Supply Chain Breaches Hit 48% of Confirmed Incidents as Credential Relay Attacks Surge
The 2026 Verizon Data Breach Investigations Report found third-party involvement in nearly half of all confirmed breaches, a 60% year-over-year increase, while IBM's 2026 breach report found supplier-originated incidents take an average of 258 days to contain. A key mechanism driving these numbers is credential relay, where stolen credentials from one vendor are reused to compromise that vendor's downstream customers. In March 2026, attackers used Google Cloud Platform credentials harvested from the Salesloft Drift breach to infiltrate Telus Digital, ultimately exposing data from hundreds of companies. A separate August 2026 attack poisoned the LiteLLM API gateway, reaching roughly 2,500 organizations and exposing an estimated 195TB of password data within approximately 40 minutes. Security experts recommend treating vendor breach disclosures as immediate credential rotation triggers and maintaining a live inventory of SaaS integration credentials to reduce the window attackers exploit.
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