A new report from SecurityScorecard reveals a startling trend among the world's top energy companies, with 90% suffering from data breaches through third parties over the last year.
This sheds light on the need for these energy companies to adopt a proactive approach to securing their networks and customer information.
2023 industry recap: Largest third-party breaches in the energy sector The energy sector faced significant challenges in 2023, marked by a notable rise in third-party data breaches.
These incidents did more than just leak sensitive information - they also cast doubt on the industry's security protocols.
The breaches varied, but they resulted in financial losses, damaged reputations and eroded customer confidence.
This surge in breaches is prompting the sector to strengthen its security measures, potentially leading to stronger defenses against future incidents.
Another key factor in the rising incidence of cyber breaches is the energy sector's push towards digitalization.
As numerous energy companies prioritize growth, maintaining a thorough understanding of their supply chain's security often takes a backseat.
The economic fallout from data breaches is substantial.
A recent report by IBM on the cost of data breaches in 2023 reveals that the average financial hit from these types of incidents last year reached $4.45 million, marking a 15% rise in the past three years.
Apart from the financial and operational implications of third-party breaches, there are also risks to a company's reputation.
A thorough vendor evaluation should be conducted to mitigate third-party risk.
A vital component of third-party risk management involves the ongoing auditing and monitoring of external vendor systems and networks.
This continuous oversight helps companies detect shifts in a vendor's risk profile and identify potential threats more quickly.
Utilizing real-time monitoring tools for immediate alerts on unusual activities and routine audits ensures that vendors consistently meet established security standards.
In the regular course of business with third parties, safely sharing data is a critical concern.
Companies are adopting secure data transfer protocols like data encryption, secure file transfer systems and strict access management.
Network segmentation is another vital strategy for diminishing third-party risk.
Keep your third-party risk management strategies up to date The recent increase in attacks on third-party vendors highlights the importance of constantly updating and improving third-party risk management strategies.
By regularly reviewing and enhancing these strategies, companies can stay ahead of potential threats and ensure the security of their customer data.
This Cyber News was published on securityintelligence.com. Publication date: Tue, 06 Feb 2024 15:13:04 +0000