Cybersecurity incidents at vendors can have a massive impact, as they frequently result in unauthorized access to the data of many, and sometimes all, of their downstream clients. Cybercriminals are well aware that a successful attack on a vendor can provide them with access to huge volumes of data, and they are often targeted for that reason. A new report from the global financial and risk advisory solution provider Kroll shows the impact of these incidents.

The Kroll Data Breach Outlook 2026 report is based on incidents handled by the firm between June 2025 and June 2026, and involved surveys of 250 risk/compliance leaders and C-suite executives/board members. The report shows that 69% of organizations experienced a data breach in the past year, with more than one-third (34%) experiencing more than one data breach.

Finance topped the list in terms of data breaches, followed by professional services, while healthcare placed third, having dropped from first position in 2025. Healthcare now accounts for 15% of Kroll-handled data breaches, and this year is the first time since 2022 that healthcare has not ranked in first or second place for data breaches. Overall, while technology ranked 7^th in terms of the number of organizations experiencing a data breach, the sector accounted for 60% of affected individuals, followed by 10% in insurance, 8% in finance, and 8% in healthcare.

Drilling down into the data, the report shows the massive impact of third-party breaches. Out of all individuals affected by a data breach, 69% were affected by a third-party/vendor data breach. Out of those third-party breaches, 79% of affected individuals were affected by a data incident in the technology sector, followed by finance (9%), insurance (6%), and healthcare (5%). While the finance and technology sectors may be more susceptible to data breaches, the figures show the domino effect of a data breach in the technology sector, which can affect far more individuals due to the volume of data stored by the companies.

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“Across most of the major incidents we handled over the past year, a vendor, software supplier or service provider was the link between the initial breach and the organizations affected. One incident can reach businesses and individuals who have never dealt directly with the company where the compromise began,” said Denyl Green, Kroll’s global head of breach notification.

While not included in the report, the current healthcare data breach figures for 2026 (January 1 to September 30, 2026) show that out of the 593 large data breaches reported so far this year to the HHS Office for Civil Rights (OCR), 79% occurred at HIPAA-covered entities and 21% of breaches occurred at business associates; however, business associate data breaches account for 41% of all affected individuals.

Kroll conducted an external survey that revealed that 54% of IT and technology leaders ranked vendors/third parties as their biggest compliance risk, far more than the C-suite (39.7%) and dedicated risk and compliance leaders (30.4%), which Kroll suggests is due to the people closest to the vendor relationship having the best understanding of risk.

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Arrange a free, no-obligation 30-minute consultation with Blue Team Alpha for your organization. (This expert session is normally valued at $250.)

Cyberattacks on healthcare organizations can do far more than expose data. They can disrupt patient care, take essential systems offline, interrupt revenue, and leave organizations facing costly recovery work, regulatory scrutiny, and lasting reputational damage.

That is why The HIPAA Journal conducted an extensive search for a cybersecurity partner capable of helping organizations of all sizes to protect the electronic protected health information (ePHI) entrusted to them. We chose Blue Team Alpha and arranged to provide HIPAA Journal readers with a free cybersecurity consultation.

How to use your session which will be tailored to your organization’s needs.

You can use the time to obtain specific advice about a cybersecurity concern, discuss a known or suspected weakness, review an area of your security program, or identify the most important next steps for reducing risk. It’s up to you how you use the session.

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The consultation can also serve as the starting point for your organization’s annual HIPAA Security Risk Assessment.

In 30 minutes, a Blue Team Alpha specialist can help clarify the scope of the assessment, identify the people and information that will be needed, discuss likely areas of exposure, and help you determine what to prioritize. The consultation is not, by itself, a complete HIPAA Security Risk Assessment, but it can help you begin the process with clearer direction and expert support.

Whether you have an immediate question or want to take a more proactive look at your organization’s security posture, this is an opportunity to speak directly with an experienced cybersecurity professional and receive practical guidance tailored to your organization.

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Review your security program, get advice on a specific cybersecurity concern, identify risk-reduction priorities, or take the first step toward your annual HIPAA Security Risk Assessment.

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Who is Blue Team Alpha?

Blue Team Alpha is a veteran-owned cybersecurity firm that helps protect America’s critical infrastructure through cybersecurity leadership. More than 65% of its experts have backgrounds with the U.S. Department of Defense, Department of Homeland Security, and other government organizations, bringing extensive hands-on experience.

To protect health information organizations must understand where their real vulnerabilities are, take practical steps to reduce risk, detect threats quickly, and be ready to contain and recover from an incident when defenses are breached.

Blue Team Alpha’s experts have extensive first-hand experience responding to serious cyber incidents, combined with a strong understanding of regulated industries, and the ability to support organizations before, during, and after an attack.

Why The HIPAA Journal Chose Blue Team Alpha

The HIPAA Journal’s goal was to find a partner that could offer healthcare organizations credible, practical support across the full cybersecurity lifecycle. Blue Team Alpha stood out for several reasons:

Proven incident-response capabilities: Its specialists are available around the clock to investigate attacks, contain threats, support recovery, and help organizations restore business-critical operations.

A highly experienced team: Blue Team Alpha combines military, government, and private-sector cybersecurity experience with a wide range of professional security certifications.

Support before, during, and after an incident: The firm can identify weaknesses, strengthen defenses, respond to active attacks, and help organizations improve their security following an incident.

Experience in healthcare and other critical sectors: Its team understands that downtime and data loss in healthcare can affect both business operations and patient care.

A practical approach to risk: Assessments are designed to identify and prioritize risk and provide an actionable path for improvement, rather than simply generating another report that sits unused.

Cybersecurity Services Available to Healthcare Organizations

Through our partnership, HIPAA Journal readers can access Blue Team Alpha’s broad range of cybersecurity services, including:

Emergency Incident Response and Recovery
Blue Team Alpha provides 24/7 support for organizations experiencing ransomware, malware, data breaches, business email compromise, insider threats, and other security incidents. Services include rapid breach assessment, containment, threat eradication, digital forensics, system restoration, and assistance with re-establishing business continuity.

Digital Forensics and Incident Investigation
Digital forensics and incident response services help determine what happened, how attackers gained access, which systems and data may have been affected, and whether the threat has been fully removed.

Penetration Testing
Penetration testing goes beyond an automated vulnerability scan by emulating the techniques a real attacker may use to gain access to systems and data. Blue Team Alpha combines testing technology with manual analysis by experienced specialists to uncover weaknesses and provide prioritized recommendations for remediation.

Vulnerability Assessments and Vulnerability Management
Blue Team Alpha can identify technical vulnerabilities, prioritize them according to risk, track security improvements over time, and assist with remediation. This gives healthcare organizations a clearer understanding of which weaknesses require the most urgent attention.

Ransomware Readiness Assessments and Tabletop Exercises
Ransomware readiness assessments help organizations identify gaps in their ability to prevent, respond to, and recover from an attack. Tabletop exercises allow leadership, IT, security, compliance, legal, and communications teams to test their response plans in a controlled environment before they face a real emergency.

Managed Security Operations Center (SOC)
Blue Team Alpha’s managed SOC services  include security monitoring, managed detection and response, ransomware protection, security information and event management (SIEM), log ingestion, and managed security awareness and phishing training.

Virtual CISO Services
Organizations that do not need or cannot justify a full-time Chief Information Security Officer can access strategic cybersecurity leadership through Blue Team Alpha’s virtual CISO service. This can include risk assessment, security planning, policy development, incident-response planning, oversight, and support for regulatory and contractual requirements.

Cybersecurity Risk Assessments and Compliance Assistance
Blue Team Alpha conducts risk assessments to help organizations identify threats, vulnerabilities, control weaknesses, and compliance gaps. The resulting recommendations can help leadership prioritize investments and develop a practical risk-treatment plan. The company also provides compliance assistance for frameworks and standards that include HIPAA, HITRUST, and the NIST Cybersecurity Framework.

Incident Response Retainers and Cyber Insurance Preparation
Incident response retainers give organizations access to a team that is prepared to act when an incident occurs, reducing delays at a time when every hour matters. Blue Team Alpha can also help organizations review their preparedness for cyber insurance applications and requirements.

Learn More About This Offer

Avail of a Free 30-Minute
Cybersecurity Consultation
with Blue Team Alpha

Review your security program, get advice on a specific cybersecurity concern, identify risk-reduction priorities, or take the first step toward your annual HIPAA Security Risk Assessment.

Learn More About This Offer

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