The Domino Effect of Cybersecurity: How One Attack on a Third-Party Vendor Can Disrupt Hundreds of Organizations

The recent cyberattacks on CDK Global, a software provider for car dealerships, highlights the domino effect problem in cybersecurity. Even if a company has strong security practices in place, a small mistake or security flaw at a third-party supplier can lead to widespread disruptions.

Car dealerships across North America had to resort to pen and paper to process auto repairs and sales as CDK Global faced back-to-back cyberattacks. This incident is just one in a series of attacks this year that started with a single tech vendor and impacted numerous organizations within a sector.

The interconnected nature of the technology industry means that specialized vendors play a critical role in providing essential tools for various sectors. However, this also creates a concentrated security risk, as a cyberattack on a key vendor can have far-reaching consequences.

Research shows that 150 companies provide 90% of the technology products and services used by global companies, with many of them having subpar security ratings. This underscores the importance of understanding the tools and vendors used in a company’s systems to mitigate potential risks.

As cyberattacks and data breaches continue to rise, supply chain attacks have become more prevalent. Tech vendors must prioritize cybersecurity basics to protect themselves and their customers from potential threats.

In conclusion, the best defense against cyber threats for customers of highly concentrated tech vendors is awareness and understanding of the tools and vendors in their systems. By staying informed and proactive, companies can better protect themselves from the ripple effects of cyberattacks in the interconnected digital landscape.