The root cause could easily be a software issue, a breach in an underlying system (like a database), or some sort of hack - malware, causing clients to exfiltrate data, or perhaps an intruder doing the same.
This is why the large and regulated enterprise block many third-party services. Simply put, it's hard to know how good their internal security is - or how good the security of the provider they purchase it from is - or how carefully they screen their employees, how thoroughly they retire old hardware, or how much insurance they really have.
And it takes a lot of time, knowledge and effort to verify anything. The average security review costs more than $10,000 and many cost an order of magnitude or more. Why not just ask a simple question:
Where do you store my company's data, and how do maintain our control over it?
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