How to protect your business from third-party cybersecurity risks

In today’s connected business landscape, collaboration with third-party providers is necessary for most companies. However, this dependency also brings risks, particularly in the area of ​​cybersecurity. Vendors and suppliers, often viewed as extensions of a company, can inadvertently become significant vulnerabilities that cybercriminals exploit.

A report published earlier this year by SecurityScorecard illustrates the extent of the problem. According to the study, “98% of organizations are associated with a third party that has suffered a breach, and these third-party attacks account for 29% of all breaches.” These numbers are staggering and underscore the importance of addressing security risks beyond your internal operations to address.

What makes third-party providers a common gateway for hackers and how can your organization mitigate these risks? Let’s delve deeper.

Why third parties are a target

Third-party providers often lack the same robust cybersecurity measures as larger companies, making them attractive targets for attackers. Here are some common reasons why they pose a risk:

• Inadequate security practices: Many providers prioritize convenience over security and fail to take comprehensive protective measures. For example, outdated software, weak encryption, or a lack of multifactor authentication can reveal vulnerabilities.
• Ignorance of Cyber ​​Threats: Smaller providers may not be aware of the sophisticated hacking techniques in use today. This lack of awareness means they may not immediately detect or respond to breaches, giving attackers more time to exploit their systems.
• Common access points: Vendors and suppliers often need sensitive systems or data access to perform their tasks. These common access points can serve as a gateway for cybercriminals to break into your network.
• Complex supply chains: Because there are multiple tiers of subcontractors, each with potential vulnerabilities, ensuring security throughout the supply chain becomes increasingly difficult.

See also: Cybersecurity training is critical

How to protect your company from third-party vulnerabilities

Just last week I wrote an article about the need to train your employees about ransomware detection and protection. But training your workforce is not enough. Mitigating the risk of supplier-related violations requires proactive measures and continuous monitoring. Here are some best practices to protect your business:

• Conduct thorough and ongoing security assessments. Regularly assess your vendors’ cybersecurity practices by:
  • Questionnaires and Audits: Request details about their security policies, certifications and incident response plans.
  • Third-party security ratings: Use tools like SecurityScorecard to assess a provider’s cybersecurity posture.
• Restrict third party access. Adopt the principle of least privilege and only grant access to the systems or data you absolutely need. You can do this with:
  • Network segmentation: Isolate sensitive areas of your network to prevent a security breach in one system from spreading to other systems.
  • Temporary credentials: Use time-based credentials that expire once a provider’s task is completed.
• Implement strong contractual agreements This requires including cybersecurity requirements in your supplier contracts. These should indicate the following:
  • Compliance standards: Providers should adhere to industry-specific regulations.
  • Breach Notification: Require providers to notify you immediately if they experience a breach.
  • Liability provisions: Describe the consequences if their negligence results in a breach that affects your business.
• Use continuous monitoring tools
  • Technology can automate the monitoring of your vendors’ cybersecurity practices. Tools can track potential vulnerabilities, flag risks, and provide real-time insights into a supplier’s compliance with your security requirements.
• Inform your suppliers
  • Not all suppliers have the resources to maintain robust cybersecurity measures. Just as you’ve trained your employees, consider providing training, sharing best practices, or collaborating on security improvements. This can strengthen your entire supply chain.

The importance of a collaborative approach

It is important to remember that in most cases a third party breach occurs unintentionally and without any malicious intent on the part of the supplier. Protecting against third-party security breaches requires collaboration between your company and your suppliers. Treat cybersecurity as a partnership:

• Share threat intelligence: Inform your vendors about emerging threats and encourage them to do so.
• Promote transparency: Create an open line of communication to address security concerns without hesitation.

Protecting against cyberattacks is a “general” effort

In a world where a single weak link can compromise an entire network, ensuring the security of your supply chain is not just good practice; It is important. Take action today to protect your business from third-party vulnerabilities.