An up-to-date IBM Cost of a Data Breach report uncovers a surprising fact: Merely 42% of companies identify breaches through their own security teams. This emphasizes a noteworthy blind spot, particularly concerning external partners and vendors.
The financial risks are substantial. On average, a data breach impacting multiple environments costs a staggering $4.88 million. A significant breach at a telecommunications provider in January 2023 acted as a clear reminder of the dangers associated with third-party relationships. In this instance, cyber attackers took advantage of vulnerabilities in a third-party vendor’s access, exposing the personal details of over 40 million customers.
What presents data protection as such a difficulty?
In 2022, 20% of data breaches were tied to third parties, leading to even more substantial financial losses due to reputational harm and business disruption. Malicious actors frequently target third-party vendors because of the vast quantities of sensitive data they oversee. Managing third-party risk can be exceptionally challenging owing to the limited insight into vendors’ security policies.
Although cybersecurity companies can conduct appraisals of potential partners’ security stance independently, organizations confront significant obstacles in determining who possesses access to what data. Discerning which vendors hold authorization to sensitive information entails a complicated and time-consuming effort. Manual procedures and fragmented data often obstruct effective vendor evaluations.
Could a DSPM solution offer assistance?
Data security posture management (DSPM) provides a proactive method to lessen third-party risks. By delivering enhanced transparency into vendor access and permissions, DSPM enables security teams to:
- Ease vendor evaluations, facilitating the appraisal of third-party access to sensitive data
- Create real-time reports, keeping governance, risk, and compliance (GRC) and security teams abreast of immediate insights into vendor access levels
- Augment security by pinpointing and alleviating third-party risks before they transform into a costly issue
How about conformity risks?
Third-party breaches often entail substantial conformity repercussions. A primary concern is shadow data — data that organizations are unaware even exists. In reality, 35% of breaches encompass shadow data, complicating tracking and safeguarding efforts. The dispersal of data across varied environments, a scenario observed in 40% of breaches, exacerbates this complexity. Consequently, breaches entailing shadow data incur 16% higher costs and necessitate more time to detect and contain.
To address these conformity risks, more organizations are resorting to DSPM solutions. By furnishing continuous insight into data access and usage, DSPM supports companies in complying with regulations such as the EU General Data Protection Regulation (GDPR), the US Health Insurance Portability and Accountability Act (HIPAA), and the Payment Card Industry Data Security Standard (PCI DSS). DSPM tools empower organizations to promptly and effectively identify and rectify potential violations, particularly those originating from third-party breaches, aiding in shielding sensitive data and fulfilling regulatory obligations.
- Transparency into vendor links and permissions: grasp precisely which vendors are linked to your cloud environments and the degree of access they possess.
- Recognition of high-risk vendors: swiftly ascertain vendors with access to sensitive data.
- Preemptive vulnerability testing: utilize public vendor certifications to replicate potential vulnerabilities and evaluate unauthorized access attempts.
The overarching challenge of maintaining third-party data securely
In the rapidly evolving business domain today, managing third-party risks isn’t a choice — it’s an indispensable requirement. The financial and reputational repercussions of a breach are just too significant to disregard.
IBM Guardium DSPM equips you with the necessary tools to control third-party risks. By providing lucid visibility, simplifying assessments, and proactively identifying vulnerabilities, IBM Guardium DSPM aids organizations in safeguarding their sensitive data and upholding the trust of their clientele.