Cybersecurity Risk Management - How to Manage Third-Party Risks
Every day, we are informed of data breaches which 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 who suffers a system failure.
Information about your threat environment is crucial for assessing cyber threats. empyrean helps you prioritize threats that require immediate focus.
State-sponsored Attacks
Cyberattacks carried out by nation-states could cause more damage than any other attack. Attackers from nation-states are usually well-equipped and have sophisticated hacking techniques, making it difficult to identify them or to defend against them. They can steal sensitive information and disrupt services for businesses. They may also cause harm by focusing on the supply chain of the company as well as compromising third parties.
As a result, the average nation-state attack costs an estimated $1.6 million. Nine in 10 companies think they've been the victim of an attack by a nation-state. As cyberespionage is growing in popularity among threat actors from nations-states it's more crucial than ever for companies to implement solid cybersecurity practices in place.
Cyberattacks against states can take a variety of forms, from taking intellectual property, to ransomware or a Distributed Denial of Service (DDoS) attack. They can be carried out by cybercriminal organizations, government agencies that are aligned or contracted by states, freelancers hired to execute a nationalist attack or even hackers who target the general population.
Stuxnet was an innovative cyberattacks tool. It allowed states to use malware against their enemies. Since since then, cyberattacks are utilized by states to accomplish economic, military and political goals.
In recent times there has been a marked increase in the number of attacks sponsored by governments and the level of sophistication of these attacks. Sandworm is a group that is backed by the Russian government, has targeted both consumers and businesses with DDoS attacks. This is distinct from traditional crime syndicates which are motivated by financial gain. They tend to target both consumers and businesses.
In the end, responding to threats from an actor of a nation-state requires a significant coordination with several government agencies. This is a major 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. Responding to a nation-state attack requires a higher degree of coordination. It also involves coordinating with other governments, which is lengthy and difficult.
Smart Devices
Cyberattacks are growing in frequency as more devices connect to the Internet. This increased attack surface could cause security issues for businesses and consumers alike. Hackers, for instance use smart devices to exploit vulnerabilities in order to steal data or compromise networks. This is especially true when these devices are not properly secured and protected.
Smart devices are particularly attractive to hackers because they can be used to gather an abundance of information about businesses or individuals. For instance, voice-controlled assistants such as Alexa and Google Home can learn a number of information about users via the commands they are given. They also gather details about the home of users, their layouts and other personal information. They also serve as gateways to other IoT devices, such as smart lighting, security cameras and refrigerators.
If hackers can get access to these types of devices, they can cause serious harm to individuals and businesses. They can employ them to commit range of crimes, including fraud or identity theft. Denial-of-Service (DoS) attacks, and malicious software attacks. In addition, they can hack into vehicles to alter GPS locations or disable safety features. They may even cause physical injury to passengers and drivers.
While it's not possible to stop people from connecting their smart devices however, there are steps that can be taken to limit the damage they cause. Users can, for example change the default factory passwords of their devices to prevent attackers finding them easily. They can also enable two-factor verification. Regular firmware updates are essential for routers and IoT devices. Additionally, using local storage instead of cloud can minimize the risk of a cyberattack when transferring or storage data between and these devices.
It is necessary to conduct research to better understand the digital harms and the best strategies to minimize them. Studies should focus on finding solutions to technology to help reduce the negative effects caused by IoT. Additionally, they should look at other potential risks, such as those associated with cyberstalking and the exacerbated power imbalances between household members.
Human Error
Human error is a common factor that contributes to cyberattacks and data breaches. This can be anything from downloading malware to leaving a network open to attack. By establishing and enforcing strict security controls, many of these mistakes can be prevented. A malicious attachment can be opened by an employee who receives an email containing phishing messages or a storage configuration issue could expose sensitive information.
Additionally, a user could disable a security feature on their system without noticing that they're doing this. This is a common error that makes software vulnerable to attack by malware or ransomware. According to IBM the majority of security incidents involve human error. It is important to be aware of the kinds of errors that can lead to a cyber-attack and take steps in order to minimize them.
Cyberattacks can be committed for various reasons, such as hacking activism, financial fraud or to steal personal data or disrupt the vital infrastructure or essential services of the government or an organization. State-sponsored actors, vendors, or hacker groups are often the culprits.
The threat landscape is always evolving and complex. Therefore, organizations have to constantly review their risk profile and reassess their protection strategies to ensure they're up current with the latest threats. The positive side is that modern technologies can lower the overall risk of a cyberattack, and enhance the security of an organization.
It's crucial to keep in mind that no technology can protect an organization from every possible threat. Therefore, it is essential to create a comprehensive cyber-security strategy that is based on the different levels of risk in the ecosystem of an organization. It is also essential to perform regular risk assessments, rather than relying on only point-in-time assessments, which are often in error or omitted. A thorough assessment of an organisation's security risks will enable more efficient mitigation of these risks and help ensure that the company is in compliance with industry standards. This will help prevent expensive data breaches and other incidents that could have a negative impact on a business's operations, finances and reputation. A successful cybersecurity strategy should incorporate the following elements:
Third-Party Vendors
Every business relies on third-party suppliers - that is, businesses outside the company which offer services, products and/or software. These vendors have access to sensitive information like financials, client information or network resources. Their vulnerability could be used to access the business system they originally used to operate from when they're not secure. This is why risk management teams have started to go to the extremes to ensure that risks from third parties are assessed and managed.
This risk is increasing as cloud computing and remote working become more common. A recent study conducted by security analytics firm BlueVoyant revealed that 97% of businesses surveyed were negatively affected by supply chain security vulnerabilities. That means that any disruption to a vendor, even one with a small portion of the supply chain - could trigger an effect that could threaten the entire operation of the original business.
Many companies have taken the initiative to create a process which accepts new vendors from third parties and requires them to sign to specific service level agreements that define the standards to which they are held in their relationship with the organization. A thorough risk assessment should also provide documentation on how weaknesses of the vendor are analyzed, followed up on and rectified in a timely manner.
Another method to safeguard your business against third-party risk is by implementing the privileged access management software that requires two-factor authentication to gain entry into the system. This will prevent attackers from getting access to your network by stealing credentials of employees.
Also, ensure that your third-party vendors are using the latest versions of their software. This will ensure that they haven't introduced unintentional flaws into their source code. These vulnerabilities can go unnoticed and used to launch more prominent attacks.
Ultimately, third-party risk is an ever-present threat to any business. The strategies discussed above can help mitigate these threats. However, the best way for you to minimize your third-party risks is by continuously monitoring. This is the only way to understand the state of your third-party's cybersecurity posture and quickly spot any risks that might arise.