Be aware of supply chain attacks

Many companies rely on external partners to make it all work. However, this is also something that hackers have figured out. Attackers exploit vulnerabilities in the supply chain to inject malicious code or steal sensitive information. The expansive attack surface created by reliance on open-source software increases exposure to various risks, including data breaches and malware. They have started to make supply chain attacks on service providers and business partners in order to hit a bigger target. Below we review what a supply chain attack is, what the consequences of being hit might be, and what you can do to prevent an attack.

Introduction to supply chain risks

A supply chain attack is a cyber threat in which attackers compromise a third-party vendor or partner to infiltrate the target organization’s systems or steal sensitive data. These attacks can occur through various means, such as injecting malicious code, compromising software updates, or even physical tampering with electronics. Supply chain risks are a growing concern for organizations because they can significantly impact operations, financial stability, and reputation. Understanding these risks is crucial, as a single vulnerability in the supply chain can lead to widespread consequences, affecting not just one company but potentially many interconnected businesses.

Understanding the software supply chain

The software supply chain encompasses the network of organizations, systems, and processes involved in producing and delivering software products. This includes everything from software development tools and vendors to third-party components. Unfortunately, the software supply chain is particularly vulnerable to attacks. Malicious actors can inject malicious code into software updates or compromise software development tools, leading to the compromise of sensitive data and disruption of business operations. By understanding the intricacies of the software supply chain, organizations can better identify potential risks and implement effective security measures to safeguard their systems and data.

A secure connection

A supply chain attack is a type of hacker attack that targets the weakest link in a supply chain of companies. So even if your company has high cybersecurity, you could still be affected by a supply chain attack if some of your partners don’t have good cybersecurity.

As a company, you rely more or less blindly on the partners you work with, and that trust goes both ways. You install and use each other’s software and applications. You trust that their cybersecurity and software is as good as yours. When companies are well connected, there are a mutual trust to understand the technology and fundamental mechanisms that drive the business.

But not all companies have good cybersecurity.

Hackers know that businesses rely on collaboration between each other and service providers. So if they can find the weakest link in that cooperation, they can hit even more companies than if they were targeting just one.

Something hackers thus target is Managed Service Providers (MSPs). MSPs are service providers that offer, among other things, networks, applications, software and security infrastructure to businesses.

Therefore, MSPs are at the core of companies’ cybersecurity. And this is why hackers will often find their way to MSPs. If they can gain access to the MSP, they can then gain access to the company's network and infrastructure - this way, as a company, you can get malware installed. This malware enables hackers to access personal data and company information.

Attackers are employing more creative ways to circumvent security measures, especially in the context of supply chain attacks. This emphasizes the need for vigilance as attackers adapt to improve their chances of successful breaches.

Examples of supply chain attacks

Several high-profile supply chain attacks have made headlines in recent years, underscoring the severe impact these attacks can have. One notable example is the SolarWinds Orion software attack, which affected numerous organizations, including government agencies and private companies. This attack demonstrated how a single compromised software update could lead to widespread infiltration. Another example is the attack on the British Airways website, which resulted in the theft of sensitive customer data. These incidents highlight the critical need for robust security measures to prevent supply chain attacks and protect valuable information.

For a deeper understanding of significant cyberattacks, including supply chain incidents, refer to our article on Cyberattacks that shook the world.

The consequences of a supply chain attack

As mentioned before; hackers can eventually install malware into your company software. By doing so, they can create holes in the software, making the company’s infrastructure unstable. In 2018, a cyber attack affected a major Taiwanese chip manufacturer, TSMC, where malware spread through a software update system and impacted over 10,000 devices in their advanced facilities.

If a company gets an unstable infrastructure and software, it can quickly affect the business partners that the company is involved with.

Hackers can leak information about employees as well as customers of the company. It is common for IT criminals to carry out data leaks in companies in order to publish sensitive data. The hacker typically demands a sum of money to withdraw the leaked data from the public.

The danger of supply chain attacks is that many companies can be affected. If one main provider is hacked, all the companies’ software will be compromised - and thus made available to the hacker, or shut down completely. Hackers often trick users into downloading malicious code through compromised software, as seen in instances involving well-known software like ASUS Live Utility and Browserify. This method allows them to compromise a significant number of users while evading detection. Explore how malware works and how it infects systems here.

How to detect supply chain attacks

In order to effectively and correctly check for a possible attack, a company needs to have various verification processes in place. This ensures that all companies can undergo security checks, as well as being sure that they are legitimate security checks.

Indeed, it has been seen before that companies have thought a security update was legitimate, when it turned out to be hackers who had compromised the software. This highlights the critical need for secure software updates to prevent such attacks and maintain software integrity.

That’s why IT needs to know all the ways in and out of your systems, to make sure no one else can get in through them. If there is the slightest flaw in the pathways into the systems, the hacker will surely find that flaw and exploit it.

In addition, it’s always a good idea to have a plan of action in place in case you are subjected to a cyber attack. This can include an overview of the company’s pathways in and out of systems, a risk assessment of these inputs and outputs, categorisations of the most frequent cyber attacks and how to deal with these.

The IT department should test new software before it is rolled out to all employees. Testing various systems and updates should catch malware and potential hacker activity.

Security researchers characterize supply chain attacks as particularly challenging threats due to their exploitation of inherent trust and difficulty in detection. Addressing these attacks requires comprehensive strategies beyond basic cybersecurity measures.

To sum up, you should:

Know all the entry points into your systems.
Be sure about software updates.
Have an action plan for possible cyber attacks.
Test new software before it is rolled out to the whole company.

Software supply chains vulnerabilities

Software supply chains are susceptible to various types of attacks, including compiler attacks, malicious packages, and injected malicious code. These vulnerabilities can be exploited at different stages of the software development life cycle, from development and testing to deployment. Malicious actors often target software updates, third-party components, or open-source code to gain access to a company’s network and systems. Identifying and addressing these vulnerabilities is essential for preventing supply chain attacks and safeguarding sensitive data. By focusing on securing every stage of the software development process, organizations can reduce their risk of falling victim to these advanced threats.

How to prevent supply chain attacks

There are several things you can do, as a company and as an employee, to prevent a supply chain attack:

The IT department can make an assessment of the various risks that may exist in the collaboration between you and a third party. As a company, you can always ask the service provider to do an assessment of their systems and software so that you are not at risk of cyber attacks due to service provider failures. It is crucial for organizations to implement protective measures to mitigate these risks.
You can minimise the number of employees who have access to install third-party software. This also minimises the number of people who could be affected by attacks. Software vendors play a critical role in maintaining security within the supply chain, as vulnerabilities in their software can lead to widespread compromises.
It is also a good idea to include all parties in the “supply chain” so that everyone is prepared in case of a cyber attack.
You can review who has access to sensitive data and further minimise the number of people who have access.
You should always be sure that a service provider deletes all data about your business as soon as your partnership ends.
Finally, it’s a good idea to invest in cybersecurity training. It’s almost always human errors that can lead to cyber attacks. In principle, it is the employees who are one of the weaker links in the chain. Awareness training is an obvious opportunity to improve cyber security and strengthen your defences against the cyber threat.

It is harder to prevent supply chain attacks because there are so many links in the chain that need to be secured. And you cannot secure so many other links than your own, apart from maintaining communication and transparency between all companies as well as the service provider.

Once a hacker has a foothold in your systems, they can do immeasurable damage - both to the technical aspects of your business, but also to the personal ones of sharing confidential information and customer data.

Conclusion

In conclusion, supply chain attacks pose a significant threat to organizations of all sizes. By understanding the potential risks and vulnerabilities within the supply chain, companies can take proactive measures to enhance their security. Implementing robust security measures, conducting thorough risk assessments, and fostering transparent communication with all parties involved in the supply chain are crucial steps in protecting against these sophisticated cyber attacks. Stay vigilant and prioritize supply chain security to safeguard your operations, data, and reputation.