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Monday, October 19, 2026

Third-Party Data Incidents: How to Prepare and Respond - The National Law Review

Preparing for and Responding to Third-Party Data Incidents

  1. The Rise in Frequency and Size of Third-Party Data Incident

Many organizations realize that using technology to support both customer-facing and back-office tasks deliver the efficiency and accuracy that employees and customers have come to expect. These technological solutions often reduce overhead internally and allow customers, employees and external third parties to interact with the organization more transparently. However, by incorporating software-as-a-service (SaaS) solutions used in-house, or off-premises services managed entirely by a third party, organizations are exposed to additional 1See 12 C.F.R. Part 30, App. B A (Office of the Comptroller of the Currency); 12 C.F.R. Part 208, App. D-2 (Federal Reserve); 12 C.F.R. Part 364, App. B (Federal Deposit Insurance Corporation); and 12 C.F.R. Part 748, App. A (National Credit Union Administration)).potential privacy and security risks.

A large reason for the increase is that threat actors are exploiting the technology supply chain—targeting technology providers with direct access to many customer systems, rather than trying to compromise customer systems one by one. The attacks are very clever, and many times go undetected by even the most sophisticated organizations. In late 2020, around 20,000 organizations using the SolarWinds Orion IT monitoring and management software ran what appeared to be a routine update/patch to the...



Read Full Story: https://www.natlawreview.com/article/tech-transactions-data-privacy-2022-repo...