In today’s interconnected world, supply chains are becoming increasingly complex and vulnerable to cyberattacks. Supply chain attacks can disrupt operations which can cause significant financial losses and damage the reputation of companies. The rise of e-commerce, globalization, and outsourcing has made it easier for cybercriminals to target supply chains, and the COVID-19 pandemic has further highlighted the importance of securing them. 

What are Supply Chain Attacks? 

Supply chain attacks are a type of cyberattack that targets the systems and software used by a company’s suppliers, vendors, or partners to gain access to the ultimate target’s network. Rather than attacking the target directly, cybercriminals exploit vulnerabilities in the supply chain to gain access to valuable information or systems. These vulnerabilities can be in the form of: 

1. Third-party software

Many businesses rely on third-party software to run their operations. These software applications may contain vulnerabilities that cybercriminals can exploit to access the target’s network.

2. Supply chain partners

Cybercriminals can target suppliers, vendors, or other partners in the supply chain, compromising their systems to gain access to the ultimate target’s network.

3. Insider threats

Insiders, such as employees or contractors, with privileged access to the target’s network can intentionally or unintentionally cause harm by stealing sensitive information or introducing malware.

4. Weak passwords

Weak or reused passwords can make it easier for cybercriminals to gain unauthorized access to the target’s network.

5. Unsecured devices

Mobile devices and other internet-connected devices used in the supply chain, such as IoT devices, can be vulnerable to cyberattacks if they are not adequately secured.

6. Social engineering

Cybercriminals can use social engineering tactics, such as phishing emails or phone calls, to trick employees in the supply chain into revealing sensitive information or downloading malicious software.

7. Lack of cybersecurity awareness

A lack of cybersecurity awareness among employees in the supply chain can increase the risk of cyberattacks.

How Do Supply Chain Attacks Work? 

Supply chain attacks work by targeting the systems and software used by a company’s suppliers, vendors, or partners to gain access to the ultimate target’s network. Here’s an overview of how these attacks work:

  1. The attacker identifies a vulnerable supplier, vendor, or partner in the supply chain, such as a software provider or a third-party service provider.
  1. The attacker exploits a vulnerability in the supplier’s system or software, such as injecting malware or stealing credentials, to gain access to the supplier’s network.
  1. Once inside the supplier’s network, the attacker can move laterally and gain access to other systems or networks in the supply chain.
  1. The attacker targets the ultimate target’s network, compromising it through the supplier’s compromised system or software.
  1. Once inside the ultimate target’s network, the attacker can conduct various malicious activities, such as stealing sensitive data, deploying ransomware, or disrupting operations.

Understanding how supply chain attacks work is crucial for businesses to defend against them effectively. In the next part of this article, we will explore the different types of supply chain attacks in more detail. 

Common Types of Supply Chain Attacks

Supply chain attacks come in various forms, each designed to exploit vulnerabilities in a company’s supply chain and gain unauthorized access to its sensitive information or systems. These attacks are becoming increasingly sophisticated, making it more difficult for businesses to detect and prevent them. Listed below are some of the most common types of supply chain cyberattacks: 

1. Malware Injection

In this attack, cybercriminals inject malware into legitimate software or updates during manufacturing or distribution. Once the software is installed on the victim’s system, the malware can be activated to conduct a range of malicious activities.

For example, in 2017, a group of hackers known as Shadow Brokers released a trove of hacking tools stolen from the National Security Agency (NSA). The tools included a backdoor called DoublePulsar that was later found to have been used in the NotPetya attack, which caused an estimated $10 billion in damages. The malware was injected into a software update for Ukrainian tax accounting software, which was then distributed to other companies, including global shipping giant Maersk.

2. Phishing Attacks

Phishing attacks involve the use of fraudulent emails or messages to trick users into revealing sensitive information or downloading malware. In the supply chain, attackers can target employees of suppliers, vendors, or partners to gain access to the ultimate target’s network.

For example, in 2018, a phishing attack was used to compromise the systems of a major US defense contractor. The attacker sent a phishing email to an employee of a supplier, which contained a malicious attachment that, once opened, installed malware on the employee’s system. This allowed the attacker to gain access to the supplier’s network, which was then used to target the defense contractor.

3. Hardware Tampering

In this type of attack, cybercriminals tamper with hardware components during the manufacturing process to introduce vulnerabilities or backdoors that can be exploited later.

For example, in 2018, Bloomberg reported that Chinese intelligence agents had compromised the supply chain of Supermicro, a major US technology supplier, by inserting tiny chips into its motherboards. These chips could be used to provide a backdoor into the victim’s network, allowing the attackers to steal data or conduct other malicious activities.

4. Third-Party Vulnerabilities

In this attack, cybercriminals exploit vulnerabilities in third-party software or services used by the target to gain access to their network.

For example, in 2020, the SolarWinds supply chain attack targeted several US government agencies and major corporations. The attackers compromised the software build system of SolarWinds, a leading provider of network management software, to inject malware into software updates distributed to its customers. Once installed, the malware allowed the attackers to gain access to the victim’s network.

How to Prevent Supply Chain Attacks 

As the frequency and complexity of supply chain attacks continue to grow, companies must take proactive steps to safeguard their operations and data. Supply chain attacks can have devastating consequences, including financial losses, reputational damage, and legal liabilities. It is critical for companies to be aware of the risks and to adopt effective strategies to protect their supply chains from potential cyber threats. In this article, we will explore several solutions companies can adopt to defend themselves against supply chain attacks. By understanding and implementing these solutions, companies can better secure their operations and mitigate the risks posed by supply chain attacks.

1. Conduct Regular Audits

Regular audits of a company’s supply chain can help to identify vulnerabilities and risks. These audits can include reviews of contracts, assessments of suppliers’ security practices, and evaluations of internal controls and processes.

2, Develop a Comprehensive Security Policy

Companies should have a comprehensive security policy that includes guidelines for managing third-party risks. This policy should be communicated to all employees, suppliers, and partners to ensure that everyone understands their role in maintaining the security of the supply chain.

3. Implement Multifactor Authentication

Multifactor and passwordless authentication can help to prevent unauthorized access to sensitive information by requiring users to provide additional credentials beyond a simple username and password.

4. Adopt Security Best Practices

Companies should adopt security best practices, such as regular software updates, firewalls and antivirus software, and data encryption. These practices can help to prevent common attack vectors and limit the impact of a successful attack.

5. Monitor for Suspicious Activity

Companies should implement a system to monitor for suspicious activity on their networks. This can include setting up alerts for unusual logins, data transfers, or other activities that may indicate a cyberattack.

6. Train Employees

Companies should provide regular training to employees on how to recognize and respond to potential supply chain attacks. This training should include best practices for handling sensitive information, identifying phishing attempts, and reporting suspicious activity.

7. Work with Trusted Suppliers

Companies should work with suppliers that have a strong track record of security and adhere to industry best practices. This can help to minimize the risk of a supply chain attack originating from a partner or supplier.

In conclusion, the threat of supply chain attacks is real and growing. Companies must take the necessary steps to protect their supply chains and prevent unauthorized access to their sensitive information and systems. By implementing the solutions outlined in this article, companies can mitigate the risks posed by supply chain attacks and maintain the integrity and security of their operations. Here at SecureBrain, we can help you build a strong cybersecurity strategy with solutions designed to protect your website and web systems from various forms of threats. Learn more about what we can do by getting in touch with our experts