The Hidden Cost of a Third-Party Data Breach

guest · Dec 4, 2019

The Hidden Cost of a Third-Party Data Breach
Breaches That Involve a Third-Party are Much More Expensive Than Those That Don't
December 4, 2019
https://www.databreachtoday.com/blogs/hidden-cost-third-party-data-breach-p-2805

And with third-party breaches, there can be additional costs beyond the usual financial, regulatory, and reputational damage that an internally caused data breach can bring. These damages can combine to make third-party breaches far more expensive than one where a third-party isn't involved. Let's examine these costs and some ways that they can be avoided.
Vendors Can Increase Downtime
Along with the growth of outsourcing, particularly as it has spread beyond the back office and into mission-critical functions, exposure to vendor downtime has increased dramatically.
Plus, if intrusion into their system is widespread, vendors are dealing with a host of internal systems diagnostics while at the same time being swamped by customers' requests.
Vendors Bring New Legal Issues
And when it comes to investigating the root cause of a vendor-related incident, it's often more difficult and expensive since you won't have direct access to the suspected systems.
Even if they are all in on your investigation efforts, the forensic investigation will take longer due to the multiple entities, networks and software platforms involved.
Click to expand...

How to Avoid Third-Party Data Breaches and the Associated Costs
Your best bet to avoiding the potentially exorbitant costs of a vendor hack is to not have one in the first place.
A solid vendor risk management program, backed up by technology, policies, and procedures is the best protection. Good review and audit processes can catch any vendor-related problems before they become data breaches.
Click to expand...

Log in or Sign up

The Hidden Cost of a Third-Party Data Breach

guest Guest

Log in or Sign up

The Hidden Cost of a Third-Party Data Breach

guest Guest

Useful Searches