The Dangers of Third-Party Applications and Proactive Management Strategies

In 2025, the reliance on third-party applications has become a double-edged sword for companies, offering efficiency and innovation while introducing significant cybersecurity risks. This analysis aims to provide a thorough exploration of these dangers and outline proactive strategies for companies with third-party applications in their tech stack. 

The Double-Edged Sword of Third-Party Applications

Imagine inviting a contractor into your home to fix the plumbing, but you forget to check if they’re trustworthy. They might do a great job, or they could leave the back door unlocked for thieves. That’s third-party applications in a nutshell—software or services developed by external vendors, like customer relationship management (CRMs), payment gateways, or analytics tools, integrated into a company’s tech stack to enhance operations. While they offer convenience and specialized functionality, they also introduce potential security vulnerabilities that can compromise the company’s data and systems, making proactive management essential.

Understanding Third-Party Applications: What Are They and Why Are They Used?

Third-party applications are software programs or services created by companies other than the one using them, designed to perform specific functions that support business operations. Examples include Salesforce for CRM, Stripe for payment processing, or Google Analytics for tracking website traffic. Companies use them to save time and resources, leveraging specialized expertise without building everything in-house, much like hiring a specialist for a task rather than doing it yourself.

However, this convenience comes with risks, as these applications often interact with sensitive data and systems, potentially exposing them to external threats. The external attack surface, which includes all internet-facing assets, can expand with each third-party app, especially if they’re accessible online, making tools like TRaViS ASM crucial for visibility and control.

Dangers Associated with Third-Party Applications: A Closer Look

The dangers of third-party applications are numerous and can have far-reaching consequences, like cracks in a dam that could lead to a flood:

1. Security Vulnerabilities: Third-party applications can have their own set of security flaws, which, if not addressed, can be exploited to gain unauthorized access to a company’s systems or data. High-profile incidents like the SolarWinds breach in 2020, where attackers compromised the software update mechanism to insert malicious code, affected thousands of customers, including government agencies (SolarWinds Breach Analysis). Another example is the Log4j vulnerability, a critical flaw in a popular open-source logging library used in many applications, which could be exploited to execute arbitrary code, impacting a wide range of systems (Log4j Vulnerability Details).
   
   
2. Data Breaches: If a third-party application handles sensitive data and has inadequate security measures, it can lead to data breaches, exposing customer information, financial records, or intellectual property. According to a 2022 survey by Ponemon Institute, 60% of organizations experienced a data breach involving a third-party vendor in the past two years (Ponemon Institute’s 2022 Third-Party Risk Management Survey), highlighting the prevalence of this risk.
   
   
3. Compliance Issues: Third-party applications may not adhere to the regulatory requirements that a company must meet, potentially leading to legal and financial consequences. For instance, if an app doesn’t comply with the General Data Protection Regulation (GDPR) in the EU, the company using it could face hefty fines, as noted in GDPR Compliance Guide.
   
   
4. Supply Chain Attacks: Attackers can target third-party providers to gain access to multiple companies through a single point of entry, amplifying the impact. The SolarWinds case is a prime example, where a compromised third-party software update led to widespread breaches, demonstrating how supply chain attacks can ripple through industries.

This table illustrates the various dangers, making it easier to grasp the scope and impact.

Being Proactive: Best Practices for Managing Third-Party Applications

To mitigate these risks, companies must be proactive, treating third-party applications like guests in their home—welcome them, but ensure they don’t cause trouble:

1. Vetting Process: Before integrating any third-party application, conduct a thorough risk assessment and due diligence. This includes evaluating the provider’s security track record, certifications like ISO 27001, and reviewing their privacy and security policies. It’s like checking a contractor’s references before hiring them, ensuring they’re trustworthy, as guided by NIST Cybersecurity Framework.
   
   
2. Contractual Agreements: Ensure that contracts with third-party providers include specific security obligations, such as data encryption, regular security auditing, and incident notification clauses. This is like having a contract that specifies the contractor must lock the door when they leave, per ISO 27001 Standard.
   
   
3. Access Control: Limit the access rights of third-party applications to only what is necessary for their function, adhering to the principle of least privilege. This means giving them just the keys to the room they need, not the whole house, reducing the risk if they’re compromised, as advised by CISA Least Privilege Guidance.
   
   
4. Regular Assessments: Periodically review and assess the security of third-party applications through penetration testing, vulnerability scanning, and staying informed about any reported vulnerabilities or security updates. It’s like having annual safety inspections for your home, ensuring no new risks have crept in, per Verizon’s 2023 Data Breach Investigations Report.
   
   
5. Monitoring and Incident Response: Implement continuous monitoring of third-party applications and have a well-defined incident response plan to handle any security incidents promptly. This is like having security cameras and a plan for if a burglar breaks in, ensuring quick action, as noted in Incident Response Planning Guide.
   
   
6. Employee Training: Educate employees on the risks associated with third-party applications and the importance of using them securely, including recognizing and reporting suspicious activities. It’s like training your family to lock the door after guests leave, reducing human error, per Employee Cybersecurity Training Best Practices.
   
   

An unexpected benefit is that strong third-party management can boost customer trust, beyond just preventing attacks, as customers feel safer knowing their data is protected, per Forrester Research on Third-Party Security Concerns.

Role of External Attack Surface Management (EASM)

EASM tools like TRaViS ASM are crucial for identifying and managing risks associated with externally accessible assets, including third-party applications. By continuously scanning and monitoring the external attack surface, EASM can:

• Detect vulnerabilities in third-party applications that are internet-facing, like an exposed API in a chat tool that could be exploited.
• Identify any unauthorized or shadow IT third-party applications that employees might be using without the company’s knowledge, which could pose significant risks.
• Provide real-time alerts and insights to prioritize and address security risks effectively, ensuring the company stays ahead of potential threats.

For example, if a third-party application has an exposed API that’s not properly secured, TRaViS ASM can flag that as a potential risk, allowing the company to take action before attackers exploit it. This visibility is part of a broader strategy, complementing the proactive measures outlined above, and is accessible at TRaViS ASM Blog.

Conclusion

The dangers of third-party applications are real and significant, but with proactive management, companies can mitigate these risks effectively. By vetting applications, ensuring contractual protections, limiting access, conducting regular assessments, monitoring activities, and training employees, organizations can safeguard their data and systems. Integrating EASM tools like TRaViS ASM enhances this strategy, providing visibility into the external attack surface and ensuring a robust defense against cyber threats in 2025.

Want to learn more about how TRaViS ASM can help you manage your external attack surface? Visit our blog for more insights and tips.

Key Citations

• Verizon’s 2023 Data Breach Investigations Report
• Ponemon Institute’s 2022 Third-Party Risk Management Survey
• Forrester Research on Third-Party Security Concerns
• NIST Cybersecurity Framework
• ISO 27001 Standard
• SolarWinds Breach Analysis
• Log4j Vulnerability Details
• GDPR Compliance Guide
• CISA Least Privilege Guidance
• Incident Response Planning Guide
• Employee Cybersecurity Training Best Practices