According to recent statistics, supply chain attacks are on the rise. The US experienced the highest reported number of such attacks in 2023, showing a significant year-over-year increase of 115% compared to 2022. Globally, the number of customers affected by supply chain cyberattacks is also substantial, reaching around 183 thousand in 2024.
A supply chain attack targets a company’s suppliers to gain access to its systems and data. Attackers use malicious code to infiltrate the supplier’s systems and then use that access to gain access to the company’s systems.
This blog will explore what a supply chain attack in cyber security is, how they work, key types, impact, and how to prevent them.
How Does Supply Chain Attacks Work
These attacks occur when a cybercriminal exploits a weaker link within the supply chain—often a third-party vendor—to infiltrate a company’s systems. They are insidious because they come from trusted sources, making detection challenging.
Here are some points you should remember about supply chain attacks:
- Targeting a Weak Link: Cybercriminals target a supplier or vendor with inadequate security measures to infiltrate the network.
- Injection of Malicious Code: Attackers often embed malicious code in software updates, firmware, or other components provided by the compromised vendor.
- Wide-Scale Impact: Due to the nature of supply chains, a single compromised vendor can affect many companies and users who rely on their products, making supply chain security risks highly impactful.
- Difficult to Detect: Since attacks often originate from a trusted source, they can go undetected for as long as the malicious code appears legitimate.
Key Types of Supply Chain Attacks
Let’s explore the key types of supply chain attacks:
- Physical attack
A physical supply chain attack is a cyber security threat in which a malicious actor deliberately compromises a product’s physical components during its manufacturing or distribution process. This is often done by tampering with hardware, inserting malicious components, or modifying firmware to access sensitive data once the intended recipient uses the product.
Eventually, they attack the supply chain at a tangible, physical level instead of solely through digital means.
- Digital attack
These are cyberattacks that target digitally connected supply chains. Common methods include:
- Data breaches
- Ransomware attacks
- Malware injections
- Exploitation of third-party vendor vulnerabilities
Digital attacks disrupt information flow, leading to financial losses and operational downtime.
- Software Attack
Software supply chain threat is a cyberattack that generally targets vulnerabilities within the network of companies, tools, and processes involved in creating and distributing software. It allows malicious actors to inject harmful code into applications many users use, potentially compromising sensitive data or systems across the supply chain.
When a software supply chain is compromised, malicious code can affect many users who rely on the compromised software. This can lead to data breaches, system disruptions, or unauthorized access.
Impact of Supply Chain Attacks
SolarWinds was the target of one of the most notorious supply chain attacks ever documented. It’s referred to as the SolarWinds Orion Attack. It impacted the networks of 18,000 SolarWinds customers, like many US government agencies and organizations. They included the Pentagon, the FBI, the Department of Homeland Security, the Navy, the Army, and many more.
A supply chain attack can significantly impact a company, often due to the cascading effect of compromising a trusted third-party vendor within the supply chain, leading to widespread disruption across the entire network.
Here are the key impacts of a supply chain attack:
- Data Breaches: Attackers can access sensitive customer information, intellectual property, and financial details by infiltrating a supplier’s system, leading to data leaks and privacy violations.
- Operational Disruptions: Supply chain attacks can disrupt critical business operations by compromising systems and causing downtime, delays in production, and difficulty delivering goods to customers.
- Financial Loss: Direct financial losses can occur through ransomware demands, fraudulent transactions, and incident response and remediation costs.
- Reputational Damage: A supply chain attack can severely damage a company’s reputation, leading to customer distrust and negative media attention, significantly if sensitive data is compromised.
- Legal Consequences: Depending on the nature of the attack and the data involved, companies may face legal repercussions, including regulatory fines and lawsuits
How to Protect Against Supply Chain Attacks
Here are some of the most effective ways to prevent supply chain attacks:
- Risk Assessment: Regularly evaluate potential vulnerabilities across the supply chain, including all vendors and partners, to identify high-risk areas.
- Vendor Vetting: Thoroughly vet all suppliers and vendors, assessing their cybersecurity practices and requiring them to adhere to security standards.
- Access Control: Limit vendor access to only the necessary data and systems, utilizing the principle of least privilege.
- Data Encryption: Encrypt sensitive data transmitted across the supply chain to protect it from unauthorized access in case of a breach.
- Vulnerability Scanning: Regularly scan systems and applications for vulnerabilities and promptly patch them to prevent exploitation.
- Incident Response Plan: Develop a thorough incident response plan outlining procedures for detecting, containing, and recovering from a cyber attack
- Zero Trust Architecture: Implement a zero-trust network where every device and user must be authenticated and licensed before accessing sensitive data, even within the trusted network.
- Application Security: Ensure secure coding practices and conduct regular application security assessments to identify and mitigate vulnerabilities in software used across the supply chain.
- Penetration Testing: Regularly perform penetration testing to simulate real-world cyberattacks and pinpoint potential weaknesses in the supply chain defenses.
- Continuous Monitoring: Implement continuous monitoring tools to detect suspicious activity and potential threats within the supply chain network.
- Employee Training: Teach staff members how to identify and report phishing attempts and other dangerous conduct, as well as cybersecurity best practices.
- Collaboration with Partners: Work closely with suppliers and partners to share threat intelligence and coordinate security measures across the supply chain.
Prevent Supply Chain Attacks with Imagine IT
Supply chain attacks pose a growing threat to businesses, with financial, operational, and reputational impacts. Adopting effective supply chain security measures and working with trusted cybersecurity solution providers can manage risks and safeguard your organization.
Imagine IT is among the most trusted managed service providers in Garden City, Minnesota, Wichita, Sterling, and Zeeland. We offer comprehensive solutions tailored for businesses of all sizes. Our cybersecurity solution protects your organization from cybersecurity risks and data breaches.
We offer managed cybersecurity services, including security risk assessment, employee training, vulnerability scanning and management, incident response plans, and more.
To get unparalleled IT support. Contact us today and schedule a free consultation.
