Third-party vendors are critical partners in business landscape, but they’re also prime targets for cybercriminals. In 2024, 61% of companies suffered a third-party breach, costing 5% more than average data breaches. The Broadcom ransomware attack shows how even cybersecurity leaders can be compromised through vulnerable vendors.
Case Study: Broadcom
September 2024: Business Systems House (BSH), a Middle Eastern payroll partner of ADP used by Broadcom, was hit by the El Dorado ransomware group. Sensitive employee data including national IDs, health insurance details, and financial records, was stolen.
December 2024: Stolen data surfaced online, but BSH/ADP struggled to assess the damage due to its unstructured format, delaying Broadcom’s awareness until May 2025.
Impact: Over 560 users and 35 companies were exposed via compromised credentials.
Why It Happened
Targeting Weak Links: Attackers exploited BSH’s weaker defenses to bypass Broadcom’s security. El Dorado, linked to the BlackLock group, used double extortion tactics to encrypt and leak data.
Transition Vulnerabilities: Broadcom was mid-transition away from BSH, creating gaps in oversight and response coordination.
Why Third-Party Breaches are Surging
Attackers Follow the Path of Least Resistance
Small vendors often lack resources for advanced defenses. For example, 43% of attacks target SMEs, which are easier to breach than Fortune 500 firms.Complex Supply Chains = Blurred Accountability
Data flows across vendors, subcontractors, and cloud providers, creating a “wild west” of security practices. The 2024 Microsoft Midnight Blizzard attack compromised 60,000 State Department emails via a third-party IT vendor.Ransomware-as-a-Service (RaaS) Lowers Barriers
Groups like El Dorado and Clop offer affiliate programs, enabling less-skilled hackers to launch sophisticated attacks.
Best Practices for Managing Third-Party Cybersecurity Risks
To strengthen your security chain, it’s essential to adopt a proactive, intelligence-driven approach to third-party risk management:
- Conduct thorough Vendor Due Diligence
Before onboarding any vendor, perform comprehensive security assessments. Review their certifications (e.g., ISO 27001, SOC 2), penetration test reports, and incident history. This initial step helps identify potential risks early.
- Implement Continuous Monitoring
Third-party risk is not static. Use cyber threat intelligence tools and behavioral analytics to continuously monitor vendor activities and detect suspicious behavior in real time.
- Enforce Least Privilege Access
Limit vendor access strictly to what is necessary. Employ identity and access management (IAM), zero trust principles, and network segmentation to minimize the impact of a potential breach.
- Integrate Cloud Security Posture Management (CSPM)
For cloud-based vendors, CSPM tools help identify misconfigurations and compliance gaps, reducing the attack surface.
- Prepare for Supply Chain Attacks
Train your team on emerging threats like deepfake scams and fraudulent vendor communications. Multi-factor authentication and verification protocols can prevent social engineering attacks.
Ignoring third-party risks can lead to devastating consequences including data loss, financial penalties, and damaged reputation. According to Cyble, third-party risk management has shifted from a secondary concern to a core cybersecurity strategy. Your vendors are an extension of your digital infrastructure, treat their security as seriously as your own.
How Seraph Cyber Can Help
At Seraph Cyber, we specialize in comprehensive cybersecurity solutions tailored to protect your entire ecosystem—including your third-party vendors. Our services include:
Advanced penetration testing to identify hidden vulnerabilities
Vendor risk assessments and compliance audits
Customized cybersecurity training programs
Don’t let your weakest link become a gateway for cybercriminals.
Contact (info@seraphcyber.com) Seraph Cyber today to strengthen your third-party risk management and secure your business against evolving cyber threats.
