Cyber Risk is Rising in Procurement. Are You Prepared?

Public procurement is going digital. Quickly. While this shift creates opportunities for faster workflows, greater transparency, and better vendor engagement, it also introduces major cybersecurity risks.

In 2023 alone, U.S. government agencies reported over 32,000 cybersecurity incidents. Between 2018 and 2024, ransomware attacks on public entities caused more than $1 billion in service disruptions. With sensitive vendor data, intellectual property, and contract details at stake, the need for protection has never been more urgent.

As agencies increase their reliance on cloud services and digital procurement platforms, they must take a proactive stance on cybersecurity, data privacy, and risk mitigation.

Why Procurement Systems Are High-Risk Targets

Public procurement platforms store and transmit some of the most sensitive information in government operations. That includes vendor banking details, bid responses, evaluation scores, payment records, and even intellectual property.

This makes procurement systems an attractive target for cybercriminals. The Verizon Data Breach Investigations Report found that 83% of hacking-related breaches in public administration involved stolen credentials. Many of which came from third-party vendors.

Threats to these systems come from multiple directions:

• Third-party risk: Vendors often have system access, increasing exposure to supply chain vulnerabilities.
• Insider threats: Employees may unintentionally expose customer data or misuse access.
• Insecure communication: Email-based submissions or negotiations are prone to interception.
• Poor onboarding processes: Agencies may overlook vendor cybersecurity certifications or track records.

As part of a strong risk management strategy, public agencies must identify high-risk areas early and develop a cybersecurity posture that includes secure cloud services and continuous monitoring of access.

The Regulatory Landscape is Evolving

Public agencies now face a growing set of state and federal cybersecurity mandates. Regulatory compliance is no longer optional.

In particular, procurement leaders are expected to:

• Include cybersecurity certifications in vendor scoring criteria
• Require clear security controls and service-level agreements (SLAs) in contracts
• Adopt privacy-by-design principles in procurement workflows
• Maintain complete audit logs and access histories
• Ensure compliance and data security with every supplier interaction

Agencies that fall short risk legal penalties, reputational harm, and operational disruption. A risk-based approach, aligned with industry data security standards, is quickly becoming the norm.

Mitigation Tactics That Work

Here’s how leading public agencies are reducing risk at every stage of the procurement process:

Vendor Screening and Certifications

Procurement teams now request cybersecurity documentation—like ISO 27001, SOC 2, or FedRAMP compliance—before awarding contracts. This step reduces third-party risk and ensures vendors meet basic data security requirements.

Secure Cloud Procurement Platforms

Modern tools like SOVRA’s eProcurement solution offer end-to-end encryption, secure document portals, and controlled user access, eliminating vulnerabilities tied to email-based procurement or siloed tools.

Defined Access Controls

Granular permissions ensure that only the right users access sensitive data. Limiting roles and using multi-factor authentication are now standard security and compliance measures.

Immutable Audit Trails

Every action in the system (from bid upload to contract revision) is recorded and unalterable. This protects agencies during audits and enhances accountability.

Security Training and Awareness

Cybersecurity isn’t just IT’s job anymore. Procurement staff undergo training on phishing, malware, and how to recognize suspicious behavior. Ongoing simulations improve team response and resilience.

Cross-Team Collaboration

IT, procurement, and legal teams now work together to build a unified risk management process. This collaboration ensures smarter purchasing decisions and consistent enforcement of cybersecurity expectations across business operations.

What the Research Shows

In a 2024 report from the U.S. GAO, 23 federal agencies said real-time endpoint monitoring had significantly reduced breach response time. Yet a separate study found that one-third of agencies lacked full visibility into their cloud assets, exposing them to long-term vulnerabilities.

These findings underscore the importance of visibility, secure cloud adoption, and proactive threat reduction, not just reactive controls.

Agencies must also adapt to a growing range of cyber threats: ransomware, phishing attacks, and even manipulation of public contract data by politically motivated actors. Incorporating a strategic risk mindset into procurement can help mitigate these evolving challenges.

How SOVRA Supports Cybersecurity in Procurement

SOVRA’s public procurement platform is designed with security and compliance at the core. It helps public agencies protect vendor data, enforce process controls, and stay aligned with fast-changing regulations.

Key features include:

• End-to-end encryption: Keeps all bid, contract, and supplier data secure in transit and at rest
• Built-in audit logs: Tracks every action with immutable records for easier compliance
• Role-based access control: Prevents unauthorized data access and limits internal exposure
• In-platform communication: Eliminates insecure email chains
• Out-of-the-box regulatory compliance: Supports key mandates like NIST, state privacy laws, and federal agency standards

Agencies using SOVRA gain confidence in their cybersecurity posture without sacrificing efficiency or transparency.

Learn more about contract lifecycle management tools that support secure procurement processes.

Checklist: Is Your Procurement Operation Cyber-Ready?

Use this list to evaluate your current risk level:

• Do your vendors provide cybersecurity certifications or attestations?
• Is all sensitive communication handled through secure cloud services or portals?
• Are user roles clearly defined with access restrictions?
• Do you maintain unalterable audit trails of procurement actions?
• Have staff received training on phishing, malware, and privacy best practices?
• Are you continuously monitoring vendor access and high-risk activity?

If you answered “no” to any of these, now’s the time to modernize your risk management process.

Looking Ahead – Cybersecurity as a Strategic Investment 

Cybersecurity is no longer a back-office function. It’s a foundational piece of any public procurement strategy and one that supports operational continuity, trust, and cost efficiency.

Agencies that invest in security controls today are building more resilient procurement environments for tomorrow. Whether it’s protecting sensitive records, ensuring compliance, or mitigating potential risk across the supply chain, cybersecurity must be treated as a long-term investment.

Explore More

Ready to dig deeper? Download the full ebook: Cybersecurity & Data Privacy Trends in Public Procurement