Building Resilience Against Cyber Attacks: How To Strengthen Vendor and Third-Party Security

As we round out the final full week of National Preparedness Month, we are continuing our deep dive into the critical aspects of building resilience. Last week, we highlighted cybersecurity preparedness in light of a recent ransomware attack on a leading SaaS platform in the automotive sector. This week our focus shifts to ensuring your business continuity extends beyond your organization and to any key third parties or vendors with whom you work. This week, we’ll highlight a recent data breach affecting a large mobile phone services provider whose customer data was downloaded from their workspace on a third-party cloud platform. This breach allowed access to customer data belonging to nearly 9 million wireless customers.

In an era where cyberattacks have become increasingly sophisticated, telecommunications giants face growing challenges in securing their vast digital landscapes. While most have robust security measures in place, a critical area often overlooked is the cybersecurity risks posed by third-party vendors and partners. A significant number of breaches now stem from compromised third-party systems, making it imperative for organizations to focus not just on their internal security posture but also on that of their entire supply chain.

Why Third-Party Security Matters

Third parties and vendors often have access to sensitive systems or data to perform their services, which opens potential points of vulnerability. When cybersecurity protocols at third-party organizations are not as stringent as those of the primary organization, attackers can exploit these weaker defenses to gain access to larger, more protected networks.

In the telecommunications industry, where systems are highly interconnected, the damage from a cyberattack on one vendor can cascade across the entire ecosystem. This has been illustrated in recent high-profile breaches where hackers infiltrated organizations through third-party contractors or service providers. Telecommunication providers have a duty not only to customers but also to national security interests, as their networks power much of the country’s critical infrastructure. Bolstering vendor and third-party security must be a top priority.

Key Steps to Strengthen Third-Party and Vendor Security

1.????? Comprehensive Vendor Risk Management Program: As part of a robust Business Continuity Program businesses should establish a comprehensive vendor risk management program that continuously assesses and monitors third-party relationships. This program should start with a robust due diligence process, evaluating potential vendors not just on their products or services but also on their security protocols. Vendors must be required to adhere to the business’ cybersecurity standards, and those that fail to meet these should not be contracted. This program should extend beyond the initial vetting process. Vendors must be subject to ongoing audits and security reviews throughout their engagement. Automated tools and artificial intelligence can help to detect potential vulnerabilities in real-time, ensuring a proactive rather than reactive approach to cybersecurity.

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2.????? Enforce Strong Contractual Security Requirements: When engaging with third-party vendors, businesses should include stringent cybersecurity requirements within contracts. These can include clauses on the use of multi-factor authentication, encryption, regular security training, and secure data storage practices. Vendors must also be obligated to report any cybersecurity incidents immediately to the business, providing full transparency. It’s also essential that vendors maintain up-to-date certifications proving that they adhere to industry standards for data protection. Contracts should include provisions for financial penalties or termination if vendors fail to comply with security standards or experience repeated security incidents.

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3.????? Regular Security Training and Awareness Programs: One of the weakest links in any security strategy is human error. A business must ensure that vendors, like its own employees, undergo regular security training and awareness programs. Phishing attacks and social engineering tactics often target individuals to exploit their lack of security knowledge. Providing training on best practices for cybersecurity, recognizing phishing attacks, and reporting suspicious activity will reduce the likelihood of breaches originating from third-party errors.

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4.????? Adopt Continuous Monitoring and Incident Response: Cybersecurity is not a one-time effort; it requires continuous monitoring and rapid incident response. A business should work with vendors to implement continuous monitoring tools that scan for suspicious activity, vulnerabilities, and potential breaches. Endpoint detection and response (EDR) solutions and other advanced threat detection systems can help a business quickly identify and mitigate any security threats in third-party environments. Additionally, make ensure that all third-party vendors have a robust incident response plan. This plan should detail how vendors will handle any breach or cybersecurity event, including how they will communicate with the business and contain the incident.

Conclusion

A resilient business has a responsibility to protect its network from cyberattacks, and this includes securing the entire supply chain. Strengthening third-party and vendor security is crucial to building resilience against ever-evolving threats. By implementing a comprehensive vendor risk management program, enforcing strict contractual requirements, and adopting continuous monitoring and incident response businesses can significantly reduce exposure to cyber risks stemming from third-party relationships. In today’s interconnected digital landscape, cyber resilience depends not only on what happens within your own walls but also on the security practices of those you do business with. By addressing this critical area, businesses can safeguard their networks and protect customer data.

Thank you for joining us this National Preparedness Month as we discussed ways to enhance business resilience and preparedness for disruptions across different sectors!