Vendor Blind Spot: Why Third-Party Risk Is Cybersecurity’s Weakest Link

One of the most striking recent supply chain breaches involved a vendor integration between Salesforce and Salesloft Drift, an AI chatbot app used for sales automation. Attackers exploited vulnerabilities in the integration to steal OAuth tokens, gaining unauthorized access to corporate Salesforce instances. Using these credentials, they extracted sensitive data—including AWS keys, passwords and Snowflake tokens—from hundreds of organizations, including major security vendors like Palo Alto Networks, Zscaler and Cloudflare. While core products weren’t compromised, customer data stored in insecure Salesforce fields was exposed.
This incident underscores a persistent reality: cyber attackers exploit weak links in vendor ecosystems to infiltrate enterprise networks. Today, 73% of businesses have experienced a significant disruption due to third-party cyber incidents in the last three years.
The Overlooked Risk in Vendor Ecosystems
Despite growing awareness, vendor risk remains under-addressed. Organizations often invest heavily in internal defenses while overlooking the fact that their perimeter now includes every partner, contractor, customer and cloud service they rely on. Vendor risk management is no longer a procurement checkbox—it’s an executive and board-level priority.
Why Third-Party Breaches Are Surging
- Digital Interdependence: APIs, data sharing and cloud hosting create deep technical integration. For example, a breach in your HR software provider could expose employee data or serve as a launchpad into your core systems.
- Vendor Security Gaps: Smaller, and even some larger, vendors often lack robust security. Attackers exploit this asymmetry —why target a hardened enterprise when a subcontractor with weak credentials offers easier access?
- Supply Chain Complexity: Vendor use, especially SaaS vendors, is becoming increasingly commonplace. Managing security across such a vast ecosystem is daunting—and adversaries know it.
Regulatory Urgency: Why This Can’t Wait
Vendor risk is now a legal liability. Consider:
- SEC Cyber Rules: Require disclosure of third-party incidents that materially impact operations.
- State Privacy Laws, such as CPRA: Hold companies jointly liable for vendor data breaches.
- CMMC & PCI-DSS: Extend vendor oversight into defense and payment ecosystems.
FD’s Approach to Vendor Risk Management
- Holistic Vendor Inventory & Tiering: FD categorizes vendors by risk level—based on data access and system integration—ensuring no “shadow vendors” are missed.
- Security & Compliance Reviews: FD evaluates whether vendors meet the standards clients are subject to within SOC 2 reports, HITRUST, PCI, CMMC and SOX compliance.
- Risk Ratings & Action Plans: Each vendor receives a risk score and tailored recommendations—whether that’s remediation support, contract updates, or replacement.
- Continuous Monitoring: FD advises on breach alert services, vulnerability management, penetration testing, annual attestations and contract clauses that enforce ongoing security accountability.
Treat Vendor Risk Like Internal Risk
Cyber attackers already treat your vendors as part of your attack surface. It’s time your security strategy did the same. FD’s integrated advisory model—combining technical, regulatory and operational expertise—helps organizations build resilient, compliant vendor ecosystems.
Contributors
Gina Gondron, Partner, Frazier & Deeter Advisory, LLC
Partner, Frazier & Deeter, LLC
Andrew Hicks, Partner, Frazier & Deeter Advisory, LLC
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