In today's interconnected digital landscape, supply chain software attacks have emerged as a significant threat to organizations' cybersecurity. Cybercriminals target vulnerable links in the supply chain to gain unauthorized access to sensitive data, disrupt operations, or launch large-scale cyberattacks. Malicious or malware attacks have been increasing a whopping 633% year-on-year! 

Did you know these attacks are primarily due to 90% of software applications being open source and about 11% of them being vulnerable? Here’s another statistic: as many as 21% of organizations typically undergo an open-source violation! 

This article will delve into the key aspects of supply chain attacks, their potential impact, and essential strategies that CISOs, CIOs, IT managers, developers, and even others should implement to safeguard their companies.

Understanding supply chain attacks 

So, what exactly is a supply chain attack? Supply chain attacks involve exploiting vulnerabilities within an organization's supply chain ecosystem, which encompasses suppliers, vendors, contractors, and third-party service providers. These are also known as value-chain or third-party attacks.  

Instead of directly targeting the IT systems of an organization, cybercriminals infiltrate the supply chain infrastructure to gain access to trusted networks, systems, or software used by the organization.  

These attacks can be highly sophisticated, diverse, and challenging to detect as they exploit the trust relationship between the organization and its supply chain partners. Typically, supply chain attack sources include open-source networks, commercial software, and foreign products. 

A case in point is the recent SolarWinds’ (a company that produces network software Orion) infrastructure breach, where hackers inserted and distributed Trojans in the software update. This allowed them to access FireEye’s (another cybersecurity company) network. As a result, the damages to cyber insurance agencies were estimated to be about $90 million. 

Types of supply chain attacks  

While there are many types of supply chain attacks, here are some key ones that you need to pay attention to.  

1- Malware insertion: Attackers insert malicious code or malware into software, firmware, or devices (USB drives, cameras, mobile phones, etc.) during the development or distribution process. When the compromised software is deployed within the organization, it serves as a vehicle for cybercriminals to gain unauthorized access or carry out malicious activities. 

2- Compromised vendor accounts: Cybercriminals target vendor accounts to manipulate or tamper with the software or hardware components before they reach the organization. This enables attackers to introduce backdoors or other vulnerabilities that can be exploited later. 

3- Compromised hardware or software components: Attackers infiltrate the supply chain by introducing counterfeit or modified hardware or software components. These components can contain hidden malicious functionalities that compromise the security of the organization's systems when deployed. 

4- Certificate theft: Hackers can steal code certificates that indicate the safety or legitimacy of the software and insert malware through them.  

5- Cloud service provider security breach: If an organization relies on cloud service providers, compromising the security of these providers can give cybercriminals access to critical data or systems. This emphasizes the importance of thoroughly vetting and monitoring the security practices of third-party cloud vendors. 

The impact of supply chain attacks 

As you can see, supply chain attacks can have severe consequences for companies, ranging from financial losses to reputational damage. The potential impact includes: 

- Data breaches: Attackers may gain unauthorized access to sensitive customer data, intellectual property, or trade secrets, leading to data breaches and compliance violations. 

- Operational disruption: Compromised software or hardware components can disrupt business operations, leading to downtime, productivity losses, and increased recovery costs. 

- Brand reputation damage: Supply chain attacks can erode customer trust and damage the organization's reputation. News of a data breach or security compromise can have far-reaching implications for customer loyalty and investor confidence. 

- Legal impact: Security breaches can also result in penalties, legal suites, or fines that impact the financial position of the organization. 

Master tactics to combat supply chain attacks 

There are a variety of measures you can take to address cybersecurity breaches. Here are a few:

- Vendor risk assessment: Conduct thorough due diligence and risk assessments of suppliers, vendors, and third-party partners. Evaluate their security practices, including software development processes, patch management, and incident response capabilities. 

- Endpoint and threat detection: Non-secure endpoints are extremely vulnerable to attacks. Ensure you have an effective endpoint detection and response system that can immediately identify and stop these attacks. Check out some of the client-side protection and response tools in the market. 

- Builds and infrastructure security: Always update and apply security patches as required. Build robust software updates and authentication including digital signatures and other controls. 

- Code integrity deployment: Enable applications to run only if they are authorized through code rules and policies. They can flag issues if any.  

- Strong contracts and service level agreements (SLAs): Establish fool-proof contracts and SLAs to address cybersecurity expectations, incident response protocols, and liability in the event of a supply chain breach. Clearly define security requirements and regularly audit compliance. 

- Supply chain visibility: Maintain visibility and control over the entire supply chain. Understand the origin and security of components, software, or services that are critical to your organization's operations. Implement mechanisms to detect and respond to any unauthorized changes or compromises. 

- Rigorous monitoring: Implement a comprehensive cybersecurity monitoring program that includes intrusion detection systems, log analysis, and anomaly detection. Monitor for suspicious activities within the supply chain and promptly investigate and respond to any identified threats. 

- Incident response process: Ensure you have an efficient and transparent incident response process in place. Notify stakeholders immediately with accurate information so that the attacks can be mitigated.  

- Third-party regulations: Third-party risks can be better addressed through effective frameworks and standards that vendors have to adhere to. For example, consider using general standards, such as PCI-DSS, CMM, or ISO 9001. 

Key take-aways 

In conclusion, supply chain attacks pose a significant threat to organizations due to the inherent presence of third-party software. Given the ever-increasing open source demand, which grew 33% in 2022 (for example, Java components recorded 497 billion downloads!), it’s becoming imperative for companies across the globe to understand the risks, implement robust security measures, ensure code integrity, conduct thorough assessments, and foster strong partnerships. Stay vigilant, and stay prepared!