Who Are Third Parties and Why Are They Important?

Have you ever wondered if your trusted business partners might unknowingly expose your company to enormous risks? Today, with the rapid advancement of technology, national and continental boundaries are becoming irrelevant. Technology allows us to communicate and collaborate better remotely. However, verifying remote access becomes increasingly challenging because we can't always be sure if the person we are working with is who they claim to be. But let's start from the beginning – who are third parties?

Who Are Third Parties?

"Third parties" are external entities such as suppliers, contractors, and service providers who have access to your company's internal systems and data. Their presence is essential for business flexibility but simultaneously poses significant security threats. The most common third parties are technology providers, external IT administrators, and contractors responsible for managing IT infrastructure. For example, the file management software provider MOVEit was the cause of a massive security breach in May 2023, affecting 890 educational institutions.

Why Are Third Parties So Important?

Collaboration with third parties is widespread across various industries. Companies frequently work with IT vendors, external IT administrators, contractors, and service providers who often require privileged access to internal systems to perform their duties effectively. This access can include managing IT infrastructure or processing sensitive customer data. Industries such as healthcare, finance, and education particularly rely on third-party services. However, this dependency comes at a cost. For instance, the healthcare sector was the most affected by third-party security breaches in 2023, accounting for 33% of such incidents.

Challenges in Managing Third-Party Access

Security administrators face numerous challenges in managing third-party access. In 2023, there were 81 third-party security breach incidents affecting 251 companies. Unauthorized network access was the leading cause of these breaches, accounting for over 53.8% of incidents. Attackers exploit software vulnerabilities, as seen in the cases of MOVEit and GoAnywhere, to infiltrate networks and cause significant data breaches.

Administrators must be vigilant about the potential risks third parties bring into the organization. This includes managing access rights, conducting regular security audits, and ensuring robust incident response plans.

If you want to know which functionalities will best suit your company, schedule a free consultation in English, Polish or German or visit our Fudo Security website.

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