What Happens When the Vendor You Trust Gets Breached? 

How a Multi-Layered Defense Keeps Small Businesses Safe When Their Tools Fail 

You’ve built your business on trusted partners from software providers, IT tools, to security vendors who promise to keep things running smoothly. But what happens when one of those trusted vendors gets breached? 

Recent attacks have shown that even the most reliable tools can become entry points for cybercriminals. When that happens, small and midsized businesses often pay the highest price, including downtime, data loss, and reputational damage that can take years to rebuild. 

So the real question isn’t if another breach will happen. It’s what you’ve done to make sure your business survives it. 

At Midnight Blue, we believe that survival depends on multi-layered protection, a security strategy that combines the best technology, constant human oversight, and proven response procedures. First, let’s look at how some of the world’s most trusted vendors were breached , and what those incidents can teach you about building a safer business. 

When Trusted Vendors Get Hit 

Each of these incidents shows that no vendor is immune, and why layering your defenses matters. 

• Kaseya VSA (2021) – Attackers used a legitimate software update channel to deliver ransomware to MSPs and their clients, hitting hundreds of small businesses worldwide. 

• SolarWinds Orion (2020) – Malicious code inserted into trusted updates gave hackers access to corporate and government networks for months before discovery. 

• ConnectWise ScreenConnect (2024) – A critical authentication flaw was exploited within days of disclosure, giving attackers remote access through MSP tools. 

• Barracuda Email Gateway (2023) – A zero-day flaw forced the vendor and FBI to recommend full hardware replacement instead of patching. 

• TeamViewer (2024) – A Russian-linked group infiltrated the company’s IT network, showing even secure remote access platforms can be targeted. 

• Rackspace Hosted Exchange (2022) – A ransomware event disrupted hosted email, forcing painful migrations for thousands of customers. 

• JumpCloud (2023) – State-linked actors breached systems and forced a company-wide reset of API keys for clients. 

For small businesses, the lesson is clear: if your defense depends on one vendor, one update, or one system, your risk multiplies. 

When Vendors Fail, Here’s What It Costs 

When a vendor is breached, the damage doesn’t stop at their network. For small businesses, the ripple effects can hit fast: 

• Downtime that halts revenue. Even a few offline hours can cost thousands.

• Damaged trust. Clients may assume their data wasn’t protected.

• Legal and compliance issues. Exposure often means mandatory reporting.

• Operational chaos. Staff lose access to systems, invoices, and records.

A single vulnerability upstream can create a chain reaction downstream, right into your business. That’s why smart businesses are rethinking how they protect the tools they rely on most before a breach ever reaches their doorstep.

Your Second Line of Defense: Layered Security 

You can’t stop every breach, but you can stop one breach from spreading. That’s the power of defense in depth. Multiple, independent layers of security work together so if one fails, the others still stand. 

• Separate controls for identity, devices, and network access 

• Continuous monitoring from skilled cybersecurity professionals 

• Rapid response procedures ready for any vendor failure 

It’s not about distrusting your vendors . It’s about building resilience. 

How Midnight Blue Builds Layered Security for Small Businesses 

At Midnight Blue, our approach is built around layered protection, diverse solutions from multiple trusted partners, backed by human expertise and our 24/7 Network Operations Center (NOC). 

Here’s how we structure that protection for small and midsized businesses: 

• 24/7 Monitoring: Always-on visibility into your environment so nothing slips by. 

• Endpoint & Network Defense: Multiple tools watching every device and connection. 

• Email & Identity Security: Multi-factor authentication, phishing prevention, and access control. 

• Incident Response & Recovery: Real people ready to act when a threat appears. 

• Vendor Risk Management: We monitor the tools you depend on and take action fast when they’re compromised. 

This layered design gives you breathing room, the time and visibility to respond before an incident becomes a crisis. 

Build a Defense That Doesn’t Break When Others Do 

Your trusted vendors are only responsible for you to a point. In the end, your security is your responsibility. Take control of your risk today with a layered security roadmap designed around your business, not your toolset. 

Take control of your risk today. Schedule a conversation with Midnight Blue’s cybersecurity team. 

You can’t prevent every breach, but you can stop one from taking down your business. With the right layers and the right people watching, you can keep your business running, no matter who gets breached.