Vendor Security Gaps Are Putting You at Risk—Here’s How to Lock Them Down
Bringing third-party vendors into your business is necessary—but it’s also one of the biggest cybersecurity risks you’re probably overlooking.
You might trust the IT contractor managing your network, the software vendor running your cloud services, or the marketing agency with access to your customer data. But do they have the same level of security standards that you do? If not, your business is one weak link away from a full-blown cyberattack.
Let’s get something straight: hackers don’t need to breach your business directly. They just need to find a soft target in your supply chain—a poorly secured vendor, a contractor with excessive system access, or a third party using outdated security protocols. That’s how 80% of data breaches now originate from third-party vulnerabilities (Source: Ponemon Institute).
If you’re bringing in new vendors, contractors, or service providers this year, cybersecurity must be part of your hiring and onboarding process. Here’s how to make third-party risk management (TPRM) a priority from recruitment onward.
Understanding the Risks of Third-Party Vendors
How Third Parties Become Your Biggest Cybersecurity Weakness
Outsourcing critical tasks makes sense—it saves money, adds expertise, and allows your team to focus on core business functions. But every third-party vendor introduces a potential entry point for cybercriminals.
Think of it this way: you’re only as secure as the least-protected vendor you work with. If a third party has access to your systems, customer data, or intellectual property, they need to be held to the same security standards as your own internal teams.
The infamous Target data breach in 2013—where hackers stole 40 million credit card numbers—didn’t happen because Target’s IT systems were weak. It happened because attackers infiltrated the network of Target’s HVAC vendor, who had poor cybersecurity controls. If Target, a multi-billion-dollar corporation, can be crippled by a weak third-party vendor, what makes you think your business is safe?
Common Third-Party Security Risks
Many vendors lack basic cybersecurity defenses, failing to implement essential protections like multi-factor authentication (MFA), encryption, or regular security updates. This makes them easy targets for cybercriminals who exploit weak security measures to gain access to sensitive business data. Additionally, third parties often have more system access than they actually need, increasing the attack surface if their credentials are compromised.
Compounding this issue, many vendors fail to meet industry security and compliance standards such as HIPAA, SOC 2, or GDPR. This non-compliance doesn’t just put their data at risk—it makes your business liable for regulatory fines and legal repercussions if a breach occurs.
Another often overlooked risk is poor vendor offboarding. When contracts end, businesses frequently forget to revoke access, leaving open doors that hackers can exploit. Dormant accounts and leftover credentials provide an easy entry point for cyberattacks, potentially months or even years after a vendor relationship has ended.
Ignoring these risks is cybersecurity negligence—and in today’s threat landscape, your business can’t afford to be careless. Taking a proactive approach to third-party risk management is essential to securing your data, systems, and reputation.
How to Build Cybersecurity into Your Third-Party Recruitment Process
1. Conduct Rigorous Vetting Before Onboarding
Blindly trusting third-party vendors is a critical mistake. Just because a vendor claims they have strong security doesn’t mean they actually do. Cybercriminals often exploit weak vendor security to gain access to larger organizations, making it crucial to demand proof of cybersecurity standards before signing any contracts.
Start by requiring vendors to complete a security questionnaire that evaluates their cybersecurity posture, ensuring they have the right policies in place. Then, verify compliance with industry security frameworks like ISO 27001, SOC 2, NIST, HIPAA, and GDPR. Compliance certifications demonstrate that a vendor adheres to recognized security best practices and regulatory requirements.
Additionally, conduct background checks on key personnel. It’s not just about the company—a compromised vendor employee with privileged access can be an entry point for cybercriminals. Attackers frequently use phishing, credential theft, or insider threats to exploit vendors with lax security protocols.
2. Implement Cybersecurity-Focused Contract Requirements
If your vendor gets breached and your data is stolen, who’s responsible? If you don’t have clear cybersecurity clauses in your contracts, the answer is you. Your contracts should legally require vendors to:
Use encryption for sensitive data.
Maintain multi-factor authentication (MFA) on all privileged accounts.
Follow regular security audits and report incidents immediately.
Take financial liability if their security failure results in a breach.
If a vendor pushes back on these security requirements, that’s a red flag. Do you really want to work with a company that doesn’t take cybersecurity seriously?
3. Enforce Least Privilege Access for Third Parties
One of the most common yet critical cybersecurity mistakes businesses make is granting third-party vendors excessive access to their systems. Does your IT service provider truly need full administrative control over your entire network at all times? Should a marketing agency have unrestricted access to your customer database? Absolutely not. When vendors have more access than necessary, they become high-risk targets for cybercriminals looking to exploit privileged accounts.
To mitigate this risk, businesses should implement Just-in-Time (JIT) Access, a security strategy that grants temporary access for specific tasks rather than permanent privileges. This ensures that vendors only have system access when they actually need it and for a limited duration. Additionally, Role-Based Access Control (RBAC) should be enforced to assign access levels based on job function, preventing unnecessary exposure of sensitive data. Lastly, adopting a Zero-Trust Security model means continuously verifying access requests rather than blindly trusting vendors based on past relationships.
At LockStock, we specialize in Privileged Access Management (PAM) strategies that eliminate excessive vendor access, securing your business from potential insider threats and external cyberattacks. By implementing strict access controls, we help companies minimize third-party risks and ensure secure, controlled vendor interactions.
Ongoing Monitoring & Security Best Practices for Third Parties
Your job isn’t done once a vendor is hired. Cybersecurity is a continuous process—vendors need to be monitored, audited, and held accountable for their security practices.
1. Conduct Continuous Security Assessments
To stay ahead of threats, we recommend quarterly security audits on all vendors with privileged access, ensuring they maintain compliance with industry regulations. Require proof of employee security awareness training since one careless click can open the door to a cyberattack. Additionally, vendors should be required to patch vulnerabilities immediately because outdated systems are a goldmine for hackers. A continuous assessment approach minimizes third-party risks before they escalate into full-blown security incidents.
2. Plan for Third-Party Security Incidents
If a vendor suffers a security breach, do you have a plan in place, or will your business be scrambling to contain the damage? Most companies fail to establish a vendor incident response plan, leading to chaos, confusion, and costly delays when an attack occurs.
To minimize impact, businesses must clearly define their vendor incident response strategy, outlining who needs to be notified and the immediate steps to take. Vendors should be required to report breaches within 24 hours, as delays only increase potential damage. Additionally, companies should regularly conduct cybersecurity drills to prepare for real-world third-party attacks, ensuring both internal teams and vendors know how to respond swiftly.
How LockStock Can Strengthen Your Third-Party Security
LockStock specializes in comprehensive third-party risk management solutions, ensuring businesses stay protected from weak links in their supply chain. We conduct thorough security assessments on vendors before contracts are signed, identifying potential vulnerabilities that could put your organization at risk. Our team helps implement access control solutions to prevent third parties from having excessive system privileges, minimizing exposure to cyber threats.
Beyond that, we provide continuous monitoring of vendor activity, detecting suspicious behavior before it escalates into a breach. Additionally, we ensure that all third parties remain compliant with industry cybersecurity regulations, reducing legal and financial risks.
If your business engages with any external vendors (and let’s be honest, it does), you need a cybersecurity strategy that secures your systems and data. LockStock is here to help you take control before a vendor’s weak security becomes your worst nightmare.
Take Control of Your Third-Party Security Now
Third-party vendors aren’t just business partners—they’re potential security liabilities. If you don’t actively manage, monitor, and enforce cybersecurity standards, you’re rolling out the red carpet for attackers. Don’t be the next Target. The next Colonial Pipeline. The next Equifax.
VET your vendors before hiring them.
LIMIT their access to only what they need.
MONITOR them continuously for security risks.
If you’re serious about protecting your business, LockStock can help. Let’s lock down your third-party security before it’s too late.
Schedule a Security Consultation with us Today.
