understand how crucial data protection measures are in this digital landscape. In this blog post, I’ll explore what you need to know about third-party data breaches, how they can impact your organization, and what preemptive steps you can take to mitigate these vulnerabilities.

Key Takeaway
  • Third-party data breaches are becoming more common due to the increasing integration of businesses and supply chain complexity, among other reasons. Small subcontractors are also being targeted due to their lack of proper information security practices, which makes them vulnerable to attacks.
  • Several high-profile third-party data breaches have occurred in recent years, such as the Okta data breach, the Cyberattack on Toyota’s supplier, and the Log4j vulnerability leading to third-party data breaches. These incidents underline the importance of mitigating the risk of third-party data breaches.
  • To mitigate the risk of third-party data breaches, organizations should identify and assess third-party vendors, establish clear expectations and contractual agreements with vendors, implement information security controls and monitor vendors’ compliance, and conduct regular audits and assessments of third-party vendors.

Table of Contents

Introduction

Third-Party Data Breaches: What You Should Keep In Mind

With the growing use of third-party services, data breaches can happen in various ways. It is imperative to consider the potential security risks that come with sharing data with third-party services.

If a third-party vendor has access to an organization’s data, a breach in their systems can lead to unauthorized access and disclosure of sensitive information. In most cases, these incidents happen because of vulnerabilities in the vendor’s security protocols. Therefore, you should be vigilant when choosing third-party services and ensure that they comply with your security standards.

It is essential to have a plan in place in case of a third-party data breach. Your plan should include identifying the data that may have been compromised and notifying the affected parties. Additionally, you should review and update your vendor management policies regularly to minimize the risks associated with third-party services.

In 2019, Capital One experienced a third-party data breach that revealed over 100 million of their customers’ personal and credit card details. This incident highlighted the importance of scrutinizing third-party data security measures and having a response plan in place.

To summarize, third-party data breaches can cause significant harm to organizations. Being proactive and vigilant about the security of third-party services is vital to prevent such incidents and minimize their impact.

Reasons for third-party data breaches

In today’s interconnected world, businesses rely heavily on third-party vendors and service providers to streamline their operations and drive innovation. However, when it comes to data security, handing over sensitive information to an external party can expose your company to a heightened risk of cyber threats. As a leading tech staff outsourcing company that recruits cybersecurity specialists and software architects, we understand how crucial data protection measures are in this digital landscape. In this blog post, I’ll explore what you need to know about third-party data breaches, how they can impact your organization, and what preemptive steps you can take to mitigate these vulnerabilities.

Increasing integration of businesses

Businesses now have higher integration, linking their computer systems with numerous external companies. This leads to more risks for businesses due to increased sources of vulnerabilities and exploits. Breaching a single vendor can enable hackers to infiltrate several interconnected businesses in the same network. As companies rely on each other, awareness of third-party data breaches and how to prevent them should be a top priority.

The integration of businesses brings higher complexity in supply chains, making it challenging for firms to preserve information security measures for every vendor and supplier easily. Businesses prefer outsourcing to subcontractors and smaller suppliers, the prime targets for hackers who seek less protected entry points. Smaller subsidiaries are easy targets for attackers and often consider setting their own protection standards to be unnecessary.

It is crucial now more than ever that companies recognize the risks from data breaches in their supply chain as statistics reveal increasing incidents of third-party hacks globally affecting organizations of all sizes. While some firms have fallen prey during attacks, others remained unscathed by taking proactive steps towards risk mitigation through monitoring vendors’ information security standards and practices.

Pro Tip: Regular cybersecurity audits can prevent massive financial losses due to third-party data breaches while building customers’ trust in doing business with your company.

Supply chain complexity: the perfect recipe for third-party data breaches.

Supply chain complexity

With the increasing integration of businesses, supply chain complexity has become a major challenge for organizations, making them more vulnerable to third-party data breaches. Complex supply chains have numerous suppliers, subcontractors and vendors involved, making it difficult for companies to monitor each one’s security practices. This can lead to security gaps that bad hackers exploit to access sensitive data through the weakest link.

Furthermore, targeting smaller subcontractors has become a common attack method due to their lack of awareness about cybersecurity and limited resources for implementing proper information security controls. Hackers use social engineering tactics such as phishing emails or phone calls to trick employees into granting access or sharing login credentials.

To mitigate the risk of third-party data breaches caused by supply chain complexity, organizations can:

  1. identify and assess third-party vendors based on specific risk profiles.
  2. establish clear expectations and contractual agreements with these vendors, outlining information security policies and procedures for compliance.
  3. implement information security controls and conduct regular audits and assessments of third-party vendors to ensure compliance with these policies.

In doing so, they can mitigate potential vulnerabilities in the supply chain and greatly reduce the likelihood of a successful breach.

When it comes to third-party data breaches, hackers don’t discriminate – the little guys are often the biggest target.

Targeting smaller subcontractors

Smaller subcontractors are increasingly becoming targets of third-party data breaches. Hackers target smaller vendors as they have weaker security protocols and are easier to breach compared to larger businesses. The lack of proper information security practices by small businesses further puts them at risk. Additionally, it is easier for hackers to infiltrate the supply chains of bigger businesses through smaller vendors, making them a prime focus for cyber attackers.

In recent years, many prominent third-party data breaches have taken place primarily by targeting smaller subcontractors. For instance, the ransomware attack on Kaseya’s customers and the Log4j vulnerability leading to third-party data breaches were caused due to vulnerabilities in software provided by smaller vendors. These incidents can result in significant losses for not just small subcontractors but their clients as well.

It is essential for businesses to take measures that can mitigate the risk of targeting smaller subcontractors – one such measure is identifying and assessing potential third-party vendors’ information security readiness and standards before outsourcing or partnering with them. Establishing clear expectations, contractual agreements, implementing information security controls and monitoring vendor compliance regularly can also help reduce risks.

According to a report by Security Magazine, 44% of data breaches occur due to third parties failing to uphold their responsibilities adequately. It is necessary for all companies sharing vital information with third-party vendors to pay heed to cybersecurity risks and take proactive measures towards its prevention.

So why are small businesses the weak link in your security chain?   Let’s explore why they’re the tiny hinges that can swing open giant breach doors.

Lack of proper information security practices by small businesses

Small businesses often lack the necessary information security practices to protect against third-party data breaches.   In fact,  according to Verizon’s Data Breach Report an alarming 43% of cyber attacks target small businesses.

This lack of proper practices increases their vulnerability to cyberattacks, which is exploited by attackers. Due to budget constraints and limited resources, small businesses typically neglect cybersecurity measures, making them an easy target for cybercriminals.

These businesses are unaware of the potential risks and do not have adequate protocols in place to handle sensitive data, leading to security lapses. As more businesses are interconnected, attackers target smaller subcontractors and other third-party vendors as a point of entry into larger networks with valuable data.

Therefore, it is crucial that small businesses understand the importance of proper information security practices. They should take necessary measures to safeguard their data and establish secure connections with third party vendors.

When it comes to data breaches, hackers know that sometimes it’s easier to target the little guy – and by little guy, I mean the smaller subcontractors with weaker security protocols.

Higher likelihood of success in breaching third-party vendors

Third-party vendors are at a higher risk of falling prey to data breaches due to several reasons. As we have already discussed, the primary cause is the fact that cybercriminals find it easier to breach smaller contractors or subcontractors, which may have weaker security practices in place. Another factor is the growing complexity of supply chain networks and business integration, which makes it easier for attackers to gain access through one vulnerable point. Additionally, third-party vendors may have weak cybersecurity processes, making them prime targets for hackers. Finally, attempting to breach larger enterprises can be more challenging than going after their smaller suppliers.

For instance, in the recent Okta data breach, attackers gained access via an unprotected third-party communication system. In another example, cybercriminals used a vulnerability in Kaseya VSA software to launch a ransomware attack on customers of the software vendor. To mitigate the risk of these occurrences, businesses need to identify and assess third-party vendors before entering into contracts with them. Clear contractual agreements should also be established with expectations outlined from both parties. Information security controls should be put in place alongside monitoring vendors’ compliance while conducting regular audits and assessments.

If you need help doing that, companies like TurnKey Labs, a well-established and highly-regarded Silicon Valley tech staffing company, specialize in finding the perfect tech professionals to fill these roles, including cybersecurity specialists and software architects. With their experience in building developer teams and sourcing high-quality tech professionals, they are a great place to find the right cybersecurity specialists and software architects for your business.

It is vital always to stay vigilant when it comes to third-party vendor security risks because even large companies have succumbed; Target’s 2013 hack was traced back to hackers stealing credentials from an HVAC contractor’s network! Third-parties may be a weak link in the cybersecurity chain, as evidenced by so many headline-making breaches in the last few years.

Cooperate with turnkey labs to hire cybersecurity specialists

Examples of prominent third-party data breaches

As I dug deeper into the world of third-party data breaches, the extent of the issue became clear. Scrolling through numerous news articles and security reports, I found a disturbing trend – third-party breaches are becoming more common and more severe. In this section, we will explore real-life examples of prominent third-party data breaches, each with its own unique circumstances and consequences. From the Okta data breach to the Kaseya VSA software vulnerability, we will delve into the specifics of each breach, and discuss the larger implications for individuals and businesses alike. The stories of these breaches serve as a stark reminder of the importance of robust security measures in today’s interconnected world.

Okta data breach

The Security Incident Involving Okta’s Systems

In 2021, there was a security incident involving Okta, a cloud-based identity and access management provider. The breach resulted from unauthorized access to an administrative API token that enabled the attacker to execute API calls for one of the company’s production servers. The unknown attacker had gained access to the server using stolen credentials from an Okta customer, which were used by the attacker to access other third-party systems.

Okta discovered the breach during its login monitoring activities and took immediate action to invalidate the compromised tokens and secure its systems. While the investigation showed that no customer data was accessed or exfiltrated, Okta took swift measures to enhance its security posture and avoid future incidents.

This incident highlights how third-party data breaches can have ripple effects throughout digital ecosystems and emphasizes the need for stringent security practices to protect against external threats. To effectively mitigate such risks, organizations must identify and assess their third-party vendors’ information security practices, establish clear expectations and contractual agreements, implement information security controls, conduct regular audits and assessments of those vendors, among other measures.

It also looks like Toyota’s supplier had a head-on crash with a cyberattack – I sure hope they had their seatbelts on!

Cyberattack on Toyota's supplier

A supplier of Toyota became a victim of a cyberattack resulting in unauthorized access to networks and sensitive data. The complexity of the supply chain allowed attackers to exploit vulnerabilities, compromising the supplier’s systems. The breach enabled hackers to extract confidential information, leading to loss and reputational damage for both the supplier and Toyota.

The cyberattack on Toyota’s supplier highlights the risks associated with third-party vendors, especially those within a complex supply chain. Such incidents could have grave implications for business continuity, security, and reputation.

Attackers targeted smaller subcontractors as they can be easier targets compared to larger organizations with more significant security measures in place. This attack could have been mitigated through proper vetting and assessment of vendors’ cybersecurity practices by Toyota.

It is lamentable that such incidents continue despite corporations recognizing these risk factors. Therefore businesses should prioritize proactive measures such as implementing adequate information security controls, monitoring compliance regularly of their vendors and conducting frequent audits and assessments checks.

According to cybersecurity firm Intezer, advanced persistent threat groups used an array of sophisticated tactics like API exploitation against victims like Toyota’s supplier (source: https://www.cbronline.com/news/toyota-hackers-supply-chain-risk).

It looks like even doctors need to start taking a cybersecurity prescription – as healthcare providers’ records were hacked through their own EMR platform.

Healthcare providers' records were compromised due to a ransomware attack on third-party EMR platform

The compromise of healthcare providers’ records occurred due to a ransomware attack on a third-party Electronic Medical Record (EMR) platform. The attack led to unauthorized access to patient data including personal and medical information that could be used for identity theft or other illegal activities. This is among the most severe consequences of third-party data breaches in the healthcare sector.

In recent years, healthcare organizations have increasingly adopted EMR platforms provided by third-party vendors to improve operational efficiency and reduce costs. However, this has also exposed them to an increased risk of cyber attacks as they rely on these platforms for secure storage and handling of sensitive patient data.

One unique aspect of this type of breach is that it can go undetected for months or even years, making it extremely challenging to identify and contain. Furthermore, these attacks can result in significant financial losses for healthcare providers who may face costly litigation from affected patients.

Pro Tip: Healthcare organizations must conduct regular security assessments and risk management practices with third-party vendors to mitigate the risks associated with using their services. Additionally, they should develop strict contractual agreements that define the vendor’s roles and responsibilities, including information security requirements, incident response protocols, and liability indemnification clauses.

Before TurnKey Labs, their founders had a SaaS in the health sector.  Thanks to this first-hand experience, they have a deep understanding of the security complexities that healthcare organizations need and can help recruit the perfect cybersecurity specialists and software architects for your healthcare organization. 

Here’s a case where Log4j really tested the saying no news is good news for companies relying on third-party software.

Log4j vulnerability leading to third-party data breaches

A vulnerability in Log4j has led to several third-party data breaches. Hackers exploited this vulnerability in the open-source software for logging and caused significant damage across multiple industries. The breach allowed hackers to remotely execute code on servers, bypass authentication processes, and access sensitive information. As firms rely heavily on third-party vendors, such as cloud providers or software suppliers, hackers can use their vulnerabilities to gain access to previously secure systems.

In some cases, companies could not identify the affected third-party vendors and suffered due to contractors’ poor security practices. These breaches highlight the importance of strengthening supply chain cyber protections and ensuring that risk assessments are thorough and ongoing. Failure to do so could result in devastating consequences for personal privacy, company reputations, and overall trust in digital services.

Organizations must take proactive steps towards identifying high-risk vendors with immediate measures to manage and minimize threats proactively while keeping up with cybersecurity challenges innovatively. It is also crucial to create clear expectations for cybersecurity practices during contractual agreements with third-party vendors. The risks from potential exposure of customer records need a unified strategy assessing which information they hold, who touches it, how it gets stored, and how it’s disposed of when no longer necessary.

Staying vigilant against potential cybersecurity threats prompts an active opportunity for organizations’ protection instead of leaving them susceptible to harm’s detriment if left unprotected or inadequately secured. Without proper security controls, continuous monitoring of vendor compliance information may ceaselessly thwart attempts at containing data from falling into unauthorized hands.

Just like at Kaseya’s VSA software.  It provided the perfect ingredients for a ransomware recipe.

Kaseya VSA software vulnerability leading to ransomware attack on Kaseya's customers

A software vulnerability in Kaseya VSA resulted in a ransomware attack on its customers. This was due to the exploitation of a flaw within Kaseya’s remote monitoring and management software, allowing hackers to remotely execute code and distribute ransomware to potentially hundreds of businesses that used the Kaseya VSA platform. The attack was one of the largest supply chain attacks ever seen, affecting upwards of 1500 organizations worldwide.

The incident highlighted the importance of mitigating third-party risk by thoroughly vetting vendors before entering into business relationships with them. Establishing clear expectations through contractual agreements and implementing information security controls are crucial for limiting exposure and reducing vulnerability to such attacks.

It is worth noting again that third-party attacks have increased in frequency and severity due to the increasing integration of businesses, supply chain complexity, targeting smaller subcontractors with weaker security infrastructure, lack of proper information security practices by small businesses, and higher likelihood of success in breaching third-party vendors.

This particular case demonstrated how breaches in third-party systems can have a ripple effect across multiple businesses and industries. Ensuring proper vetting procedures and taking proactive measures to mitigate risk will be critical moving forward to avoid similar incidents.

And finally, it looks like Mercedes-Benz customers got a free upgrade to a cloud leak package.

Third-party vendor's cloud storage flaw leading to leakage of Mercedes-Benz customer information

A flaw in the cloud storage of a third-party vendor resulted in the leakage of sensitive customer information from Mercedes-Benz. This is a prominent example of how a third-party supplier’s inadequate security measures can lead to disastrous data breaches that adversely affect consumers and companies.

Mercedes-Benz’s customers had their personal and financial information exposed due to this third-party vendor’s vulnerability, highlighting the critical need for businesses to conduct thorough assessments of their vendors’ security practices. Such flaws can arise due to the way cloud storage is configured, which can expose data to unauthorized access and theft if not adequately protected.

This breach demonstrates how important it is for companies to establish clear expectations and contractual agreements with third-party vendors when it comes to data protection, as well as implementing controls, monitoring compliance and conducting regular audits. By doing so, businesses will be able to mitigate potential cybersecurity risks effectively.

It is imperative that businesses understand the significance of such third-party data breaches, ensuring that steps are taken proactively in assessing vendor security protocols before partnering with them. Failure could result in similar consequences felt by Mercedes-Benz customers and expose other vulnerable systems on an organization’s network.

Don’t let your third-party vendor be the weakest link in your cybersecurity chain – mitigate the risk with thorough assessments and clear expectations.

Mitigating the risk of third-party data breaches

Based on my research, it’s alarming to learn that nearly 60% of all third-party breaches occur within small and medium-sized businesses. As a result, mitigating the risk of third-party data breaches is critical for businesses of all sizes. This section will explore ways to minimize this risk by:

  1. Identifying and assessing third-party vendors
  2. Establishing clear expectations and contractual agreements with vendors
  3. Implementing information security controls
  4. Conducting regular audits and assessments of third-party vendors

By implementing these strategies, businesses can reduce their risk of a third-party data breach and better protect sensitive data.

Identifying and assessing third-party vendors

To mitigate the risk of third-party data breaches, identifying and assessing third-party vendors is crucial. This involves conducting due diligence to vet potential vendors before onboarding them and performing periodic assessments to ensure their ongoing compliance with information security controls.

When identifying potential vendors, it’s important to review their track record of cybersecurity incidents. This can include checking for any past data breaches, evaluating their previous clients’ satisfaction levels, and assessing the level of security measures they have in place.

Once potential vendors have been selected, performing a risk assessment to evaluate the level of risk posed by each vendor is recommended. Factors such as the type of service they provide, the amount and sensitivity of data they will have access to, and their location should be considered in this evaluation.

Periodic assessments are also important once vendors are onboarded. These can involve regular reviews of vendor compliance with regulatory requirements, monitoring their cybersecurity posture through vulnerability scans or penetration testing mitigation efforts, or conducting interviews with vendor personnel to assess their understanding and adherence to policies.

One example of a vendor assessment gone wrong occurred when Target outsourced its payment processing to a third party who had inadequate security controls. Hackers were able to access Target’s systems through this vendor’s weak point of entry and steal millions of customer credit card details.

By thoroughly vetting potential third-party vendors before onboarding them and regularly assessing ongoing compliance levels, businesses can reduce the likelihood of experiencing a breach due to a vendor’s security deficiencies.

Don’t leave anything to chance – establish clear expectations and contractual agreements with your vendors to avoid data breaches.

Establishing clear expectations and contractual agreements with vendors

Ensuring that third-party vendors understand the expectations clearly and setting agreements in writing is crucial to mitigate the risk of data breaches. Clear communication of expectations will help define the scope, responsibilities, consequences of non-compliance, timelines, etc. A written agreement provides legal protection and clarity on any disputes that may arise.

Organizations must draft contracts with vendors that reflect their security posture and standards. Contracts should clearly define critical information like security obligations, data handling provisions, training requirements, reporting responsibilities, compliance certifications required from vendors.

It’s crucial to conduct vendor due diligence before partnering with them. Besides understanding their security practices and policies, it’s essential to check whether they have any past cyber incidents or vulnerabilities.

In one such incident involving Target, a massive breach compromised sensitive customer information as cybercriminals breached their HVAC system supplier’s network through stolen credentials. If Target had vetted its suppliers’ networks for appropriate access management policies and secure infrastructure practices or monitored how suppliers were accessing their systems regularly, they could have prevented the breach.

Therefore organizations must establish clear expectations aligned with contractual agreements while partnering with third-party vendors to avoid cyber risks and protect sensitive data from compromise.

Keep an eye on your vendors, so they won’t let others keep an eye on your data.  You can do this by implementing information security controls, which we will explore next.

Implementing information security controls and monitoring vendors' compliance

To ensure data security through third-party vendors, it is essential to implement information security controls and monitor vendors’ compliance. This involves establishing guidelines for vendors to comply with implementing information security measures. Simultaneously, a thorough monitoring process needs to be in place to evaluate the effectiveness of such controls and identify any potential vulnerabilities.

Organizations should mandate that vendors comply with cybersecurity policies and standards that include robust protection measures against hacking attempts, malware intrusion, and data breaches. The implementation process should involve regular vulnerability assessments, patch management, data encryption, access controls, and data backup strategies.

Moreover, organizations need to regularly review their vendors’ compliance to prevent potential risks that could lead to a data breach. Continuous monitoring through audits is an effective way of ensuring a vendor’s compliance with established policies.

A prime example of non-compliance with regulations is the Target data breach in 2013. The retailer did not adequately monitor their third-party vendor’s network credentials leading to a massive data breach containing millions of customers’ critical information.

Monitoring your third-party vendors is similar to practicing vigilance in any important aspect of life – it may seem overcautious, but it is essential for maintaining a strong and trustworthy connection.

Conducting regular audits and assessments of third-party vendors

Regular Audits and Assessments of Third-Party Vendors are integral parts of any organization’s data security management strategy. These evaluations ensure that third-party vendors comply with the information security policies established by your company when accessing or processing data, and protect against the risks associated with third-party data breaches.

  • Conducting regular audits and assessments of third-party vendors enables you to identify any gaps in their security controls that may leave you vulnerable to cyberattacks.
  • It ensures that vendors are adhering to contractual commitments regarding the sensitivity and handling of sensitive data, as well as best practices for securing and protecting it.
  • Periodic monitoring can provide timely detection of potential security risks caused by vulnerabilities in vendor systems, better aligning risk mitigation measures with overall risk exposure risk profile.
  • Performing periodic audits also brings a higher level of transparency and accountability among all parties involved – encouraging continuous improvements from both vendor management stakeholders based on actionable insights gained from assessment result reporting.
  • The results garnered from conducting regular audits place stringent demands on third parties resulting in improved trust between organizations’ relationships.

Given the increasing frequency and severity of third-party data breaches, conducting regular audits and assessments is essential to ensure that your business remains secure. By comprehensively evaluating third-party vendor’s ability to combat cyber threats, including evaluating end-to-end delivery logistics process, incorporating detailed analysis report based on evaluation outcome implies reviewing comprehensive vulnerability scans over time—among other processes—you can minimize your exposure to such digital vulnerabilities.

Partner with experts for training resources focusing on identifying cyber risks from a user level perspective integrated into your organizational workflow utilizing these auditing reports leveraging advanced analytic capabilities will improve your ability to take proactive steps towards mitigating threats thereby enabling efficient, secure collaboration throughout third-party supply-chain ecosystems.

Want to take your security to the next level? That’s where TurnKey can help. As a team, we have extensive experience in helping clients navigate the nuances of hiring dedicated cybersecurity specialists and software architects.  We understand the challenges involved in the process, and that’s why we have a sterling reputation.

Conclusion

Third-Party Data Breach Impacts: What You Need to Know

Third-party data breaches can have severe impacts on organizations. Understanding the risks of third-party sharing and taking measures to prevent and mitigate the consequences are essential for every organization. It is necessary to evaluate the risks and benefits of third-party relationships before entering into any agreement with them. Additionally, regular monitoring and auditing of third-party access to critical data are crucial in safeguarding sensitive information from malicious attacks.

Organizations may face reputational damage and legal consequences due to third-party data breaches. Remember that Target data breach I mentioned before that was caused by a third-party HVAC vendor’s credentials being stolen?  The hack led to the exposure of 40 million customer card details and 0 million settlement with customers, in addition to numerous lawsuits and regulatory sanctions.

Five Facts About Third-Party Data Breaches: What You Need to Know:

  • ✅ Third-party data breaches occur when malicious hackers compromise vendors, suppliers, and contractors to gain access to sensitive data at the victim’s partners. (Source: Team Research)
  • ✅ Hackers often target smaller subcontractors to bypass robust cybersecurity programs at larger organizations. (Source: Team Research)
  • ✅ In recent years, attacks against critical players in the supply chain ecosystem have increased, significantly damaging companies throughout the software supply chain. (Source: Team Research)
  • ✅ Third-party data breaches can result in millions of dollars in fines, legal fees, and penalties, along with reputational damage. (Source: Team Research)
  • ✅ To mitigate the risk of a third-party data breach, organizations can ask third parties eight important questions, including whether they have identified and patched log4j vulnerabilities. (Source: Prevalent)

FAQs about Third-Party Data Breaches: What You Need To Know

What is a third-party data breach?

A third-party data breach occurs when malicious hackers compromise a vendor, supplier, contractor, or other organization in order to gain access to sensitive information or systems at the victim’s customers, clients or business partners.

Why are third-party data breaches increasing?

Third-party data breaches are becoming increasingly common as technology makes it easier for businesses to connect and as global supply chains grow in complexity. Organizations are often unable to visualize where their data goes, and proprietary or sensitive data can easily be shared with suppliers and subcontractors that the contracting organization knows little to nothing about.

What steps can organizations take to mitigate the risk of third-party data breaches?

Organizations can take steps to mitigate their risk of third-party data breaches. These include developing and implementing comprehensive vendor risk management programs, conducting regular assessments of third-party vendors, and ensuring that all third-party vendors comply with the organization’s data management and IT security policies.

What are some examples of prominent companies compromised by third-party vendors?

Examples of prominent companies that were compromised by third-party vendors include Okta, Toyota, Eye Care Leaders, Kaseya, and Mercedes-Benz. In each case, a third-party vendor was compromised, and this allowed the attackers to gain access to sensitive information or systems belonging to the victim organization or its clients.

Why are small businesses particularly vulnerable to third-party data breaches?

Small businesses have consistently lagged behind in adopting robust information security practices despite the fact that 43% of attacks target them. This makes them particularly vulnerable to third-party data breaches. Malicious hackers are incentivized to target smaller subcontractors to bypass robust and well-funded cybersecurity programs at larger organizations.

What are some best practices for remote monitoring & management and cloud storage platform security to prevent third-party data breaches?

Best practices for remote monitoring & management and cloud storage platform security include ensuring that all third-party vendors are vetted and comply with the organization’s security policies, implementing regular security assessments and audits, and promptly addressing any security vulnerabilities that are identified. Additionally, organizations should ensure that all data stored in the cloud is encrypted and that access controls are strictly enforced to prevent unauthorized access.

June 5, 2023

TurnKey Staffing provides information for general guidance only and does not offer legal, tax, or accounting advice. We encourage you to consult with professional advisors before making any decision or taking any action that may affect your business or legal rights.

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