Gaining Insight of Attacks on the Supply Chain
What constitutes supporting a supply chain attack?
Supporting or supply chain attacks are cyber attacks that focus on an organization’s supply chain, which is the infrastructure of business associates, third party vendors, and suppliers that assists in the manufacture and distribution of a service or a product. Different from more focused cyber attacks that impact a particular organization, supply chain attacks rely on weaknesses available in vendor or service providers which put a larger number of organizations at risk.
Operation of the Attacks on the Supply Chain
In the case of a supply chain, many entities cooperate in order to provide a service or product. The cooperation can be accomplished through software platforms, hardware, and development tools that can be exploited. In this ecosystem or network of systems, attackers can get into it by either injecting malware or by phishing or exploiting software bugs.
Stages of the Supporting A Supply Chain Attack
Generally, a number of steps or stages make up the supporting a supply chain attack:
1. **Initial Compromise**: It all begins by targeting one of the vendors or suppliers who have not shored up their security walls. It involves dispensing malware, gaining access to stolen credentials, or using malicious code to replace legitimate software products.
2. **Propagation**: With access to the vendor’s system, the attackers can escalate their attack to include additional organizations that utilize that specific vendor. This could include the abuse of legitimate access to plant malware.
3. **Execution**: After compromising multiple organizations, the attackers can execute their primary objectives, whether it is data theft, operational disruption, or using the network access gained as a foothold to burrow further into the system.
Types of Supply Chain Attacks
The methods used in supply chain attacks are quite different when in comparison to one another. Some of these include:
1. **Software Supply-Chain Attacks**: Attackers alter software applications or their accompanying updates. Updating one’s software results in a cyber attack as the malicious software is unwittingly installed.
2. **Hardware Supply-Chain Attacks**: Prior to reaching the end-user, hardware or firmware components have malicious software inscribed into them.
3. **Attacks through Secondary Services**: The attackers focus on secondary service vendors with access to sensitive data from the primary organization.
Notable Supply-Chain Attacks
The SolarWinds Incident
One notable example of a recent supply chain attack is the SolarWinds cyber attack, which was publicized around the end of 2020. Hackers infiltrated the Orion software platform belonging to SolarWinds and inserted malicious code into its updates. The updates were mischievously installed by their customers, allowing attackers to access system perimeters, causing devastating data breaches to numerous government agencies and private companies.
The Target Breach
Retail giants Target became victims of a supply chain attack in 2013 where cyber criminals gained access to their network through a third party vendor, Fazio Mechanical Services. The vendor spilled some of their credentials which allowed the attackers to access Target’s point of sale systems. This breaches resulted in the loss of credit card details of more than 40 million customers.
The Uber Incident
Uber was also victimized in 2016 when hackers gained access to sensitive Uber data through exploitations on their dealings with third-party service providers. The attackers got hold of access keys that were carelessly left exposed on a GitHub repository, which enabled the hackers to freely access data pertaining to 57 million Uber users and drivers.Why There is an Increase in Supply Chain Attacks
Escalating Difficulty of Supply Chains
Not only do businesses depend on more than one third-party vendor, but the majority of organizations are also using complex supply chains, which introduces complexity. To capitalize on the gaps presented through negligence or the presence of insufficient security throughout the system, attackers or hackers tend to zero in on these weak points.
Dependence on Services Provided by Other Organizations
Organizations have a tendency to outsource certain elements of their operations. When done recklessly or without enough vetting, these external dependencies can become additional target for attackers.
Work from Home along With Work Transformations
The evolution of remote working models has led to organizations expanding their networks, making them more vulnerable to cyber threats. These changes coupled with the use of personal devices and various location access to corporate data, significantly add to the risk.
Consequences of Cyber Attacks on Supply Chains
Financial Risks
In the modern global business environment, the financial impacts of cyber attacks on supply are enormous and at times catastrophic. Companies face civil lawsuits, legal penalties, fines, and other associated costs such as remediation efforts. On top of this, the reputation of an organization under attack suffers, losing existing customers and revenue.
Interruption of the Business Operation
Interruptions in the functioning of an organization due to supply chain attacks disrupt the normal flow of business, and with this the expected trends in revenue decrease along with the loss of products resulting in outages. In extreme situations, organizations are required to cease operations fully to avert damage.
Both Data Theft and Loss Risks
Sensitive business and customer data is typically kept within an organization’s network, or with third-party vendors, which makes them susceptible to supply chain attacks. Theft of such data through these attacks can infringe privacy and exposure to identity theft.
Preventing Attacks within the Suply Chain
Strength Vendor Management:
Implementing strong vendor management practices is important. These include verifying the security posture of the vendor, knowing their processes, and compelling them to meet certain levels of minimum acceptable security.
Conducting Security Evaluations
Security evaluations should include regular risk assessment and penetration testing, which expose vulnerability windows to external vendor systems and their organizational processes. These assessments need to be part of the vendor contracts and should be mandated under the vendor’s contractual obligations.
Developing Policies and Procedures for Security
Vendor related security policies should be clearly articulated and defined with set procedures. This could include user management policies like data encryption and incident response.”
Building A Security Culture
Education helps in mitigating the unintentional exposure to supply chain attacks. Regular training for employees serves to sharpen the identification of cases that require sensitive data as well as the best practices through which data is secured.
Phishing and Social Engineering Training
Employees need to be trained on the recognition of common phishing and social engineering attempts. Phishing simulations can be useful in increasing awareness and preparedness of employees.
Incident Response Drills
Regular drills can prepare employees to cope with response breaches and sharpen their response efficiency in the event of a data breach.
Leveraging Technology and Tools
Useful devices can be used to enhance supply chain security. A variety of devices can be employed to check the level of the vendor’s supplied goods and look for other unusual behaviors.
Supply Chain Risk Management Software
Having special software that shows the most weak areas in the chain and suggests ways to strengthen the injured vendors will help the large organizations that are being threatened.
Endpoint Security Solutions
Boundary control measures help to protect the users of the stored data and reduce the chances of importing hazardous programs through other networks.
The Future of Supply Chain Security
Trends Shaping Supply Chain Security
As cyber attacks become more sophisticated, organizations will need to develop new strategies to protect their supply chains. Some of the major trends that will influence supply chain security in the next few years are:
1. **Increased Regulatory Requirements**: These will cause additional important rules to be added concerning the security of the vendors for each organization.
2. **AI Integration**: AI technology can be applied to conduct data analysis at great speeds and detect anomalies or possible threats in a very short period.
3. **Zero Trust Architectures**: The use of zero trust security frameworks will probably continue to increase, which assume no trust by default, meaning that every single access attempt to a network resource is verified.
Working Alongside Industry Partners
Collaboration with industry peers can prove beneficial when trying to enhance efforts towards supply chain security. The sharing of threat and vulnerability information can greatly enhance security and awareness on an inter industry level.
Joining Information Sharing Initiatives
Being part of these alliances and initiatives that support information sharing can equip organizations with knowledge of new threats and effective countermeasures.
Participating in Collaborative Security Efforts
This includes but is not limited to developing best practices, standards, and even collective defenses which would improve the overall security of the supply chains across multiple industries.
Conclusion: Staying Ahead of Supply Chain Threats
For businesses looking to defend their operations and sensitive information, developing a strategy for dealing with supply chain risks is imperative. Through effective security policies, employee training, and proper partner relations, businesses can improve organizational defenses against cybercriminals. Maintaining proactive measures in the face of evolving cyber threats will continue to be pivotal when defending against future supply chain threats.
