25 Shocking Facts About Cybersecurity Risk

Cybersecurity Risk Management - How to Manage Third-Party Risks

A day doesn't go by without a news story about data breaches that reveal hundreds of thousands, or millions of people's private information. These breaches usually stem from third-party vendors, like the company that experiences an outage to their system.

Framing cyber risk starts with precise information about your threat landscape. This information helps you prioritize threats that require immediate attention.

State-sponsored attacs

Cyberattacks by nation-states can cause more damage than any other type of attack. Attackers from nations are usually well-equipped and possess sophisticated hacking techniques, making it difficult to recognize them or to defend against them. This is why they are usually adept at stealing more sensitive information and disrupt crucial business services. In addition, they are able to create more lasting damage by targeting the supply chain and harming third-party suppliers.

In the end, the average nation-state attack costs an estimated $1.6 million. Nine in 10 organizations believe that they've been a victim of an attack from a nation state. Cyberspionage is becoming more and more popular among threat actors from nation states. It's therefore more important than ever that companies have robust cybersecurity procedures.

Cyberattacks carried out by nation-states can take place in a variety of types. They include ransomware, to Distributed Denial of Service attacks (DDoS). They can be carried out by government agencies, employees of a cybercrime outfit that is a part of or contracted by an entity of the state, freelancers who are employed to carry out a specific nationalist campaign or even just criminal hackers who target the general public in general.

The introduction of Stuxnet changed the rules of cyberattacks, allowing states to use malware as a weapon and use it against their enemies. Since the time, states have been using cyberattacks to achieve their political, economic and military goals.

In recent years, there has been a significant increase in the number of attacks sponsored by governments and the sophistication of these attacks. Sandworm, a group sponsored by the Russian government, has targeted both consumers and businesses with DDoS attacks. This is different from traditional crime syndicates, that are motivated by financial gain. They are more likely to target businesses and consumers.

Responding to a state actor's national threat requires a significant amount of coordination among various government agencies. This is quite different from the "grandfather's cyberattack" when a company would submit an Internet Crime Complaint Center Report (IC3) to the FBI but not need to conduct a coordinated response with the FBI. Responding to a nation state attack requires a higher degree of coordination. It also requires coordination with other governments, which is difficult and time-consuming.

Smart Devices

Cyberattacks are growing in frequency as more devices connect to the Internet. This increased attack surface can create security risks for both consumers and businesses. Hackers, for instance attack smart devices to steal data or compromise networks. This is especially true if these devices are not properly secured and protected.

Smart devices are especially appealing to hackers as they can be used to gain 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 as well as other personal details. These devices also function as gateways to other IoT devices, such as smart lighting, security cameras and refrigerators.

Hackers can cause serious damage to both businesses and individuals if they gain access to these devices. They could employ these devices to commit a wide range of crimes, including identity theft, fraud, and Denial-of-Service attacks (DoS). In  privacy-centric alternatives , they can hack into vehicles to steal GPS locations, disable safety features and even cause physical injury to passengers and drivers.

While it's not possible to stop users from connecting their devices to the internet however, there are steps that can be taken to limit the harm they cause. Users can, for instance change the default factory passwords for their devices to prevent attackers getting them easily. They can also activate two-factor authentication. It is also essential to upgrade the firmware on routers and IoT devices frequently. Local storage, rather than the cloud, can reduce the threat of a hacker when they transfer and the storage of data between or on these devices.

It is necessary to conduct research to better understand the impact of these digital harms on people's lives, as well as the best methods to limit their impact. Particularly, research should focus on the development of technology solutions to help mitigate the negative effects caused by IoT devices. They should also investigate other potential harms like cyberstalking and exacerbated power imbalances between household members.

Human Error

Human error is a typical factor that contributes to cyberattacks and data breaches. This can range from downloading malware to leaving a company's network open for attack. By establishing and enforcing strict security procedures, many of these blunders can be prevented. For example, a worker could click on a malicious link in a phishing scam or a storage configuration issue could expose sensitive information.

Moreover, an employee might disable a security function in their system without realizing that they're doing it. This is a common error which makes software vulnerable to attacks from malware and ransomware. According to IBM the majority of security incidents are caused by human error. This is why it's essential to know the kinds of errors that can result in a cybersecurity attack and take steps to prevent the risk.

Cyberattacks can be committed for a variety of reasons, including hacking, financial fraud or to steal personal data or disrupt the vital infrastructure or vital services of any organization or government. They are usually perpetrated by state-sponsored actors, third-party vendors or hacker collectives.

The threat landscape is always changing and complex. Therefore, organizations have to continuously review their risk profiles and reassess their protection strategies to ensure they're up date with the latest threats. The positive side is that modern technologies can reduce the risk of a cyberattack, and enhance the security of an organization.

It's crucial to keep in mind that no technology can shield an organization from every threat. This is why it's imperative to develop a comprehensive cybersecurity strategy that considers the various layers of risk within an organization's network ecosystem. It's also crucial to conduct regular risk assessments rather than relying on point-in-time assessments that are often inaccurate or miss the mark. A comprehensive assessment of an organisation's security risks will allow for more effective mitigation of those risks and ensure compliance with industry standards. This will help to prevent costly data breaches as well as other incidents that could adversely impact a business's operations, finances and reputation. A successful cybersecurity strategy includes the following elements:

Third-Party Vendors

Third-party vendors are businesses that are not part of the organization, but provide services, software, and/or products. These vendors often have access to sensitive data such as client data, financials or network resources. When these companies aren't secure, their vulnerability can become a gateway into the original business' system. It is for this reason that cybersecurity risk management teams will go to great lengths to ensure third-party risks are screened and managed.

As the use of remote work and cloud computing increases the risk of a cyberattack is becoming even more of an issue. A recent survey conducted by the security analytics firm BlueVoyant found that 97% of the companies which were surveyed suffered from supply chain security vulnerabilities. A vendor's disruption even if it just affects a small part of the supply chain could have a ripple effect that threatens to disrupt the entire business.

Many companies have taken to creating a process that accepts new third-party vendors and requires them to agree to specific service level agreements that define the standards to which they are held in their relationship with the organization. A good risk assessment should include a record of how the vendor is screened for weaknesses, following up on results, and remediating the issues in a timely manner.

Another way to protect your business from risk from third parties is by implementing the privileged access management software that requires two-factor authentication in order to gain access into the system. This prevents attackers gaining access to your network by stealing credentials of employees.

Not least, ensure that your third party providers are using the most recent version of their software. This will ensure that they haven't created any security flaws unintentionally in their source code. Often, these vulnerabilities go undetected and can be used as a springboard for other high-profile attacks.

Third-party risk is a constant threat to any business. The strategies discussed above can be used to reduce the risks. However, the best way for you to minimize your risk to third parties is through constant monitoring. This is the only way to truly understand the state of your third-party's cybersecurity posture and quickly spot any risks that may occur.