Supply chains are complex and depend on many partners, which makes them more open to cybersecurity risks. Some of the biggest supply chain security threats come from targeted attacks, like social engineering, ransomware, stolen passwords, and hacked software.
However, one major issue is that security leaders sometimes overlook the importance of testing their systems regularly, assuming that current protections are enough. This oversight can leave supply chains vulnerable.
In this blog, we’ll explore the different security threats supply chains face today and look at practical ways to prevent them. Let’s get started!
What is Supply Chain Security?
Supply chain security involves managing risks across supply chains and operations, which often includes working with external suppliers, vendors, logistics, and transportation.
The main goal is identifying, assessing, and reducing any threats that could disrupt these activities or create risks when coordinating with outside parties. This involves both physical security for products and processes and cybersecurity for software and services. Guidelines and best practices may vary by industry.
While definitions may differ slightly, all agree that supply chain security encompasses multiple areas that need attention to ensure products move safely and securely from their origin to their final destination; however, there are some ways to prevent supply chain attacks.
Supply Chain Attacks
Cyber attackers commonly access supply chains through open-source repositories, public code, and login credentials. As these incidents rise and regulatory bodies focus on enhancing national supply chain security, organizations may soon face stricter compliance requirements.
The challenge today is that each entity in the supply chain extends into your operations. Any supplier function—whether cleaning services, cloud storage, or payment processing—creates an entry point for attackers, as they often have physical or digital access to your data and infrastructure.
10 Supply Chain Security Threats in 2024
Security threats include any vulnerabilities or cyber risks that compromise sensitive data and data protection. Below are some of the top supply chain security risks that have raised concerns in 2024.
1. Third-Party Vendor Risks
Third-party relationships often bring notable data security risks to organizations, usually due to poor security practices rooted in weak security strategies. Unfortunately, many third-party vendors may not prioritize cybersecurity as much as their clients do.
2. Digital Risks
As companies adopt more digital solutions, new network access points for cybercriminals emerge. Digital risks can stem from software vulnerabilities, such as zero-day exploits or configuration errors. Left unchecked, these digital risks could lead to:
3. Ransomware Attacks
- Security breaches
- Malware infections
- Process disruptions
- Intellectual property theft
- Non-compliance with security standards, particularly in healthcare.
4. Supplier Fraud
Supplier fraud (or vendor fraud) occurs when cybercriminals impersonate a legitimate vendor to request changes in payment processes. These incidents are challenging to detect, as fraudsters often use advanced social engineering techniques, including AI-generated voicemails, phishing, and deepfake videos.
Supplier fraud is one of many fraud types affecting global supply chain security. According to the Federal Trade Commission, Americans lost over $5.8 billion to fraud in 2021, a $2.4 billion increase from 2020.
5. Data Protection
Securing data across the supply chain is critical. Security measures should protect data at all stages, both at rest and in transit. Data encryption, particularly for third-party interactions, is essential since vendors often have access to sensitive information.
6. Social Engineering
Social engineering is one of the simplest attacks for cybercriminals to carry out. Attackers manipulate users into sharing login details, allowing access to sensitive data, or installing malware. These attacks happen through phishing, smishing, in-person contact, or social media. Companies often provide security training to reduce these risks, yet social engineering remains a significant threat.
7. Stolen Login Credentials
With access to stolen login credentials, attackers can enter networks, applications, or databases. These credentials may be obtained through phishing, keylogging malware, or even found on the deep web. Complete login pairs allow criminals to exploit systems through single sign-on, impacting all connected services.
8. Compromised Software
Attackers can inject malicious code into third-party software libraries used within a supply chain. When this happens, vulnerabilities in one partner’s system can easily spread to others. These compromises may come from posting encryption keys online, uploading malicious code to public repositories, or introducing vulnerable code into production, exposing the system to attacks like SQL injection.
9. Lack of System Oversight and Maintenance
Weaknesses in security testing, poor vulnerability management, and reusing credentials are common issues that contribute to supply chain risks. Cybersecurity leaders must recognize and address these gaps, such as educating employees on the risks of password reuse and implementing regular system testing.
10. Ransomware
Ransomware poses one of the most severe threats to supply chains. By locking down critical systems, ransomware attacks can halt business operations and compromise files and databases. The damage extends to downstream partners, affecting overall business continuity and exposing sensitive data if criminals leak it online.
8 Best Practices for Supply Chain Risk Management in 2024
Following these best practices can help tackle common cybersecurity risks in supply chains:
1. Third-Party Risk Assessments
Scheduling regular risk assessments for third-party vendors can uncover security risks before attackers do. These assessments should be flexible, allowing customization for each supplier’s unique risk factors.
2. Data Encryption
To reduce the risk to sensitive data if a third-party breach occurs, encryption should be enforced across all data types, especially where third-party systems connect. The Advanced Encryption Standard (AES), widely used by government and military institutions, is ideal for its strong security.
3. Attack Surface Monitoring
An attack surface monitoring tool can identify third-party security risks that may increase the likelihood of a supply chain attack.
4. Incident Response Planning
A response to a supply chain attack should be coordinated and strategic. A well-developed incident response plan enables the security team to address each type of supply chain attack scenario efficiently, minimizing any disruption to business operations.
5. Penetration Testing
Penetration testing should regularly assess response plans so they’re ready when needed. This testing also helps identify advanced supply chain security threats that standard security measures may miss.
6. Identify Third-Party Risks to Company Operations
Leaders need extra vigilance with vendors and partners and should recognize that third-party risks don’t affect only those partners—they can impact the company too. Security questionnaires and contract clauses can help manage third-party risks, but it’s wise to plan for incidents impacting partners.
7. Conduct Thorough Security Assessments
Inadequate security assessments are common and often leave companies vulnerable. Leaders should prioritize tackling these gaps before a crisis requires immediate action. Commonly missed steps include failing to test all network hosts, applications, and potential threat angles. This oversight can leave openings for supply chain security breaches.
8. Track Security Successes and Weaknesses
Cybersecurity metrics are valuable for identifying strengths and areas that need improvement. Metrics will vary by company, but an in-depth risk assessment and discussions with security committee members can reveal key areas for monitoring.
Common metrics include the frequency and speed of applying security patches, the company’s preparedness level for different attack types, and the average time it takes to resolve incidents.
FAQ: 10 Supply Chain Security Threats and How to Mitigate Them
How to ensure supply chain security while on a budget ?
To secure the supply chain affordably, companies can use regular risk assessments, open-source cybersecurity tools, and employee training on basic security practices, focusing on third-party risks and data encryption.
What is the current trend in supply chain security ?
Increasingly, companies are adopting real-time risk monitoring and AI-driven threat detection to protect against cyber threats. Supply chain resilience and compliance with security regulations are also major trends in 2024.
How common are supply chain security attacks in India ?
Supply chain attacks are rising in India, especially targeting sectors like IT and manufacturing. As third-party dependencies grow, so does vulnerability, with more businesses facing data breaches and service disruptions.
Conclusion
In 2024, supply chain security threats pose considerable challenges to businesses, affecting operational stability and data protection. By implementing proactive measures such as regular risk assessments, robust encryption, and comprehensive incident response planning, organizations can enhance their defenses.
At Qodenext, we are dedicated to providing tailored security solutions that help safeguard your supply chain against evolving cyber threats.
