Are You Overlooking the Cyber Risks of Third-Party Software? Insights from C3IA

Despite growing awareness of cyber threats, many businesses still fail to fully address the risks posed by the third-party technology they rely on. The majority of organisations are not sufficiently reviewing the dangers that come with using external software and apps—leaving themselves vulnerable to attack.

 

A Critical Overlooked Risk

Government statistics continue to underscore just how exposed companies are in this area. While medium and large enterprises are becoming more aware of general cyber security risks, only about 10% of businesses actively assess the potential threats associated with their suppliers. Third-party technology can open doors to significant vulnerabilities that cyber criminals are quick to exploit.

Lucy Dalley, one of C3IA’s Security Consultants, stresses the importance of assessing external software: “As software and digital systems evolve rapidly, so too do the associated cyber security risks. It’s essential for businesses to use software designed with security in mind, ensuring it performs its intended function without leaving the company exposed.”

 

Misplaced Trust in Technology

One of the key challenges businesses face is a misplaced sense of trust in their technology. “Much like people rarely question a calculator’s results, many businesses assume their software and apps are infallible,” Dalley explains. “But the reality is that all technology is built by humans, and with that comes the possibility of mistakes—whether minor bugs or serious security flaws, especially in large projects.”

The risks of third-party software can include anything from critical security weaknesses to functionality issues that disrupt operations. Yet many businesses overlook these dangers, assuming the software will run smoothly without careful scrutiny.

 

Proactive Measures for Mitigating Risks

To stay protected, businesses must take proactive steps to assess and secure the third-party software they use. Dalley recommends regular vulnerability assessments, code reviews, and penetration testing as standard practices. “Penetration testing, where security professionals attempt to break into your system, is particularly valuable,” she says. “It’s like hiring an ex-burglar to test the strength of your locks and show you where improvements are needed.”

Yet, despite the clear benefits, the Cyber Security Breaches Survey 2023 revealed that only 11% of businesses conduct such testing, leaving the vast majority exposed to potential attacks.

 

Practical Steps to Improve Cybersecurity

Here is C3IA’s practical advice for businesses looking to enhance their security, particularly when using third-party technology:

• Download applications only from trusted platforms to ensure security standards are met.
• Deny permissions to non-approved apps, restricting unnecessary access to sensitive data.
• Keep all software and apps updated to patch any known vulnerabilities.
• Use reliable antivirus software as an additional layer of protection.
• Implement mobile device management (MDM) to secure all mobile devices used in the workplace.
• Regularly audit and remove unused applications to reduce potential security risks.

Businesses can also pursue Cyber Essentials certification, a government-backed initiative that provides a baseline level of protection. This certification includes cyber insurance, offering added peace of mind.

 

The Cost of Inaction

“While more business leaders are beginning to understand the importance of cyber security, many still aren’t taking it seriously enough,” warns Dalley. “Unfortunately, we’re often called in after an attack has already taken place, and the fallout can be devastating—from financial losses to long-lasting reputational damage.”

As businesses increasingly rely on third-party software and apps, cyber security can no longer be an afterthought. The risks associated with supplier technology are real and growing, and ignoring them could leave your business wide open to cyber attacks.

 

Looking Ahead

As Dalley concludes: “Businesses need to embed robust security practices into their everyday operations. Understanding and mitigating the cyber risks posed by third-party technology is no longer optional—it’s essential.”