Outsourcing IT services has become a strategic necessity for many organizations. In today’s AI-driven threat landscape, third-party vendors play a much broader role as they are now a direct extension of your attack surface.
CBTW’s cybersecurity teams routinely uncover vulnerabilities within vendor environments during red team engagements, revealing risks that are both real and immediate. These weaknesses are being actively exploited by adversaries who increasingly use AI to accelerate the identification of flaws and the execution of attacks.
Breaches That Start with the Supply Chain
The 2025 breach affecting Marks & Spencer, reportedly tied to vulnerabilities within a third-party vendor, is just one high-profile example. While full details remain limited, the incident reinforces a larger trend: organizations are only as secure as the least prepared vendor in their chain.
At CBTW, we conduct realistic simulations that test not only internal systems but vendor connections too. In one recent engagement with a luxury brand, our team helped identify reputational risk linked to publicly accessible infrastructure through an OSINT investigation.
AI Has Changed the Attacker’s Playbook
AI is transforming how attackers identify and exploit weaknesses in vendor systems. Automated tools now map digital supply chains, search for misconfigured APIs, and test common vulnerabilities across shared infrastructure at speeds human analysts simply cannot match.
Defensive AI, when properly implemented, can help close this gap. These systems continuously monitor third-party connections, model expected behavior, and flag abnormal access patterns before they escalate into incidents.
We integrate such capabilities with tailored threat playbooks and monitoring practices to create full-spectrum visibility within the organization and across its vendor ecosystem.
Moving from Audits to Continuous Risk Management
Traditional vendor vetting, based on periodic audits and compliance questionnaires, is no longer sufficient. Our team advocates a shift toward continuous vendor risk evaluation, including:
· Real-time monitoring of third-party traffic and user behavior
· Access control governance tied to roles and geographies
· Joint red teaming and breach simulations with key suppliers
· Clear RACI (responsible, accountable, consulted, informed) models for cybersecurity incidents
For example, in CBTW’s work with a Private Bank, we implemented an access control framework to support regulatory alignment and reduce risk of unauthorized access. In another engagement with a Non-Profit Organization, our team integrated Midpoint, an open-source identity governance solution, to help centralize identity lifecycle management across a complex external partner network.
Strengthening Vendor Security Posture
Beyond detection, we help clients establish lasting third-party governance frameworks by:
· Conducting initial risk mapping across third-party interfaces
· Implementing identity and access management controls that apply beyond internal users
· Designing automated alerting tied to behavioral anomalies
· Facilitating shared incident response planning with strategic vendors
We also embed AI-based monitoring tools like those from Darktrace into client environments and layer on tailored analytics to ensure alerts are relevant and actionable. AI helps flag anomalies, but it is human analysts who assess context, validate threats, and guide response.
Recommendations for Third-Party Risk in the AI Era
To strengthen third-party risk postures in the AI era, organizations are recommended to:
· Expand security assessments to include AI-readiness across your vendor portfolio
· Monitor not just data at rest, but behavioral patterns and system-to-system communication
· Embed shared security responsibilities into vendor contracts, including breach simulation drills
· Invest in tools like Darktrace for anomaly detection, supported by expert-led threat hunting and response
· Continuously reassess vendors based on live data, not just annual reviews
Shared Responsibility in a Connected World
Cyber attackers are increasingly targeting third-party relationships as entry points. And with AI-enhanced capabilities, they can find and exploit weak links faster than ever.
We help organizations rethink outsourcing strategies not just from a commercial or operational standpoint, but through a security lens. Our engagements combine proactive testing, vendor-specific threat modeling, and AI-driven monitoring to ensure that your digital fortress is not only protected at the gates, but across every connection.
In the AI era, cyber resilience is not a one-firm effort. It is a shared responsibility.