Do you have vendors storing or using your business data as part of their contract with you? Do you know if it’s safe? An unprecedented data breach may have unexpected implications for your business.
It’s a growing threat, as cybercriminals seek ways to infiltrate prized systems. For example, your supplier may store your employees’ contact information, such as email addresses, as they’re in constant contact with them. A data breach at your supplier gives cybercriminals access to genuine information they can use for phishing expeditions that appear authentic.
Do you think cybercriminals won’t be interested in your vendor? Think again, because in 2024, cybercriminals diversified their attacks out of technology into healthcare, financial, and cloud services. No business is safe.
Data breaches adversely impact trust between companies and their suppliers. It threatens your supply chain and can reflect poorly on your brand, ultimately destroying customer trust in your company.
How do you protect your company and its reputation? Manage risk by verifying whether your supplier is compliant with the SOC 2 audit or GDPR standards. Do your supplier contracts specify the expected compliance and responsibility?
If not, renegotiate them with clauses that require compliance with your standard. Set up an auditing procedure for all third-party contracts to ensure compliance. Educate your employees on the importance of working with compliant third parties to reduce your business’s risk.
Author: Kris Keppeler, a curious writer who finds technology fascinating. Follow her on X (Twitter) @KrisNarrates, on Medium.com @kriskeppeler, and LinkedIn.
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