TechDogs-"Supply Chain Cybersecurity: How To Mitigate Risks In The Digital Ecosystem"

Enterprise Solutions

Supply Chain Cybersecurity: How To Mitigate Risks In The Digital Ecosystem

By TechDogs Editorial Team

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Overview

Lucy ordered a cool pair of sunglasses online but even a week later the item wasn’t delivered. After contacting customer care, she was informed that the company couldn’t pack the sunglasses as the shipment, coming in from another country, wasn’t delivered to them due to a cyber-attack. 
 
This even led to many orders being delayed. However, the executive assured her that her stylish sunglasses were safe and should be delivered in 2-3 days. So, Lucy waited and called them back after 3 days, when she realized the delivery was still pending. 
 
The executive informed her that their systems were hit by a cyber-attack, as hackers had piggybacked on data sent from the initially affected supplier and their database had been erased. However, he assured the company would restore their systems using backed-up data and her no-longer-trendy sunglasses should be delivered in a few days.
 
After waiting for another week, Lucy was disappointed and asked to cancel the delivery. Yet, the executive said he couldn’t do that as her information wasn’t available - remember, their database had been erased. He assured her that this situation was a temporary one and that even other businesses down the supply chain were affected by the attack, leading to a pause in global operations. 
 
Even in this make-believe scenario, one thing is clear: businesses need to protect their supply chains by mitigating risks. So, how can they do that?
 
Well, dive in and find out!
TechDogs-"Supply Chain Cybersecurity: How To Mitigate Risks In The Digital Ecosystem" Don't Box Yourself In With Poor Security!
Talking about online shopping, did you know that there were 2.64 billion (33% of the global population) online shoppers in 2023? In contrast, 70% of Americans shopped online in the same year. Interesting, right?

Either way, it doesn’t matter to John McClane, who was only focused on restoring balance and order to a country facing a cyberattack due to digital terrorism.

We’re talking about the 2007-released movie Live Free or Die Hard, which follows a digital attack on the US conducted by cyber terrorists, who gain control of government services such as transportation, traffic lights, water, gas, power, etc., by exploiting backdoor entries, vulnerabilities in code and supply chain interconnectivity to gain access.

They use this control to create a chaotic distraction AKA the “fire sale” to achieve their main plan. McClane, a bright cop but a stranger to the digital realm, teams up with Matt Farrell, a tech genius, to foil their plan of gaining control of the nation’s wealth and financial systems and save the country.

It’s an action movie, after all, so the good guys win in the end. However, the movie missed an important effect that would have happened in real life, which is all the victim businesses would have suffered not only in terms of money but also data. This is why supply chains need better protective measures!

Hence, many businesses focus on Supply Chain Cybersecurity to help them protect against bad actors and digital threats that have infiltrated their networks. Today, businesses share data, networks and system access with third parties to enhance their workflows, which could lead to vulnerabilities.

So, read on and explore what kind of cyber threats businesses face in their supply chains and how they can mitigate those risks! 

TechDogs-"What Are The Cyber Threats To Supply Chains?"-"A Meme Welcoming Readers To The Article"  

What Are The Cyber Threats To Supply Chains?


The year 2020 witnessed one of the biggest cybersecurity breaches of the 21st century – the SolarWinds hack, in which the company unknowingly delivered a backdoor malware as an update to its tool, providing cybercriminals an entry point.

This further filtered down to users of the tool, affecting the data, networks and systems of thousands of organizations, including local, state and federal agencies of the US government. All of this began with cybercriminals gaining unauthorized access to the SolarWinds network and ended up with the potential of reaching over 30,000 organizations!

This is just one such incident that the business world has seen but it gave rise to the importance of Supply Chain Cybersecurity and what kind of threats businesses need to be wary of. The major ones include:
 

  • Managed Service Exploits

    Many businesses use managed services to enhance their workflows. This includes software and systems that see updates from the providers. However, each update and new code comes with the risk of cracks, bugs or gaps that allow cybercriminals to sneak in. These are the gaps, AKA zero-day vulnerabilities, that they use to enter. Essentially, it serves as a launchpad for cybercriminals to attack numerous companies.

  • Software Vulnerabilities

    Vulnerabilities in code or open-source software can open the door to cyber attackers looking to implant ransomware or malware. This could include known errors that haven’t been patched up or intentionally planted backdoors to be exploited at a later date. A large part of these vectors come up because of blind trust between entities in the supply chain.

  • Data Breaches

    Ransomware enthusiasts focus on smaller companies that possess simpler cyber security practices to acquire stolen credentials to gain access to their systems and data. Once in, they can exploit the business, its partners and associates for financial gain in exchange for stolen data.

  • Compromised Partners

    In today’s business world, it’s nearly impossible to produce and deliver products and services without the aid of other businesses in the loop. Whether it's for sourcing materials, distributing goods or marketing activities, businesses work with third-party organizations to enhance their workflows. This includes providing access to networks and systems to them, meaning a chink in their armor is also one for you!


TechDogs-"How Can Businesses Mitigate Supply Chain Security Risks?"-"A Meme Showing The Impact Of Assuming Fake Identities"
With so many risks out there, what can be done to help businesses protect themselves? Read on!
 

How Can Businesses Mitigate Supply Chain Security Risks?


So, with the unstoppable rise of cyber-attacks, how do businesses mitigate risks? Here are a few pointers:
 

  • Businesses Should Enforce Least Privilege Principles

    It’s important to provide access to all those involved in the business operations and processes. However, businesses don’t need to overshare information. They should provide access and permissions to users, applications and systems based solely on their roles and functions, limiting exposed areas. This can be further propelled by using network segmentation, which divides the network into multiple pieces based on roles and trust levels.

  • Businesses Need To Assess Third-party Risks

    Businesses need to know exactly who they’re connected to when it comes to sharing sensitive information and confidential data. This is why they must assess the risk factors coming from their partners and third parties, using customizable testing methods. This also means conducting follow-up investigations to measure risk factors and making changes if needed.

  • Businesses Should Encrypt Data

    Evaluating external threats and risk factors can be overwhelming for businesses, however, using data encryption is a sure-shot way to protect all data, especially when dealing with third-party organizations. This includes using the Advanced Encryption Standard (AES), one of the hardest encryption types. Furthermore, incorporating DevSecOps practices helps businesses integrate continuous security, even before final production.

  • Businesses Need To Monitor Attack Surfaces

    If you’ve got a cut on your hand, you need to protect it to prevent further harm. Keeping to this principle, businesses need to ensure their security tools are well-equipped to identify and monitor vulnerable areas and third-party security risks as well as repel threats, identify vulnerabilities, conduct penetration testing and more. Furthermore, these processes can be enhanced by enabling automated security measures.

  • Businesses Should Use Blockchain Technology

    Having gained prominence in the last few years, using blockchain technology in the supply chain helps businesses enable transparent and tamper-proof transactions as each transaction is visible to all parties involved. This also helps in detecting execution errors, improving responsiveness, increasing security response and other benefits.


Using these methods doesn’t guarantee security but it does provide businesses with the best chance to mitigate risks. However, businesses should possess contingency plans in worst-case scenarios, to deal with breaches and attacks swiftly. That would make John McClane proud!

Aside from these efforts, businesses also need to consider some fundamental rules that should be followed regardless of what methods they employ to mitigate risks. Let’s explore what they are!
 

What Are The Primary Principles Businesses Should Follow?


Businesses looking to secure their supply chains and protect their data must follow basic rules. We break it down into these three core principles:
 

  • The Principle Of Preparation

    Businesses should develop security plans considering their systems will be breached. This helps enforce better measures and be well-prepared to mitigate risks.

  • The Principle Of People

    Often, the reason behind cyber-attacks is human error. This is why verifying and authenticating employees and other humans in the supply chain is important. This also includes educating them about the best practices and training employees to identify risks.

  • The Principle Of Parity

    Whether it’s physical or digital, there should be no gap between the efforts and measures taken to enforce security. Additionally, bad actors also exploit lapses in physical security to launch cyber-attacks.


TechDogs-"Securing Our Final Move"-"A Meme Showing A Business That Identifies A Fake Supplier And Is Confident In Handling It"  

Securing Our Final Move


Isolating networks, data and systems isn’t really an option for a business that’s trying to make it big in the era of globalization. To increase output and enhance workflows, it’s important to connect with other businesses in the supply chain. However, it’s equally important to protect from bad actors, cybercriminals and fraudulent organizations. This is why businesses must adopt effective security measures to mitigate risks in the digital ecosystem by adopting best practices in Supply Chain Cybersecurity!

Yippee-ki-yay!

Frequently Asked Questions

What Are The Common Cyber Threats To Supply Chains?


Supply chains face various cyber threats, including managed service exploits, software vulnerabilities, data breaches and compromised partners. Managed service exploits occur when updates or new code from providers contain cracks or bugs that cybercriminals exploit to access multiple companies. Software vulnerabilities, such as errors or intentionally planted backdoors, can lead to ransomware or malware attacks. Data breaches occur when cybercriminals target smaller companies with simpler cybersecurity practices to steal credentials and exploit systems for financial gain. Compromised partners also pose a risk, as businesses often share network and system access with third-party organizations, making vulnerabilities in their systems a potential threat to all connected entities.

How Can Businesses Mitigate Supply Chain Security Risks?


Businesses can mitigate supply chain security risks by enforcing least privilege principles, assessing third-party risks, encrypting data, monitoring attack surfaces and leveraging blockchain technology. Least privilege principles involve providing access and permissions based solely on users' roles and functions, limiting exposed areas and utilizing network segmentation. Assessing third-party risks involves identifying and testing risk factors from partners and conducting follow-up investigations to measure and address vulnerabilities. Data encryption, particularly using advanced encryption standards, helps protect sensitive information, while continuous security integration through DevSecOps practices enhances overall security. Monitoring attack surfaces and enabling automated security measures help to identify and repel threats effectively. Additionally, leveraging blockchain technology in supply chains enables transparent and tamper-proof transactions, enhancing security response and improving overall resilience.

What Are The Primary Principles Businesses Should Follow To Enhance Supply Chain Cybersecurity?


Businesses should follow three primary principles to enhance supply chain cybersecurity: the principle of preparation, the principle of people and the principle of parity. The principle of preparation involves developing security plans considering the possibility of breaches, ensuring better preparedness to mitigate risks effectively. The principle of people emphasizes verifying and authenticating individuals within the supply chain, educating them about best practices and providing training to identify and address risks. The principle of parity highlights the importance of maintaining consistency between physical and digital security measures, as lapses in either realm can be exploited by bad actors. By adhering to these principles, businesses can bolster their cybersecurity posture and protect their supply chains from evolving threats in the digital ecosystem.

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