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Businesses today rely on a rapidly growing number of third-party apps and APIs. Payment platforms, CRM systems, automation tools, AI assistants, analytics dashboards, cloud storage — everything is connected. These integrations make companies faster and more competitive, but they also quietly introduce one of the biggest modern cybersecurity threats.
In 2024, 35.5% of all recorded data breaches were linked to third-party vulnerabilities — a number that continues to climb as digital ecosystems expand.
This long-form guide breaks down the unseen risks lurking inside third-party apps, explains why businesses often overlook them, and gives you a practical, non-technical checklist to evaluate any integration safely.
Modern organisations rarely build software from scratch. Instead, they combine dozens (sometimes hundreds) of external tools to:
• Increase operational efficiency
• Improve automation and workflows
• Speed up development
• Reduce internal tech costs
• Access ready-made features instead of reinventing them
• Integrate specialist capabilities (e.g., payments, SMS, identity management)
Third-party tools are not a luxury — they are the backbone of digital business.
But there’s a catch: every new integration adds another door into your system.
Some doors are solid steel.
Others are unlocked screen doors.
Many businesses can’t tell the difference.
Third-party tools introduce vulnerabilities even when your internal systems are secure. Here’s where most risks come from:
Third-party tools can embed vulnerabilities you don’t immediately see:
• Malware inside seemingly harmless browser extensions
• Weak API authentication
• Insecure encryption
• Outdated libraries
• Unpatched vulnerabilities
• Overly broad permissions
• Hidden backdoors
Once compromised, attackers use integrations as stepping stones to move laterally inside your business — sometimes undetected for months.
Even reputable vendors may process your data in ways you didn’t intend:
• Storing data in overseas regions
• Sharing your information with sub-processors
• Analysing your data for their own purposes
• Lack of transparency in data retention
• Weak data sanitisation policies
• Insufficient access logs
If regulators ever investigate, you are responsible — not the vendor.
A weak or unstable API can disrupt your business:
• API outages that break workflows
• Latency that slows down your systems
• Rate limits that block critical tasks
• Poor change management or versioning
• Sudden feature removal
• Unexpected pricing changes
When your operations depend on an integration, you inherit its weaknesses.
Here is your expanded 10-point due-diligence checklist, designed for non-technical business owners and leaders:
Look for:
• ISO 27001
• SOC 2 Type II
• NIST CSF alignment
• Penetration test reports
• Bug bounty programs
• Security whitepapers
Why it matters: Certifications prove the vendor follows strict cybersecurity controls.
Ask whether the vendor encrypts:
• Data in transit (TLS 1.3 recommended)
• Data at rest (AES-256 recommended)
Avoid tools using outdated protocols like TLS 1.0 or self-signed certificates.
Ensure the app supports:
• OAuth2
• OpenID Connect
• SAML
• MFA
• Short-lived tokens
• Role-based access (least privilege)
Avoid integrations requiring “full account access” unless absolutely necessary.
A trustworthy vendor should provide:
• Logging
• Alerting
• Audit reports
• Suspicious activity notifications
• Real-time detection capabilities
If the vendor does not log access to your data, that is a red flag.
Check that:
• New updates don’t break your system
• Older versions remain supported
• Deprecation notices are communicated early
• Documentation is maintained
This protects your business from sudden interruptions.
Ensure the API handles:
• High-volume requests
• Traffic spikes
• Abuse protection
• Fair usage policies
Poor rate limiting can bring your system to a halt.
Contracts should include:
• Right to request security documentation
• Right to conduct an audit
• Clear remediation timelines
• Breach notification obligations
• Data deletion guarantees
This ensures accountability when something goes wrong.
Ask:
• Where is your data stored?
• Which countries process it?
• Who are the sub-processors?
Data crossing borders can create major legal obligations.
Ask vendors about:
• Service redundancy
• Backup frequency
• Recovery processes
• Downtime history
• SLA uptime guarantees
If the vendor goes down, your operations shouldn’t.
Every app depends on other apps.
Ask for:
• A list of third-party libraries
• Open-source components
• Known vulnerabilities
• Dependency management processes
Supply chain attacks (like the SolarWinds incident) often begin here.
Below is the required challenge → BIT365 Solution format.
Modern APIs are built quickly, updated often, and depend on external libraries. This creates complex attack paths that are difficult to detect.
• BIT365 Solution:
BIT365 performs deep API security reviews, dependency audits, threat modelling, and hands-on penetration testing. We ensure every connection is hardened before it reaches your production environment.
Many third-party apps request more access than necessary — sometimes full admin permissions.
• BIT365 Solution:
BIT365 enforces strict access governance, least-privilege policies, and custom permission mapping to ensure each app receives only the exact access it needs.
Many vendors store your data in regions you don’t expect — sometimes without telling you.
• BIT365 Solution:
BIT365 maps your entire data flow, verifies processing regions, and ensures all integrations meet national compliance requirements, including Australian privacy obligations.
If you cannot see what an integration is doing, you cannot secure it.
• BIT365 Solution:
BIT365 deploys continuous monitoring, advanced logging, alerting, and real-time threat detection for every connected app, giving you full visibility into activity across your ecosystem.
API failures can break automations, stop transactions, or slow operations to a crawl.
• BIT365 Solution:
BIT365 validates uptime guarantees, deploys failover strategies, and configures automated fallback mechanisms to keep your business running smoothly — even when external vendors fail.
• Third-party integrations are essential — but risky
• Every new connection widens your attack surface
• Many breaches originate from insecure vendors
• Businesses must rigorously vet every integration
• BIT365 provides full API governance and security hardening
• Continuous monitoring reduces long-term risks
• Proper due diligence prevents operational and financial damage
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Got IT issues slowing you down? We provide both on-site and remote support across Australia, so help is never far away.
BIT365 offers a full range of managed IT services, including cybersecurity, cloud solutions, Microsoft 365 support, data backup, and on-site or remote tech support for businesses across Australia.
No. While we have a strong presence in Western Sydney, BIT365 supports businesses nationwide — delivering reliable IT solutions both remotely and on-site.
We pride ourselves on fast response times. With remote access tools and on-site technicians, BIT365 can often resolve issues the same day, keeping your business running smoothly.
BIT365 combines local expertise with enterprise-grade solutions. We’re proactive, not just reactive — preventing issues before they impact your business. Plus, our friendly team explains IT in plain English, so you always know what’s happening.
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