When executives think of cybersecurity, they envision hackers directly attacking their own systems. But what if the true threat is slipping through the backdoor, via your trusted vendors, suppliers or even through software providers?
This is the fundamental premise behind the concept of a supply chain attack cybercriminals exploiting weaknesses in third-party products or services to gain access to your company. It’s among more dangerous, rapidly growing risks in today’s highly interconnected business world.
What Is a Supply Chain Attack?
An attack on the supply chain happens when hackers breach an untrusted third-party and then make use of the compromised third party to access your company. Instead of gaining access directly to your network, attackers attack weaker points in your ecosystem, such as software suppliers or contractors, service providers and hardware vendors.
Once compromised, an attacker could inject malicious code, distribute malware updates or take sensitive information without even.
Examples of real-world use include:
-
SolarWinds (2020): Hackers introduced malicious code into the widely-used IT monitoring tool, affecting thousands of organizations as well as government departments.
-
Target (2013): The attackers gained access to the Target network through a breach of one HVAC vendor, which led to an unauthorized theft of more than 40 million credit card details.
-
Kaseya (2021): Hackers hacked into remote management software utilized by IT service providers, distributing ransomware to a multitude of businesses.
These cases illustrate how a flaw in the supply chain could cause a number of organizations to be affected downstream.
Why Supply Chain Attacks Are So Dangerous
-
They exploit trust
Business automatically trust their software providers, partners and suppliers. It makes it easy for malware-laden updates, or messages to get over security barriers. -
They grow quickly
Through compromising one vendor, hackers could impact hundreds or even thousands of companies. -
They’re difficult to spot
The activity that is malicious frequently hides within legitimate software or on trusted connections, which makes it difficult to identify until damage is caused. -
They can cause ripple effects
The impact of a security breach in one company can affect entire industries, leading to reputational damage, financial loss as well as regulatory scrutiny.
Common Types of Supply Chain Attacks
-
Software Compromise Hackers inject malware into updates to legitimate software.
-
Hardware Tampering malicious components such as firmware or software are embedded in physical devices.
-
Third-Party Service Breaks Attackers take advantage of weaknesses in cloud, outsourced IT as well as SaaS providers.
-
Identity Theft Logins stolen from vendors can be used to gain access to your systems.
-
Open Source Exploitation Code that is malicious stored in public repositories, or dependencies is incorporated into commercial applications.
How Businesses Can Protect Themselves
Although supply chain threats are complex, companies can be proactive in reducing the risk.
1. Vet Vendors Carefully
-
Examine the security practices of prospective vendors before allowing them to join.
-
Be sure to comply with frameworks like ISO 27001, SOC 2 as well as NIST standards.
-
Find out about the incident response policy and breaches in the past.
2. Implement Vendor Risk Management
-
Maintain an up-to date inventory of all third-party vendors and their services.
-
Review and regularly assess the security practices of your vendor.
-
Include clear security standards in contracts as well as SLAs.
3. Limit Third-Party Access
-
Use the principle of the principle of least privilege (only grant vendors access they actually require).
-
Make sure you use strong authentication methods to secure vendor accounts.
-
Take it off as soon as vendors no longer require access to it.
4. Monitor Software Integrity
-
Enable code-signing verification for updates.
-
Utilize tools to look for abnormal activity in applications and networks.
-
Keep up-to-date with patches for software to limit the risk of a vulnerability.
5. Educate Your Team
-
Make sure employees are aware of suspicious emails, even the ones that appear to originate from trustworthy vendors.
-
Instruct staff to confirm the validity of any instructions they receive before taking action.
6. Have a Response Plan
-
Plan for a scenario in which the partner or vendor is compromised.
-
It is important to isolate systems as quickly as possible to avoid a the spread of.
-
Create communication protocols to inform regulators and customers if required.
The Business Case for Supply Chain Security
Attacks on supply chain systems aren’t only an IT issue; they’re an actual risk to your business. A single vendor that is compromised can result in:
-
Fines for breaches of data from regulatory agencies.
-
A loss of customer trust.
-
Downtime and operational disruptions.
-
Reputational harm over time.
The investment in risk management for vendors tools for cybersecurity, as well as robust policies could cost money at first however the price of not taking action is much higher.
Final Thoughts
The danger in supply chain attacks is in their delicacy that they rely on the trust companies put in their suppliers. As companies increasingly depend to third-party software and suppliers worldwide, the threats are likely to become more frequent.
The most important conclusion? Security is as solid in the weakest point within the supply chain. By carefully vetting suppliers, restricting access, monitoring systems and preparing for any eventuality companies can be prepared against the ever-changing threat.
