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Managed service provider cybersecurity: how to protect yourself and your clients

managed service provider cyber security

Managed service providers (MSPs) are at greater risk of cyberattacks than other businesses. The question is, why? 

What makes MSPs, like yours, such an enticing target? And what can you do to protect your business and your clients?

Why do cybercriminals target MSPs?

MSPs might seem like an odd target. We tend to think of them as technology experts, with the best cybersecurity solutions, processes, policies, and tools. So surely there are more tempting targets? Unfortunately, this is only partially true.

No matter how well-protected an MSP might be, plenty of cybercriminals believe the risk is worth the reward. MSPs have remote access to their clients’ systems and networks. Not to mention huge amounts of data – everything from employee login credentials to financial records.

In short, cybercriminals target MSPs for the same reason they attack supply chains. Successfully breaching their defences can create a domino effect that extends way beyond the initial target, leading to ‘follow-on’ activity across the MSP’s client base.

What are the consequences of a successful MSP cyber-attack?

Cyber-attacks have direct and indirect consequences for MSPs.

Direct consequences

Disruption is perhaps the most obvious consequence. Unless you catch it early, a successful cyber-attack can bring your systems down, requiring a lengthy clean-up operation to put right. Not only does this impact productivity, it also has a detrimental effect on employee confidence and morale. There may be financial consequences to consider, too.

A serious malware attack can lead to prolonged service outages that directly impact your bottom line. Meanwhile, a successful ransomware attack may result in locked systems or stolen data, leaving you no choice but to pay the ransom. Additionally, you may have to pay a fine if an independent investigator decides your cybersecurity failed to meet the minimum requirements of your industry.

Then there's the possible reputational damage of a cyber-attack, which can make harder to attract new clients and retain existing ones.

Indirect consequences

Often, your clients suffer most from a managed service provider cybersecurity breach – particularly if you work with SMEs.

Only 33% of UK SMEs use threat monitoring tools, according to one government survey. At the same time, even fewer (31%) conducted a cybersecurity risk assessment last year. This makes SMEs more susceptible to threats than large organisations, enabling attacks to spread faster.

The Kaseya ransomware attack illustrates how easily an attack can get out of control. After exploiting vulnerabilities in the provider’s software, the breach spread to dozens of MSPs and over 1,500 of their customers in a matter of hours.

7 tips to defend against managed service provider cybersecurity threats

There’s no doubt cyberattacks can have serious consequences for MSPs. However, adopting a few simple measures can go a long way to protecting you and your customers.

1. Install software patches

Even the best-protected software can develop vulnerabilities over time, presenting a golden opportunity to wily hackers. You can mitigate this risk by updating your software with the latest patches as soon as they become available.

It’s like mending a puncture. The sooner you apply the patch, the less air escapes. Updating your software works on the same principle, allowing you to catch issues before they escalate. The best part? It’s quick and easy, taking only a couple of minutes a month.

Want to learn more about managed service provider cybersecurity? Check out our MSP Survey 2024.

2. Set up multi-factor authentication

Multi-factor authentication (MFA) is an application security process that requires users to set up two or more verification methods. Alongside the traditional username and password, these include:

  • Security questions
  • PIN codes
  • Biometrics (e.g. thumbprints)

On their own, passwords are vulnerable to data leaks and brute-force attacks. By contrast, MFA is difficult to crack – even for the most sophisticated hackers.

3. Back up your systems and data

Backing up your systems and data provides a vital failsafe should you suffer a breach. In some cases, it can even help you avoid having to pay a ransom. 

The simplest and most cost-effective approach is to use data backup software. Once installed, it automatically copies data to one or more external sources. For example, an external drive, data centre, or cloud server.

Not sure what to back up? Use this simple rule of thumb: anything you don’t want to lose, back up.

4. Segregate your networks

Dividing your network into distinct parts (or sub-networks) helps to prevent unauthorised access to sensitive data.

The key to this is setting strict access controls for each sub-network, based on the zero-trust principle. This ensures users only have the privileges they need to do their job. It might sound extreme, but it’s critical in allowing you to isolate affected systems, customers, or accounts in the event of an attack.

5. Train staff

Education is arguably the most important component of effective cybersecurity. After all, human error causes 55% of data breaches.

Start with the basics. Teach staff how to spot the tell-tale signs of a cyberattack and how to respond. Looking further ahead, consider running regular top-up courses to keep staff up to date with best practices. This gives them the knowledge, skills, and confidence to combat threats.

6. Create an incident response plan

Cyberattacks aren’t inevitable. But, statistically speaking, they are likely. That’s why you need a coherent and actionable response plan, in case the worst does happen.

An incident response plan is a set of instructions that tells employees what to do in the aftermath of a cyber-attack. It helps you organise an effective and coordinated response, minimising damage and helping you recover faster.You’ll also need to encourage your clients to develop their own incident response plans. Just 4% of MSPs say all their clients have active incident response plans.

7. Map your supply chain risks

Supply chain attacks are increasingly common. So, once you’ve locked down your own cybersecurity, identify who among your customers or suppliers could pose a risk.

The National Institute of Standards and Technology (NIST) recommends asking questions like these to gauge a supplier’s security posture:

  • Is your software/hardware process documented, repeatable, and measurable?
  • How do you stay updated on emerging vulnerabilities?
  • What level of malware protection do you have in place?
  • What physical and digital access controls do you use?
  • How do you ensure upstream suppliers adhere to cybersecurity best practices?

Remember: when it comes to cybersecurity, a unified approach is the best defence.

Stay on top of cybersecurity

The cybersecurity landscape is like a daunting place. New threats emerge all the time, creating obstacles for you and your customers. But by following these simple steps, you can reduce your exposure to common security risks and work safely.