How Small Businesses Can Protect Themselves from Hidden Cyber Threats in Their Technology Partners

Your business could be at risk, and you might not even know it. Here’s what every business owner needs to understand about supply chain cybersecurity.

The Hidden Danger Most Business Owners Don’t See Coming

Imagine this scenario: You’ve invested in the best antivirus software, trained your employees on password security, and even hired an IT support company to manage your computer systems. You feel safe. But then one morning, you discover that hackers got into your business through your accounting software provider – a company you trusted completely.

This isn’t science fiction. It’s happening to small and medium businesses across Indiana and throughout the United States every single day. In fact, cybersecurity experts report that supply chain attacks – where criminals target your technology vendors to get to you – increased by 58% in 2023 alone.

As a business owner in Goshen, Fort Wayne, or anywhere in Northern Indiana, you’re probably wondering: “How can I protect my business from threats I can’t even see?”

The answer lies in understanding what cybersecurity professionals call “supply chain security” – and it’s simpler than you might think.

What Is Supply Chain Security? (And Why Should You Care?)

Think of your business like a house. You probably lock your front door, maybe even have a security system. But what if someone could get in through your neighbor’s house because you share a connected garage? That’s essentially what happens with supply chain cyberattacks.

Your business uses many different technology services and software programs:

• Cloud storage services like Dropbox or Google Drive
• Accounting software like QuickBooks
• Email providers like Outlook or Gmail
• Customer management systems
• Backup services
• Remote access tools

Each of these services is like giving someone a key to your house. If any one of them gets hacked, criminals can use that “key” to get into your business systems.

Supply chain security means making sure all these technology partners are keeping their “keys” safe and secure.

The Real Cost of Ignoring Supply Chain Cybersecurity

Small business owners often think, “We’re too small for hackers to care about us.” Unfortunately, that’s not true anymore. Cybercriminals specifically target small businesses because they know these companies often have weaker security measures than large corporations.

Here’s what a supply chain cyberattack could cost your business:

Financial Impact:

• Average breach costs now exceed $4 million
• Lost revenue from business downtime
• Legal fees and regulatory fines
• Cost of notifying customers about data breaches

Reputation Damage:

• Loss of customer trust
• Negative online reviews
• Difficulty attracting new customers
• Damage to your professional reputation in the community

Operational Disruption:

• Systems being shut down for days or weeks
• Lost productivity from employees unable to work
• Time spent recovering data and rebuilding systems
• Stress on you and your team

Step 1: Know Who Has Access to Your Business Data

The first step in protecting your business is understanding who you’re trusting with your information. This might sound obvious, but most business owners are surprised when they realize how many technology vendors have access to their systems.

Start by making a list of everyone who has access to your business data:

Software and Online Services:

• Accounting software (QuickBooks, Xero, etc.)
• Email services
• Cloud storage providers
• Customer relationship management (CRM) systems
• Website hosting companies
• Online backup services

Technology Service Providers:

• Internet service provider (ISP)
• Phone system provider
• IT support companies
• Security system providers
• Equipment vendors

Don’t forget about indirect access:

• Vendors who work with your main technology providers
• Software companies that integrate with your main programs
• Third-party apps that connect to your systems

Pro Tip from Ma3SP: Keep this list updated. Technology partnerships change frequently, and new risks can emerge when you add new services or software to your business operations.

Step 2: Understand Which Vendors Pose the Biggest Risk

Not every technology vendor poses the same level of risk to your business. A company that provides your office supplies probably can’t access your customer database, but your accounting software provider definitely can.

High-Risk Vendors (need the most attention):

• Have access to sensitive customer information
• Can reach your financial data
• Control critical business operations
• Have administrative access to your computer systems
• Handle your email or communications

Medium-Risk Vendors:

• Have limited access to business data
• Provide important but non-critical services
• Handle less sensitive information

Lower-Risk Vendors:

• Provide basic services with no data access
• Have no connection to your computer systems
• Cannot impact your daily operations

Step 3: Ask the Right Security Questions

When choosing technology partners, most business owners focus on features and price. While these are important, security should be your top priority. Here are the questions every business owner should ask:

Basic Security Questions:

• Do you use multi-factor authentication (requiring both a password and a phone code to log in)?
• How do you protect my data from hackers?
• What happens if your company gets hacked?
• How quickly will you tell me if there’s a security problem?
• Do you have cyber insurance?

Advanced Security Questions:

• Do you have security certifications like SOC 2 or ISO 27001?
• When was your last security audit?
• How do you train your employees about cybersecurity?
• What backup systems do you have in place?

Red Flags to Watch For:

• Vendors who can’t answer basic security questions
• Companies that seem annoyed by your security concerns
• Providers who won’t share any security documentation
• Services that don’t offer two-factor authentication

Step 4: Build Security Requirements Into Your Contracts

Many small business owners sign vendor contracts without reading the fine print about security. This is a mistake that could cost you dearly.

Essential contract requirements:

• Vendors must notify you within 24-48 hours of any security incident
• Clear data protection standards
• Regular security updates and patches
• Liability coverage for security breaches
• Right to audit their security practices
• Secure data disposal when the relationship ends

Step 5: Implement “Zero Trust” Principles

“Zero Trust” might sound complicated, but it’s actually a simple concept: don’t automatically trust anyone or anything, even if they’re supposed to be on your side.

Practical Zero Trust steps for small businesses:

For Employee Access:

• Require strong passwords and two-factor authentication
• Limit employee access to only the systems they need for their job
• Regularly review who has access to what
• Remove access immediately when employees leave

For Vendor Access:

• Don’t give vendors more access than absolutely necessary
• Use separate login credentials for vendor access
• Monitor what vendors are doing in your systems
• Regularly review and update vendor permissions

For Your Network:

• Use a business-grade firewall
• Segment your network so problems can’t spread
• Monitor for unusual activity
• Keep all software and systems updated

Step 6: Monitor Your Technology Environment Continuously

Security isn’t a “set it and forget it” situation. Threats change daily, and your technology environment is constantly evolving.

What you should monitor:

• Unusual login activity from vendors
• Changes to your software or systems
• New security alerts or warnings
• Updates from your technology providers
• Industry news about cybersecurity threats

Signs of potential problems:

• Vendors become evasive about security questions
• Unusual system behavior or slowdowns
• Unexpected changes to your data or settings
• Reports of breaches at companies similar to yours
• New vulnerabilities discovered in software you use

Step 7: Prepare for the Worst-Case Scenario

Even with the best security measures, breaches can still happen. The key is being prepared to respond quickly and effectively.

Your incident response plan should include:

• Contact information for all critical vendors
• Steps to isolate affected systems
• Communication plan for employees and customers
• Legal requirements for breach notification
• Backup and recovery procedures
• Relationship with a cybersecurity incident response team

How Ma3SP Helps Goshen-Area Businesses Stay Secure

Managing supply chain security can feel overwhelming, especially when you’re trying to run a business. That’s where Ma3SP comes in. As Northern Indiana’s trusted managed service provider, we specialize in helping small and medium businesses navigate the complex world of cybersecurity.

Our approach is different because we believe in education over fear. We don’t just tell you what to do – we explain why it matters and how it protects your business.

Ma3SP’s Supply Chain Security Services:

Vendor Risk Assessment:

• We evaluate all your technology vendors for security risks
• Provide clear, easy-to-understand risk ratings
• Help you ask the right questions when choosing new vendors

Continuous Monitoring:

• 24/7 monitoring of your technology environment
• Immediate alerts when we detect suspicious activity
• Regular reports on your security status

Incident Response:

• Rapid response team available when problems occur
• Help with vendor communication during security incidents
• Assistance with legal and regulatory requirements

Education and Training:

• Regular security awareness training for your team
• Updates on new threats and how to avoid them
• Best practices training for working with technology vendors

Taking Action: Your Supply Chain Security Checklist

Ready to protect your business? Here’s your step-by-step action plan:

Immediate Actions (This Week):

• [ ] Create a list of all your technology vendors
• [ ] Identify which vendors have access to sensitive data
• [ ] Review your current vendor contracts for security requirements
• [ ] Enable two-factor authentication on all critical business accounts

Short-Term Actions (Next Month):

• [ ] Contact high-risk vendors to discuss their security practices
• [ ] Update vendor contracts to include security requirements
• [ ] Implement network segmentation for vendor access
• [ ] Create an incident response plan

Ongoing Actions:

• [ ] Regularly review and update your vendor inventory
• [ ] Monitor for security alerts and unusual activity
• [ ] Conduct annual security assessments of critical vendors
• [ ] Stay informed about new cybersecurity threats

Don’t Go It Alone

Cybersecurity doesn’t have to be scary or overwhelming. With the right partner, you can protect your business without breaking the bank or losing sleep.

At Ma3SP, we’ve helped hundreds of businesses in Goshen, Elkhart, Fort Wayne, and throughout Northern Indiana strengthen their cybersecurity defenses. We understand the unique challenges facing small and medium businesses, and we’re here to help you navigate them.

Ready to secure your supply chain? Contact Ma3SP today for a free cybersecurity assessment. We’ll help you identify your risks, understand your options, and create a practical security plan that fits your budget and business needs.

Remember: cybercriminals aren’t waiting for you to get ready. The time to act is now. Let Ma3SP be your trusted guide to a more secure future.

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Ma3SP is Northern Indiana’s leading managed service provider, specializing in cybersecurity, IT support, and technology consulting for small and medium businesses. Based in Goshen, we serve clients throughout Indiana with a commitment to education, excellence, and exceptional service.