An example of this is the recent Qantas data breach, which occurred as the result of a third party attack. One of the airline’s call centres was targeted and cyber criminals were able to access a third-party customer servicing platform, resulting in a data breach that affected up to 6 million of their customers.

While this demonstrates supply chain and third-party risks on a large scale, small to medium businesses (SMBs) are particularly vulnerable as they’re increasingly targeted through suppliers and vendors. While these attacks won’t make the headlines, it’s critical for SMBs to stay ahead of these threats to safeguard their operations, sensitive information, and reputation.

Today we’re taking a closer look at what these cyber risks are, how they affect SMBs, steps you can take to build your cyber resilience, and how our team of trusted experts can help WA businesses.

What Is a Supply Chain or Third-Party Cyber Risk? 

Any outside provider in your supply chain that has access to your data, systems, or customers can pose a risk if they don’t uphold strong cyber security measures. Cyber criminals exploit these weak links, leveraging trusted relationships to breach your systems or data. Common examples include your cloud software solutions (like Microsoft 365 or Xero), outsourced payroll or HR, IT companies, or logistics and fulfilment providers.

Why SMBs are Vulnerable

SMBs regularly work with a network of third parties to expand their capabilities and support operations – and this reliance increases the risk of a supply chain or third-party attack. This is paired with the reality that SMBs have less cyber security resources, so they often don’t:

• Have the time to thoroughly vet these businesses, leaving them in the dark when it comes to their cyber security posture.
• Stay up to date with essential steps like installing regular software updates, implementing access control, or conducting cyber security audits – all of which can create vulnerabilities.

Basically, you don’t need to be the target to fall victim to an attack – your supplier can be. Some scenarios that could put your business at risk include:

• Vendors with outdated security practices (like a lack of multi-factor authentication (MFA), staff training, or software updates), which leave gaps in their defences.
• Credential leaks via integrations.
• Cloud misconfigurations, when services aren’t set up securely.

How to Reduce Your Risk

Now, let’s take a look at how you can safeguard your business against this rising threat. 

1. Ask the right questions – Prioritise vetting the businesses in your supply chain, with questions around the cyber security standards they uphold, processes for data storage and transmission (such as encryption), the proactive cyber security tools they use, and more. If you need a hand developing these questions to ensure everything important is covered, our experts are here to help. 
2. Limit and review user access – Ensure you understand the level of access external businesses require, and grant access based on these needs. You should also regularly review user access, making updates or removing access as vendors or suppliers change or their roles transform. 

3. Implement MFA and Zero Trust – Enabling MFA means users need to provide more than their usual login credentials (username and password) to access their accounts. The Zero Trust security framework requires devices and users to be verified each time before access is granted. This means that no one is implicitly trusted, which strengthens your defences and stops unauthorised users in their tracks. 

4. Consider cyber security insurance – The cost of a cyber attack can be devastating for SMBs, with losses rising to $49,600 for small businesses on average in FY2023-24. If you fall victim, cyber security insurance can help you deal with the financial impact and reduce your risk. However, this should always be paired with cyber security defences that prevent and minimise damage.

How Bekkers Can Help

Remember, these risks aren’t just affecting big companies, cyber criminals are targeting businesses of all sizes.

At Bekkers, we’ve got over three decades experience ensuring Perth SMBs can stay secure and resilient in the changing threat landscape. We can support you with third-party risk assessments, security audits, staff training, and vendor access reviews. Even better, we make sure it’s all in a language you understand – so it’s clear and manageable, and you can stay confident.

If you’re ready to learn more about reducing supply chain and third party risks, or want to get started, reach out today here for a chat.