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June 3, 2024

Exploring the Benefits and Risks of Third-Party Data Solutions

Many companies use third-party data management for efficiency, global access, collaboration, and reliability. Find out what those organizations need to know about addressing the security risks and best practices associated with third-party data management.
Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Oakley Cox
Director of Product
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03
Jun 2024

Why do companies allow third parties to handle their data?

Companies seek out third parties to handle their data for operational efficiency.

The scale and cost of maintaining in-house infrastructure can be outsourced to third parties who specialize in data management or in certain business functions.

Third parties who handle an organization’s data can range from large public cloud providers such as Azure or AWS, to boutique companies who handle specific business functions such as telemarketing, payment systems, or webpage hosting.

The operational efficiencies gained through third-party data management can be summarized by three key benefits:

  • Global accessibility: Third-party data storage enables data access across the globe, allowing businesses to access data from anywhere.
  • Enhanced collaboration: Third-party data storage allows for file sharing, real-time editing, and integration with other applications and services enhancing a business’s collaboration efforts.
  • Reliability and uptime: Reputable third-party storage providers offer high reliability and uptime guarantees, ensuring that data is available whenever needed. They typically have robust disaster recovery and backup systems in place to prevent data loss.

Given these benefits, it is no surprise that businesses are using these services to expand their operations and scale efforts with the need of a growing business. This strategic move not only optimizes resource allocation but also enhances operational agility, enabling businesses to adapt swiftly to evolving data demands and maintain a competitive edge in a dynamic market.

Security risks of entrusted data to third-party vendors

Entrusting data to third parties can expose businesses to supply chain risks and increase the risk of data breaches and unauthorized access. A business has less control over its data and becomes dependent on the third party's policies, practices, and uptime. Many third-party vendors are the target of hackers who specialize in monetizing sensitive data and exploiting gray areas around who is responsible for securing the data.

Thus, businesses are vulnerable when they entrust sensitive data to third-party platforms, which often lack transparency about data usage and security. The platforms, chosen mainly for cost, efficiency, and user experience, are frequent targets for cyber criminals, hacktivists, and opportunistic lone hackers looking for sensitive data accidentally exposed due to misconfigurations or poor data management policies.

Consumers are putting pressure on businesses to improve cybersecurity when handling their personal data. Businesses who suffer a data breach face a high level of scrutiny from customers, investors, the media, and governments, even when the data breach is the result of a third party’s being hacked. For example, Uber made headlines in 2022 for a data breach which was the result of a compromised vendor who had access to data regarding Uber’s employees.

Similarly, the UK’s Ministry of Defence was the victim of a data breach earlier this year when hackers targeted a third party payroll system used by the government department.

Why do cyber-criminals target third parties?

Cyber-criminals can potentially gain access to multiple networks when targeting a third-party storage provider. A successful attack could give attackers access to the networks and systems of all its clients, amplifying the impact of a single breach.

For example, when Illuminate Education was the target of a cyber-attack, the data of 23 US School Districts was stolen via its student-tracking software. It included student data from the country's two largest school systems - New York City Public Schools and Los Angeles Unified School District.

Common third-party security risks

When collaborating with third parties, organizations should be aware of the most common types of security risks posed to their cybersecurity.

  • Software supply chain attacks: Software supply chain attacks occur when cyber criminals infiltrate and compromise software products or updates at any point in the development or distribution process. This allows attackers to insert malicious code into legitimate software, which then gets distributed to users through trusted channels.
  • Human error: Human error in cybersecurity refers to mistakes made by individuals that lead to security breaches or vulnerabilities. These errors can result from lack of awareness, insufficient training, negligence, or simple mistakes.
  • Privileged access misuse: Privileged access misuse involves the inappropriate or unauthorized use of elevated access rights by individuals within an organization. This can include intentionally malicious actions or unintentional misuse of administrative privileges.

What to look for in a security solution when using third parties to store or manage data

Understanding the security posture of a third party is important when partnering with it and entrusting it with your organization’s data. Understanding how basic cyber hygiene policies are implemented is a good place to start, such as data retention policies, use of encryption for data in storage, and how identity and access are managed.

In some circumstances, it is important to understand who is responsible for the data’s security. For example, when using public cloud infrastructure, it is generally the responsibility of the data owner to manage how the data is accessed and stored.

In that situation, an organization needs to ensure it has solutions in place which gives it full visibility of that third-party environment, and which can proactively identify misconfigurations and detect and respond to suspicious activity in real time.

Benefits of using AI tools to aid in managing sensitive data

According to research performed by IBM, organizations with extensive use of security AI and automation identified and contained a data breach 108 days faster in 2023 than organizations that did not use AI for cybersecurity. (1) This figure is only likely to improve as companies mature in their adoption of AI for cyber security and can be a key indicator in the security posture of a third-party vendor.

Example of third-party security incidents

Sumo data breach

Sumo, an Australian energy and internet provider, suffered a data breach which they became aware of on May 13th, 2024. Further investigation into the cyber incident has found that “the personal details of approximately 40,000 customers were compromised, including approximately 3,000 Australian passport numbers.” (2)

While none of Sumo’s systems were allegedly accessed or affected and the third-party application also worked as designed (3), the incident was blamed on an unnamed third party. The breach may have been the result of a misconfiguration or human error.

This incident underscores the importance of not only selecting third-party providers with robust security measures but also continuously monitoring and assessing their security practices.

How Darktrace helps monitor third-party data usage

Darktrace/Cloud uses Self-Learning AI to provide complete cyber resilience for multi-cloud environments.

Benefits of Darktrace/Cloud:

Architectural awareness: Gives users an understanding of their cloud footprint, including real-time visibility into cloud assets, architectures, users and permissions. Combines asset enumeration, modeled architectures, and flow log analysis. Cost insights give a better understanding of resource allocation, helping teams contextualize resources.

Cloud-native detection and response: AI understands ‘normal’ for your unique business and stops cyber-threats with autonomous response. Near-real-time response goes beyond simple email alerts or opening a ticket; and includes cloud-native actions like detaching EC2 instances and applying security groups to contain risky assets.

Cloud protection and compliance: Identify compliance issues and potential misconfigurations with attack path modeling and prioritized remediation steps. Darktrace’s attack surface management (ASM) adds a critical external view of your organization, highlighting vulnerabilities most impactful to your specific situation and revealing shadow IT.

Learn more about securing cloud environments by reading: The CISO’s Guide to Cloud Security here.

References

1.    https://www.ibm.com/reports/data-breach

2.    https://www.passports.gov.au/news/sumo-data-breach

3.    https://www.smh.com.au/technology/sumo-slammed-by-data-breach-as-energy-and-internet-customers-have-details-leaked-20240515-p5jdwp.html

Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Oakley Cox
Director of Product

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February 13, 2026

CVE-2026-1731: How Darktrace Sees the BeyondTrust Exploitation Wave Unfolding

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Note: Darktrace's Threat Research team is publishing now to help defenders. We will update continue updating this blog as our investigations unfold.

Background

On February 6, 2026, the Identity & Access Management solution BeyondTrust announced patches for a vulnerability, CVE-2026-1731, which enables unauthenticated remote code execution using specially crafted requests.  This vulnerability affects BeyondTrust Remote Support (RS) and particular older versions of Privileged Remote Access (PRA) [1].

A Proof of Concept (PoC) exploit for this vulnerability was released publicly on February 10, and open-source intelligence (OSINT) reported exploitation attempts within 24 hours [2].

Previous intrusions against Beyond Trust technology have been cited as being affiliated with nation-state attacks, including a 2024 breach targeting the U.S. Treasury Department. This incident led to subsequent emergency directives from  the Cybersecurity and Infrastructure Security Agency (CISA) and later showed attackers had chained previously unknown vulnerabilities to achieve their goals [3].

Additionally, there appears to be infrastructure overlap with React2Shell mass exploitation previously observed by Darktrace, with command-and-control (C2) domain  avg.domaininfo[.]top seen in potential post-exploitation activity for BeyondTrust, as well as in a React2Shell exploitation case involving possible EtherRAT deployment.

Darktrace Detections

Darktrace’s Threat Research team has identified highly anomalous activity across several customers that may relate to exploitation of BeyondTrust since February 10, 2026. Observed activities include:

-              Outbound connections and DNS requests for endpoints associated with Out-of-Band Application Security Testing; these services are commonly abused by threat actors for exploit validation.  Associated Darktrace models include:

o    Compromise / Possible Tunnelling to Bin Services

-              Suspicious executable file downloads. Associated Darktrace models include:

o    Anomalous File / EXE from Rare External Location

-              Outbound beaconing to rare domains. Associated Darktrace models include:

o   Compromise / Agent Beacon (Medium Period)

o   Compromise / Agent Beacon (Long Period)

o   Compromise / Sustained TCP Beaconing Activity To Rare Endpoint

o   Compromise / Beacon to Young Endpoint

o   Anomalous Server Activity / Rare External from Server

o   Compromise / SSL Beaconing to Rare Destination

-              Unusual cryptocurrency mining activity. Associated Darktrace models include:

o   Compromise / Monero Mining

o   Compromise / High Priority Crypto Currency Mining

And model alerts for:

o    Compromise / Rare Domain Pointing to Internal IP

IT Defenders: As part of best practices, we highly recommend employing an automated containment solution in your environment. For Darktrace customers, please ensure that Autonomous Response is configured correctly. More guidance regarding this activity and suggested actions can be found in the Darktrace Customer Portal.  

Appendices

Potential indicators of post-exploitation behavior:

·      217.76.57[.]78 – IP address - Likely C2 server

·      hXXp://217.76.57[.]78:8009/index.js - URL -  Likely payload

·      b6a15e1f2f3e1f651a5ad4a18ce39d411d385ac7  - SHA1 - Likely payload

·      195.154.119[.]194 – IP address – Likely C2 server

·      hXXp://195.154.119[.]194/index.js - URL – Likely payload

·      avg.domaininfo[.]top – Hostname – Likely C2 server

·      104.234.174[.]5 – IP address - Possible C2 server

·      35da45aeca4701764eb49185b11ef23432f7162a – SHA1 – Possible payload

·      hXXp://134.122.13[.]34:8979/c - URL – Possible payload

·      134.122.13[.]34 – IP address – Possible C2 server

·      28df16894a6732919c650cc5a3de94e434a81d80 - SHA1 - Possible payload

References:

1.        https://nvd.nist.gov/vuln/detail/CVE-2026-1731

2.        https://www.securityweek.com/beyondtrust-vulnerability-targeted-by-hackers-within-24-hours-of-poc-release/

3.        https://www.rapid7.com/blog/post/etr-cve-2026-1731-critical-unauthenticated-remote-code-execution-rce-beyondtrust-remote-support-rs-privileged-remote-access-pra/

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About the author
Emma Foulger
Global Threat Research Operations Lead

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February 13, 2026

How AI is redefining cybersecurity and the role of today’s CIO

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Why AI is essential to modern security

As attackers use automation and AI to outpace traditional tools and people, our approach to cybersecurity must fundamentally change. That’s why one of my first priorities as Withum's CIO was to elevate cybersecurity from a technical function to a business enabler.

What used to be “IT’s problem” is now a boardroom conversation – and for good reason. Protecting our data, our people, and our clients directly impacts revenue, reputation and competitive positioning.  

As CIOs / CISOs, our responsibilities aren’t just keeping systems running, but enabling trust, protecting our organization's reputation, and giving the business confidence to move forward even as the digital world becomes less predictable. To pull that off, we need to know the business inside-out, understand risk, and anticipate what's coming next. That's where AI becomes essential.

Staying ahead when you’re a natural target

With more than 3,100 team members and over 1,000 CPAs (Certified Public Accountant), Withum’s operates in an industry that naturally attracts attention from attackers. Firms like ours handle highly sensitive financial and personal information, which puts us squarely in the crosshairs for sophisticated phishing, ransomware, and cloud-based attacks.

We’ve built our security program around resilience, visibility, and scale. By using Darktrace’s AI-powered platform, we can defend against both known and unknown threats, across email and network, without slowing our teams down.

Our focus is always on what we’re protecting: our clients’ information, our intellectual property, and the reputation of the firm. With Darktrace, we’re not just keeping up with the massive volume of AI-powered attacks coming our way, we’re staying ahead. The platform defends our digital ecosystem around the clock, detecting potential threats across petabytes of data and autonomously investigating and responding to tens of thousands of incidents every year.

Catching what traditional tools miss

Beyond the sheer scale of attacks, Darktrace ActiveAI Security PlatformTM is critical for identifying threats that matter to our business. Today’s attackers don’t use generic techniques. They leverage automation and AI to craft highly targeted attacks – impersonating trusted colleagues, mimicking legitimate websites, and weaving in real-world details that make their messages look completely authentic.

The platform, covering our network, endpoints, inboxes, cloud and more is so effective because it continuously learns what’s normal for our business: how our users typically behave, the business- and industry-specific language we use, how systems communicate, and how cloud resources are accessed. It picks up on minute details that would sail right past traditional tools and even highly trained security professionals.

Freeing up our team to do what matters

On average, Darktrace autonomously investigates 88% of all our security events, using AI to connect the dots across email, network, and cloud activity to figure out what matters. That shift has changed how our team works. Instead of spending hours sorting through alerts, we can focus on proactive efforts that actually strengthen our security posture.

For example, we saved 1,850 hours on investigating security issues over a ten-day period. We’ve reinvested the time saved into strengthening policies, refining controls, and supporting broader business initiatives, rather than spending endless hours manually piecing together alerts.

Real confidence, real results

The impact of our AI-driven approach goes well beyond threat detection. Today, we operate from a position of confidence, knowing that threats are identified early, investigated automatically, and communicated clearly across our organization.

That confidence was tested when we withstood a major ransomware attack by a well-known threat group. Not only were we able to contain the incident, but we were able to trace attacker activity and provided evidence to law enforcement. That was an exhilarating experience! My team did an outstanding job, and moments like that reinforce exactly why we invest in the right technology and the right people.

Internally, this capability has strengthened trust at the executive level. We share security reporting regularly with leadership, translating technical activity into business-relevant insights. That transparency reinforces cybersecurity as a shared responsibility, one that directly supports growth, continuity, and reputation.

Culturally, we’ve embedded security awareness into daily operations through mandatory monthly training, executive communication, and real-world industry examples that keep cybersecurity top of mind for every employee.

The only headlines we want are positive ones: Withum expanding services, Withum growing year over year. Security plays a huge role in making sure that’s the story we get to tell.

What’s next

Looking ahead, we’re expanding our use of Darktrace, including new cloud capabilities that extend AI-driven visibility and investigation into our AWS and Azure environments.

As I continue shaping our security team, I look for people with passion, curiosity, and a genuine drive to solve problems. Those qualities matter just as much as formal credentials in my view. Combined with AI, these attributes help us build a resilient, engaged security function with low turnover and high impact.

For fellow technology leaders, my advice is simple: be forward-thinking and embrace change. We must understand the business, the threat landscape, and how technology enables both. By augmenting human expertise rather than replacing it, AI allows us to move upstream by anticipating risk, advising the business, and fostering stronger collaboration across teams.

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About the author
Amel Edmond
Chief Information Officer
Your data. Our AI.
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