Supply Chain Attacks: The Growing Threat to Cybersecurity(latest)

In today’s connected world, businesses depend on outside vendors and software providers to keep things running smoothly. While this collaboration brings many benefits, it also creates a serious security risk: supply chain attacks. Hackers are focusing on these third-party systems, finding weaknesses in the software they provide, and using them as a way to break into organizations.

What is a supply chain attack?

A supply chain attack happens when hackers target a trusted third-party vendor that provides essential services or software. These attacks can be classified into two types: software and hardware. In software supply chain attacks, malicious code is added to an application, affecting all its users. Hardware supply chain attacks, on the other hand, involve tampering with physical components to achieve the same goal.

Traditionally, supply chain attacks focus on weak links within a network of trusted relationships. For example, in the 2013 Target breach, hackers first infiltrated a smaller company that handled HVAC services for Target and used that access to access Target’s systems.

Nowadays, software supply chain attacks are a bigger concern. Modern software often uses pre-made components like third-party APIs, open-source libraries, and vendor-supplied code. The average software project relies on over 200 external components. If even one of these is compromised, every business using that software could be at risk, leading to many victims.

Additionally, software vulnerabilities can persist for years if the software is reused in different projects. Applications with small user communities are particularly vulnerable because they lack the collective scrutiny that larger communities provide.

Why are these attacks so dangerous?

Supply chain cyber attacks are dangerous because they can quickly spread throughout an organization, exploiting multiple weak points. A single compromised supplier can give criminals access to an entire system, allowing them to steal sensitive data or disrupt operations, often going unnoticed until it’s too late.

Every interaction with an external vendor or supplier introduces a risk. Even if you don’t think a supplier has critical access, consider software providers or those managing your IT services. Attacks on the supply chain can cause financial and reputational damage, especially in product manufacturing and logistics.

Additionally, supply chain attacks can hinder efforts to fight modern slavery by crippling companies that monitor supply chains. These attacks can even be used to destroy evidence of forced labor, making it harder for organizations to take action against unethical practices.

How a Supply Chain Attack Works:

Before hackers can carry out a supply chain attack, they first need to break into a third-party system, application, or tool that the target organization uses. This is known as the “upstream” attack. They might do this by stealing passwords, targeting vendors who temporarily access the system, or exploiting hidden flaws in the software.

Once they’ve gained access, they can launch the “downstream” attack, which affects the final target, usually through their browser or device. For example, in an upstream attack, the hacker adds harmful code to a vendor’s software. The downstream attack happens when that harmful code is activated on users’ devices during a normal software update.

What are common types of supply chain attacks?

Supply chain attacks can target various areas like hardware, software, applications, or devices managed by third parties. Here are some common types:

• Browser-based attacks: These attacks run harmful code on user browsers by targeting JavaScript libraries or browser extensions. They can also steal sensitive data stored in the browser, like cookies.
• Software attacks: Hackers hide malware in software updates. For example, in the SolarWinds attack, systems automatically downloaded these updates, unknowingly allowing hackers to infect devices.
• Open-source attacks: Attackers exploit vulnerabilities in open-source code, which organizations use to speed up development. Hackers can tamper with these codes to infiltrate systems.
• JavaScript attacks: Hackers find weaknesses in JavaScript code or embed harmful scripts into webpages that execute automatically when loaded.
• Magecart attacks: These attacks steal credit card information from online checkout forms by using malicious JavaScript code, often on third-party-managed forms.
• Watering hole attacks: Hackers target popular websites by finding security flaws and using them to deliver malware to users who visit those sites.
• Cryptojacking: This involves stealing computer resources to mine cryptocurrency by injecting harmful code into websites, open-source code, or through phishing.

Supply chain attack statistics:

Here are some recent statistics on supply chain attacks:

1. 2024 Cybersecurity Ventures Report:

• 75% of organizations consider supply chain attacks one of the top cyber threats they face.
• 50% of organizations have increased their cybersecurity budget to address supply chain risks in the last year.

1. 2024 Sumo Logic Survey:

• 40% of respondents said they experienced a significant supply chain attack that led to data breaches or operational disruptions in the past year.
• 52% of organizations reported that their supply chain security measures were insufficient to prevent these attacks.

These statistics highlight the growing concern over supply chain attacks and the need for stronger security measures.

How do you prevent and detect a supply chain attack?

Supply chain attacks are becoming a serious issue, threatening vital partnerships with suppliers. These attacks are challenging to detect, and just because the software was once secure doesn’t mean it’s still safe today.

To protect themselves, organizations need to thoroughly evaluate their vendors and reduce the risks that make them vulnerable. This involves using advanced prevention, detection, and response technologies.

Here are some key strategies for enhancing supply chain security:

1. Use behavioral-based detection tools: Supply chain attacks are complex, so it’s essential to employ technologies like machine learning (ML) that can identify unusual patterns, known as indicators of attack (IOAs). These tools can detect threats on a scale that human analysis alone cannot achieve.
2. Stay ahead with threat intelligence: Utilize threat intelligence to keep informed about emerging supply chain threats. Tools like CrowdStrike Falcon® Counter Adversary Operations offer automated threat analysis, providing critical insights for proactive defense.
3. Boost readiness with proactive services: Engage in proactive measures such as cybersecurity assessments and simulated supply chain attacks. These services help organizations understand their current vulnerabilities and create a plan to strengthen their defenses.