It is no secret that the cybersecurity landscape is becoming increasingly threatening, especially as more companies along the supply chain move their operations online. While the proliferation of digital technologies benefits businesses in multiple ways, it also increases the risk of cyberattacks.
When a supply chain suffers an attack, it can severely back up the production, transportation and delivery of goods. Some industries can survive the setback, but sectors like health care cannot afford such a delay. Supply chain cyber attacks are some of the most significant threats to business – and they require considerable preparation to combat.
The Rising Threat of Supply Chain Cyber Attacks
There are many reasons why threat actors target individual entities along the supply chain. First, the supply chain is becoming more interconnected and globalized than ever before. Companies across the world are communicating with each other more frequently to share critical information and keep operations running smoothly. These increased communications provide cybercriminals more opportunities and entry points to launch attacks.
Second, the shipping, logistics and transportation industries are some of the economy’s most profitable sectors. A lot of money is circulating between businesses in these industries, so threat actors will target those companies to earn a big payout. Additionally, these attackers know they stand to make a great deal if they ransom vital data.
Finally, members of the supply chain have varying degrees of cybersecurity protections in place. No two companies have the exact same tech stack or cybersecurity program, which can cause vulnerabilities along the supply chain. Threat actors can exploit network or system vulnerabilities to launch attacks, some of which have a domino effect on members of the supply chain.
Common Attacks Targeting Supply Chains
Organizations need to be aware of various types of cybersecurity threats, as they could impact just about any company along the supply chain. Here are three common threats supply chain managers and their companies should know about.
Phishing
Logistics and shipping companies are facing a rising amount of phishing attacks. In a phishing attack, threat actors will pose as a legitimate business or individual to send fraudulent messages to victims.
Threat actors send these messages to lure victims into giving up sensitive information about the company, such as login credentials or financial data. Many cybersecurity attacks occur due to human error, which means businesses can do more to protect themselves.
Ransomware
Another attack companies along the supply chain face is ransomware. Ransomware involves cybercriminals stealing sensitive business information and holding it hostage until the company pays a ransom, often an expensive one.
Cybercriminals may ask companies for hundreds of thousands or even millions of dollars, and there is no guarantee they will return the data to the organization affected.
Distributed Denial of Service (DDoS)
Internet of Things (IoT) devices are highly beneficial for supply chains, as they allow for increased visibility and interconnection between vendors. And while many IoT devices come with enhanced data security measures, there are still cases of IoT device compromises.
In a DDoS attack, cybercriminals will target IoT devices, which will expand a company’s attack surface. Once they exploit an IoT device, hackers can use them to launch further attacks, such as a data breach or ransomware.
How Organizations Can Prevent Supply Chain Attacks
According to a 2022 report from Anchore, supply chain attacks are impacting 62% of organizations and that figure will likely grow in the next few years. With more attacks happening, it is crucial for businesses to do what they can to prevent them.
Conduct Risk Assessments
Since there are several entities involved in a single supply chain, it is important for each organization to conduct risk assessments. As their names suggest, these assessments determine how much risk each member of the supply chain is operating at, allowing companies to take preventive measures. When businesses can identify gaps in their supply chain, they can take various actions to fill them and protect themselves.
Use Automatic Threat Detection and Prevention Tools
Companies with supply chains can also invest in several types of cybersecurity tools that do the heavy lifting for them in terms of attack prevention and detection. In the cybersecurity field, it is always a good idea to take a proactive approach.
Rather than recover from a cyber incident, organizations should focus on preventing them from ever happening in the first place. With automated threat prevention and detection tools, businesses can stay ahead of the curve.
Prioritize Data Backups
With an increasing amount of data generated every day, members of a supply chain should ensure they are backing up all data as a safety measure. There is no way to know precisely when or if a cybersecurity incident will occur, but having data backed up can safeguard against data loss. Research shows less than half of organizations regularly test their backup options. This figure needs to increase, as data backups can help during the recovery process post-attack.
Implement Cybersecurity Training for Employees
An excellent measure organizations should consider taking is training their employees. As mentioned above, human error is a common reason why cybersecurity incidents are successful.
Training employees will ensure members of the supply chain are doing their due diligence to prevent social engineering attacks such as phishing or malware. While employee training may not prevent attacks entirely, it can significantly reduce the chances of an attack impacting an organization.
Bolstering Supply Chain Resilience in 2023
Businesses of all types and sizes are at risk of facing a cybersecurity incident, including those impacting the global, interconnected supply chain. Therefore, it is critical for organizations to prioritize their cybersecurity, as it can improve their cybersecurity posture and protect their assets.
The tips above serve as a starting point for businesses looking to improve their cybersecurity measures. While these actions may not stop cybercriminals in their track, they are certainly a step in the right direction to help companies protect themselves from supply chain cyber attacks. An organization that takes preventative measures is one that stands a better chance of recovery.
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