The Most Common Causes of a Third-Party Security Breach and How to Prevent Them

In today’s connected world, organizations increasingly rely on third-party vendors, contractors, and service providers to streamline operations and drive growth. However, with this convenience comes a growing risk: third-party security breaches. Such breaches can expose sensitive data, damage reputations of all parties, and lead to significant financial losses, all from vulnerabilities that may lie outside your environment.

Let’s take a closer look at the most common causes of third-party security breaches, and what you can do to defend your organization.

1. Lack of Third Party Security Assessments
   
   One of the leading causes of third-party breaches is a failure to properly assess vendors before granting them access to systems or information. Many organizations assume all organizations follow strong security practices but without a thorough vetting process, those assumptions can be dangerously wrong.
   
   Tip: Implement a standardized vendor risk assessment before onboarding any third party. This should include a review of their cybersecurity policies, incident response plans, and compliance with relevant regulations.
   
   
2. Overly Broad Access Permissions
   
   Granting vendors more access than they actually need is another major issue. The more privileges a third party has, the more damage a breach can cause if their systems are compromised.
   
   Tip: Apply the principle of least privilege. Only give third parties access to the specific systems and information required for their work.
   
   
3. Unmonitored Vendor Activity
   
   Without proper oversight, it’s difficult to detect when a third party is behaving odd or has become compromised. Many breaches go undetected for weeks or even months due to lack of visibility.
   
   Tip: Use security monitoring tools and access logs to track third-party activity in real time. Alerting mechanisms can help you catch security anomalies early.
   
   
4. Outdated or Unsupported Software
   
   Third-party organizations may use outdated software that lacks patching or remediation of vulnerabilities. A vulnerability is the entry point for cybercriminals, whether it be the human or a technical flaw. This is particularly concerning when legacy systems are involved.
   
   Tip: Require third parties to follow strict patch and vulnerability management protocols and verify that their software stack meets your organization’s security standards. Secondly, require third parties to have security awareness and enforce security training of all staff and contractors.
   
   
5. Lack of Formal Contracts or SLAs
   
   If expectations around security aren’t clearly defined in contracts or service-level agreements (SLAs), enforcement becomes nearly impossible. This leaves you exposed to liability if a security breach occurs.
   
   Tip: Include detailed security requirements in all third-party contracts, including breach notification timelines, training, encryption standards, omnibus applicability and compliance mandates.

How Gilliam Security Can Help

At Gilliam Security, we understand that managing third party risk can be overwhelming, especially as your list of third parties grows. That’s why we offer tailored Third-Party Risk Management (TPRM) programs that help you protect your business from external threats.