In 2024, third-party data breaches affected most major U.S. banks. These breaches happened because vendors, not the banks themselves, failed to protect sensitive systems and data. This created access points for cybercriminals to steal information, cause downtime, and spread attacks across connected organizations.
This kind of breach is no longer limited to large banks or tech firms. It affects small businesses, healthcare providers, law offices, retailers, and schools across the U.S.—including right here in Utah.
If your company uses cloud services, vendor-based platforms, or external IT support, your systems are exposed to similar risks.
This article explains what a third-party breach is, how recent incidents unfolded, and what your Utah business can do to reduce risk. We will cover:
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Common causes of third-party breaches
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Real-world incidents from 2024
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Practical steps Utah companies can take
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How managed IT services and cybersecurity protect your operations
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Why vendor risk should be part of every business plan
What Is a Third-Party Data Breach?
A third-party data breach happens when a vendor or contractor is compromised and that compromise affects your systems. These vendors may include:
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Software providers
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Cloud storage services
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Payment processors
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Marketing platforms
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Remote IT support services
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Managed service providers
Many of these companies have access to your business systems. They may store your customer data, handle your login credentials, or have admin-level access to servers.
If those vendors are attacked, your data and business continuity are at risk—even if your systems are secure.
Why Utah Businesses Should Pay Attention
Utah has thousands of small and medium-sized businesses. Many rely on cloud tools or outsourced IT support to manage operations. These include:
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Local banks and credit unions
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Medical clinics and hospitals
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Law firms and insurance brokers
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Manufacturing companies
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Retail stores and e-commerce brands
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K-12 schools and universities
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Government offices and municipalities
Each of these organizations uses software or vendors that operate outside their core business network. These connections make Utah businesses vulnerable to outside attacks—especially when those vendors do not maintain strong cybersecurity standards.
If a single vendor is breached, the damage can spread across dozens or hundreds of their clients.
2024 Breaches That Highlight Vendor Risk
Several major cybersecurity incidents in 2024 illustrate how third-party failures can ripple across industries.
1. MOVEit Breach
A ransomware group exploited a flaw in MOVEit, a widely used secure file transfer software. Businesses, hospitals, and government offices used MOVEit to transfer sensitive files. When attackers accessed MOVEit’s back end, they stole names, Social Security numbers, and medical records from multiple organizations.
This breach affected companies in every sector. Many did not even realize they used MOVEit through another vendor until the damage was done.
2. Okta Support System Breach
Okta is used for identity and access management. In 2024, hackers accessed Okta’s support case management system. Using stolen session tokens, they impersonated users from other companies. These companies trusted Okta to secure user logins and multi-factor authentication.
Because Okta connects to many platforms, attackers were able to bypass protections and gain access to downstream customer environments. The breach affected hundreds of organizations—even though Okta’s core systems remained online.
3. CrowdStrike Update Failure
CrowdStrike, a major cybersecurity firm, pushed out an update that unintentionally caused widespread crashes on Windows machines across the U.S. This wasn’t a breach—it was a software error. But it showed how much impact one third-party provider can have.
Thousands of systems went offline within hours. This affected banks, retailers, airports, and schools.
The takeaway? One outside service can disrupt or damage your entire operation.
How These Breaches Happen
Third-party attacks follow a simple path:
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Attackers find a weak vendor with access to many companies.
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They exploit a software flaw or use phishing to gain access.
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Once inside, they move across client networks using stolen credentials or unprotected admin rights.
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They steal data, install malware, or demand ransom.
This pattern repeats across industries. The more vendors you work with, the more paths attackers can take.
What Risks Do Utah Businesses Face?
Utah businesses often use dozens of external systems. These systems include billing platforms, email services, support tools, and file-sharing apps.
Here are common third-party risks for Utah companies:
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Vendors with outdated security settings
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Weak or reused passwords shared across accounts
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Over-permissioned access levels for software
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Unmonitored software updates
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Poor communication from vendors during breaches
You may not even know how much access a vendor has until something goes wrong.
What Utah Companies Can Do Right Now
1. Build a Vendor Inventory
List every external tool, platform, or partner your business uses. Identify which vendors have access to your internal systems or customer data.
Track this list monthly and add new vendors as they appear.
2. Ask the Right Questions
When working with a new vendor, ask:
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Do you use encryption?
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Do you require multi-factor authentication?
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Have you had a breach in the last two years?
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Do you notify customers quickly if there is a breach?
If a vendor can’t answer clearly, consider it a red flag.
3. Limit Vendor Access
Give vendors only the access they need. For example, an accounting service should not be able to see customer records if it doesn’t need them.
Set expiration dates for access credentials and delete old accounts.
4. Use Cybersecurity Monitoring Tools
Install tools that watch for strange behavior across your systems. These tools can flag unexpected logins, unusual data movement, or failed login attempts.
This helps detect early signs of compromise.
5. Rotate Passwords and Keys
Use unique credentials for each platform. Change them regularly, especially after employees leave or vendors complete a project.
Avoid reusing passwords or API keys across systems.
6. Train Your Team
Human error causes many breaches. Train employees to avoid phishing links, use password managers, and verify sender information in emails.
Security training reduces your exposure and builds a smarter team.
Managed IT Services Support Vendor Risk Reduction
Many Utah businesses lack full-time IT staff. This creates gaps in updates, monitoring, and vendor oversight.
A managed IT services provider helps fill those gaps. They deliver constant support and protection without hiring additional in-house staff.
Benefits of managed IT services include:
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24/7 system monitoring
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Threat detection and alerting
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Patch and update management
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Cloud and network security
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Backup and disaster recovery
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Compliance guidance for industries like finance and healthcare
Managed services help businesses stay secure while focusing on daily operations.
Why Cybersecurity Is Now a Business Essential
Cybersecurity is no longer a technical issue—it is a business issue. If your vendor is compromised, you may face:
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Downtime
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Loss of customer trust
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Regulatory fines
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Lost revenue
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Insurance complications
Your business cannot afford to wait.
Building a security-first mindset protects your data, customers, and brand.
How Maise Technology Helps Utah Businesses
Maise Technology provides managed IT services, IT support, and cybersecurity solutions for companies across Utah.
We help you:
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Monitor vendors and digital tools
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Secure access points to reduce breach risk
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Respond to incidents quickly
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Comply with security standards
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Train your team on safety practices
We serve clients in finance, healthcare, retail, education, government, and more.
Schedule Your Free Cybersecurity Risk Assessment
If you use third-party software or services, your business could be exposed. Let us review your systems and identify your risks.
📞 Call Maise Technology at 888-624-7383 to schedule a free cybersecurity risk assessment.
Or visit www.maisetechnology.com to learn more.
Summary: How to Stay Safe from Third-Party Breaches
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Know which vendors access your systems
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Ask vendors about their cybersecurity
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Limit access and update credentials often
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Use monitoring tools to detect threats
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Train staff and respond quickly to incidents
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Use managed IT services for extra support
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