There are myriad security risks in giving third-party vendors access to your network and data. If a third party gets hacked, your company can lose vital business data, and confidential employee information can be compromised. If it’s a serious hack, the consequences for your company can range from white-hot media attention to a damaged reputation, lawsuit hell, higher insurance costs, extensive financial loss and even bankruptcy.
Some of the most devastating breaches in the past few years have been rooted in the security weaknesses of third parties, and in fact, hackers themselves admit that contractors are often their primary target. Case in point: the massive Target breach in 2013, which exposed about 40 million debit and credit card accounts. The initial intrusion into Target’s systems was traced back to network credentials stolen from a third-party HVAC vendor.