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June 3, 2024

Exploring the Benefits and Risks of Third-Party Data Solutions

Many companies use third-party data management for efficiency, global access, collaboration, and reliability. Find out what those organizations need to know about addressing the security risks and best practices associated with third-party data management.
Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Oakley Cox
Director of Product
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03
Jun 2024

Why do companies allow third parties to handle their data?

Companies seek out third parties to handle their data for operational efficiency.

The scale and cost of maintaining in-house infrastructure can be outsourced to third parties who specialize in data management or in certain business functions.

Third parties who handle an organization’s data can range from large public cloud providers such as Azure or AWS, to boutique companies who handle specific business functions such as telemarketing, payment systems, or webpage hosting.

The operational efficiencies gained through third-party data management can be summarized by three key benefits:

  • Global accessibility: Third-party data storage enables data access across the globe, allowing businesses to access data from anywhere.
  • Enhanced collaboration: Third-party data storage allows for file sharing, real-time editing, and integration with other applications and services enhancing a business’s collaboration efforts.
  • Reliability and uptime: Reputable third-party storage providers offer high reliability and uptime guarantees, ensuring that data is available whenever needed. They typically have robust disaster recovery and backup systems in place to prevent data loss.

Given these benefits, it is no surprise that businesses are using these services to expand their operations and scale efforts with the need of a growing business. This strategic move not only optimizes resource allocation but also enhances operational agility, enabling businesses to adapt swiftly to evolving data demands and maintain a competitive edge in a dynamic market.

Security risks of entrusted data to third-party vendors

Entrusting data to third parties can expose businesses to supply chain risks and increase the risk of data breaches and unauthorized access. A business has less control over its data and becomes dependent on the third party's policies, practices, and uptime. Many third-party vendors are the target of hackers who specialize in monetizing sensitive data and exploiting gray areas around who is responsible for securing the data.

Thus, businesses are vulnerable when they entrust sensitive data to third-party platforms, which often lack transparency about data usage and security. The platforms, chosen mainly for cost, efficiency, and user experience, are frequent targets for cyber criminals, hacktivists, and opportunistic lone hackers looking for sensitive data accidentally exposed due to misconfigurations or poor data management policies.

Consumers are putting pressure on businesses to improve cybersecurity when handling their personal data. Businesses who suffer a data breach face a high level of scrutiny from customers, investors, the media, and governments, even when the data breach is the result of a third party’s being hacked. For example, Uber made headlines in 2022 for a data breach which was the result of a compromised vendor who had access to data regarding Uber’s employees.

Similarly, the UK’s Ministry of Defence was the victim of a data breach earlier this year when hackers targeted a third party payroll system used by the government department.

Why do cyber-criminals target third parties?

Cyber-criminals can potentially gain access to multiple networks when targeting a third-party storage provider. A successful attack could give attackers access to the networks and systems of all its clients, amplifying the impact of a single breach.

For example, when Illuminate Education was the target of a cyber-attack, the data of 23 US School Districts was stolen via its student-tracking software. It included student data from the country's two largest school systems - New York City Public Schools and Los Angeles Unified School District.

Common third-party security risks

When collaborating with third parties, organizations should be aware of the most common types of security risks posed to their cybersecurity.

  • Software supply chain attacks: Software supply chain attacks occur when cyber criminals infiltrate and compromise software products or updates at any point in the development or distribution process. This allows attackers to insert malicious code into legitimate software, which then gets distributed to users through trusted channels.
  • Human error: Human error in cybersecurity refers to mistakes made by individuals that lead to security breaches or vulnerabilities. These errors can result from lack of awareness, insufficient training, negligence, or simple mistakes.
  • Privileged access misuse: Privileged access misuse involves the inappropriate or unauthorized use of elevated access rights by individuals within an organization. This can include intentionally malicious actions or unintentional misuse of administrative privileges.

What to look for in a security solution when using third parties to store or manage data

Understanding the security posture of a third party is important when partnering with it and entrusting it with your organization’s data. Understanding how basic cyber hygiene policies are implemented is a good place to start, such as data retention policies, use of encryption for data in storage, and how identity and access are managed.

In some circumstances, it is important to understand who is responsible for the data’s security. For example, when using public cloud infrastructure, it is generally the responsibility of the data owner to manage how the data is accessed and stored.

In that situation, an organization needs to ensure it has solutions in place which gives it full visibility of that third-party environment, and which can proactively identify misconfigurations and detect and respond to suspicious activity in real time.

Benefits of using AI tools to aid in managing sensitive data

According to research performed by IBM, organizations with extensive use of security AI and automation identified and contained a data breach 108 days faster in 2023 than organizations that did not use AI for cybersecurity. (1) This figure is only likely to improve as companies mature in their adoption of AI for cyber security and can be a key indicator in the security posture of a third-party vendor.

Example of third-party security incidents

Sumo data breach

Sumo, an Australian energy and internet provider, suffered a data breach which they became aware of on May 13th, 2024. Further investigation into the cyber incident has found that “the personal details of approximately 40,000 customers were compromised, including approximately 3,000 Australian passport numbers.” (2)

While none of Sumo’s systems were allegedly accessed or affected and the third-party application also worked as designed (3), the incident was blamed on an unnamed third party. The breach may have been the result of a misconfiguration or human error.

This incident underscores the importance of not only selecting third-party providers with robust security measures but also continuously monitoring and assessing their security practices.

How Darktrace helps monitor third-party data usage

Darktrace/Cloud uses Self-Learning AI to provide complete cyber resilience for multi-cloud environments.

Benefits of Darktrace/Cloud:

Architectural awareness: Gives users an understanding of their cloud footprint, including real-time visibility into cloud assets, architectures, users and permissions. Combines asset enumeration, modeled architectures, and flow log analysis. Cost insights give a better understanding of resource allocation, helping teams contextualize resources.

Cloud-native detection and response: AI understands ‘normal’ for your unique business and stops cyber-threats with autonomous response. Near-real-time response goes beyond simple email alerts or opening a ticket; and includes cloud-native actions like detaching EC2 instances and applying security groups to contain risky assets.

Cloud protection and compliance: Identify compliance issues and potential misconfigurations with attack path modeling and prioritized remediation steps. Darktrace’s attack surface management (ASM) adds a critical external view of your organization, highlighting vulnerabilities most impactful to your specific situation and revealing shadow IT.

Learn more about securing cloud environments by reading: The CISO’s Guide to Cloud Security here.

References

1.    https://www.ibm.com/reports/data-breach

2.    https://www.passports.gov.au/news/sumo-data-breach

3.    https://www.smh.com.au/technology/sumo-slammed-by-data-breach-as-energy-and-internet-customers-have-details-leaked-20240515-p5jdwp.html

Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Oakley Cox
Director of Product

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November 26, 2025

UK Cyber Security & Resilience Bill: What Organizations Need to Know

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Why the Bill has been introduced

The UK’s cyber threat landscape has evolved dramatically since the 2018 NIS regime was introduced. Incidents such as the Synnovis attack against hospitals and the British Library ransomware attack show how quickly operational risk can become public harm. In this context, the UK Department for Science, Innovation and Technology estimates that cyber-attacks cost UK businesses around £14.7 billion each year.

At the same time, the widespread adoption of AI has expanded organisations’ attack surfaces and empowered threat actors to launch more effective and sophisticated activities, including crafting convincing phishing campaigns, exploiting vulnerabilities and initiating ransomware attacks at unprecedented speed and scale.  

The CSRB responds to these challenges by widening who is regulated, accelerating incident reporting and tightening supply chain accountability, while enabling rapid updates that keep pace with technology and emerging risks.

Key provisions of the Cyber Security and Resilience Bill

A wider set of organisations in scope

The Bill significantly broadens the range of organisations regulated under the NIS framework.

  • Managed service providers (MSPs) - medium and large MSPs, including MSSPs, managed SOCs, SIEM providers and similar services,will now fall under NIS obligations due to their systemic importance and privileged access to client systems. The Information Commissioner’s Office (ICO) will act as the regulator. Government analysis anticipates that a further 900 to 1,100 MSPs will be in scope.
  • Data infrastructure is now recognised as essential to the functioning of the economy and public services. Medium and large data centres, as well as enterprise facilities meeting specified thresholds, will be required to implement appropriate and proportionate measures to manage cyber risk. Oversight will be shared between DSIT and Ofcom, with Ofcom serving as the operational regulator.
  • Organisations that manage electrical loads for smart appliances, such as those supporting EV charging during peak times, are now within scope.

These additions sit alongside existing NIS-regulated sectors such as transport, energy, water, health, digital infrastructure, and certain digital services (including online marketplaces, search engines, and cloud computing).

Stronger supply chain requirements

Under the CSRB, regulators can now designate third-party suppliers as ‘designated critical suppliers’ (DCS) when certain threshold criteria are met and where disruption could have significant knock-on effects. Designated suppliers will be subject to the same security and incident-reporting obligations as Operators of Essential Services (OES) and Relevant Digital Service Providers (RDSPs).

Government will scope the supply chain duties for OES and RDSPs via secondary legislation, following consultation. infrastructure incidents where a single supplier’s compromise caused widespread disruption.

Faster incident reporting

Sector-specific regulators, 12 in total, will be responsible for implementing the CSRB, allowing for more effective and consistent reporting. In addition, the CSRB introduces a two-stage reporting process and expands incident reporting criteria. Regulated entities must submit an initial notification within 24 hours of becoming aware of a significant incident, followed by an incident report within 72 hours. Incident reporting criteria are also broadened to capture incidents beyond those which actually resulted in an interruption, ensuring earlier visibility for regulators and the National Cyber Security Centre (NCSC). The importance of information sharing across agencies, law enforcement and regulators is also facilitated by the CSRB.

The reforms also require data centres and managed service providers to notify affected customers where they are likely to have been impacted by a cyber incident.

An agile regulatory framework

To keep pace with technological change, the CSRB will enable the Secretary of State to update elements of the framework via secondary legislation. Supporting materials such as the NCSC Cyber Assessment Framework (CAF) are to be "put on a stronger footing” allowing for requirements to be more easily followed, managed and updated. Regulators will also now be able to recover full costs associated with NIS duties meaning they are better resourced to carry out their associated responsibilities.

Relevant Managed Service Providers must identify and take appropriate and proportionate measures to manage risks to the systems they rely on for providing services within the UK. Importantly, these measures must, having regard to the state of the art, ensure a level of security appropriate to the risk posed, and prevent or minimise the impact of incidents.

The Secretary of State will also be empowered to issue a Statement of Strategic Priorities, setting cross-regime outcomes to drive consistency across the 12 competent authorities responsible for implementation.

Penalties

The enforcement framework will be strengthened, with maximum fines aligned with comparable regimes such as the GDPR, which incorporate maximums tied to turnover. Under the CSRB, maximum penalties for more serious breaches could be up to £17 million or 4% of global turnover, whichever is higher.

Next steps

The Bill is expected to progress through Parliament over the course of 2025 and early 2026, with Royal Assent anticipated in 2026. Once enacted, most operational measures will not take immediate effect. Instead, Government will bring key components into force through secondary legislation following further consultation, providing regulators and industry with time to adjust practices and prepare for compliance.

Anticipated timeline

  • 2025-2026: Parliamentary scrutiny and passage;
  • 2026: Royal Assent;  
  • 2026 consultation: DSIT intends to consult on detailed implementation;
  • From 2026 onwards: Phased implementation via secondary legislation, following further consultation led by DSIT.

How Darktrace can help

The CSRB represents a step change in how the UK approaches digital risk, shifting the focus from compliance to resilience.

Darktrace can help organisations operationalise this shift by using AI to detect, investigate and respond to emerging threats at machine speed, before they escalate into incidents requiring regulatory notification. Proactive tools which can be included in the Darktrace platform allow security teams to stress-test defences, map supply chain exposure and rehearse recovery scenarios, directly supporting the CSRB’s focus on resilience, transparency and rapid response. If an incident does occur, Darktrace’s autonomous agent, Cyber AI Analyst, can accelerate investigations and provide a view of every stage of the attack chain, supporting timely reporting.  

Darktrace’s AI can provide organisations with a vital lens into both internal and external cyber risk. By continuously learning patterns of behaviour across interconnected systems, Darktrace can flag potential compromise or disruption to detect supply chain risk before it impacts your organisation.

In a landscape where compliance and resilience go hand in hand, Darktrace can equip organisations to stay ahead of both evolving threats and evolving regulatory requirements.

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November 20, 2025

Managing OT Remote Access with Zero Trust Control & AI Driven Detection

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The shift toward IT-OT convergence

Recently, industrial environments have become more connected and dependent on external collaboration. As a result, truly air-gapped OT systems have become less of a reality, especially when working with OEM-managed assets, legacy equipment requiring remote diagnostics, or third-party integrators who routinely connect in.

This convergence, whether it’s driven by digital transformation mandates or operational efficiency goals, are making OT environments more connected, more automated, and more intertwined with IT systems. While this convergence opens new possibilities, it also exposes the environment to risks that traditional OT architectures were never designed to withstand.

The modernization gap and why visibility alone isn’t enough

The push toward modernization has introduced new technology into industrial environments, creating convergence between IT and OT environments, and resulting in a lack of visibility. However, regaining that visibility is just a starting point. Visibility only tells you what is connected, not how access should be governed. And this is where the divide between IT and OT becomes unavoidable.

Security strategies that work well in IT often fall short in OT, where even small missteps can lead to environmental risk, safety incidents, or costly disruptions. Add in mounting regulatory pressure to enforce secure access, enforce segmentation, and demonstrate accountability, and it becomes clear: visibility alone is no longer sufficient. What industrial environments need now is precision. They need control. And they need to implement both without interrupting operations. All this requires identity-based access controls, real-time session oversight, and continuous behavioral detection.

The risk of unmonitored remote access

This risk becomes most evident during critical moments, such as when an OEM needs urgent access to troubleshoot a malfunctioning asset.

Under that time pressure, access is often provisioned quickly with minimal verification, bypassing established processes. Once inside, there’s little to no real-time oversight of user actions whether they’re executing commands, changing configurations, or moving laterally across the network. These actions typically go unlogged or unnoticed until something breaks. At that point, teams are stuck piecing together fragmented logs or post-incident forensics, with no clear line of accountability.  

In environments where uptime is critical and safety is non-negotiable, this level of uncertainty simply isn’t sustainable.

The visibility gap: Who’s doing what, and when?

The fundamental issue we encounter is the disconnect between who has access and what they are doing with it.  

Traditional access management tools may validate credentials and restrict entry points, but they rarely provide real-time visibility into in-session activity. Even fewer can distinguish between expected vendor behavior and subtle signs of compromise, misuse or misconfiguration.  

As a result, OT and security teams are often left blind to the most critical part of the puzzle, intent and behavior.

Closing the gaps with zero trust controls and AI‑driven detection

Managing remote access in OT is no longer just about granting a connection, it’s about enforcing strict access parameters while continuously monitoring for abnormal behavior. This requires a two-pronged approach: precision access control, and intelligent, real-time detection.

Zero Trust access controls provide the foundation. By enforcing identity-based, just-in-time permissions, OT environments can ensure that vendors and remote users only access the systems they’re explicitly authorized to interact with, and only for the time they need. These controls should be granular enough to limit access down to specific devices, commands, or functions. By applying these principles consistently across the Purdue Model, organizations can eliminate reliance on catch-all VPN tunnels, jump servers, and brittle firewall exceptions that expose the environment to excess risk.

Access control is only one part of the equation

Darktrace / OT complements zero trust controls with continuous, AI-driven behavioral detection. Rather than relying on static rules or pre-defined signatures, Darktrace uses Self-Learning AI to build a live, evolving understanding of what’s “normal” in the environment, across every device, protocol, and user. This enables real-time detection of subtle misconfigurations, credential misuse, or lateral movement as they happen, not after the fact.

By correlating user identity and session activity with behavioral analytics, Darktrace gives organizations the full picture: who accessed which system, what actions they performed, how those actions compared to historical norms, and whether any deviations occurred. It eliminates guesswork around remote access sessions and replaces it with clear, contextual insight.

Importantly, Darktrace distinguishes between operational noise and true cyber-relevant anomalies. Unlike other tools that lump everything, from CVE alerts to routine activity, into a single stream, Darktrace separates legitimate remote access behavior from potential misuse or abuse. This means organizations can both audit access from a compliance standpoint and be confident that if a session is ever exploited, the misuse will be surfaced as a high-fidelity, cyber-relevant alert. This approach serves as a compensating control, ensuring that even if access is overextended or misused, the behavior is still visible and actionable.

If a session deviates from learned baselines, such as an unusual command sequence, new lateral movement path, or activity outside of scheduled hours, Darktrace can flag it immediately. These insights can be used to trigger manual investigation or automated enforcement actions, such as access revocation or session isolation, depending on policy.

This layered approach enables real-time decision-making, supports uninterrupted operations, and delivers complete accountability for all remote activity, without slowing down critical work or disrupting industrial workflows.

Where Zero Trust Access Meets AI‑Driven Oversight:

  • Granular Access Enforcement: Role-based, just-in-time access that aligns with Zero Trust principles and meets compliance expectations.
  • Context-Enriched Threat Detection: Self-Learning AI detects anomalous OT behavior in real time and ties threats to access events and user activity.
  • Automated Session Oversight: Behavioral anomalies can trigger alerting or automated controls, reducing time-to-contain while preserving uptime.
  • Full Visibility Across Purdue Layers: Correlated data connects remote access events with device-level behavior, spanning IT and OT layers.
  • Scalable, Passive Monitoring: Passive behavioral learning enables coverage across legacy systems and air-gapped environments, no signatures, agents, or intrusive scans required.

Complete security without compromise

We no longer have to choose between operational agility and security control, or between visibility and simplicity. A Zero Trust approach, reinforced by real-time AI detection, enables secure remote access that is both permission-aware and behavior-aware, tailored to the realities of industrial operations and scalable across diverse environments.

Because when it comes to protecting critical infrastructure, access without detection is a risk and detection without access control is incomplete.

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About the author
Pallavi Singh
Product Marketing Manager, OT Security & Compliance
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