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June 3, 2024

Exploring the Benefits and Risks of Third-Party Data Solutions

This blog discusses why companies use third-party data management for efficiency, global access, collaboration, and reliability, while also addressing security risks associated and best practices 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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October 23, 2025

Patch Smarter, Not Harder: Now Empowering Security Teams with Business-Aligned Threat Context Agents

Patch Smarter, Not Harder: Now Empowering Security Teams with Business-Aligned Threat Context Agents Default blog imageDefault blog image

Most risk management programs remain anchored in enumeration: scanning every asset, cataloging every CVE, and drowning in lists that rarely translate into action. Despite expensive scanners, annual pen tests, and countless spreadsheets, prioritization still falters at two critical points.

Context gaps at the device level: It’s hard to know which vulnerabilities actually matter to your business given existing privileges, what software it runs, and what controls already reduce risk.

Business translation: Even when the technical priority is clear, justifying effort and spend in financial terms—especially across many affected devices—can delay action. Especially if it means halting other areas of the business that directly generate revenue.

The result is familiar: alert fatigue, “too many highs,” and remediation that trails behind the threat landscape. Darktrace / Proactive Exposure Management addresses this by pairing precise, endpoint‑level context with clear, financial insight so teams can prioritize confidently and mobilize faster.

A powerful combination: No-Telemetry Endpoint Agent + Cost-Benefit Analysis

Darktrace / Proactive Exposure Management now uniquely combines technical precision with business clarity in a single workflow.  With this release, Darktrace / Proactive Exposure Management delivers a more holistic approach, uniting technical context and financial insight to drive proactive risk reduction. The result is a single solution that helps security teams stay ahead of threats while reducing noise, delays, and complexity.

  • No-Telemetry Endpoint: Collects installed software data and maps it to known CVEs—without network traffic—providing device-level vulnerability context and operational relevance.
  • Cost-Benefit Analysis for Patching: Calculates ROI by comparing patching effort with potential exploit impact, factoring in headcount time, device count, patch difficulty, and automation availability.

Introducing the No-Telemetry Endpoint Agent

Darktrace’s new endpoint agent inventories installed software on devices and maps it to known CVEs without collecting network data so you can prioritize using real device context and available security controls.

By grounding vulnerability findings in the reality of each endpoint, including its software footprint and existing controls, teams can cut through generic severity scores and focus on what matters most. The agent is ideal for remote devices, BYOD-adjacent fleets, or environments standardizing on Darktrace, and is available without additional licensing cost.

Darktrace / Proactive Exposure Management user interface
Figure 1: Darktrace / Proactive Exposure Management user interface

Built-In Cost-Benefit Analysis for Patching

Security teams often know what needs fixing but stakeholders need to understand why now. Darktrace’s new cost-benefit calculator compares the total cost to patch against the potential cost of exploit, producing an ROI for the patch action that expresses security action in clear financial terms.

Inputs like engineer time, number of affected devices, patch difficulty, and automation availability are factored in automatically. The result is a business-aligned justification for every patching decision—helping teams secure buy-in, accelerate approvals, and move work forward with one-click ticketing, CSV export, or risk acceptance.

Darktrace / Proactive Exposure Management Cost Benefit Analysis
Figure 2: Darktrace / Proactive Exposure Management Cost Benefit Analysis

A Smarter, Faster Approach to Exposure Management

Together, the no-telemetry endpoint and Cost–Benefit Analysis advance the CTEM motion from theory to practice. You gain higher‑fidelity discovery and validation signals at the device level, paired with business‑ready justification that accelerates mobilization. The result is fewer distractions, clearer priorities, and faster measurable risk reduction. This is not from chasing every alert, but by focusing on what moves the needle now.

  • Smarter Prioritization: Device‑level context trims noise and spotlights the exposures that matter for your business.
  • Faster Decisions: Built‑in ROI turns technical urgency into executive clarity—speeding approvals and action.
  • Practical Execution: Privacy‑conscious endpoint collection and ticketing/export options fit neatly into existing workflows.
  • Better Outcomes: Close the loop faster—discover, prioritize, validate, and mobilize—on the same operating surface.

Committed to innovation

These updates are part of the broader Darktrace release, which also included:

1. Major innovations in cloud security with the launch of the industry’s first fully automated cloud forensics solution, reinforcing Darktrace’s leadership in AI-native security.

2. Darktrace Network Endpoint eXtended Telemetry (NEXT) is revolutionizing NDR with the industry’s first mixed-telemetry agent using Self-Learning AI.

3. Improvements to our OT product, purpose built for industrial infrastructure, Darktrace / OT now brings dedicated OT dashboard, segmentation-aware risk modeling, and expanded visibility into edge assets and automation protocols.

Join our Live Launch Event

When? 

December 9, 2025

What will be covered?

Join our live broadcast to experience how Darktrace is eliminating blind spots for detection and response across your complete enterprise with new innovations in Agentic AI across our ActiveAI Security platform. Industry leaders from IDC will join Darktrace customers to discuss challenges in cross-domain security, with a live walkthrough reshaping the future of Network Detection & Response, Endpoint Detection & Response, Email Security, and SecOps in novel threat detection and autonomous investigations.

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October 23, 2025

Darktrace Announces Extended Visibility Between Confirmed Assets and Leaked Credentials from the Deep and Dark Web

Darktrace Announces Extended Visibility Between Confirmed Assets and Leaked Credentials from the Deep and Dark Web Default blog imageDefault blog image

Why exposure management needs to evolve beyond scans and checklists

The modern attack surface changes faster than most security programs can keep up. New assets appear, environments change, and adversaries are increasingly aided by automation and AI. Traditional approaches like periodic scans, static inventories, or annual pen tests are no longer enough. Without a formal exposure program, many businesses are flying blind, unaware of where the next threat may emerge.

This is where Continuous Threat Exposure Management (CTEM) becomes essential. Introduced by Gartner, CTEM helps organizations continuously assess, validate, and improve their exposure to real-world threats. It reframes the problem: scope your true attack surface, prioritize based on business impact and exploitability, and validate what attackers can actually do today, not once a year.

With two powerful new capabilities, Darktrace / Attack Surface Management helps organizations evolve their CTEM programs to meet the demands of today’s threat landscape. These updates make CTEM a reality, not just a strategy.

Too much data, not enough direction

Modern Attack Surface Management tools excel at discovering assets such as cloud workloads, exposed APIs, and forgotten domains. But they often fall short when it comes to prioritization. They rely on static severity scores or generic CVSS ratings, which do not reflect real-world risk or business impact.

This leaves security teams with:

  • Alert fatigue from hundreds of “critical” findings
  • Patch paralysis due to unclear prioritization
  • Blind spots around attacker intent and external targeting

CISOs need more than visibility. They need confidence in what to fix first and context to justify those decisions to stakeholders.

Evolving Attack Surface Management

Attack Surface Management (ASM) must evolve from static lists and generic severity scores to actionable intelligence that helps teams make the right decision now.

Joining the recent addition of Exploit Prediction Assessment, which debuted in late June 2025, today we’re introducing two capabilities that push ASM into that next era:

  • Exploit Prediction Assessment: Continuously validates whether top-priority exposures are actually exploitable in your environment without waiting for patch cycles or formal pen tests.  
  • Deep & Dark Web Monitoring: Extends visibility across millions of sources in the deep and dark web to detect leaked credentials linked to your confirmed domains.
  • Confidence Score: our newly developed AI classification platform will compare newly discovered assets to assets that are known to belong to your organization. The more these newly discovered assets look similar to assets that belong to your organization, the higher the score will be.

Together, these features compress the window from discovery to decision, so your team can act with precision, not panic. The result is a single solution that helps teams stay ahead of attackers without introducing new complexities.

Exploit Prediction Assessment

Traditional penetration tests are invaluable, but they’re often a snapshot of that point-in-time, are potentially disruptive, and compliance frameworks still expect them. Not to mention, when vulnerabilities are present, teams can act immediately rather than relying solely on information from CVSS scores or waiting for patch cycles.  

Unlike full pen tests which can be obtrusive and are usually done only a couple times per year, Exploit Prediction Assessment is surgical, continuous, and focused only on top issues Instead of waiting for vendor patches or the next pen‑test window. It helps confirm whether a top‑priority exposure is actually exploitable in your environment right now.  

For more information on this visit our blog: Beyond Discovery: Adding Intelligent Vulnerability Validation to Darktrace / Attack Surface Management

Deep and Dark Web Monitoring: Extending the scope

Customers have been asking for this for years, and it is finally here. Defense against the dark web. Darktrace / Attack Surface Management’s reach now spans millions of sources across the deep and dark web including forums, marketplaces, breach repositories, paste sites, and other hard‑to‑reach communities to detect leaked credentials linked to your confirmed domains.  

Monitoring is continuous, so you’re alerted as soon as evidence of compromise appears. The surface web is only a fraction of the internet, and a sizable share of risk hides beyond it. Estimates suggest the surface web represents roughly ~10% of all online content, with the rest gated or unindexed—and the TOR-accessible dark web hosts a high proportion of illicit material (a King’s College London study found ~57% of surveyed onion sites contained illicit content), underscoring why credential leakage and brand abuse often appear in places traditional monitoring doesn’t reach. Making these spaces high‑value for early warning signals when credentials or brand assets appear. Most notably, this includes your company’s reputation, assets like servers and systems, and top executives and employees at risk.

What changes for your team

Before:

  • Hundreds of findings, unclear what to start with
  • Reactive investigations triggered by incidents

After:

  • A prioritized backlog based on confidence score or exploit prediction assessment verification
  • Proactive verification of exposure with real-world risk without manual efforts

Confidence Score: Prioritize based on the use-case you care most about

What is it?

Confidence Score is a metric that expresses similarity of newly discover assets compared to the confirmed asset inventory. Several self-learning algorithms compare features of assets to be able to calculate a score.

Why it matters

Traditional Attack Surface Management tools treat all new discovery equally, making it unclear to your team how to identify the most important newly discovered assets, potentially causing you to miss a spoofing domain or shadow IT that could impact your business.

How it helps your team

We’re dividing newly discovered assets into separate insight buckets that each cover a slightly different business case.

  • Low scoring assets: to cover phishing & spoofing domains (like domain variants) that are just being registered and don't have content yet.
  • Medium scoring assets: have more similarities to your digital estate, but have better matching to HTML, brand names, keywords. Can still be phishing but probably with content.
  • High scoring assets: These look most like the rest of your confirmed digital estate, either it's phishing that needs the highest attention, or the asset belongs to your attack surface and requires asset state confirmation to enable the platform to monitor it for risks.

Smarter Exposure Management for CTEM Programs

Recent updates to Darktrace / Attack Surface Management directly advance the core phases of Continuous Threat Exposure Management (CTEM): scope, discover, prioritize, validate, and mobilize. The new Exploit Prediction Assessment helps teams validate and prioritize vulnerabilities based on real-world exploitability, while Deep & Dark Web Monitoring extends discovery into hard-to-reach areas where stolen data and credentials often surface. Together, these capabilities reduce noise, accelerate remediation, and help organizations maintain continuous visibility over their expanding attack surface.

Building on these innovations, Darktrace / Attack Surface Management empowers security teams to focus on what truly matters. By validating exploitability, it cuts through the noise of endless vulnerability lists—helping defenders concentrate on exposures that represent genuine business risk. Continuous monitoring for leaked credentials across the deep and dark web further extends visibility beyond traditional asset discovery, closing critical blind spots where attackers often operate. Crucially, these capabilities complement, not replace, existing security controls such as annual penetration tests, providing continuous, low-friction validation between formal assessments. The result is a more adaptive, resilient security posture that keeps pace with an ever-evolving threat landscape.

If you’re building or maturing a CTEM program—and want fewer open exposures, faster remediation, and better outcomes, Darktrace / Attack Surface Management’s new Exploit Prediction Assessment and Deep & Dark Web Monitoring are ready to help.

  • Want a more in-depth look at how Exploit Prediction Assessment functions? Read more here

Committed to innovation

These updates are part of the broader Darktrace release, which also included:

1. Major innovations in cloud security with the launch of the industry’s first fully automated cloud forensics solution, reinforcing Darktrace’s leadership in AI-native security.

2. Darktrace Network Endpoint eXtended Telemetry (NEXT) is revolutionizing NDR with the industry’s first mixed-telemetry agent using Self-Learning AI.

3. Improvements to our OT product, purpose built for industrial infrastructure, Darktrace / OT now brings dedicated OT dashboard, segmentation-aware risk modeling, and expanded visibility into edge assets and automation protocols.

Join our Live Launch Event

When? 

December 9, 2025

What will be covered?

Join our live broadcast to experience how Darktrace is eliminating blind spots for detection and response across your complete enterprise with new innovations in Agentic AI across our ActiveAI Security platform. Industry leaders from IDC will join Darktrace customers to discuss challenges in cross-domain security, with a live walkthrough reshaping the future of Network Detection & Response, Endpoint Detection & Response, Email Security, and SecOps in novel threat detection and autonomous investigations.

Continue reading
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