Your supply chain is the foundation of your business operations. This is how you get the materials, services and inventory needed for your day-to-day business activities. So, when there is a problem with your supply chain, it can have serious implications, affecting your operations and your reputation.

In 2023, in the US alone, there were 40% more supply chain attacks than malware-based attacks. Unfortunately, this trend is likely to continue. A 2022 Gartner report predicts that by 2025, 45% of organizations will fall victim to software supply chain attacks—three times more than in 2021.

The alarming statistics serve as a wake-up call: it's time to address supply chain cybersecurity risks that can affect your organization.

Identifying Risks in the Supply Chain Third-Party Access

Allowing third-party vendors, suppliers, or contractors access to your systems—or using outdated tools—can expose your organization to significant threats. It’s like giving someone a spare key to your house without securing your valuables.

While necessary for business operations, these risks can open your organization up to serious consequences if not managed properly.

These risks can manifest in several ways, including

• Exposure of unauthorized data
• Malware or ransomware introduction
• Weak security controls
• Non-compliance with regulations
• Hidden backdoors
• Unpatched issues
• Supply chain disruptions
• Data loss/theft

Recent Breaches which were based on supply chain attacks include:

• Uber (2022): A hacker compromised Teqtivity, an Uber vendor, exposing the email addresses and personal information of 77,000 Uber employees. 

• 3CX (2023): 3CX, a prominent communications software provider, suffered a supply chain attack targeting its desktop applications. This breach allowed attackers to carry out malicious activities within the compromised environments. Notably, the attack was authenticated with legitimate 3CX certificates, indicating a potential compromise of the build environment.

Mitigating Supply Chain Cybersecurity Risk

Conduct thorough due diligence before onboarding a vendor. This includes reviewing their security audits to identify vulnerabilities, verifying certifications like ISO 27001, and ensuring compliance with relevant regulations.

Think of it as vetting a potential business partner – you want to make sure they're reliable and secure.

But due diligence is just the first step. With so many moving parts, it's easy for vulnerabilities to slip through the cracks. Here are four ways to handle supply chain cybersecurity risks:

• Educate Stakeholders: Think about it, stakeholders are the ones making key decisions about your organization's operations and security. If they don't understand the risks associated, they can't make informed decisions. Consider organizing a cybersecurity awareness program to arm your stakeholders with the knowledge they need. Want to empower your stakeholders with the knowledge they need? Contact us.

• Be Proactive: Be one step ahead: Don't wait for a supply chain attack to happen. Instead, take steps to prepare and defend your organization.

Two ways you can achieve this are:

• Threat Intelligence: Stay informed about the latest industry trends, risks, and hacker techniques. This knowledge will help you anticipate and counter potential threats. You can do this by reviewing reports from trusted sources like the NIST cybersecurity framework and Cybersecurity and Infrastructure Security Agency (CISA) to stay updated.

• Incident Response: Prepare for the worst-case scenario by having a plan in place. This will help you respond quickly and effectively in the event of an attack.

• Protect Your Supply Chain Data: Keep sensitive information safe by only sharing it with those who need it. Check regularly who has access to your critical systems to prevent unauthorized access.

• Keep Software Up to Date: Failing to patch known vulnerabilities leaves your organization exposed. In 2023 alone, breaches initiated by unpatched vulnerabilities increased by 180% compared to 2022. Don’t become a statistic—automate your patching processes and deploy updates across systems promptly.

Supply chain cybersecurity risks are rising, but with the strategies —education, proactive measures, and secure vendor management—you can protect your business from disruptions and reputational damage. Stay informed and ahead of cybersecurity threats—subscribe to the Cyberkach blog for expert insights and updates.