December 15, 2023 Supply Chain Attacks

What is a supply attack and how do you protect your business from one?

The recent annual global cost of software supply chain attacks to businesses will reach a staggering $138 billion by 2031, increasing from $60 billion in 2025 to $46 billion in 2023.

This attack is hard to detect because it isn’t done directly. However, there are ways to protect your business from this online threat.

Understanding the Supply Chain Attack

Between 2019 and 2022, the number of software packages affected by supply chain attacks worldwide increased significantly, going from 702 to 185,572. One of the reasons for this is that companies depend on multiple suppliers for software, components, or services.

Understanding this attack method is vital when trying to prevent it.

By recognizing how these attacks operate, businesses can better protect themselves and strengthen the links in their digital supply chains.

Here’s how a supply chain attack works:

• Hackers target a less secure supplier or vendor within the chain rather than directly attacking the main target. This could include a software vendor used by a company that has weak security protocols. Hackers would breach this vendor to infiltrate the company’s systems that use their software.
• Once inside the supplier’s system, attackers plant malicious software or malware. This could be malware that accesses a product’s update or software patch distributed by a supplier. When the company installs this update, the malware then spreads through its network.
• After infecting the supplier, hackers pivot toward their main target, which is making use of the trust already established in the supply chain.The hacker could compromise a cloud service provider and gain access to their client’s sensitive data stored on the cloud.

Supply chain attacks have a domino effect, affecting not just one company but potentially the entire network. For example, an attack on a logistics partner might disrupt shipping timetables and affect various companies relying on scheduled deliveries.

Why It’s So Important To Protect Your Company

Often, the breaches occur through seemingly legitimate channels, making them much harder to identify.

The fact they’re concealed within regular operations adds a layer of elusiveness, rendering them more immune to traditional detection methods.

Supply chain attacks can also wreak havoc on a company’s finances and reputation.

The financial implications caused by such breaches can be significant, leading to substantial monetary losses.

The tarnishing of a company’s reputation due to a breach can also erode trust among customers, partners, and stakeholders. This could potentially cause long-term damage to the standing of the business in the market.

Understanding these threats can assist businesses that are aiming to improve their defenses against supply chain attacks.

Attacks of this nature highlight the necessity for strong security measures and proactive strategies to neutralize potential risks and protect the integrity of the entire supply chain.

Protecting Your Business From This Kind Of Cyberattack

The impact of supply chain attacks extends far beyond their immediate target.

The interconnected nature of supply chains means that a single breach can reverberate throughout the network, affecting multiple organizations in the chain.

This ripple effect amplifies the scale of damage the attack causes. The most difficult part of detecting these attacks is knowing what to look for in the first place.

Here are a few tips on how to protect your business from supply chain attacks:

• Enquire as to the cybersecurity measures of all the partners in your supply chain.
• Conduct periodic security assessments and audits across the supply chain.
• Ensure all software and systems are regularly updated and patched against known vulnerabilities.
• Implement robust security protocols and regularly train employees to recognize and respond to potential threats. You can take advantage of the Cyber Monday VPN deals. Obtaining this software adds a layer of protection to your company’s online data.

Conclusion

Protecting your business from supply chain attacks requires the same vigilance and preparation as other areas of life. Understanding how these attacks work is the first step toward safeguarding your business.

By vetting partners, staying updated, setting layers of defense, keeping a watchful eye, and having a reliable response plan, you’ll be able to defend your business against supply chain attacks.

Subscribe to Industry Today