Supply Chain Security 101: How To Protect Your Business

A supply chain attack targets and breaches a business’s online infrastructure by exploiting security gaps in its network of trusted suppliers, vendors, or service providers. Unfortunately, this means that most software supply chain attacks have at least two victims: the main target and the infiltrated third party, which serves as a breach gateway.

The most common entry points include external services and APIs, software development environments, open-source libraries, and update protocols. For example, if hackers want to infiltrate a business that uses third-party accounting software, they could exploit a security flaw in the payroll software and insert malware into a routine update. When the update is rolled out, the malware-laden software is distributed across the network, providing hackers free access to the business’s IT infrastructure.

It’s also worth mentioning polyfill supply chain attacks, where cybercriminals compromise JavaScript polyfills or other open-source dependencies, which several applications rely on. This allows the attacker to perform different criminal activities, such as diverting users to scam websites.

Unfortunately, the ripple effects of supply chain attacks can be devastating. Ultimately, it only takes a single compromised vendor to create a sequence of disruptions across several entities. Severe financial loss, data breach, service interruption, national security risk, product shortages, and regulatory penalties are a few examples.

The SolarWind supply chain attack is one of the most renowned cyberattacks in history. It compromised SolarWinds’ Orion IT network management system and was discovered in December 2020.

Hackers were able to inject a malicious backdoor into SolarWinds’ software updates, affecting over 15,000 customers worldwide. This impacted U.S. federal agencies, private sector entities, and European institutions, resulting in an average annual revenue loss of 11% for each affected business.

Fortunately, there are measures you can take to prevent supply chain attacks:

• Conduct regular audits on third-party vendor’s security posture.
• Perform background checks on the vendor’s software and open-source maintainers and ensure they follow safe development practices.
• Follow vendor risk management processes. This includes inspecting each vendor’s potential risks, including financial, operational, compliance, and cybersecurity liabilities.
• Take advantage of dynamic risk assessment tools that provide real-time analytics, allowing for prompt identification of changes in risk status.

• Deploy threat intelligence services to enhance risk assessment procedures.
• Use threat intelligence insights to improve data collection and analysis of network logs, security incidents, and external threat feeds.
• Identify trends, patterns, and indicators of potential threats and share them with relevant stakeholders via reports, dashboards, and alerts.

• Deploy code signing for executables and scripts to authenticate the developer’s identity and confirm the code hasn’t been tampered with.
• Keep networks segmented to minimize the attack surface for possible cyberattacks.
• Enforce multi-factor authentication (MFA) on all systems within the network.
• Ensure all systems and software are up-to-date with the latest fixes and patches.
• Apply the principles of zero-trust and least privilege for all suppliers’ access to critical assets.
• Use role-based access and authentication for all networks.

• Use decoys for detecting suspicious activity in the network:
  • Honeytokens: Fake sensitive data triggers an alert when accessed.
  • Fake logins: False credentials trigger unauthorized access alerts.
  • Fake networks: False network systems and components that resemble real assets, luring and trapping bad actors.
  • FullOS traps: Bogus operating systems that attract hackers while monitoring their activity.

• Offer cybersecurity education for all employees. Cyberthreat webinars, workshops, and training sessions are paramount for employees to detect potential hack attempts before it’s too late.

• Develop a thorough incident response plan and share it with partners and stakeholders.
• Fine-tune the incident response plan by regularly testing it against real-life scenarios.
• Guarantee offline backups for all critical data and systems.
• Create clear communication protocols for synchronized action.

All kinds of companies can fall victim to supply chain attacks, but the repercussions are likely to be the most severe for small businesses. This is partially due to the prevalence of misconceptions about cybersecurity and the lack of security budgets in smaller organizations.

Due to this, it’s fundamental to follow a practical vendor risk-management checklist to keep cyberthreats at bay.

It’s undeniable that supply chain cyberattacks are increasing each year and all businesses, regardless of size, should not overlook this threat. Cybercriminals are becoming more sophisticated, and if businesses want to reduce their chances of becoming victims, they must enhance their security measures.

That involves implementing cybersecurity essentials, such as evaluating third-party vendors’ security practices and software, performing regular risk assessment audits, and monitoring security patches. Plus, incident response plans and employee cybersecurity training are also fundamental to guaranteeing prompt and coordinated action in case of a breach.

In the end, proactivity and consistent vigilance are the keys to ensuring a solid defense against cyberthreats. Remember, now is the time to act. Leaving these tips and recommendations for another day may endanger your business.