Cybersecurity risks in third-party supply chain management

Securing the software supply chain across the company has been one of the largest persistent concerns in the cybersecurity analyst field over the past year. More and more third-party code and components are used in the computer security software that businesses create for internal use and for external consumption by their clients, which increases the risk to applications if they aren't adequately secured.

While every industry is affected by IT security vulnerabilities, manufacturers particularly impacted face a complex risk problem for two main reasons.

Manufactured products are highly connected and software dependent
Shopfloor is a part of supply chain that is an intricate part of IT security network dependent on third-party softwares

Regrettably, the majority of companies who are involved in the supply chain will eventually experience some kind of disruption to their data, money, or business operations. Therefore, the success of your supply chain risk management plan network security will decide how those disruptions impact your company.

The Internet of Things (IoT), Industrial Internet of Things (IIoT), and other digital technologies will continue to play a vital role for many firms, especially when improving their supply chain operations, as the business environment becomes more digitised. Nevertheless, these new technological developments also expose firms to fresh cybersecurity attacks including malware, ransomware, phishing, and hacking. Today's most frequent dangers to businesses along the supply chain are malware and ransomware attacks, data breaches, and cybersecurity flaws.

This blog examines some of the most prominent cybersecurity attack risks in a supply chain which can bring a business to its knees.

Types of Cybersecurity attack risks in Supply Chain Management

Data Breaches

One of the most important cybersecurity attack risks that enterprises face today is data leaks. The likelihood is that in the upcoming years, both the frequency and the seriousness of these security incidents will only increase. In addition to any regulatory or legal repercussions, a data leak or breach typically causes a company to suffer significant financial loss and reputational harm.

The likelihood that your data will be compromised or exposed increases the more sensitive data you share with third parties in your supply chain. Unauthorised access via a company email account, hacking of an email provider, a lack of encryption, insecure websites, and incorrectly stored login information are some of the most frequent data breaches brought on by third-party providers. In extreme circumstances, third parties may even purposefully release private customer information outside the company, leaving your company open to supply chain attacks from hackers, rogue nation governments, and other cybercriminals.

Cybersecurity Attacks

Cybersecurity attacks is a broad category based on a lot of recent technological developments that increase firms' susceptibility to cybersecurity attacks along the supply chain in previously unheard-of ways. Any modern device with an Internet connection poses a risk to the supply chain cybersecurity attack. For instance, the Internet of Things (IoT) typically refers to consumer electronics like smart thermostats or personal fitness trackers; in 2021, there were more than 10 billion active IoT devices globally.

IIoT especially refers to hardware that powers businesses on a much wider scale. IIoT includes all Internet-connected and Internet-communicating devices, ranging from sensors and scales to engines and elevators, with the goal of enhancing production.

IoT and IIoT security isn't at its cutting-edge best, which makes it an easier target for a cyberattack. The number of communication channels, data stores, ports, and endpoints will only increase as more devices and sensors are brought online. If such endpoints are not secured, the additional attack surface indicates even more vulnerabilities.

Attacks by malware and ransomware

Unfortunately, ransomware and malware attacks are getting increasingly frequent. These assaults are intended to steal data, alter internal data, or delete private or confidential information. Any intrusive software that can enter your computer security software systems and cause harm, destruction, or data theft is known as malware. Viruses, worms, Trojan horses, and ransomware are among the most prevalent forms of malware threats.

The 2020 SolarWinds malware assault is among the most recognisable cybersecurity attacks in recent memory. Early in the year, hackers gained access to the Texas-based SolarWinds' network and introduced malicious code into Orion, the company's popular software system used by about 33,000 of its clients to manage their IT resources. Customers of SolarWinds who were using Orion received software upgrades in March 2020 that contained the malicious code that the hackers had implanted. The cybercriminals were then able to install more malware to spy on these businesses and organisations since the spyware had built a backdoor into the IT systems of SolarWinds' clients.

Ransomware is another common form of computer cybersecurity attack. By encrypting a victim's files, this type of malware enables the attacker to demand payment in exchange for the decryption key. A ransomware attack on Colonial Pipeline in 2021 forced the business to temporarily cease operations, which caused fuel scarcity in the southern United States. Via a virtual private network (VPN) account that gave Colonial's staff remote access to its computer network, the hackers initially got access to the company's networks. However, because the VPN did not require multi-factor authentication, the attackers were able to access Colonial's network by using just a hacked username and password. These details were probably discovered as a result of a data breach that made an employee's login information public. Colonial ultimately paid the hackers $4.4 million in exchange for a decryption key that would allow them to retrieve their data. Yet, the decryption key operated so slowly that the business was forced to rely on its own backups to resume service. Colonial Pipeline was eventually able to restart operations, but only following a catastrophic blow to their company that had a variety of negative financial and reputational effects.

Manage Supply Chain Cybersecurity attack risks with Kodehash

It's time for your company to take a closer look at your supply chain and the cybersecurity attack risks they pose to your business. Kodehash, one of the best cybersecurity companies, gives you the visibility you need to stay ahead of threats and convey the impact of risk on high-priority business activities. It does this by giving you actionable information. With built-in knowledge that identifies and maps risks, threats, and controls for you, you can transform the unknown into measurable and actionable risk insights, allowing you to spend more time using the application and less time configuring it.

Your ability to communicate with the board and other key stakeholders in a way that is framed around their priorities is made possible by having a single, real-time picture of risk and business context. This allows you to keep your risk posture in step with the direction your business is headed.