Your business relies on suppliers and partners to keep everything running smoothly. But this also means you’re vulnerable to Cyberattacks, which can affect the entire supply chain.
In 2023, 2,769 entities in the U.S. were hit by supply chain Cyberattacks, marking the highest number since 2017. This was a 58% increase from the previous year, showing how quickly these threats are growing.1
Becoming aware of these Cyberattacks and how they can impact your business is important for anticipating threats.
What Are Supply Chain Cyberattacks?
Cyberattacks in supply chains occur when hackers target the companies you work with. Every business depends on suppliers, vendors, and partners for materials, services, or software. These connections make your work easier, but they also open the door for cyber threats.
When a supplier’s system is vulnerable, hackers can attack it to get access to your business. They might steal your data, hold your systems hostage, or disrupt your operations. Supply chain attacks don’t just hurt your reputation—it can cost you time and money to resolve them.
You might think your systems are secure, but if a partner you trust gets attacked, you could be at risk, too. Even if your side is strong, a vulnerability elsewhere can cause your whole operations to collapse.
Know Why Hackers Target Your Business Partners
Yes, the root cause of many attacks is vulnerabilities—flaws or weaknesses in software, systems, or processes. These vulnerabilities give hackers an opening to cause damage.
Why would hackers go after your business partners instead of coming straight at you? A few reasons:
- Partners might have weaker security: If a hacker can break into your partners’ systems more easily, they might try to use that as a “back door” into your own systems.
- Partners might have valuable data: Your partners might hold sensitive data about your business or customers, which a hacker could use to launch further attacks or steal valuable information.
- Partners could be a stepping stone: If a hacker wants to attack multiple companies in a particular industry or supply chain, your partners might be a starting point for them to gain a foothold in the network.
Cybercriminals are crafty, and they know that businesses often work with other companies (like suppliers, distributors, or service providers) to get things done.
Types Of Supply Chain Attacks
These attacks can come in many forms, and knowing the types can help you protect yourself. Below are some common types of supply chain attacks:
1. Software Supply Chain Attacks
In a software supply chain attack, hackers target a piece of software your business relies on. Recent research shows that 59% of organizations have been hit by a software supply chain attack. Even worse, 54% of these attacks happened in just the past year.
The SolarWinds attack is one of the most well-known software supply chain attacks. Hackers compromised SolarWinds’ software updates, which were used by thousands of organizations, including U.S. government agencies and large businesses. The attackers inserted malicious code into the software, allowing them to spy on and steal data from affected organizations.
2. Ransomware Attacks
Ransomware attacks involve hackers locking up your systems or data and demanding payment to unlock them. These attacks often target businesses in your supply chain, and the hackers use that connection to attack your systems.
The Colonial Pipeline Company, one of the largest pipeline operators in the U.S., was the victim of a Ransomware attack by a group called DarkSide. The attack forced the company to temporarily shut down its operations, leading to gas shortages and price hikes in several states on the East Coast. The attack shows the serious impact of Ransomware on critical infrastructure and supply chains.
3. Third-Party Vendor Attacks
In these attacks, hackers go after a third-party vendor or supplier that has access to your systems. They might steal login credentials, exploit vulnerabilities, or infect the vendor’s systems with malware. If that vendor connects to your network, the hacker can spread to your business.
In a Target breach, hackers gained access to Target’s systems through a third-party vendor that provided heating and cooling services. Once inside, the hackers stole credit card information from millions of customers.
4. Insider Threats
Insider threats occur when someone within a partner or vendor company—such as an employee or contractor—misuses their access to your systems or data. They might intentionally or unintentionally leak information or give hackers a way into your network.
The Case of the Cisco Employee involved an insider threat at a vendor working with Cisco. The employee used their access to Cisco’s systems to download personal information and share it with unauthorized parties, leading to security breaches.
5. APT Threats
APT stands for Advanced Persistent Threat. It’s a type of Cyberattack where a hacker, or a group of hackers, targets a specific organization for a long period of time. They are “advanced” because these attackers use sophisticated methods to get into systems, and “persistent” because they stay inside the network without being detected for as long as possible.
A common APT example in supply chain attacks is the 2017 NotPetya attack. Hackers compromised software updates from the Ukrainian accounting company, MeDoc. When companies downloaded the updates, they unknowingly installed malware, which spread quickly and caused widespread damage across industries.
Plan For Quick Action When Attacks Happen
To handle these Cyberattacks, you need a clear response plan. Quick action can save your business from bigger problems like downtime, lost money, or damaged trust.
- Know Who’s In Charge: Assign a team to handle attacks, including IT and Cybersecurity teams and decision-makers.
- Act Fast: Shut down affected systems to stop the attack from spreading.
- Inform The Right People: Notify your partners, vendors, customers, and authorities if needed.
- Check For The Damage: Find out how the attack happened and what was affected.
- Fix The Problem: Patch vulnerabilities, strengthen your security, and learn from the attack.
The faster you act, the better your chances of limiting the damage. Test your plan regularly so you’re ready when something happens. Having a plan in place keeps you in control, even during a cyber crisis.
FAQ
What Are Supply Chain Cyberattacks?
Supply chain attacks happen when hackers target your suppliers, vendors, or business partners to get to your business. They may exploit weaknesses in their systems to steal your data, impede or slow down your operations, or cause other damage.
How Can Supply Chain Cyberattacks Affect My Business?
If a hacker breaks into a partner’s system, they could use that access to compromise your business. This could lead to data theft, financial loss, or downtime, all of which can hurt your reputation and bottom line.
How Can I Protect My Business From Supply Chain Cyberattacks?
To protect your business, conduct thorough vendor risk assessments. The 2Secure team also recommends that you often evaluate the security posture of your business partners to identify risks and vulnerabilities. Implement security policies, keep your software up-to-date with the latest security patches, and get endpoint protection on all your devices to detect and prevent threats before they infiltrate your systems.
Source:
- Annual number of supply chain cyber attacks U.S. 2022. (n.d.). Statista. https://www.statista.com/statistics/1367208/us-annual-number-of-entities-impacted-supply-chain-attacks/
