Supply chain attacks have become one of the most concerning cybersecurity threats. In recent years, cybercriminals have shifted their focus towards attacking the supply chain of big corporations, instead of directly targeting the victim organization. These attacks have the potential to cause significant losses to companies, disrupt supply chains, breach sensitive data, and affect brand reputation.
What is a Supply Chain Attack?
A supply chain attack is a cyberattack that targets an organization's supply chain, which includes its vendors, suppliers, partners, and contractors. In simple words, it is an attack that exploits the vulnerabilities in the supply chain of an organization to gain unauthorized access to its systems and data.
The objective of a supply chain attack is to infect or compromise a trusted vendor's hardware, software, or firmware with malware or other malicious code. Once compromised, the cybercriminals can use this access to infiltrate the target organization's systems and steal sensitive data, manipulate financial transactions, or launch a ransomware attack.
Types of Supply Chain Attacks
There are various types of supply chain attacks, but the two most common ones are:
1. Software Supply Chain Attack
In a software supply chain attack, the cybercriminals target a vendor's software development lifecycle to embed malware in their products. This type of attack is usually carried out by injecting malicious code into code repositories, software build systems, or through malware-laden updates.
For instance, in 2020, the widely used software development platform, Codecov, was hacked by cybercriminals. It is estimated that around 1,500 companies were affected, including giants like Hewlett Packard Enterprise (HPE) and Atlassian. The hackers injected a sophisticated malware strain into the company's software release process, stealing sensitive information from its clients.
2. Hardware Supply Chain Attack
This type of attack involves tampering with the hardware components of an organization's supply chain. The attackers can modify the hardware to create a backdoor entry point, allowing them to gain unauthorized access to the organization's system.
For example, in 2018, the U.S. Department of Defense discovered that Chinese hackers implanted microchips into the hardware of servers used by Supermicro, a California-based company. The servers were used by numerous American businesses, including Apple and Amazon. This attack could have potentially compromised the data of millions of users and was attributed to Chinese cyber espionage.
Consequences of Supply Chain Attacks
Supply chain attacks are a major concern for organizations as they can have serious consequences, including:
1. Financial Losses
Supply chain attacks can cause huge financial losses to the affected organizations, primarily due to ransomware attacks and data theft. For instance, in the 2017 WannaCry ransomware attack, which was caused by a vulnerability in a third-party software, global losses were estimated to be around $4 billion.
2. Disruption of Supply Chain
A supply chain attack can lead to disruptions in the supply chain, which can result in delays in delivery, increased costs, and lost profits. This can not only affect the organization but also its vendors and customers.
For example, in 2017, the NotPetya ransomware attack disrupted the shipping company, Maersk's, operations worldwide. The attack cost the company around $300 million, leading to significant supply chain disruptions.
3. Damage to Brand Reputation
A supply chain attack can negatively affect the brand reputation of the affected organization, leading to a loss of customer trust. Companies that are unable to protect their supply chain are perceived as irresponsible and may face long-term reputational damage.
How to Protect Against Supply Chain Attacks
Organizations need to take proactive measures to protect themselves against supply chain attacks. Some of the best practices include:
1. Conduct Regular Security Audits
Organizations should conduct regular security audits of their supply chain partners to identify vulnerabilities and ensure that their security posture meets industry standards.
2. Establish Clear Guidelines and Procedures
Organizations should establish clear guidelines and procedures for their vendors and suppliers to ensure that they adhere to the same cybersecurity standards.
3. Monitor the Supply Chain
Organizations should monitor their supply chain regularly and have real-time visibility into its operations. This can help detect any suspicious activity and prevent security incidents.
4. Implement Multi-Factor Authentication
Implementing multi-factor authentication (MFA) can help protect against unauthorized access to systems and data. MFA requires users to provide multiple forms of identification before granting access, making it quite challenging for cybercriminals to exploit vulnerabilities.
Conclusion
Supply chain attacks are a growing threat to organizations worldwide. Cybercriminals are becoming more sophisticated in their attacks, and therefore, it is crucial to be vigilant and proactive in detecting and preventing these attacks. By taking the necessary measures, organizations can protect themselves, minimize losses, and secure their supply chain against future attacks.
