5 MSP cybersecurity threats (and how to stop them)

Few targets are as enticing to cybercriminals as managed service providers (MSPs). And for good reason.

From IT support to finance management, MSPs provide essential services to large customer bases. But to deliver them, they need privileged access to internal systems and sensitive data. As such, successfully breaching an MSP can give cybercriminals access to huge amounts of information from multiple businesses.

To help you stay one step ahead, we’ve listed five of the most common MSP cybersecurity threats – along with some simple tips to defend against them.?

The 5 most common MSP cybersecurity threats

1. Phishing

Phishing is a form of social engineering attack that tricks people into handing over sensitive information or downloading malicious software. Typically, by impersonating a trusted individual or organisation, or by creating panic.

Cybercriminals often use email to initiate phishing attacks. How many times have you seen messages like this appear in your inbox?

“Hi Jane, this is Bob. We need to send an urgent payment to a new supplier, but I’m in a meeting for the rest of the day. Can you organise it on my behalf, please? It needs to go out immediately. Please see the details attached.”

Generative AI has made phishing attacks harder to spot and more dangerous. For example, advanced AI can clone the voice of trusted contacts.

Quick tips to defend against phishing

• Check the sender’s name and address: does it look legitimate?
• Read emails carefully: are there any obvious typos or grammatical mistakes? Does the tone sound strange?
• Report suspicious emails: not sure if an email’s legitimate? Forward it to the National Cyber Security Centre .
• Install antivirus software: some programs can spot malicious links or and potential phishing sites.?
• Train staff: run regular training sessions to help employees spot the tell-tale signs of a phishing attack, and teach them what to do in the event of a breach.

Want to know more about the threats facing MSPs? Check out our MSP Survey 2024.

2. Malware and Ransomware

A combination of “malicious software”, cybercriminals use malware to attack business-critical systems, disrupt operations, and steal sensitive data. It comes in various forms, the most common being:

• Ransomware
• Spyware
• Adware
• Trojan horses
• Worms

Cybercriminals have even begun to lease malicious software. Known as malware-as-a-service , this model allows people with minimal coding skills to launch full-blown cyber-attacks.

Small and medium-sized businesses (SMBs) are particularly vulnerable to malware. Few have the knowledge or skills to handle a targeted attack, which explains why 57% of industry leaders see it as the biggest MSP cybersecurity threat .

Quick tips to defend against malware and ransomware

• Only use secure networks: avoid public or unsecured networks when using work devices.
• Backup data regularly: create separate copies of important files so you can quickly restore lost data in the event of a breach.
• Install anti-malware: this monitors your systems to identify and sometimes remove malicious software.
• Invest in a ransomware recovery toolkit : these contain business continuity and disaster recovery plans, helping you respond constructively to breaches.

3. IT vulnerability exploits

Unlike the other MSP cybersecurity threats on this list, IT vulnerability exploits describe a tactic or method – rather than a specific type of threat.

IT vulnerability exploits don’t rely on victims to click on malicious links or download compromised software. Instead, they deliberately target weaknesses in your software, systems, or processes, often using exploit kits.

Common vulnerabilities include:

• Misconfigured programs
• Unpatched software
• Weak passwords
• Bugs

Quick tips to defend against IT vulnerability exploits

• Patch your software: install updates as soon as they become available to nip vulnerabilities in the bud.
• Install vulnerability scanning software : scan your systems periodically to identify and address potential issues.
• Run penetration tests: simulate cyber-attacks to pinpoint weaknesses and see how your systems stand up to threats.
• Follow cybersecurity best practices: create clear processes and policies to minimise vulnerabilities that stem from human error, such as duplicated passwords.

4. Insider threats

As the name suggests, insider threats originate from within your business. They fall into two broad categories: accidental and malicious.

1. Accidental: caused by someone unintentionally exposing your systems to cyber threats. For example, by clicking on a malicious link, visiting a compromised website, or leaving an unprotected device in a public place.
2. Malicious: caused by someone deliberately abusing their access rights to steal data or damage your systems. Malicious insider threats often stem from disgruntled employees, contractors, or partners.

This MSP cybersecurity threat has become more common in recent years. 38% of UK SMEs attribute this to the cost-of-living crisis , and it stands to reason. Financial pressures force many businesses to reduce headcount, while some employees may need to find other revenue streams to make ends meet.

Quick tips to defend against insider threats

• Set strict access controls: only give administrative rights and account access when employees need it to do their jobs.
• Embrace multi-factor authentication (MFA): enforce MFA on business-critical systems and accounts to provide extra protection.
• Look out for suspicious activity: monitor systems for common insider threat indicators, such as unusual login behaviour or privilege escalation.
• Enforce strong security policies: ensure a consistent approach to cybersecurity across your business, with clear guidelines governing things like password etiquette and access privileges.

5. Supply chain attacks

Supply chain attacks are an indirect MSP cybersecurity threat. They work by exploiting weaknesses in third-party software, hardware, or services to bypass your defences and give cybercriminals access to your systems.

Because they originate through legitimate suppliers, supply chain attacks are difficult to spot. For example, it took months for cybersecurity professionals to discover the root cause of 2019’s infamous SolarWinds attack .

Alarmingly, only 26% of MSPs see supply chain attacks as a threat – suggesting a lack of awareness among industry leaders.

Quick tips to defend against supply chain attacks

• Enforce strong cybersecurity measures: before worrying about your suppliers, ensure your cybersecurity is up to scratch.
• Speak to your suppliers: start an open dialogue with channel partners to discuss cybersecurity challenges and best practices.
• Conduct cybersecurity risk assessments: evaluate current and new suppliers to ensure their cybersecurity meets minimum requirements.?
• Follow NCSC supply chain security guidance: this lists the five basic steps to secure your supply chain.?

No threat is insurmountable

MSP cybersecurity threats come in many forms. The good news is that most are relatively unsophisticated.?Adopting simple and affordable security measures can go a long way in securing your business. Not sure where to start? Consider a cybersecurity certification, like the government-backed Cyber Essentials scheme. Built around five security controls, it provides impartial guidance to help you improve your cyber hygiene.

Although MSPs are increasingly under threat, the current landscape also offers new opportunities. Read our latest report to find out more.