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As cyber threats evolve, attackers are increasingly exploiting third-party vulnerabilities to gain access to businesses and critical infrastructure. SecurityScorecard’s 2025 Global Third-Party Breach Report highlights this alarming trend, revealing how supply chain weaknesses have become a major entry point for cybercriminals. With ransomware groups and state-sponsored hackers targeting vendor relationships, organizations must shift from periodic security checks to real-time monitoring to mitigate risks.
This report, based on the world’s largest proprietary risk dataset, analyzed 1,000 breaches across multiple industries and regions. The findings offer deep insights into the growing role of third-party breaches, their impact on different sectors, and practical strategies to minimize risk.
Key Findings: The State of Third-Party Breaches in 2025
1. Third-Party Breaches Are Escalating
- 35.5% of all cyber breaches in 2024 were linked to third parties, though underreporting suggests the real number is even higher.
- Cybercriminals increasingly leverage vendor access to scale attacks across multiple organizations.
2. Shifting Industry Targets
- Retail & Hospitality: The highest rate of third-party breaches (52.4%).
- Technology Sector: 47.3% of third-party breaches involved tech firms, down from 75% in 2023, indicating diversification in attack targets.
- Healthcare: Suffered the most breaches (78), but with a lower breach rate of 32.2%.
3. Global Hotspots for Third-Party Breaches
- Singapore recorded the highest rate (71.4%), followed by the Netherlands (70.4%) and Japan (60%).
- The U.S. reported a 30.9% third-party breach rate, 4.6% below the global average.
4. The Ransomware Connection
- 41.4% of ransomware attacks now originate through third-party access.
- The ransomware group C10p is identified as the most aggressive in exploiting vendor weaknesses.
Actionable Strategies for Reducing Third-Party Risks
1. Align Risk Management With Your Industry
Each sector faces different vulnerabilities. Companies should customize their third-party risk management based on industry, technology, and supply chain complexity.
2. Strengthen Fourth-Party Security
- Vendors must maintain robust third-party risk management (TPRM) programs.
- Contracts should enforce strong security standards, ensuring that suppliers also manage their third-party risks.
3. Demand Secure-By-Design Technology
- Security must be a core feature of software and services, not an afterthought.
- Organizations should adopt CISA’s “Secure by Design” initiative for vendor selection.
4. Protect High-Risk Infrastructure
- Prioritize securing cloud systems, VPNs, file transfer software, and industry-specific services.
- Apply multi-factor authentication (MFA) and continuous patching to mitigate threats.
5. Disrupt Ransomware Supply Chains
- Paying ransoms encourages further attacks and carries legal risks.
- Organizations should strengthen cyber defenses and implement robust backup strategies to avoid ransom payments.
What Undercode Says: The Bigger Picture of Third-Party Breaches
Third-Party Risk is No Longer a Secondary Concern
For years, cybersecurity discussions focused primarily on direct threats like phishing, malware, and internal vulnerabilities. However, the 2025 SecurityScorecard report makes it clear: third-party risk is now a primary attack vector. Cybercriminals know that vendors and suppliers often have weaker security measures, making them an easier path into high-value targets.
Why the Tech Industry’s Declining Breach Rate Matters
The drop in third-party breaches for tech companies (from 75% to 47.3%) could indicate better security practices—or that attackers are shifting focus to less-prepared industries. Retail, hospitality, and critical infrastructure now face heightened risks, meaning security frameworks must expand beyond traditional tech hubs.
The Ransomware Economy and Vendor Exploitation
The 41.4% of ransomware attacks leveraging third-party access highlights a strategic shift among cybercriminals. Instead of targeting organizations directly, they compromise vendors to gain a backdoor into larger networks. The C10p ransomware group’s dominance in this space shows how well-organized and financially motivated these threat actors have become.
Geopolitical and Regional Risks
Countries like Singapore (71.4%) and the Netherlands (70.4%) experiencing high breach rates suggest attackers prioritize regions with high digital connectivity and business dependencies on third-party services. The relatively lower breach rate in the U.S. (30.9%) could be due to stricter cybersecurity regulations or differences in reporting standards.
Fourth-Party Risks: The Hidden Danger
Most companies focus on third-party security, but fourth-party risks—vendors of vendors—are just as critical. Many breaches occur not through direct suppliers, but through subcontractors and service providers buried deep in the supply chain. Organizations must demand full visibility into their extended supply chain security.
The Future: Real-Time Risk Monitoring as a Necessity
Periodic security audits are no longer enough. Continuous monitoring of third-party risks is the future of cybersecurity. Companies should invest in automated security rating systems, real-time breach detection, and contractual obligations that enforce higher vendor security standards.
Final Takeaway
SecurityScorecard’s 2025 report is a wake-up call: supply chain security is now a frontline battlefield in cybersecurity. Businesses must act aggressively to mitigate risks before they become full-scale breaches.
Fact Checker Results
- Are third-party breaches increasing? ✅ Yes. The report confirms a 35.5% breach rate, with likely underreporting.
- Is ransomware mainly exploiting vendors? ✅ Yes. 41.4% of ransomware attacks now originate through third parties.
- Is the tech sector still the primary target? ❌ No. Retail & hospitality now have higher third-party breach rates than technology.
References:
Reported By: https://www.darkreading.com/cyberattacks-data-breaches/securityscorecard-2025-report-surge-vendor-driven-attacks
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