Supply Chain Attacks: How Hackers Target Your Business

In 2022, the number of data breaches resulting from supply chain attacks exceeded the breaches linked to malware. Malware is often seen as the core of most cyberattacks. However, in 2022, supply chain attacks exceeded the number of malware-based attacks by 40%.   

A supply chain attack occurs when a cybercriminal targets a company’s supply chain to gain access to its network and intercept sensitive data or compromise its systems. These kinds of attacks have become increasingly common in recent years and can cause serious consequences in businesses, including financial losses, reputational damage, and regulatory fines.

A supply chain refers to the entire network of organizations, people, activities, information, and resources involved in the production, distribution and delivery of a product or service. In other words, it is the sequence of processes and organizations involved in the development of a product or service from the initial stage of production to the final consumer.

Each stage of the supply chain involves multiple organizations and individuals, and any of them could potentially be targeted in a supply chain attack. This is why it is important for companies to take a holistic approach to cybersecurity and ensure that all their supply chain partners implement strong security measures to be protected against cyber threats.

An attack on the supply chain works by taking advantage of the trust companies place in their suppliers, vendors, and partners. Here’s a general overview of how a supply chain attack could unfold:

1. An attacker identifies a weak link in the supply chain, such as a vendor with weak security controls or a vulnerability in a software or hardware component.
2. It accesses the weak link by various means, such as hacking its network, phishing attacks, or social engineering.
3. It introduces malware or other malicious code into the software or hardware component, either directly or by compromising the vendor’s development or implementation process.
4. The infected component is then deployed to the target company’s network, either directly or through the supply chain.
5. Malware or malicious code begins to run on the target company’s systems, allowing the attacker to gain unauthorized access to sensitive data, or carry out other malicious activities.
6. The attacker can then use this access to move laterally within the target company’s network, compromising additional systems or stealing more data.
7. The attack can go unnoticed for a long time, giving the attacker plenty of time to carry out their activities and cover their tracks.

Supply chain attacks are particularly insidious because they allow attackers to bypass traditional security controls, such as firewalls and intrusion detection systems, that focus on external threats. By targeting reliable supply chain partners, attackers can gain access to otherwise secure networks and carry out their attacks with relative ease. To protect themselves, companies need to adopt a comprehensive approach to cybersecurity that includes rigorous security controls, constant monitoring, and risk assessment of their partners in the supply chain.

Below there are different types of supply chain attacks and prevention strategies to protect your organization.

Malware Injection

In this type of supply chain attack, a cybercriminal injects malicious code into a piece of software or hardware in a company’s supply chain. Once the infected component is deployed, the malware can spread to the company’s network and compromise its systems. To prevent the injection of malware, companies should conduct thorough assessments of the security of their partners in the supply chain.

Third-Party Compromise

A third-party compromise occurs when a cybercriminal accesses a company’s network through a third-party vendor. For example, if a vendor’s network is compromised, the attacker can use that access to move laterally within the supply chain and compromise other companies on the network. To avoid third-party breaches, companies should conduct regular security audits of their supply chain partners and implement strict access controls.

Firmware Manipulation

Firmware manipulation is a type of supply chain attack where a cybercriminal exploits the firmware of a machine or device to introduce vulnerabilities or backdoors into the company’s systems. To prevent such an attack, companies should verify the authenticity of the hardware they use and make regular updates to patch any known vulnerabilities.

Counterfeit Components

These are non-genuine hardware components that are sold as genuine products. Cybercriminals can use them to gain access to a company’s network and steal sensitive data or compromise their systems.  Companies should only purchase hardware components from reputable suppliers and conduct thorough security assessments of their supply chain partners.

Social Engineering

Social engineering attacks, such as phishing or spear-phishing, can be used to gain access to a company’s network through its supply chain partners. For example, if a supplier’s employee falls victim to fraud by phishing and revealing their login credentials, the attacker can use this information to gain access to the supplier’s network and move laterally through the supply chain. To prevent social engineering attacks, companies should conduct cybersecurity awareness training and other measures such as two-factor authentication and email filtering to reduce the risk of successful attacks.

In conclusion, supply chain attacks are a growing threat to the security and integrity of businesses. By understanding the different types of attacks and implementing effective prevention strategies, companies can reduce the risk of successful attacks and protect their systems, data, and reputation. Remember to regularly check and update your cybersecurity measures to stay ahead of emerging threats.