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June 3, 2024

Exploring the Benefits and Risks of Third-Party Data Solutions

This blog discusses why companies use third-party data management for efficiency, global access, collaboration, and reliability, while also addressing security risks associated and best practices 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
Dr. Oakley Cox-Robinson
Senior 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
Dr. Oakley Cox-Robinson
Senior Director of Product

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June 11, 2026

Cybersecurity for the Sports Sector: The Threats Facing a Digitized Industry in 2026

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Securing sporting events in 2026

When you walk into a stadium on game day, you are entering a small smart city. Ticketing, turnstiles, payments, public Wi-Fi for tens of thousands of fans, CCTV, lighting, even the HVAC all run on connected systems. The experience for fans has become unmatched, but that dependency has created a much larger attack surface than people may realize.

Our latest threat research backs that up. In the past year, a survey that Darktrace commissioned found that 84% of respondents from professional sports organizations had at least one cyber incident, and 57% were hit more than once. For a sector that relies on the impact of the live moment, those numbers translate directly into operational risk.

Why sports is a target for cyber attacks

Sport is a highly visible target with fixed timelines, so attackers know exactly when disruption will have the most impact. It also holds valuable data, athlete medical records, contracts, sponsorship deals, which carry financial, reputational, and regulatory risk if exposed. At the same time, delivery depends on a wide set of third parties: ticketing providers, broadcasters, cloud services, stadium technology. Any of those connections can become an entry point. Put visibility, timing, data, and dependency together, and you get an environment where even a small foothold can turn into a visible, time-critical incident.

How attackers target email and identity

Email and identity remain the front door. From October 2025 through March 2026, Darktrace / EMAIL™ detected more than 116,000 phishing emails aimed at sports organizations across our customer base, and our sports customers received 19% more phishing emails than organizations in other sectors. The numbers tell the story:

BY THE NUMBERS

  • 21% of phishing emails were aimed at VIPs.
  • 37% used novel social engineering.
  • 84% of malicious emails passed DMARC authentication

A large proportion of these emails passed authentication checks, which means traditional security controls are no longer a reliable barrier. Attackers are not relying on spoofed domains – they're using legitimate infrastructure and trusted platforms. Behavior matters. Once an account is compromised, the behavior shifts quickly. Login patterns change, inbox rules are created to hide responses, and accounts start being used for internal discovery or further phishing. These aren’t high-noise events. They sit in normal workflows, which is why they’re often missed.

Ransomware tells a similar story. In one case inside a sports deployment, attackers had quietly been moving data to an outside server for a full two weeks before they triggered encryption. By the time the ransom note appeared, the outcome was already set. That sequence shows up consistently is access first, movement next, disruption last. If detection starts at encryption, it’s already too late.

Why AI is an emerging blind spot in sports

The increasing adoption of AI is expanding the potential attack surface. 72% of the security professionals we surveyed expect AI to increase their cyber risk over the next year, and yet 35% are already using or planning to use it in stadium operations, the most critical functions to protect. In addition to prompt injection and AI build risks, shadow AI is becoming a more immediate issue. Staff are already putting sensitive data—performance metrics, scouting reports, contracts, health data—into tools with little or no governance. The upside is clear, but so is the exposure—and it is happening before most organizations have any visibility or control. At the same time, attackers are using the same technology to scale phishing and social engineering. The net effect is simple: more exposure, at higher speed.

How can cybersecurity professionals prepare

Across high profile events, Darktrace’s experience shows that effective cyber defense includes preparation, real‑time visibility, and the ability to respond dynamically and decisively when timing, complexity, and public exposure converge.

There are a few strategic implications for cybersecurity teams:

  • Get behavioral visibility across IT and OT, not just corporate systems.
  • Treat identity as your control plane. Most attacks in this sector start with credentials, not malware. MFA with behavioral detection helps solve that challenge.
  • Control third party and AI access the same way you control your own environment.
  • Rehearse response for live conditions, where decisions happen in minutes. Detection and response need to account for non-ideal conditions when engineers are under pressure and time constrained. In sport, timing is what turns small issues into major incidents. The same activity that would be manageable midweek becomes critical during a live event.

Why 2026 raises the cybersecurity stakes for sports

With the 2026 World Cup about to stretch across three countries and dozens of host cities, the attack surface is wide and the schedule is unforgiving.

Geopolitical signaling is raising the threat profile further. Previous international sporting events have demonstrated that nation‑state actors use the cyber domain to signal intent, influence narratives, or retaliate symbolically. In the context of the 2026 World Cup, Russia’s continued exclusion from international sport, the ongoing conflict in Ukraine, US defensive support to Ukraine, and Iran’s likely participation in the tournament introduce additional motivations for state‑aligned and non‑traditional affiliated actors to operate below the threshold of armed conflict. This doesn’t require new techniques—just the right timing and visibility.

In practice, this comes down to preparation: knowing what normal looks like across IT and OT, controlling third-party access, and spotting when behavior shifts.

In sport, disruption does not build slowly—it happens in real time and in public. By that point, the groundwork has already been set, long before the whistle goes.

About this research

Findings are based on Darktrace threat-research telemetry across sports-sector customer deployments (Q4 2025–Q1 2026) and a survey of 875 IT cybersecurity professionals in the US, UK, Australia, and Germany, fielded by Opinion Matters between May 28 and June 3, 2026. Read the full report for complete methodology, incident analysis, and strategic recommendations.

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About the author
Nathaniel Jones
VP, Security & AI Strategy, Field CISO

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June 11, 2026

Protecting Stadiums & Events with AI

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Stadium and large public venue operators are confronted with a unique set of cyber security challenges. Often described as a ‘honeypot’ for cyber-criminals, the sports and entertainment industry is an attractive target for threat actors for three main reasons:

  • Modern sports organizations process sensitive and highly valuable data at scale;
  • Sporting events are highly visible and time-critical, operating in front of live audiences with no room for error;
  • Sports organizations rely on sprawling vendor ecosystems and supply chains to deliver broadcast, commerce, fan engagement services, and more.

In a recent Darktrace-commissioned survey, 84% of professional sports organizations reported at least one cyber incident in the past year, and 57% were hit more than once [1]. The potential ramifications of cyber disruption during a large-scale sports event cannot be overstated. A momentary lapse in access to power could bring TV broadcasts to a halt; disruption to access controls could restrict fans from entering the grounds; CCTV outages could increase the risk of criminal behavior and physical injuries. If data is not reliable and stadium machines are outputting the wrong metrics, a venue could become dangerously overcrowded. The barrier between the cyber and physical worlds has long dissolved – cyber-attacks threaten human safety.

In this blog, I explore the key challenges of stadium cyber security and explain the unique capabilities of Self-Learning AI that led me to adopt Darktrace as a head of ICT and cyber security for international venues and events. Over my career I have helped secure football and rugby World Cups, World Athletics Championships and more than 500 events ,and the lessons from each have only sharpened my conviction in this approach.

The access paradox

The biggest challenge lies in the paradox of securing a site where various internal services are provided to a large number of unknown and unmanaged users, suppliers and devices. When it’s game time, or ‘D-Day’, you see a huge influx of thousands of people, each with their own devices, needing to connect to your network and your infrastructure. The floodgates are opened. But certain parts of your digital environment need to remain protected: your sensitive employee and customer data, your critical OT systems. I liken this to opening the door to your home, and letting the entire town come in and wander around. But you still need to secure your master bedroom.

A multitude of different actors must be able to work on-site to provide services or content during the event. Broadcasters, staff and suppliers need to have access to manage the show, and all these people need to access or interact with the IT infrastructure. In many ways, these additional bodies are already inside the perimeter and could host unknown malicious threats.

This year, the paradox is wider than ever. A tournament spread across hundreds of suppliers and vendors means the foothold an attacker needs may already belong to a trusted partner – a single compromised supplier can become the doorway to everything else. And the adversary is no longer working alone: generative AI now lets attackers probe and weaponize vulnerabilities across thousands of software dependencies at a speed no human team could match, turning the access paradox from a manageable risk into a fast-moving target.

Achieving this balance between accessibility and security requires a shift in mindset from perimeter-based security to one that can detect and respond to threats on the inside. The complexities involved requires technology that can identify malicious behavior in real time based on the wider context of an incident. A particular behavior or connection may be benign in one context and yet critically disruptive in another — tools and technology must be able to discern between the two.

This is why I considered Darktrace’s Self-Learning AI a suitable fit: rather than defending at the perimeter, it focuses on detecting and responding to malicious activity already inside. Because it learns the unique ‘patterns of life’ of its surroundings, it can detect subtle deviations that indicate a threat and initiate a targeted response – without relying on pre-programmed rules and playbooks.

IT/OT convergence

The second key challenge is the issue of IT and OT convergence. Typical stadiums and arenas consist of a wide range of Industrial Control Systems (ICS).

This involves a complex and messy array of switches, cables, CCTV cameras, as well as devices and technologies being brought in by the media and the press, and all these IT and OT components are now interconnected, which means these technologies now have Internet Protocol (IP)-based threats to manage. The same challenges that the corporate infrastructure for stadium management faces in cyber security are therefore also now an issue for ICS security.

This challenge cannot be addressed by viewing IT and OT security in isolation — these two environments are linked because of the analogue migration to IP. A unified approach is required to detect and respond to threats that start in IT before moving to industrial systems.

The stakes are physical. CCTV, Access Control, Public Annoucement system, lighting and the giant screens are all now running over IP, and a disruption to any of them can force a venue to halt play on safety grounds. Scale compounds the problem. At the Qatar 2022 World Cup, eight stadiums were purpose-built to a single technical standard, which made the digital environment relatively uniform to defend. The 2026 tournament is the opposite: dozens of host venues across three countries, each with its own operator, its own contractors and its own legacy systems.This creates a far more fragmented and unpredictable estate to secure.

In addition, cyber security technology must be able to deal with complexity. Darktrace’s AI thrives in the most complex environments, with more data points adding more context to inform the AI’s decision making. It covers OT and IT with a single, unified AI engine, that can also detect and respond across cloud infrastructure, SaaS applications, email systems and endpoints. It is ready to adapt to the messy, interconnected systems that make up large stadiums’ digital infrastructure.

The time factor

Finally, the nature of stadium events means that timing is critical and puts enormous pressure on the organizers and operators. ‘D-Day’ cannot be replayed or postponed, and so if cyber disruption occurs during the event, every minute is crucial. You cannot reschedule a World Cup final or move an opening ceremony; the date is fixed, the world is watching, and there is no second take.

There is consequently a strong emphasis on two key metrics

  • Mean Time To Know (MTTK) — how long it takes the security team need to be aware of an incident; and
  • Mean Time To Restore (MTTR) — how quickly a team can act to contain the threat.

It is perhaps more imperative in stadium event management than anywhere else that these two metrics be minimized.

This leads to the third criteria in assessing cyber security technology: does it help with response? And critically, can that response be nuanced and targeted, able to contain that threat without causing further disruption?

To this end, Darktrace’s Autonomous Response takes machine-speed action to contain cyber-attacks, when humans are too slow to react or aren’t around at all. It’s powered by Darktrace’s AI, so it has a nuanced and continuously updating understanding of what’s ‘normal’ across IT and OT systems. This means its response actions are targeted: designed to eliminate the threat, but not at the cost of disruption. Crucially, this enables responses that are surgical rather than blunt. For example, taking an entire server offline to stop a ransomware attack can cause more disruption than the attack itself, so the real value lies in neutralizing the malicious activity precisely — containing the threat without taking down the systems the event and business depends on.

Depending on the nature and severity of the threat, the technology can block specific malicious connections by enforcing the normal ‘pattern of life’ of a device or account. When every second counts, this is the speed and granularity that you need in a cybersecurity technology.

Darktrace can be deployed across every area of the digital enterprise, including network, email, cloud and SaaS environments with the same self-learning approach, stopping anomalous behaviors that point to account takeover and other cloud-based threats. Earlier this year, we announced that Darktrace is also extending its behavioral approach to help businesses deploy and scale AI securely by understanding how these AI systems and agents behave, interact with other systems and humans, and evolve over time. This is critical because 72% of cybersecurity professionals at sports organizations believe AI will increase their cyber risk over the next 12 months [2].

Wherever it is deployed, Darktrace allows the stadium operator to focus on the vital part of the game and offers real-time protection without any modification in the network topology or infrastructure.

An adaptive defense

Cyber-criminals are constantly developing their approach in an attempt to evade security tools trained to look for specific hallmarks of an attack. As they get creative and continuously experiment with new tactics and techniques, the human operators using these tools are forced into a constant state of catch up.

An AI-based approach that learns an organization and its normal behavior patterns from the ground up puts an end to this game of ‘cat and mouse’, shifting the balance in favor of the defenders and allowing them to stay ahead of the threat. This matters more than ever, because adversaries are now using AI to scale their attacks. If you do not have AI working to protect you against malicious AI, you are already at a disadvantage.

With a nuanced understanding of what’s ‘normal’ for the business, unified IT/OT coverage, and an Autonomous Response solution that takes immediate, surgical action, the playing field is leveled, and large stadium and events operators can focus on delivering the best possible experience for attendees, digital viewers, partners and performers.

References:

[1] [2] Darktrace: Cybersecurity in Global Sport, June 2026. Findings based on survey of 875 IT cybersecurity professionals based in the US, UK, Australia and Germany, working in professional sports organizations (including clubs, societies & sporting bodies) employing 10+ people. The survey was fielded between May 28, 2026 and June 3, 2026 by independent market research agency, Opinion Matters.

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