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3 Steps to Ensure Suppliers Don’t Put Your Business at Risk

August 17, 2015 By Kelley Keller

3 Steps to Ensure Suppliers Don’t Put Your Business at Risk

Remember when Target experienced a massive data breach during the 2013 holiday season? It was a big one with hackers exposing 40 million customers’ credit and debit card information and 110 million customers’ personal information like email and mailing addresses.

The Target data breach led to a class action lawsuit against Target and a $10 million settlement. The company also faces lawsuits from the four major credit card companies. To date, Target claims to have spent $252 million related to this single data breach, which is just one example of the many data breaches companies experience each year and the huge amount of money they cost—not to mention the damage they do to brands’ reputations.

The Data Breach Risk of Third Parties

In Target’s case, the breach occurred when hackers accessed the company’s IT infrastructure via a third-party HVAC contractor that was given permission to connect to Target’s network. It’s a disaster that could happen to many businesses today, including yours.

When you contract with outside vendors and other third parties, you open your data to risk.

For small businesses, the potential for a data breach via a supplier or contractor is significant because most small businesses have to outsource so many functions. They rely on third parties for external expertise and services they can’t handle internally, but they don’t have processes in place to monitor each supplier, contractor, or vendor’s security practices.

Unfortunately, third parties can expose your business data to breaches by accident. For example, they can introduce malware simply by accessing your company’s network with their own software and hardware. Intentional data breaches by third parties are also a real concern. For instance, vendors with poor security of their own could allow unauthorized access to your data and private customer information through their own employees or through hacks to their own systems.

At the very least, to mitigate these data security risks from third parties, you should follow the three key steps below:

1. Change Passwords and Change Them Often

You’ve heard it before, but we’re going to say it again. Change your passwords, and do it often. When your business receives new hardware or software, immediately change the default password or add a new password if no password is provided. At least once a quarter (but more often is better), all systems, hardware, software, etc. should be updated with new passwords.

Keep in mind, internal password changes aren’t enough to stop third party data breaches. You should require that all vendors, contractors, and suppliers that have access to your systems change the passwords on their end often, too.

2. Use 2-Step Authentication

Systems that store private data should be configured so 2-step authentication is required to access them—both internally and externally.

This means employees and third parties accessing systems either while they’re at your location or an offsite location should be required to enter a password and complete a second identity verification step before they can access proprietary data. Not only should this process verify identity but it should also verify the security of the connection to your system.

3. Conduct Ongoing Security Testing

Don’t set up your data security processes and walk away. There is still a lot more to do!

It’s essential that you continually test your manual and automated security procedures to ensure they’re working and that both employees and third parties are following all of the requirements you’ve given to them.

Don’t Let Security Breaches Put Your Business at Risk

Security breaches could put your entire business in jeopardy. As technology continues to develop, and hackers get more sophisticated and creative, a data breach becomes more likely. Data security planning is something you shouldn’t put off until tomorrow because a breach could happen at any moment.

About Kelley Keller

Kelley Keller, Esq. is an intellectual property (IP) attorney, speaker, and educator with two decades of experience in the IP field. She works with individuals and businesses in a wide variety of industries helping them transform their ideas, knowledge, and innovation into valuable business assets that drive profits. Kelley offers education to established businesses, startups, entrepreneurs, corporate executives, non-profits, government agencies, legal professionals, and students about starting and growing a business as well as about IP, social media law, and the importance of protecting valuable brand assets and creative work.

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What People are Saying about Kelley Keller

Lisa Frederiksen | Author, Speaker, Trainer, Consultant at BreakingTheCycles.com

Kelley works differently. After an initial phone conversation (I live in CA and she's in PA), she drafted a scope of work for both efforts and set a flat fee which included (and still includes) the back and forth conversations a client needs in order to get the best results. She is extremely knowledgeable and truly able to "hear" what I'm after and create meaningful legal documents and advice that have helped me immeasurably. I highly recommend Kelley Keller.
2016-04-23T10:27:42-05:00
Kelley works differently. After an initial phone conversation (I live in CA and she's in PA), she drafted a scope of work for both efforts and set a flat fee which included (and still includes) the back and forth conversations a client needs in order to get the best results. She is extremely knowledgeable and truly able to "hear" what I'm after and create meaningful legal documents and advice that have helped me immeasurably. I highly recommend Kelley Keller.
http://kelleykeller.com/testimonials/lisa-frederiksen/

Kelly Phillips Erb | Senior Editor at Forbes

Kelley was able to explain complicated legal issues in a manner that was easy to understand without being patronizing. She was also great at talking me down from ledges - it was easy to get worked up when opposing parties weren't being cooperative but Kelley advised me to trust in the process and she was right.

Kelley explained my costs and options, as well as the pros and cons of each. She also kept me informed about my matter, letting me know what I needed to do at the appropriate time. All in all, I felt very involved in the process without being overwhelmed. Kelley made a wildly stressful situation so much better. I would highly recommend her services.
2016-04-23T10:42:43-05:00
Kelley was able to explain complicated legal issues in a manner that was easy to understand without being patronizing. She was also great at talking me down from ledges - it was easy to get worked up when opposing parties weren't being cooperative but Kelley advised me to trust in the process and she was right. Kelley explained my costs and options, as well as the pros and cons of each. She also kept me informed about my matter, letting me know what I needed to do at the appropriate time. All in all, I felt very involved in the process without being overwhelmed. Kelley made a wildly stressful situation so much better. I would highly recommend her services.
http://kelleykeller.com/testimonials/kelly-phillips-erb-senior-editor-forbes/

Charlotte Avery | CEO at Being Charlotte Avery

Words cannot express how much I appreciate Kelley Keller. She has helped me and my business on so many levels. Whenever I have a question I always know that I can call her and she will give me the best advice/counsel. I know that my business is in good hands with Kelley.

Kelley, THANK YOU for EVERYTHING!!!
2016-04-23T10:46:03-05:00
Words cannot express how much I appreciate Kelley Keller. She has helped me and my business on so many levels. Whenever I have a question I always know that I can call her and she will give me the best advice/counsel. I know that my business is in good hands with Kelley. Kelley, THANK YOU for EVERYTHING!!!
http://kelleykeller.com/testimonials/charlotte-avery-ceo-charlotte-avery/

Ruth Koup | Founder of Suits to Careers, Inc., Dress for Success South Central PA & Tied to Success

Kelley Clements Keller, Esq has been a huge support to the launch of our new umbrella organization, Suits to Careers, Inc. and the branding and trademarking of our men's program, Tied to Success. We could not have navigated this transition without her support. Many thanks.
2016-04-23T10:49:27-05:00
Kelley Clements Keller, Esq has been a huge support to the launch of our new umbrella organization, Suits to Careers, Inc. and the branding and trademarking of our men's program, Tied to Success. We could not have navigated this transition without her support. Many thanks.
http://kelleykeller.com/testimonials/ruth-koup/

Matt Bloom | Founder & CEO of CRIMEWATCH Technologies, Inc.

Kelley is an exceptional IP attorney. She understands the legal nuances facing start-ups and is willing to work within those restrictions. Kelley is casual and easy to work with, but when it comes to legal action she is aggressive and takes charge. She has successfully helped us secure coexistence agreements and trademarks for our business. Here expertise has added exponential value to the technology we have built and I would highly recommend her to anyone seeking IP representation.
2016-04-23T10:53:29-05:00
Kelley is an exceptional IP attorney. She understands the legal nuances facing start-ups and is willing to work within those restrictions. Kelley is casual and easy to work with, but when it comes to legal action she is aggressive and takes charge. She has successfully helped us secure coexistence agreements and trademarks for our business. Here expertise has added exponential value to the technology we have built and I would highly recommend her to anyone seeking IP representation.
http://kelleykeller.com/testimonials/matt-bloom-founder-ceo-crimewatch-technologies-inc/

Zachary Ziegler | Brewmaster at Molly Pitcher Brewing Company

Kelley is not only extremely knowledgeable in the realm of intellectual property, but she made the whole process fun! It's not often you hear fun and legal work in the same sentence but Kelley's personality eased my worries while keeping me upbeat the whole time. She explained the entire process in language I could understand and kept me updated continuously. I would not hesitate to work with her again or refer her to my friends and family.
2016-04-23T10:54:48-05:00
Kelley is not only extremely knowledgeable in the realm of intellectual property, but she made the whole process fun! It's not often you hear fun and legal work in the same sentence but Kelley's personality eased my worries while keeping me upbeat the whole time. She explained the entire process in language I could understand and kept me updated continuously. I would not hesitate to work with her again or refer her to my friends and family.
http://kelleykeller.com/testimonials/zachary-ziegler-brewmaster-molly-pitcher-brewing-company/
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