In today’s market, businesses are increasingly reliant on third-party services. Many businesses outsource significant amounts of work to specialists without adequate cybersecurity controls or transparency. Nonetheless, each vendor with whom you work has an impact on your cybersecurity.

 

Understanding a Third-Party Security Breach

 

A third-party security breach usually involves the leaking of sensitive or personal information from a third-party vendor. Through vendor systems, hackers gain access to your system.

 

In short, the third-party link is used to gain access to and steal sensitive data, jeopardizing clients’ and businesses’ privacy and security. This type of attack has the potential to permanently harm your company’s reputation and cause significant financial losses.

 

To avoid this, here are some basic security measures to implement right now.

 

First, Evaluate Your Vendors

 

Before bringing on a new partner, understand the risks and how to mitigate them. Adequate due diligence necessitates an examination of potential vendors’ security practices and vulnerabilities.

 

Using security ratings allows your company to gain a better understanding of the vendor’s external security infrastructure. This removes the need for time-consuming risk assessment procedures like on-site visits and penetration tests.

 

The reports can be shared with the vendor to assist in problem resolution or used to compare their performance to competitors. The rating will accurately reflect the transaction’s risks and will assist you in making an informed decision.

 

 

Second, Create an Inventory Management System

 

It is impossible to accurately assess the level of risk posed by third parties without clear monitoring. Thus, create an inventory system to help your company determine your third-party vendors and what information they have access to.

 

This system allows you to keep an eye on your vendors and detect threats early on. Rather than waiting for infrequent review dates, they should immediately update their ratings. You require issue detection in real-time.

 

Third, Collaborate with Third-Party Services

 

In engaging and collaborating with third-party services, soliciting cybersecurity enhancements should be done in a non-aggressive manner.

 

While no breach is completely avoidable, you can work together to reduce risks. Educating your vendors on the changes that must be made and why they must be made will help to protect your data and systems.

 

Fourth, Review Contract Risk Management Efforts

 

Risk management provisions should always be included in your company’s contracts with third parties. This ensures that your vendors are held accountable in the event of a data breach.

 

Contracts with our clients should contain the following provisions:

 

• That the vendor maintains a security rating above a certain threshold.
• The right to receive a quarterly security questionnaire. This will bring to light any cybersecurity issues that have been overlooked by external rating agencies.
• Any cybersecurity issues must be reported to you and resolved within 72 hours.

 

Fifth, Cut Ties with Untrustworthy Vendors

 

Implement an off-boarding procedure if they fail to take adequate steps to maintain their cybersecurity standards or violate their contractual obligations. The importance of an effective off-boarding strategy is frequently overlooked by risk management. Demonstrate your willingness to cut ties in the event of a data breach or ransomware attack.

 

Sixth, Assess Third-Party Liabilities

 

As with knowing and monitoring your onboarded vendors, your company must consider who they rely on and who else might have access to your data.  Your sensitive data may be exposed to companies with lax security standards if risk assessment and mitigation are not performed. Businesses should be required to notify you whenever they share data with a third or even a fourth party.

 

Seventh, Train Employees at All Levels

 

The information technology department is not solely responsible for your company’s cybersecurity. Employee training at all levels will aid in the prevention of avoidable violations. Teach all employees about basic cybersecurity practices and incorporate them into daily operations.

 

 

When it comes to cybersecurity, companies should be well aware of the risks and protective measures that must be taken. This will also involve partners, collaborators, and employees. With everyone’s compliance, third-party security breaches can be prevented at all costs.

 

FraudWatch is a team of experts who specialize in brand protection, such as ransomware prevention services. With our esteemed expertise, you are assured of high-quality security. Get in touch with us today!