Identifying the weakest link in your cybersecurity chain

In May 2024, three major players on the IBEX 35—Telefónica, Banco Santander, and Iberdrola—fell victim to significant cybersecurity attacks.

These attacks didn't stem from direct breaches but through a critical vulnerability: their suppliers. Despite being some of the most prominent companies on the Spanish stock market index, their security was compromised by third parties with weaker cybersecurity defenses. This highlights a growing concern for enterprises: the security gap between themselves and their suppliers.

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They have been attacked indirectly via their networks’ weakest link! The non-authorized access to these companies’ data networks, was made via a third party. One of their suppliers!

Primarily, this is due to the fact that many large enterprises have suppliers or third party companies that carry out many services for them. Yet these do not have the same level of cybersecurity as the large client company and hence create a weak leak within the overall large enterprises’ network.

Hence hackers see this type of weak link, as the easiest way into large companies. Indeed, although these three cases in May 2024 on IBEX 35 companies have hit the news, there have been other cases over the years that fit this pattern. One of the largest cases was that of Solar Winds, for example. ?

Why are suppliers potential cybersecurity weak links?

There are various reasons why suppliers to large companies can be cybersecurity weak links to their networks. A few of these reasons are explained below.

?Differences in Security Standards?

Large companies typically have significant resources dedicated to cybersecurity, including specialized personnel, advanced technologies, and strict policies. However, smaller suppliers often lack the same resources and capabilities. This creates a significant gap in security standards between the main company and its suppliers.

?Access to Sensitive Data

Suppliers, even those with fewer resources, often need access to sensitive data and critical systems of large companies to provide their services. This access, if not properly managed, can become a point of vulnerability. An attacker who compromises a supplier's security can potentially gain access to another large company's systems and data.

?Diversity of Suppliers

Large companies typically work with a wide variety of suppliers, from for example, ?IT services, to administrative services to office supplies, to mention just a few. This diversity expands the attack surface since each additional supplier introduces a new set of risks. Managing cybersecurity becomes more complex with each supplier added to the chain.

Limited Visibility and Control

Large companies may struggle to monitor and control the security practices of all their suppliers. While agreements and audits can be established, in practice it is challenging to ensure that all suppliers consistently meet the expected security standards. This lack of visibility and direct control increases the risk of security breaches.

?Lack of Awareness and Training

Smaller suppliers may not have the same cybersecurity culture as large companies. This includes a lack of adequate training for their employees, increasing the likelihood of human errors that compromise security, such as falling for phishing scams or not following proper security protocols.

?Strategies to reduce weak link risks

It is very important that large companies not only execute cybersecurity measures within their networks, but that they also look very carefully at any supplier’s networks and deploy risk management strategies.

Below are just a few ways in that large enterprises can carry this out.

?? Pre-Contract Security Assessments: Conduct thorough security audits and assessments before hiring a supplier.

?? Strict Security Contracts: Include specific cybersecurity clauses in contracts with suppliers.

?? Continuous Monitoring: Implement mechanisms for ongoing monitoring and auditing of suppliers.

?? Training and Awareness: Provide cybersecurity training to suppliers to ensure they understand and follow best practices, needed for a large enterprise network.

?? Access Reduction: Limit suppliers' access to essential systems and data according to the principle of least privilege.

?? Cybersecurity deployment: Ensure that the correct cybersecurity products and solutions are used by the suppliers, in line with the company that contracts the supplier’s service.

In summary, while suppliers are essential for the operations of any company, they also represent a significant risk in terms of cybersecurity. Proactive and rigorous management of supplier security is crucial to protect any company from potential security breaches.

Eliminate supplier weak links!

Within this Newsletter we have explained:

In this newsletter, we’ve detailed why suppliers can pose cybersecurity risks and emphasized the importance of risk management strategies to address these vulnerabilities.

At Teldat, we specialize in telecommunication networks and cybersecurity. Interested in learning more about our solutions?

Get in touch with us today to safeguard your enterprise against potential threats.

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