Rethinking Vendor Security: Protecting Privacy to Protect Trust

October is Cybersecurity Awareness Month, the perfect time to take a closer look at how your technology choices affect not only your organization’s security but also your users’ privacy and trust.

In today’s digital landscape, it’s common for technology vendors to collect and store user data as part of their service. But every additional data repository introduces new risk. Whether it’s student records, employee credentials, or customer identities, any stored personal information becomes a potential target.

According to Verizon’s 2025 Data Breach Investigations Report, which analyzed tens of thousands of real-world security incidents, 30 percent of data breaches involved a third party vendor, double the rate from the previous year.

As third party data breaches continue to rise, it’s clear that organizations can take meaningful steps to reduce exposure by choosing partners who make privacy a top priority.

The Problem with Data Collection

Even the most well intentioned organizations can find themselves exposed if their vendors collect and retain personal data. Data breaches, unauthorized access, and misuse of information are constant threats. Once a third party holds your users’ data, your security perimeter effectively expands to include their systems and their vulnerabilities.

According to IBM, threat actors frequently target third party vendors because of the large volumes of data they manage. IBM also notes that managing third party risk is often challenging due to limited visibility into a vendor’s security practices.

Beyond the technical risk lies a reputational one. Users expect their information to be handled responsibly, and a privacy misstep, even one caused by a partner, can quickly erode the trust you have built with your community.

Privacy First Partnerships Reduce Risk

Working with privacy first vendors that provide verification or identity services without collecting, storing, or sharing user data dramatically reduces exposure. When no personal data is held, there is nothing to breach, leak, or misuse.

This approach aligns with core cybersecurity principles:

• Data minimization: Only process what is absolutely necessary.
• Zero trust: Assume no system or actor should automatically be trusted with sensitive information.
• Resilience: Reduce the number of potential attack surfaces by limiting where data lives.

By selecting vendors that take a privacy first stance, you are not just complying with security best practices — you are protecting your brand and strengthening your relationship with users.

Building Stronger Relationships Through Trust

People notice when organizations respect their privacy. When users know their personal information is not being stored or sold, they feel safer and more respected. This builds trust, which in turn leads to stronger engagement and loyalty.

Whether you are an academic institution, a software company, or a membership organization, working with vendors that prioritize privacy sends a clear signal to your users that you do, too.

Choosing the Right Partners Matters

Even the strongest internal security practices can be undermined by weak links in your vendor ecosystem. Every third party service you rely on, from identity verification to analytics tools, becomes an extension of your security and privacy posture.

That is why it is critical to evaluate your technology partners with the same scrutiny you apply to your own systems. When selecting vendors, look beyond features and price — focus on how they handle data, protect privacy, and manage risk.

Here are the key things every organization should consider when evaluating third party technology vendors:

1. Data Collection Practices

• What personal data does the vendor collect?
• Is that data essential to the service, or just “nice to have”?
• Can the service function without storing personal information?

2. Data Storage and Retention

• Where is user data stored (geographically and technically)?
• How long is it retained?
• Is data deleted immediately after use, or kept indefinitely?

3. Data Sharing and Access

• Does the vendor share user data with any other third parties (analytics, affiliates, or marketing)?
• Who within the vendor organization has access to the data, and how is that access controlled?

4. Privacy by Design

• Is the vendor’s solution built around privacy first principles, such as data minimization and anonymization?
• Does the vendor clearly explain how they protect privacy in their technical design and documentation?

5. Security Controls and Certifications

• Does the vendor hold recognized security certifications (for example, SOC 2, ISO 27001, GDPR compliance)?
• How often are they audited, and are reports available for review?

6. Incident Response and Breach Protocols

• What is the vendor’s process if a security incident or data breach occurs?
• How quickly will they notify your organization?
• Do they have a tested incident response plan in place?

7. Contractual Protections

• Does the contract clearly define data ownership, liability, and responsibilities in case of a breach?
• Are there limitations on how the vendor can use your users’ data?
• Is there a clear data deletion or exit process when the contract ends?

8. Regulatory Compliance

• Does the vendor comply with relevant privacy laws (for example, GDPR, CCPA, PIPEDA, FERPA)?
• Are they transparent about their compliance posture?

9. Transparency and Accountability

• Do they provide clear privacy policies and documentation that are easy to understand?
• Are they willing to answer detailed questions about their practices?

10. Reputation and Trustworthiness

• What is their track record with data privacy and security?
• Do they have any history of data breaches or misuse?
• How do other clients view their approach to privacy and risk?

Privacy Is Security

As cybersecurity threats evolve, the best protection is not just more security — it is less data. The less information you collect and store, the less there is to protect.

So this Cybersecurity Awareness Month, take a moment to review your vendor relationships. Ask your partners tough questions about what data they collect, how long they retain it, and how they protect it. The safest data is the data you never have to store in the first place.