SpyCloud Launches Supply Chain Solution to Combat Rising Third-Party Identity Threats

SpyCloud Launches Supply Chain Solution to Combat Rising Third-Party Identity Threats

New monitoring capability delivers unprecedented visibility into vendor identity exposures, moving enterprises and government agencies from static risk scoring to protecting against actual identity threats.

SpyCloud, the leader in identity threat protection, announced the launch of its Supply Chain Threat Protection solution, an advanced layer of defense that expands identity threat protection across the extended workforce, including organizations’ entire vendor ecosystems. Unlike traditional third-party risk management platforms that rely on external surface indicators and static scoring, SpyCloud Supply Chain Threat Protection provides timely access to identity threats derived from billions of recaptured breach, malware, phished, and combolist data assets, empowering organizations – from enterprise security teams to public sector agencies – to act on credible threats rather than simply observe and accept risk.

Supply Chain Threat Protection addresses a critical gap in enterprise security: the inability to maintain real-time awareness of identity exposures affecting third-party partners and vendors. According to the 2025 Verizon Data Breach Investigations Report, third-party involvement in breaches doubled year-over-year, jumping from 15% to 30% primarily due to software vulnerabilities and weak security practices. As supply chain compromises continue to escalate, security teams need intelligence that goes beyond questionnaires and external scans to reveal active threats like phishing campaigns targeting their trusted partners, confirmed credential theft, and malware-infected devices exposing critical business applications to criminals.

For government agencies and critical infrastructure operators, supply chain threats present national security risks that demand heightened vigilance. Public sector organizations managing sensitive data and critical services increasingly rely on contractors and technology vendors whose compromised credentials could provide adversaries with pathways into classified systems or essential infrastructure. Last year alone, the top 98 Defense Industrial Base suppliers had over 11,000 dark web exposed credentials – an 81% increase from the previous year. SpyCloud Supply Chain Threat Protection enables federal, state, and local agencies to identify when suppliers or contractors have been compromised – allowing them to take proactive measures before an identity exposure escalates into a matter of national security.

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“Third-party threats have evolved far beyond what traditional vendor assessment tools can detect,” said Damon Fleury, Chief Product Officer at SpyCloud. “Public and private sector organizations need to know when their vendors’ employees are actively compromised by malware or phishes, when authentication data is circulating on the dark web, and which partners pose the greatest real downstream threat to their business. Our new solution delivers those signals by transforming raw underground data into clear, prioritized actions that security teams use to protect their organization.”

Supply Chain Threat Protection enables organizations and agencies to continuously monitor thousands of suppliers, with each company’s threats enumerated in detail, and also represented in an at-a-glance Identity Threat Index. The Index is a comprehensive and continuously updated analysis that quantifies vendor security posture through the lens of identity exposure, from both active and historical phishing, breach, and malware sources, and surfaces which partners pose the most significant risk based on verified dark web intelligence.

Key Capabilities Include:

  • Real Evidence of Compromise: Timely recaptured identity data from breaches, malware, and successful phishes collected continuously from the criminal underground, with context that gives security teams enhanced visibility into the identity threats facing suppliers today.
  • Identity Threat Index: Aggregates multiple verified data sources weighted by the recency, volume, credibility, and severity of compromise, emphasizing verified identity data over static breach records for more robust and real-time visibility into vendor risk.
  • Compromised Applications: Identifies the internal and third-party business applications exposed on malware-infected supplier devices to support deeper investigation and risk assessment.
  • Enhanced Vendor Management and Communications: Facilitates sharing of actionable evidence and detailed executive-level reports directly with vendors to collaboratively improve security posture, transforming vendor relationships from adversarial scoring to collaborative protection.
  • Integrated Response: Leveraging SpyCloud’s console, teams now have access to identity threat protection beyond the traditional employee perimeter with this extension to suppliers, allowing analysts to respond to workforce identity threats within a single tool.

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SpyCloud Supply Chain Threat Protection is designed to support multiple use cases across Security Operations, Infosec, Vendor Risk Management, and GRC teams. Organizations can leverage the solution for vendor due diligence during procurement and onboarding, continuous risk reviews to strengthen vendor relationships, and accelerated incident response when vendor exposures threaten their own environments.

“Security teams and their counterparts across the business are overwhelmed with vendor assessments, questionnaires, and risk scores that often don’t translate to real prevention,” said Alex Greer, Group Product Manager at SpyCloud. “Our customers have often reported that when they’re evaluating doing business with a new vendor, they lack the actionable data their legal and compliance teams need for evidence-based decision making. That’s where SpyCloud stands out. Surfacing verified identity threats tied directly to vendor compromise, letting teams escalate to leadership when to restrict data access and prioritize efforts for the greatest impact on reducing organizational risk.”

Unlike existing solutions that rely on external surface indicators and static scoring, SpyCloud provides threat data derived from underground sources – the same recaptured darknet identity data that criminals actively use to target organizations and agencies. This fundamental difference enables SpyCloud customers to move from passive risk acceptance to proactive and holistic identity threat protection.

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