External Service Breach

Definition ∞ An external service breach occurs when a third-party service provider, upon which a digital asset platform or user relies, experiences a security incident resulting in unauthorized access or data compromise. This could involve cloud providers, identity verification services, or payment processors that interact with the primary system. Such a breach can indirectly affect the security of the primary platform or its users, even if the main system remains uncompromised. It highlights the interconnectedness of digital ecosystems.
Context ∞ Crypto news frequently covers incidents where external service breaches have led to data leaks, phishing attacks, or even direct asset theft from users of affected platforms. These events underscore the critical importance of supply chain security and robust vendor risk management within the digital asset industry. Platforms are continuously working to minimize their reliance on external services or to implement stricter controls over them.