The Risk of Unsecured Third-Party Identities

May 10, 2023

Everyday businesses increase their reliance on third-party human and non-human identities to achieve their goals. These identities are often granted access to sensitive data or systems via elevated and privileged access. The business must place a high priority on securing third-party human and non-human identities as they pose increasing risks to the business if left unsecured.

Third-Party Human Identities:

Third-party human identities, such as vendors, contractors, and partners, are often granted access to a business's network to perform specific tasks. These identities may be given access to sensitive data or systems, making them potential targets for cybercriminals looking to gain unauthorized access to a business's network.

The Risks of Unsecured Third-Party Human Identities:

Unsecured third-party human identities pose a significant security risk to a business. The following are some potential risks:

1.     Unauthorized Access: Third-party human identities may be granted access to sensitive data or systems that they do not need access to. If these identities are compromised, attackers may be able to gain unauthorized access to a business's network and sensitive data.

2.     Data Breaches: Third-party human identities may have access to sensitive data, making them potential targets for theft and misuse. When a third-party human identity is compromised, sensitive data to business and compliance relevant information may be stolen, leading to a data breach.

3.     Compliance Issues: Businesses in certain industries, such as healthcare and finance, are required to comply with industry-specific regulations, such as SOX, HIPAA and PCI DSS. These regulations require businesses to implement specific security measures to protect sensitive data. Unsecured third-party human identities can lead to compliance issues, as businesses may not be able to provide an audit trail for third-party activity or may not be able to demonstrate that third-party identities are properly secured and managed.

Best Practices For Securing Third-Party Human Identities:

1.     Conduct Background Checks: Before granting access to a third-party human identity, businesses should conduct background checks to ensure that the individual is trustworthy and does not pose a security risk.

2.     Implement Identity Proofing: Ensure that each third-party human identity is verified prior to assigning application, data and infrastructure access.

3.     Implement Access Controls: Third-party human identities should only be granted access to the systems and data they need to perform their tasks. This helps to reduce the risk of unauthorized access and limits the potential damage caused by a compromised third-party identity.

4.     Enforce Strong Password Policies: Third-party human identities should be subject to the same password policies as internal employees. This includes requiring strong passwords and enforcing password expiration policies.

5.     Regularly Monitor Third-Party Activity: Regular monitoring of third-party activity can help to detect any unauthorized access or suspicious activity. This includes monitoring login attempts, resource access, and changes to system configurations.

6.     Implement Regular Reviews: Regular reviews of third-party access can help to identify and remove unnecessary access, reducing the risk of unauthorized access.

Third-Party Non-Human Identities:

Third-party non-human identities, such as service accounts, bots and Internet of Things (IoT) devices, are used to automate tasks, access network resources, and perform various functions. These non-human identities are often granted elevated privileges, allowing them to access sensitive data or make changes to system configurations that regular user accounts cannot.

The Risk of Unsecured Third-Party Non-Human Identities:

1.     Unauthorized Access: If a third-party non-human identity is compromised, attackers may be able to gain unauthorized access to a business's network, sensitive data, or systems.

2.     Malicious Activity: Compromised third-party non-human identities can be used to launch attacks on a business's network, such as ransomware, malware propagation or data theft.

3.     Compliance Issues: Businesses may be required to comply with industry-specific regulations, such as SOX, HIPAA and PCI DSS, which require businesses to implement specific security measures to protect sensitive data. Unsecured third-party non-human identities can lead to compliance issues, as businesses may not be able to provide an audit trail for third-party activity or may not be able to demonstrate that third-party identities are properly secured.

Best Practices for Securing Third-Party Non-Human Identities:

Securing third-party non-human identities is essential to ensure the security of a business's network. The following are some best practices for securing third-party non-human identities:

1.     Gain Visibility: Inventory non-human identities, accounts and entitlements.  Start with all business and compliance relevant systems.

2.     Implement Strong Password Policies: Third-party non-human identities should be subject to strong password policies, such as requiring complex passwords and enforcing password expiration policies.

3.     Regularly Update and Patch: Third-party non-human identities should be regularly updated and patched to ensure they are protected against known vulnerabilities.

4.     Implement Access Controls: Third-party non-human identities should only be granted access to the systems and data they need to perform their tasks. This helps to reduce the risk of unauthorized access and limits the potential damage caused by a compromised third-party identity.

5.     Regularly Monitor Third-Party Activity: Regular monitoring of third-party activity can help to detect any unauthorized access or suspicious activity. This includes monitoring login attempts, resource access, and changes to system configurations.

6.     Use Role-Based Access Control (RBAC): RBAC can help to ensure that third-party non-human identities only have access to the systems and data they need to perform their tasks.

7.     Implement Segmentation: Implementing network segmentation can help to limit the potential damage caused by a compromised third-party non-human identity by containing the attack to a specific area of the network.

8.     Regularly Review and Remove Unnecessary Access: Regular reviews of third-party access can help to identify and remove unnecessary access, reducing the risk of unauthorized access.

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Mohammed Elkhatib

Founder and CEO

Mohammed is an Identity Management and Access Governance thought leader with over 16 years of Information Security experience and over 20 years of IT and Business experience. Mohammed has worked with over 500 Identity Management and Access Governance clients. Mohammed’s significant and numerous contributions at the most successful Identity and Access related startups have led to three successful exits in excess of $825MM.

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