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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
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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May 12, 2026

Resilience at the Speed of AI: Defending the Modern Campus with Darktrace

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Why higher education is a different cybersecurity battlefield

After four decades in IT, now serving as both CIO and CISO, I’ve learned one simple truth: cybersecurity is never “done.” It’s a constant game of cat and mouse. Criminals evolve. Technologies advance. Regulations expand. But in higher education, the challenge is uniquely complex.

Unlike a bank or a military installation, we can’t lock down networks to a narrow set of approved applications. Higher education environments are open by design. Students collaborate globally, faculty conduct cutting-edge research, and administrators manage critical operations, all of which require seamless access to the internet, global networks, cloud platforms, and connected systems.

Combine that openness with expanding regulatory mandates and tight budgets, and the balancing act becomes clear.

Threat actors don’t operate under the same constraints. Often well-funded and sponsored by nation-states with significant resources, they’re increasingly organized, strategic, and innovative.

That sophistication shows up in the tactics we face every day, from social engineering and ransomware to AI-driven impersonation attacks. We’re dealing with massive volumes of data, countless signals, and a very small window between detection and damage.

No human team, no matter how talented or how numerous, can manually sift through that noise at the speed required.

Discovering a force multiplier

Nothing in cybersecurity is 100% foolproof. I never “set it and forget it.” But for institutions balancing rising threats and finite resources, the Darktrace ActiveAI Security Platform™ offers something incredibly valuable: peace of mind through speed and scale.

It closes the gap between detection and response in a way humans can’t possibly match. At the speed of light, it can quarantine, investigate, and contain anomalous activity.

I’ve purchased and deployed Darktrace three separate times at three different institutions because I’ve seen firsthand what it can do and what it enables teams like mine to achieve.

I first encountered Darktrace while serving as CIO for a large multi-campus college system. What caught my attention was Darktrace's Self-Learning AI, and its ability to learn what "normal" looked like across our network. Instead of relying solely on static signatures or rigid rules, Darktrace built a behavioral baseline unique to our environment and alerted us in real time when something simply didn’t look right.

In higher education, where strict lockdowns aren’t realistic, that behavioral model made all the difference. We deployed it across five campuses, and the impact was immediate. Operating 24/7, Darktrace surfaced threats in ways our team couldn’t replicate manually.

Over time, the Darktrace platform evolved alongside the changing threat landscape, expanding into intrusion prevention, cloud visibility, and email security. At subsequent institutions, including Washington College, Darktrace was one of my first strategic investments.

Revealing the hidden threat other tools missed

One of the most surprising investigations of my career involved a data leak. Leadership suspected sensitive information from high-level meetings was being exposed, but our traditional tools couldn’t provide any answers.

Using Darktrace’s deep network visibility, down to packet-level data, we traced unusual connections to our CCTV camera system, which had been configured with a manufacturer’s default password. A small group of employees had hacked into the CCTV cameras, accessed audio-enabled recordings from boardroom meetings, and stored copies locally.

No other tool in our environment could have surfaced those connections the way Darktrace did. It was a clear example of why using AI to deeply understand how your organization, systems, and tools normally behave, matters: threats and risks don’t always look the way we expect.

Elevating a D-rating into a A-level security program

When I arrived at my last CISO role, the institution had recently experienced a significant ransomware attack. Attackers located  data  which informed their setting  ransom demands to an amount they knew would likely result in payment. It was a sobering example of how calculated and strategic modern cybercriminals have become.

Third-party cyber ratings reflected that reality, with a  D rating.

To raise the bar, we implemented a comprehensive security program and integrated layered defenses; -deploying state of the art tools and methods-  across the environment, with Darktrace at its core.

After a 90-day learning period to establish our behavioral baseline, we transitioned the platform into fully autonomous mode. In a single 30-day span, Darktrace conducted more than 2,500 investigations and autonomously resolved 92% of all false positives.

For a small team, that’s transformative. Instead of drowning in alerts, my staff focused on less than  200 meaningful cases that warranted human review.

Today, we maintain a perfect A rating from third-party assessors and have remained cybersafe.

Peace of mind isn’t about complacency

The effect of Darktrace as a force multiplier has a real human impact.

With the time reclaimed through automation, we expanded community education programs and implemented simulated phishing exercises. Through sustained training and awareness efforts, we reduced social engineering susceptibility from nearly 45% to under 5%.

On a personal level, Darktrace allows me to sleep better at night and take time off knowing we have intelligent systems monitoring and responding around the clock. For any CIO or CISO carrying institutional risk on their shoulders, that matters.

The next era: AI vs. AI

A new chapter in cybersecurity is unfolding as adversaries leverage AI to enhance scale, speed, and believability. Phishing campaigns are more personalized, impersonation attempts are more precise, and deepfake video technology, including live video, is disturbingly authentic. At the same time, organizations are rapidly adopting AI across their own environments —from GenAI assistants to embedded tools to autonomous agents. These systems don’t operate within fixed rules. They act across email, cloud, SaaS, and identity systems, often with broad permissions, and their behavior can evolve over time in ways that are difficult to predict or control.

That creates a new kind of security challenge. It’s not just about defending against AI-powered threats but understanding and governing how AI behaves within your environment, including what it can access, how it acts, and where risk begins to emerge.

From my perspective, this is a natural next step for Darktrace.

Darktrace brings a level of maturity and behavioral understanding uniquely suited to the complexity of AI environments. Self-Learning AI learns the normal patterns of each business to interpret context, uncover subtle intent, and detect meaningful deviations without relying on predefined rules or signatures. Extending into securing AI by bringing real-time visibility and control to GenAI assistants, AI agents, development environments and Shadow AI, feels like the logical evolution of what Darktrace already does so well.

Just as importantly, Darktrace is already built for dynamic, cross-domain environments where risk doesn’t sit in a single tool or control plane. In higher education, activity already spans multiple systems and, with AI, that interconnection only accelerates.

Having deployed Darktrace multiple times, I have confidence it’s uniquely positioned to lead in this space and help organizations adopt AI with greater visibility and control.

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Since authoring this blog, Irving Bruckstein has transitioned to the role of Chief Executive Officer of the Cyberaigroup.

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About the author
Irving Bruckstein
CEO CyberAIgroup

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May 11, 2026

The Next Step After Mythos: Defending in a World Where Compromise is Expected

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Is Anthropic’s Mythos a turning point for cybersecurity?

Anthropic’s recent announcements around their Mythos model, alongside the launch of Project Glasswing, have generated significant interest across the cybersecurity industry.

The closed-source nature of the Mythos model has understandably attracted a degree of skepticism around some of the claims being made. Additionally, Project Glasswing was initially positioned as a way for software vendors to accelerate the proactive discovery of vulnerabilities in their own code; however, much of the attention has focused on the potential for AI to identify exploitable vulnerabilities for those with malicious intent.

Putting questions around the veracity of those claims to one side – which, for what it’s worth, do appear to be at least partially endorsed by independent bodies such as the UK’s AI Security Institute – this should not be viewed as a critical turning point for the industry. Rather, it reflects the natural direction of travel.

How Mythos affects cybersecurity teams  

At Darktrace, extolling the virtues of AI within cybersecurity is understandably close to our hearts. However, taking a step back from the hype, we’d like to consider what developments like this mean for security teams.

Whether it’s Mythos or another model yet to be released, it’s worth remembering that there is no fundamental difference between an AI discovered vulnerability and one discovered by a human. The change is in the pace of discovery and, some may argue, the lower the barrier to entry.

In the hands of a software developer, this is unquestionably positive. Faster discovery enables earlier remediation and more proactive security. But in the hands of an attacker, the same capability will likely lead to a greater number of exploitable vulnerabilities being used in the wild and, critically, vulnerabilities that are not yet known to either the vendor or the end user.

That said, attackers have always been able to find exploitable vulnerabilities and use them undetected for extended periods of time. The use of AI does not fundamentally change this reality, but it does make the process faster and, unfortunately, more likely to occur at scale.

While tools such as Darktrace / Attack Surface Management and / Proactive Exposure Management  can help security teams prioritize where to patch, the emergence of AI-driven vulnerability discovery reinforces an important point: patching alone is not a sufficient control against modern cyber-attacks.

Rethinking defense for a world where compromise is expected

Rather than assuming vulnerabilities can simply be patched away, defenders are better served by working from the assumption that their software is already vulnerable - and always will be -and build their security strategy accordingly.

Under that assumption, defenders should expect initial access, particularly across internet exposed assets, to become easier for attackers. What matters then is how quickly that foothold is detected, contained, and prevented from expanding.

For defenders, this places renewed emphasis on a few core capabilities:

  • Secure-by-design architectures and blast radius reduction, particularly around identity, MFA, segmentation, and Zero Trust principles
  • Early, scalable detection and containment, favoring behavioral and context-driven signals over signatures alone
  • Operational resilience, with the expectation of more frequent early-stage incidents that must be managed without burning out teams

How Darktrace helps organizations proactively defend against cyber threats

At Darktrace, we support security teams across all three of these critical capabilities through a multi-layered AI approach. Our Self-Learning AI learns what’s normal for your organization, enabling real-time threat detection, behavioral prediction, incident investigation and autonomous response. - all while empowering your security team with visibility and control.

To learn more about Darktrace’s application of AI to cybersecurity download our White Paper here.  

Reducing blast radius through visibility and control

Secure-by-design principles depend on understanding how users, devices, and systems behave. By learning the normal patterns of identity and network activity, Darktrace helps teams identify when access is being misused or when activity begins to move beyond expected boundaries. This makes it possible to detect and contain lateral movement early, limiting how far an attacker can progress even after initial access.

Detecting and containing threats at the earliest stage  

As AI accelerates vulnerability discovery, defenders need to identify exploitation before it is formally recognized. Darktrace’s behavioral understanding approach enables detection of subtle deviations from normal activity, including those linked to previously unknown vulnerabilities.

A key example of this is our research on identifying cyber threats before public CVE disclosures, demonstrating that assessing activity against what is normal for a specific environment, rather than relying on predefined indicators of compromise, enables detection of intrusions exploiting previously unknown vulnerabilities days or even weeks before details become publicly available.

Additionally, our Autonomous Response capability provides fast, targeted containment focused on the most concerning events, while allowing normal business operations to continue. This has consistently shown that even when attackers use techniques never seen before, Darktrace’s Autonomous Response can contain threats before they have a chance to escalate.

Scaling response without increasing operational burden

As early-stage incidents become more frequent, the ability to investigate and respond efficiently becomes critical. Darktrace’s Cyber AI Analyst’s AI-driven investigation capabilities automatically correlate activity across the environment, prioritizing the most significant threats and reducing the need for manual triage. This allows security teams to respond faster and more consistently, without increasing workload or burnout.

What effective defense looks like in an AI-accelerated landscape

Developments like Mythos highlight a reality that has been building for some time: the window between exposure and exploitation is shrinking, and in many cases, it may disappear entirely. In that environment, relying on patching alone becomes increasingly reactive, leaving little room to respond once access has been established.

The more durable approach is to assume that compromise will occur and focus on controlling what happens next. That means identifying early signs of misuse, containing threats before they spread, and maintaining visibility across the environment so that isolated signals can be understood in context.

AI plays a role on both sides of this equation. While it enables attackers to move faster, it also gives defenders the ability to detect subtle changes in behavior, prioritize what matters, and respond in real time. The advantage will not come from adopting AI in isolation, but from applying it in a way that reduces the gap between detection and action.

AI may be accelerating parts of the attack lifecycle, but the fundamentals of defense, detection, and containment still apply. If anything, they matter more than ever – and AI is just as powerful a tool for defenders as it is for attackers.

To learn more about Darktrace and Mythos read more on our blog: Mythos vs Ethos: Defending in an Era of AI‑Accelerated Vulnerability Discovery

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About the author
Toby Lewis
Head of Threat Analysis
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