A recent report by SecurityScorecard has shed light on the widespread issue of third-party data breaches among the European Union’s top companies. The study, which evaluated the cybersecurity health of the region’s 100 largest firms, revealed that 98% experienced breaches through external vendors over the past year. This alarming figure underscores the vulnerabilities posed by interconnected digital ecosystems.
Industry Disparities in Cybersecurity
While only 18% of the companies reported direct breaches, the prevalence of third-party incidents highlights hidden risks that could disrupt operations across multiple sectors. Security performance varied significantly by industry, with the transport sector standing out for its robust defenses. All companies in this sector received high cybersecurity ratings, reflecting strong proactive measures.
In contrast, the energy sector lagged behind, with 75% of firms scoring poorly, receiving cybersecurity grades of C or lower. Alarmingly, one in four energy companies reported direct breaches, further exposing their susceptibility to cyber threats.
Regional differences also emerged, with Scandinavian, British, and German firms demonstrating stronger cybersecurity postures. Meanwhile, French companies recorded the highest rates of third- and fourth-party breaches, reaching 98% and 100%, respectively.
Ryan Sherstobitoff, Senior Vice President of Threat Research and Intelligence at SecurityScorecard, stressed the importance of prioritizing third-party risk management. His remarks come as the EU prepares to implement the Digital Operational Resilience Act (DORA), a regulation designed to enhance the cybersecurity infrastructure of financial institutions.
“With regulations like DORA set to reshape cybersecurity standards, European companies must prioritise third-party risk management and leverage rating systems to safeguard their ecosystems,” Sherstobitoff stated in a media briefing.
Strengthening Cybersecurity Resilience
DORA introduces stricter requirements for banks, insurance companies, and investment firms to bolster their resilience against cyberattacks and operational disruptions. As organizations gear up for the rollout of this framework, addressing third-party risks will be crucial for maintaining operational integrity and adhering to evolving cybersecurity standards.
The findings from SecurityScorecard highlight the urgent need for EU businesses to fortify their digital ecosystems and prepare for regulatory demands. By addressing third-party vulnerabilities, organizations can better safeguard their operations and protect against emerging threats.
