A third-party data breach refers to a data breach that has occurred through a third-party company. In a third-party data breach, the vendor or supplier’s system has been compromised and used to steal data that belongs to you.

Critical third parties are companies that require access to sensitive data to provide that service, which increases a company’s attack surface and can put them at extreme risk should the vendor become breached or attacked. It’s vital to anticipate and prepare for third-party data breaches since nearly all modern businesses operate within a supply chain.

To prevent the likelihood of third-party breaches, companies must begin taking steps to reduce their third-party risks.

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