Supply chain attacks are not just a cyber security problem; they are a risk management problem.
Supply chain management is essential for reducing the likelihood of a supply chain attack. If all links within a supply chain are secure, then it is more likely that all data between suppliers will also remain protected.
What are common supply chain vulnerabilities?
There are many vulnerabilities that cybercriminals can exploit within a supply chain. The top 5 supply chain vulnerabilities include:
Third-party risks
Third parties and contractors can have vulnerabilities, known or unknown, that can be exploited by cybercriminals which could then have an impact on your organisation. You are only as strong as your weakest link, and third parties should be monitored and assessed to ensure that they have a strong cybersecurity structure.
Phishing and social engineering attacks
Phishing and social engineering attacks are common vulnerabilities in a supply chain. Cybercriminals use phishing campaigns to fool employees into clicking on malicious links and attachments and redirect them to malicious URLs or deploy malware onto their devices. This tactic is often used as an entry point in a weaker organisation to get to a target organisation with tighter security controls.
Poor access controls
Privileged access can be a huge problem in supply chain attacks if an employee with access to their supplier’s data has their credentials compromised; this will impact not only the organisation themselves but also their suppliers. By limiting employee access to critical data, for example, practising the principle of least privilege will reduce the likelihood of a supply chain attack.
Insider threats
Insider threats are individuals who have authorised access to an organisation’s critical assets and use their access in a malicious or negligent way, which could negatively affect the organisation. This person could be a full or part-time employee, a contractor, a volunteer, or even someone in your supply chain. In the instance of the insider being within a supply chain, an individual with legitimate access can compromise the data of a supplier without alerting security controls which is why insiders are often used to compromise data under the radar.
Supply chain complexity
As technology evolves, supply chains are becoming more digital and complex. If organisations within a supply chain cannot keep up with securing their increased digitalisation, it can leave vulnerabilities within the supply chain that can be exploited by cybercriminals. The manufacturing industry, in particular, has struggled to keep up with securing new technologies. Therefore, if an organisation is hit with an attack due to a weak cyber security posture, this can impact others in their supply chain.
Internal vs external supply chain risks
There are both internal and external supply chain risks which have their own unique challenges. Internal risks are those that are controlled directly by the organisation, for example, the employees, operational processes and technology. External risks come from sources outside of the organisation, e.g. third-party suppliers, which the organisation cannot directly control.
Internal risks
Internal supply chain risks include: insider threats, lack of employee awareness, weak access controls and poor patch management.
External risks
External supply chain risks include: third-party breaches, malware/ransomware spreading through a supply chain and compromised hardware.
The impact of a cyber attack on your supply chain could be devastating
The impact of a cyber attack on your supply chain could be devastating in many ways. Financial loss is one of the obvious impacts due to incident response, potential legal fees and cost of remediation.
If a data breach was to occur in a supply chain attack, there could be many consequences, such as loss of customer trust and damage to their reputation. The organisation may have to pay legal fines as a result of sensitive data being compromised.
Another devastating impact is the risk of operational disruption. If one part of the supply chain is disrupted and has to halt operations, this could have a huge impact on business continuity and, therefore, can result in financial loss.
How to mitigate supply chain risk
There are many ways in which organisations can mitigate supply chain risks. By taking a proactive approach to address vulnerabilities and threats, an organisation will reduce the likelihood of a supply chain attack. Best practices include:
Risk assessment of the whole supply chain to identify potential risks and vulnerabilities
Manage and monitor suppliers in your supply chain with regular audits
All suppliers to implement cybersecurity measures to protect all links within the chain
Once a risk assessment has been conducted, it is essential that organisations establish a standard for all third-party vendors to ensure that any potential vulnerabilities are dealt with. Following this process, all suppliers will need to have regular audits to make sure that they are maintaining the standards required.
If an organisation implements new cybersecurity software to increase the strength of its posture, it should advise its suppliers to take similar precautions, as it will strengthen the protection of the organisation and the supply chain even further.
Industries covered
Every industry is at risk of becoming a victim of a supply chain attack, therefore, requires cybersecurity protection. Whilst no industry is completely immune, there are particular sectors that are more vulnerable than others.
Industries that are most at risk include technology, education, health care and financial services.
What is supply chain risk management?
Supply chain risk management involves identifying, assessing, mitigating, and managing risks of third parties in an organisation’s supply chain in order to understand potential threats and vulnerabilities that cybercriminals could exploit.
How do you identify a supply chain risk?
A supply chain risk is identified by assessing the potential vulnerabilities that could have an impact on your organisation if a supply chain attack was to occur. Once potential risks are identified, they can be dealt with by the organisation to make sure they reach their cybersecurity standards.
What is a supply chain risk profile?
When an organisation creates a supply chain risk profile, it will provide a comprehensive view of all of the potential risks and vulnerabilities that an organisation may face from their suppliers. From here, an organisation can prioritise and address their risks effectively.
How common are supply chain cyber-attacks?
Supply chain cyber attacks are extremely prevalent and, unfortunately, are becoming increasingly common as cybercriminals are exploiting vulnerabilities in weaker suppliers in order to reach organisations with stronger cyber security defences. They are also aware that many organisations do not monitor their suppliers; therefore, they are taking advantage of this weakness.
How do you prevent a supply chain attack?
There are various measures that can be taken to prevent a supply chain attack. At ACDS, we provide an ‘Email Security Essentials’ bundle, which can increase an organisation’s defence against these types of attacks. If other organisations within the supply chain also implement this bundle, it will dramatically increase protection even further.