Cybersecurity Risk Management - How to Manage Third-Party Risks
Every day, we hear about breaches of data that have exposed the private information of hundreds of thousands, or even millions of people. These data breaches are typically caused by third-party partners such as a vendor that suffers a system failure.
Information about your threat environment is vital in defining cyber-related risk. This information lets you prioritize threats that need your immediate attention.
State-sponsored Attacks
Cyberattacks carried out by nation-states could cause more damage than any other attack. Attackers from nations are usually well-equipped and possess sophisticated hacking techniques, making it difficult to recognize them or defend against them. They are usually adept at stealing more sensitive information and disrupt vital business services. They may also cause harm by targeting the supply chain of the business and compromising third party suppliers.
In the end, the average cost of a nation-state attack is an estimated $1.6 million. Nine in 10 companies think they've been the victim of an attack by a nation-state. Cyberespionage is becoming more popular among nation-state threat actors. It's therefore more important than ever that companies have solid cybersecurity practices.
Cyberattacks against states can take a variety of forms, from theft of intellectual property to ransomware or a Distributed Denial of Service (DDoS) attack. They can be carried out by government agencies, employees of a cybercrime outfit that is aligned with or contracted by an entity of the state, freelancers who are employed for a particular nationalist project or even criminal hackers who attack the public in general.
Stuxnet was a game changer for cyberattacks. It allowed states to weaponize malware against their enemies. Since then, cyberattacks have been utilized by states to accomplish economic, military and political goals.
In recent years, there has been a marked increase in the number of attacks sponsored by governments and the sophistication of these attacks. Sandworm, a group sponsored by the Russian government has targeted both customers and businesses with DDoS attacks. This is in contrast to traditional crime syndicates which are motivated by financial gain and tend to target consumer businesses.
Responding to a national-state actor's threat requires extensive coordination between various government agencies. This is a significant difference from the "grandfather's cyberattack" when a company could submit an Internet Crime Complaint Center Report (IC3) to the FBI but not be required to coordinate a significant response with the FBI. In addition to the greater degree of coordination responding to a nation state attack also involves coordinating with foreign governments which can be challenging and time-consuming.
Smart Devices
Cyber attacks are increasing in frequency as more devices connect to the Internet. This increase in attack surfaces can cause security issues for businesses and consumers alike. Hackers could, for instance attack smart devices in order to steal data or compromise networks. This is especially true when these devices aren't properly protected and secured.
Hackers are attracted by smart devices because they can be utilized for a variety purposes, such as gaining information about people or businesses. For example, voice controlled assistants like Alexa and Google Home can learn a amount about their users by the commands they are given. They also gather details about the home of users, their layouts and other personal details. These devices also function as gateways to other IoT devices such as smart lighting, security cameras and refrigerators.
Hackers can cause serious damage to both businesses and individuals if they gain access to these devices. They could make use of them to commit a variety of crimes, such as fraud, identity theft, Denial-of-Service (DoS) attacks, and malicious software attacks. Additionally, they could hack into vehicles to spoof GPS locations, disable safety features and even cause physical injuries to drivers and passengers.
Although it is impossible to stop users from connecting to their devices to the internet however, there are ways to limit the harm they cause. Users can, for example alter the default factory passwords for their devices to avoid attackers finding them easily. cloudflare alternative can also activate two-factor authentication. Regular firmware updates are also essential for routers and IoT device. Local storage, as opposed to cloud storage, can lessen the threat of an attacker when transferring and storing data from or to these devices.
Research is still needed to understand the effects of these digital threats on people's lives and the best methods to limit them. Particularly, studies should focus on the development of technology solutions that can help reduce the harms caused by IoT devices. Additionally, empyrean group should investigate other possible harms, such as cyberstalking, or increased power imbalances between household members.
Human Error
Human error is one of the most prevalent causes of cyberattacks. cloudflare alternative could be anything from downloading malware to allowing a network to attack. Many of these errors can be avoided by establishing and enforcing strong security controls. A malicious attachment can be opened by an employee who receives an email that is phishing or a storage configuration issue could expose sensitive information.
Moreover, an employee might disable a security feature in their system without realizing that they're doing so. This is a common error that exposes software to attack by malware and ransomware. IBM claims that human error is the most significant reason behind security incidents. This is why it's essential to know the kinds of errors that can lead to a cybersecurity breach and take steps to prevent them.
Cyberattacks are carried out for a wide range of reasons, including hacking activism, financial fraud and to steal personal information and to block service or disrupt the critical infrastructure and essential services of a government agency or an organization. They are usually perpetrated by state-sponsored actors, third-party vendors or hacker collectives.
The threat landscape is complex and ever-changing. Organizations should therefore regularly review their risk profiles and revisit protection strategies to stay up-to-date with the most recent threats. The good news is that advanced technologies can reduce the risk of a cyberattack, and improve an organisation's security posture.
It's crucial to remember that no technology can protect an organization from every possible threat. It is therefore crucial to develop a comprehensive cyber-security strategy that considers the various layers of risk in the organization's ecosystem. It's also crucial to conduct regular risk assessments, rather than relying on only point-in-time assessments that are often inaccurate or omitted. A thorough analysis of a company's security risks will permit more efficient mitigation of those risks and help ensure compliance with industry standards. This will ultimately help prevent costly data breaches and other security incidents from negatively impacting the reputation of a company's operations and finances. A successful cybersecurity plan should include the following elements:
Third-Party Vendors
Third-party vendors are companies that do not belong to the organization but provide services, software, and/or products. These vendors typically have access to sensitive information such as client data, financials, or network resources. If they're not secure, their vulnerability can become a gateway into the original business's system. This is why risk management teams have started to go to great lengths to ensure that third-party risks are assessed and managed.
The risk is growing as cloud computing and remote working become more common. A recent study conducted by security analytics firm BlueVoyant found that 97% of the companies surveyed were negatively affected by supply chain weaknesses. This means that any disruption to a vendor, even if it is a tiny part of the business's supply chain - could trigger an effect that could threaten the whole operation of the business.
Many organizations have resorted to creating a process which accepts new vendors from third parties and requires them to adhere to specific service level agreements which define the standards to which they will be held in their relationship with the company. Additionally, a thorough risk assessment should document how the vendor is tested for weaknesses, following up on the results and resolving the issues in a timely manner.
Another method to safeguard your business from risk from third parties is to use a privileged access management solution that requires two-factor authentication to gain access into the system. This prevents attackers from easily getting access to your network by stealing credentials of employees.
The last thing to do is ensure that your third party providers are running the most current version of their software. This will ensure that they haven't introduced unintentional flaws into their source code. Most of the time, these flaws go undetected and can be used as a way to launch more high-profile attacks.
Third-party risk is an ongoing risk to any company. While the aforementioned strategies can assist in reducing certain risks, the most effective method to ensure your risk from third parties is reduced is by performing continuous monitoring. This is the only way to truly understand the state of your third-party's cybersecurity and quickly spot any risks that might be present.