Report: 54% of organizations have been hacked by third parties in the last 12 months

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Cyberattacks through an organization's vendors are vastly underreported. According to a new study from the Ponemon Institute and Mastercard's RiskRecon, only 34% of companies are confident that their suppliers would notify them if their sensitive information was breached.

Organizations depend on their third-party vendors to provide such important services as payroll, software development, or data processing. However, without having strong security controls in place, vendors, suppliers, contractors, or business partners can put organizations at risk of a third-party data breach.

Unfortunately, new research from the Ponemon Institute and Mastercard's RiskRecon provides evidence that third-party data breaches may be underreported, as only 34% of organizations believe their vendors would notify them of a data breach. data involving their sensitive information.

This helps explain why weak third-party security controls continue to be a chink in the armor of organizations, as 59% of respondents confirm that their organization has experienced a data breach caused by one of their third parties, 54% of which occurred in the past 12 months.

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The problem also extends downstream, as 38% of companies say the breach was caused by one of their "Nth parties", indicating flaws in the third-party security controls that are in place for their suppliers and partners. As a result, only 21% of organizations are confident that their nth party would notify them of a breach.

There are several key best practices organizations should follow to mitigate third-party risk...