Defending Your Supply Chain From Cyber Threats

Uploaded on 2024-04-24 in TECHNOLOGY--Resilience, FREE TO VIEW

In today's interconnected world, supply chains have become a critical component of business operations, empowering organisations and government entities to meet market demand. They are complex networks that involve multiple stakeholders - and ensure the flow of critical goods and services, from food and medicines, to technology and consumer items.

However, this complexity, and an increasing reliance on technology to power supply chain efficiency, also makes them a prime target for cybercriminals. Attackers target supply chains for several reasons.

First, supply chains are efficient, so compromising one element can disrupt multiple parts. This cascading effect maximises the impact of the attack. Second, supply chain security is often weaker than core network defences, making them easier targets. A prime example of this is the Booking.com supply chain attack in November 2023. Hackers didn't directly target Booking.com, but rather compromised login credentials of hotels that partnered with the site.

To protect these vital networks, it's essential to understand the threat landscape, implement best practices for supply chain security, leverage technology, and ensure full regulatory compliance.

Understanding The Threat Landscape

Today's cybercriminals are sophisticated and keenly aware of the interconnected nature of supply chains - and the repercussions caused by any disruption. They exploit weaknesses in the least-defended link in an organisation's technology estate, wreaking havoc in several ways. Unpatched software in supplier systems can create unmitigated opportunities for malware and data exfiltration. Imagine a supplier is using outdated accounting software - a successful attack there could give criminals a backdoor into an organisation's financial systems. According to a recent Bank of England survey of UK market participants, the risk of attacks is now deemed the number one systemic risk to financial systems.

Phishing attacks, which use deceptive emails to trick employees into revealing sensitive information or clicking malicious links, can grant attackers access to the broader network. What looks to be an urgent email from a supplier requesting a change to account details could be a cleverly crafted phishing attempt - and increasingly, generative AI is making these types of attacks more sophisticated. Most concerning, supply chain infiltration allows malicious actors to compromise a supplier's systems and inject malware into software or hardware updates, unknowingly spreading the attack across the entire chain. A compromised update from a parts manufacturer could unknowingly infect your entire production line with malware.

The consequences of a successful attack can be devastating - both operationally and financially. The total cost of breaches in the UK has surged 138% since 2019, when the estimate was £12.8bn. More than a quarter (27%) of UK businesses fell victim to cybercrime in 2023 at an average cost of £5500.

Data breaches can also expose sensitive customer information or intellectual property - opening them up to a plethora of cybersecurity risks of their own. Operational disruptions can halt production or deliveries, limiting the availability of essential goods. This can lead to lost revenue, and frustrated customers and can have serious social and economic implications, particularly for nations who rely on imports. For organisations, reputational damage can erode trust and take many years to rebuild.

Best Practices For Supply Chain Security

The implementation of best practices for supply chain security is a critical step in mitigating cyber risks. This involves conducting regular risk assessments to identify potential threats and vulnerabilities within the supply chain, followed by an evaluation of their potential impact on business operations. Doing so will provide a comprehensive picture of current levels of risk, and illustrate the ways in which organisations can maintain business operations in the event of an attempted attack.

A multi-layered security approach should also be adopted, which includes the use of firewalls, intrusion detection systems, and encryption technologies to safeguard sensitive data. Given the level of risk associated, and the lack of direct control, a third-party risk management program is essential.

This program should ensure constant evaluation of the security practices of third-party vendors and contractors, to ensure they align with your own security standards.

Finally, developing a comprehensive cyber incident response plan is equally important. This plan should detail the necessary steps to be taken in the event of a cyber attack, including procedures for containing the incident, reporting to relevant stakeholders and regulatory bodies, conducting an investigation, and restoring normal operations.

The Role Of Technology

In today's digital age, robust security is the cornerstone of a resilient supply chain. It acts as a vigilant guardian, fending off cyberattacks that exploit vulnerabilities across this interconnected network of partners.

Technology can be a powerful shield against supply chain attacks:-

Tools can map your entire network, pinpointing vulnerabilities. Constant monitoring systems watch for suspicious activity.

Software can scan for weaknesses in code and verify its authenticity. AI can even predict future threats.

Firewalls for example, monitor traffic for signs of trouble, like malware hidden in software updates or compromised vendors. Additionally, they act as a barrier, filtering out malicious traffic and preventing attackers from exploiting weaknesses introduced in the supply chain.

By harnessing these technologies, organisations can significantly strengthen their supply chain security.

Regulatory Compliance

Regulatory compliance adds another layer of defence in the fight against cyberattacks within the supply chain. Data privacy and security regulations like GDPR and CCPA are becoming increasingly stringent, holding organisations accountable for breaches that occur anywhere within their supply chain ecosystem. This pushes organisations to not only secure their own systems but also ensure their suppliers implement robust security measures. Compliance can be a powerful motivator, driving both internal security improvements and a more collaborative approach to supply chain security with vendors.

By adhering to these regulations, organisations can not only minimise the risk of cyberattacks but also avoid hefty fines and reputational damage that can follow a major data breach.

The interconnectedness of the modern supply chain presents a unique challenge in the cybersecurity landscape. By understanding the threats, implementing best practices, leveraging technology, and staying compliant with regulations, organisations can build a more resilient supply chain – one that is less susceptible to the potential chaos caused by successful cyberattacks and better positioned for success in the digital age.

Remember, supply chain security is not a one-time effort, it's an ongoing process requiring continuous vigilance and adaptation. By taking a proactive approach, organisations can safeguard their operations and maintain a competitive edge.

Image: Ideogram

Spencer Starkey is VP EMEA of SonicWall

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