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Supply Chain Attacks

What is a supply chain attack?

A supply chain attack refers to a cyberattack that targets the weakest link in an organization's supply chain to intrude into its network and resources. Instead of targeting the organization directly, attackers infiltrate the software, hardware, or processes of trusted third parties in the supply chain to reach the intended victims.

Lifecycle of a supply chain attack

The lifecycle of a supply chain attack typically involves these stages:

1. Targeting a third-party vendor: Attackers identify a vulnerable supplier or partner with trusted access to the main organization.
2. Exploitation: Attackers exploit weaknesses in the vendor’s systems through phishing emails, outdated software, or insecure code.
3. Malicious code injection: Harmful code is inserted into software updates or hardware products.
4. Delivery: The compromised product or update is delivered to the target organization.
5. Network access and escalation: Attackers gain system access, move laterally, escalate privileges, and steal data or deploy more malware.

Case study: The SolarWinds supply chain attack

SolarWinds is a global software company that provides IT management and security solutions. Its product, Orion, is used by thousands of government agencies, corporations, and institutions to monitor and manage their IT infrastructure.

In 2020, hackers broke into SolarWinds’ software development process. They injected a malicious code called Sunburst, into Orion’s software updates. When SolarWinds released the compromised update, it was unknowingly installed by more than 18,000 customers worldwide. This gave attackers hidden access to sensitive networks, including government systems and major corporations.

The SolarWinds attack showed how dangerous supply chain attacks can be. By targeting a trusted third-party provider, hackers were able to reach thousands of victims at once.

Best practices to prevent supply chain attacks

Supply chain attacks often target weak links like third-party vendors and applications. A strong security framework needs to cover all these areas. Here are the key best practices:

1. Build a strong cybersecurity policy for the organization

• Set standard security protocols for all third parties.
• Set clear guidelines and best practices for managing risks across your supply chain.
• Identify risks and vulnerabilities in the supply chain.
• Ensure defensive measures (backups, recovery, awareness) are in place to preserve data integrity and availability in the event of an attack.
• Ensure that offensive measures (penetration testing, red teaming, honeytokens) are in place that can detect and respond to intrusions early.
• Carry out audits and continuous monitoring.

2. Run regular supply chain risk assessments and audits

• Review your supply chain often to spot weaknesses.
• Audit vendor practices to prevent vendor email compromise.
• Update assessments whenever you add new vendors or tools.
• Fix issues quickly through training, upgrades, or stricter rules.
• Ensure that all your third parties meet your security standards.
• Ensure compliance of third parties with mandatory data protection laws.

3. Adopt zero trust security

• Follow the principle of “never trust, always verify.”
• Require multi-factor authentication (MFA) for all users, devices, and apps.
• Encrypt sensitive data and track access in real time.
• Restrict lateral movement within the network.

4. Strict access controls

• Use Identity and Access Management (IAM) solutions.
• Apply the least privilege rule and role-based access controls (RBAC).
• Enforce MFA at every login, especially for critical systems.
• Regularly review and update permissions.

5. Secure applications and data

• Always encrypt data when it’s moving between systems and when it’s stored.
• Use secure coding practices during development.
• Run regular vulnerability tests and patch quickly.
• Ensure code security in all stages of development.

6. Strengthen email security

Email is the most common entry point for supply chain breaches.

• Deploy advanced email security solutions like Zoho eProtect to block phishing, malware, and spoofed emails.
• Require MFA for email logins to stop account takeovers.
• Enable SPF, DKIM, and DMARC for email authentication.
• Monitor email traffic for unusual activity.
• Train employees to recognize phishing attempts.

7. Manage vendors carefully

• Screen vendors using questionnaires, security audits, and policy checks.
• Require vendors to use MFA and strong authentication methods.
• Add cybersecurity obligations to contracts.
• Continuously monitor vendors and communicate openly.

8. Train and raise awareness

• Train employees and partners to spot phishing, scams, and malware.
• Run mock attack drills to test readiness.
• Promote a security-first culture.

9. Have a strategy in place for incidents

• Maintain a clear incident response plan (IRP).
• Test it through regular drills.
• Keep backups and recovery processes ready.
• Review lessons learned after each incident and improve defenses.