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Fortress and Gatekeeper: Theorizing Transitive Trust in Third-Party Cybersecurity Risk Governance

arXiv Security Archived Jun 26, 2026 ✓ Full text saved

arXiv:2606.26866v1 Announce Type: new Abstract: Third-party vendors, such as analytics platforms, cloud services, identity providers, and software suppliers, are increasingly embedded in digital service delivery. While these arrangements enable scale and specialization, they also move customer data and security-relevant practices into environments that customers rarely see, select, or evaluate. This paper examines this problem through a document analysis of the November 2025 OpenAI-Mixpanel secu

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    Computer Science > Cryptography and Security [Submitted on 25 Jun 2026] Fortress and Gatekeeper: Theorizing Transitive Trust in Third-Party Cybersecurity Risk Governance Yijun Chen, Misita Anwar Third-party vendors, such as analytics platforms, cloud services, identity providers, and software suppliers, are increasingly embedded in digital service delivery. While these arrangements enable scale and specialization, they also move customer data and security-relevant practices into environments that customers rarely see, select, or evaluate. This paper examines this problem through a document analysis of the November 2025 OpenAI-Mixpanel security incident. The incident serves as an illustrative case for showing how a security event in a vendor environment can become a governance and accountability problem for the focal organization that maintains the customer relationship. Drawing on organizational trust research and agency theory, the paper argues that third-party cybersecurity risk is both a trust relationship and a delegation problem. Customers trust the visible service provider, while the provider relies on vendors whose security practices are only partially visible and controllable. The paper develops the concept of transitive trust, where customer trust in a digital service depends on the security practices of vendors authorized by that service provider. It then presents the Fortress and Gatekeeper framework, which explains cybersecurity governance boundaries through trust and data flows rather than formal organizational ownership alone. The analysis develops four propositions concerning vendor integration, metadata exposure, vendor assurance, and data proliferation. The paper contributes to cybersecurity governance scholarship by explaining how delegated data processing creates customer-facing accountability and by identifying implications for vendor tiering, data classification, contractual design, continuous assurance, and data minimization. Comments: 21 pages, 2 Figures, 3 Tables Subjects: Cryptography and Security (cs.CR); Artificial Intelligence (cs.AI); Computers and Society (cs.CY) Cite as: arXiv:2606.26866 [cs.CR]   (or arXiv:2606.26866v1 [cs.CR] for this version)   https://doi.org/10.48550/arXiv.2606.26866 Focus to learn more Submission history From: Yijun Chen [view email] [v1] Thu, 25 Jun 2026 10:52:48 UTC (493 KB) Access Paper: view license Current browse context: cs.CR < prev   |   next > new | recent | 2026-06 Change to browse by: cs cs.AI cs.CY References & Citations NASA ADS Google Scholar Semantic Scholar Export BibTeX Citation Bookmark Bibliographic Tools Bibliographic and Citation Tools Bibliographic Explorer Toggle Bibliographic Explorer (What is the Explorer?) Connected Papers Toggle Connected Papers (What is Connected Papers?) Litmaps Toggle Litmaps (What is Litmaps?) scite.ai Toggle scite Smart Citations (What are Smart Citations?) Code, Data, Media Demos Related Papers About arXivLabs Which authors of this paper are endorsers? | Disable MathJax (What is MathJax?)
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    arXiv Security
    Category
    ◬ AI & Machine Learning
    Published
    Jun 26, 2026
    Archived
    Jun 26, 2026
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