Managed Service Providers (MSPs) play a crucial role in securing IT environments for many customers, making them attractive targets for cybercriminals. This is the last in a series of cybersecurity analyses, and today we look at key cybersecurity challenges and trends in the MSP sector, including cloud adoption, top security threats, and the impact of cyberattacks.
Cloud Adoption and IT Priorities
- About 77% of MSPs have a hybrid IT architecture, while 11% are fully cloud-based.
- The top IT priorities remain data security and network security, cited by 73% and 72% of MSPs, respectively.
- Improving cybersecurity awareness among users was named as a priority by 50% of MSPs.
MSP security incidents
76% of MSPs reported experiencing a cyberattack within the last 12 months, which is close to the 79% industry-wide figure. User account compromise was the most frequent cloud attack type, while ransomware or malware attacks dominated on-premises incidents. Phishing remained the most common attack vector for both cloud and on-prem environments, with 80% of MSPs experiencing it.
Cybersecurity Measures & Threats
MSPs are more eager to adopt AI-based security tools compared to other industries. 36% of MSPs cited AI implementation as a priority, whereas in other industries, AI ranked seventh.
MSPs rely heavily on Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS) solutions. These solutions limit traditional network-based security controls, making MSPs a prime target for attackers.
Ransomware gangs see MSPs as lucrative targets. Attackers exploit the fact that MSPs cannot afford downtime, increasing the likelihood of ransom payments.
Supply chain attacks targeting MSPs are on the rise. A successful breach in an MSP can compromise multiple client organizations.
Cyberattack Consequences
MSPs suffer more frequent cyberattack consequences than other industries.
- 51% of attacked MSPs reported unplanned expenses to fix security gaps, compared to 45% in other industries.
- 31% of MSPs faced a loss of competitive edge, compared to 20% in other industries.
- 27% of MSPs encountered compliance fines, exceeding the 17% industry-wide average.
Conclusion
The MSP sector remains a high-value target for cybercriminals due to its reliance on cloud services and its role in managing multiple client infrastructures. As a result, MSPs prioritize AI-based security tools, privileged access management (PAM), and user training to mitigate risks. However, phishing, ransomware, and account compromises continue to pose significant threats, requiring continuous vigilance and security improvements.
