In today’s interconnected, tech-dependent business landscape, enterprises increasingly rely on vendors, suppliers, and SaaS service providers to maintain and enhance their operations. While this collaboration offers numerous benefits and makes the services more accessible, it also introduces significant cybersecurity challenges. A single vulnerability or security gap in a third-party partner can be an entry point for cyber attackers, leading to extensive breaches that compromise the entire enterprise. A recent study report reveals a 62% increase in supply chain-related cyberattacks over the past year, highlighting the growing risks in 2024. This blog delves into supply chain risks, examines real-world incidents where vendors were the breach vector, and offers best practices for third-party risk management with robust vendor risk intelligence tools.

What is Supply Chain Risk?

Third-party risk or supply chain risks in cybersecurity refer to the potential threats posed by external entities—such as vendors, suppliers, contractors, or service providers—that have access to an organization’s systems, data, or networks. These external partners can inadvertently or maliciously introduce vulnerabilities to your system, causing system breaches, data loss, and operational disruption. Thus, it is extremely important to be aware of your supply chain security posture with the help of proper vendor risk intelligence frameworks.

The Role of Vendor Risk Intelligence in Mitigating Threats

Vendor risk intelligence involves the continuous assessment and monitoring of third-party entities to identify and mitigate potential security threats. By leveraging tools and frameworks designed for vendor risk intelligence, organizations can:

• Predict and Prevent Breaches: Identify vulnerabilities within a vendor’s infrastructure before they can be exploited. Vendor risk intelligence tools help you access a detailed view into your third-party and extended vendor security ecosystem to gather data on hidden vulnerabilities, attack strains, or other security risks in real-time.

• Ensure Compliance: Compliance with industry regulations is crucial for business security, integrity, and reputation. To adhere to industry regulations, it is crucial for your business to ensure that your vendors are also compliant with the industry regulations. Third-party risk management frameworks allow you to monitor third-party regulatory compliance without the need for manual intervention.

• Enhance Incident Response: Vendor intelligence frameworks stay vigilant across your third-party ecosystem to monitor any changes and their security posture. If a vulnerability is detected, the tool gathers the relevant data on the third-party security risk and formulates an effective plan, streamlining the incident response.

Real-World Examples of Third-Party Breaches

Several significant supply chain breaches have made the news in recent years, underscoring the vulnerabilities organizations face through their third-party partners and the importance of supply chain risk management. Here are some notable incidents from recent years:

SolarWinds Supply Chain Attack (2020)

The SolarWinds attack in 2020 was a sophisticated supply chain breach that affected numerous organizations, including U.S. government agencies and private companies. Attackers compromised SolarWinds’ Orion software by injecting malicious code into its Trojan Horse installation packages. When clients installed these updates, they inadvertently allowed attackers to access their systems. The attack was classified as a highly complex attack as the threat actors scrambled their data breach actions, making it difficult for Indicators of Compromise (IoC) to identify the attack. This incident highlights the critical importance of ensuring the integrity of software updates and the potential widespread impact of a single compromised vendor.

Kaseya Ransomware Attack (2021) – MSPs as a Breach Vector

In the year 2021, Kaseya, an IT software service company, fell victim to a Russia-led REvil ransomware attack that had cascading effects on its clients. Attackers exploited vulnerabilities in Kaseya’s VSA software vulnerability CVE-2021-30116, which is widely used by Managed Service Providers (MSPs) as a tool for network monitoring. In the attack on the Kaseya installation, the attackers were able to deploy ransomware to numerous MSPs and their customers, demonstrating how a breach in a single service provider can rapidly propagate to multiple organizations.

Okta Third-Party Support Breach (2022)

In January 2022, Okta, an identity and authentication management company, disclosed a security incident involving its third-party forensic support provider, Sitel. Through the compromised support provider, attackers gained unauthorized access to Okta’s customer data and gained control of their workstations. Despite having a limited impact during the small attack window, this security incident emphasized that third-party risks extend beyond technology to include human factors and operational processes.

AT&T Data Breach (March 2024) – Third-Party Exposure

In April 2024, AT&T faced a data breach affecting around 73 million current and former customers. The leaked data included Social Security numbers, phone numbers, and passcodes, raising concerns over potential identity theft. ShinyHunters, a well-known hacker group, claimed responsibility for leaking the data, which had initially surfaced in 2021. While AT&T has not confirmed the exact source of the breach, it is suspected that a third-party vendor handling customer data may have been compromised. This attack highlights the importance of vendor risk management and proactive security measures to prevent unauthorized data exposure.

Microsoft Outage Due to CrowdStrike Software Glitch (July 2024)

In July 2024, a faulty update from cybersecurity firm CrowdStrike in their cybersecurity platform, Falcon, led to a massive global IT outage. The update caused approximately 8.5 million Microsoft Windows systems to crash, displaying the blue screen or Screen of Death, disrupting critical services worldwide, including airlines, banks, hospitals, and government operations. The incident highlighted the extensive impact a single third-party software malfunction can have on global infrastructure.

Genea IVF Data Breach (February 2025)

Genea, a prominent IVF and fertilization service provider in Australia, confirmed a significant data breach in February 2025. An attack conducted by the ransomware group Termite involved unauthorized third-party access and compromised sensitive patient information, including names, contact details, Medicare numbers, insurance information, medical histories, prescriptions, and doctors’ notes in the dark web. The attacker’s presence in their network stayed undetected for over a week, causing the. This breach underscores the critical need for stringent data protection measures, especially when handling sensitive medical information.

Ticketmaster Data Breach Incident (May 2024)

The Ticketmaster breach in May 2024 was a significant third-party data breach impacting millions of users. Hackers, allegedly from the ShinyHunters group, infiltrated a third-party cloud database associated with Ticketmaster, exposing personal data, including payment card details. The breach originated through compromised credentials linked to a contractor from EPAM Systems, which had access to Ticketmaster’s systems. The attack was classified as a major supply chain breach, as the attackers leveraged vulnerabilities in third-party access to execute the breach. This incident underscores the critical importance of securing third-party integrations and monitoring vendor access to prevent widespread data exposure.

Key Challenges in Vendor Risk Intelligence

Supply Chain risk management continues to be a major concern for businesses around the globe. An unmanaged vendor network can leave a trail of vulnerability that can be manipulated and accessed by external attackers. Although a good third-party risk management tool helps you resolve these concerns, it can pose some challenges to the businesses.

Lack of Visibility into Vendor Security Posture

Organizations often struggle to maintain real-time visibility into the security practices of their vendors. Traditional assessment methods, such as annual audits, may not capture emerging threats or changes in a vendor’s security posture, leaving organizations exposed to potential risks.

Supply Chain Security Gaps

The complexity of modern supply chains, involving numerous interconnected vendors and suppliers, makes it challenging to ensure comprehensive security oversight. Smaller vendors, in particular, may lack the resources to implement robust cybersecurity measures, creating weak links that attackers can exploit.

Compliance and Regulatory Complexities

Navigating the diverse landscape of industry-specific regulations and ensuring that all third-party partners comply with relevant standards can be daunting. Non-compliance not only increases security risks but also exposes organizations to legal and financial penalties.

Insider Threats and Human Error

Vendors’ employees can inadvertently or maliciously compromise security by falling victim to social engineering attacks or mishandling sensitive information. Human factors remain a significant challenge in maintaining a secure third-party ecosystem.

Best Practices for Third-Risk Management

Maintaining a strong and secure supply chain requires you to establish some crucial steps as a part of your standard security practices. Some of the implementations that can help your business enhance the supply chain security posture are as follows:

Conduct Comprehensive Vendor Risk Assessments

Before onboarding a vendor, organizations should thoroughly evaluate their security policies, incident response plans, compliance status, and history of past breaches. Regular assessments ensure that vendors maintain adequate security measures throughout the partnership.

Implement Continuous Vendor Risk Intelligence

Real-time monitoring tools can detect changes in a vendor’s security posture, enabling organizations to respond promptly to emerging threats. Continuous monitoring surpasses the effectiveness of periodic audits by providing ongoing insights into potential vulnerabilities.

Enforce Strict Access Controls and Least Privilege Principles

Limiting vendors’ access to only the necessary systems and data reduces the potential attack surface. Implementing principles such as Zero Trust and multi-factor authentication (MFA) ensures that even if a vendor’s credentials are compromised, the impact remains contained.

Strengthen Supply Chain Security Measures

Organizations should enforce security requirements for all third-party providers, including secure software development practices and regular security assessments. Ensuring that vendors adhere to these standards helps maintain the overall integrity of the supply chain.

Establish Incident Response Plans for Third-Party Breaches

Having a well-defined incident response plan that addresses potential third-party breaches enables organizations to act swiftly and effectively, minimizing damage and facilitating recovery. Regularly testing and updating these plans ensures preparedness for various scenarios.

The Future of Third-Party Risk Management

The changing technological landscape is subsequently influencing the global cyber threat intelligence outlook. In the following years, we can expect to witness some prominent changes to the overall supply chain

The Role of AI and Automation in Vendor Risk Intelligence

As cyber threats evolve, organizations are turning to artificial intelligence (AI) and automation to enhance third-party risk management. AI-driven tools can analyze vendor risk in real time, identify patterns in cyber threats, and predict potential vulnerabilities before they can be exploited. Automated risk assessments help organizations continuously monitor their vendors without relying solely on periodic audits.

Evolving Regulatory and Compliance Landscape

Governments and regulatory bodies worldwide are introducing stricter cybersecurity requirements for third-party risk management. Regulations such as the General Data Protection Regulation (GDPR), NIST guidelines, and the Cybersecurity and Infrastructure Security Agency (CISA) directives are pushing organizations to enforce higher security standards among their vendors. Companies that fail to comply with these evolving requirements risk financial penalties and reputational damage.

The Shift Toward Zero Trust Architecture

Zero Trust principles are becoming increasingly critical in mitigating third-party risks. Instead of assuming trust based on a vendor’s credentials, organizations are adopting a “never trust, always verify” approach. This model ensures that vendors have the least privilege access necessary to perform their roles while implementing strict authentication and continuous monitoring.

Supply Chain Security Checklist

By implementing these best practices, organizations can strengthen their vendor risk management strategy and protect themselves from devastating supply chain attacks.

Why RiskProfiler is Your Best Defense Against Supply Chain Risks?

Strengthening your supply chain security is a complex process that requires the help of a reliable cybersecurity partner.  RiskProfiler’s Third-Party Risk Management solution delivers comprehensive vendor risk intelligence to proactively strengthen supply chain security and minimize supply chain risks. But why will you choose RiskProfiler? 

Comprehensive Vendor Risk Intelligence

Effective vendor risk management requires complete visibility into third-party relationships. RiskProfiler provides a centralized intelligence platform that continuously identifies, monitors, and assesses vendor risks. The platform consolidates risk data from multiple sources, providing a real-time, data-driven view of vendor vulnerabilities and threats. By leveraging this intelligence, businesses can make informed decisions, enforce vendor security policies, and proactively mitigate potential disruptions before they impact operations.

Dynamic Vendor Security Ratings

One of the standout features of RiskProfiler is its dynamic security rating system, which assigns risk scores to vendors based on real-time threat intelligence. These ratings are continuously updated based on evolving cybersecurity threats, regulatory changes, and vendor performance indicators. This enables businesses to:

• Identify high-risk vendors before engaging in partnerships.

• Compare vendor security postures against industry benchmarks.

• Generate risk reports for audits, regulatory compliance, and internal governance.

With these insights, organizations can ensure they are working with vendors that align with their security standards, reducing the likelihood of data breaches or operational failures.

Automated Vendor Risk Assessments

Managing vendor risks manually is time-consuming and prone to oversight. RiskProfiler simplifies this process by offering automated vendor risk assessments that trigger dynamic risk questionnaires based on vendor security ratings, compliance requirements, and industry best practices. This automation helps businesses:

• Continuously evaluate vendor security postures with minimal manual intervention.

• Ensure vendors comply with company-specific risk policies and external regulations.

• Streamline risk workflows, improving efficiency and accuracy in risk assessments.

By integrating automation into vendor risk assessments, organizations can significantly reduce operational overhead while maintaining high security and compliance standards.

Extended Supply Chain Risk Monitoring

Supply chain risks are not limited to direct vendors—fourth-party vendors and extended supply chain partners also introduce vulnerabilities. RiskProfiler’s advanced risk modeling and AI-driven monitoring tools help businesses gain visibility beyond their direct suppliers, identifying hidden risks within the extended supply chain. Key benefits include:

• Continuous monitoring of third- and fourth-party risks, detecting cyber threats and compliance gaps in real-time.

• Automated alerts on potential security breaches affecting critical vendors.

• Comprehensive risk mitigation strategies to prevent cascading supply chain failures.

By expanding risk visibility across all supply chain tiers, businesses can enhance resilience and mitigate potential disruptions before they escalate.

Regulatory Compliance Assurance

With increasing regulatory scrutiny on supply chain security, businesses must ensure that vendors comply with industry regulations, data protection laws, and cybersecurity frameworks. RiskProfiler simplifies regulatory compliance by offering:

• Industry-specific compliance frameworks, including GDPR, ISO 27001, NIST, and SOC 2, to assess vendor compliance automatically.

• Automated tracking of regulatory changes, ensuring vendors remain compliant with the latest legal requirements.

This minimizes non-compliance risks, avoids penalties, and maintains strong governance over their vendor ecosystem.

Conclusion

The rise in supply chain attacks and vendor-related breaches underscores the importance of robust third-party risk management. Organizations must recognize that a single weak link in their supply chain can lead to devastating consequences, from data breaches to operational disruptions.

By implementing best practices such as comprehensive vendor assessments, continuous monitoring, access controls, and incident response planning, enterprises can significantly reduce their exposure to third-party risks. As cybersecurity threats continue to evolve, leveraging AI-driven vendor risk intelligence and embracing zero-trust principles will be essential in securing supply chains and protecting sensitive data.

Ultimately, businesses must take a proactive approach to third-party risk management because when it comes to cybersecurity, trust is not enough. Contact us now to request a consultation on best practices for third-party risk management.