Supply Chain Security: Protecting Manufacturers from Third-Party Risks

Are supply chain attacks on the rise?

‍Supply chain cyber threats are rising, with reports showing software supply chain attacks increasing 742% in just three years.  

Supply chains can host hundreds to thousands of vendors using their own cybersecurity protocols and systems—the ideal environment for threat actors to exploit and go in undetected. All it takes is one hacker to target a vulnerable vendor. Once infiltrated, they can implant malware up and down the company’s supply chain, resulting in severe operational, financial, and reputational damage.  

Types of supply chain attacks

Cybercriminals use supply chain attacks to delay manufacturing processes and cause disruptions to services. Additional attacks include ransomware for companies known for retaining/sharing valuable client data. These hackers enter through various methods, with the two most prominent techniques being…

• Social Engineering Supply Chain Attacks: Attackers compromise a vendor account (social media, work email, etc.) and send persuasive phishing attacks from accounts previously recognized as reputable.  ‍
• Supply Chain Software Attacks (Backdoor Attacks): Hackers locate vendors with network weak spots where they enter, create a backdoor for other attackers, and install malware into apps/programs used by the entire supply chain.  

How can manufacturers strengthen supply chain security?

Supply chain attacks are hard to detect because they often use previously entrusted software/accounts that can be widely distributed. In response, all organizations in your supply chain should prioritize cybersecurity and acknowledge the protocols implemented throughout to help prevent these gaps.  

The problem is most organizations lack the resources or budget to deploy and manage their own cybersecurity, let alone monitor third-party vendors to such measures. To counter such limitations, some manufacturers have begun deploying new, cost-effective best practices to strengthen their borders in case of a breach…

‍Security Awareness Training: Supply chain attacks typically start through email or social interaction. It’s essential to inform employees of the potential risks and how threats may come from verified/recognized accounts. Instruct them to report suspicious activity or anything driving urgency (like paying an invoice) from a vendor. Further educate employees on the possible risks using Security Awareness Training programs explicitly designed for the manufacturing industry.  

Least Privilege & Zero Trust: 70% of organizations have experienced a third-party breach from granting too much access. Practicing “least privilege” means your users’ apps/systems only access the permissions necessary for their position. This minimizes unauthorized access and helps limit the chance of a compromised supplier entering your network and accessing sensitive data. Reinforce data permissions with a Zero Trust Endpoint Security solution and secure your network from malicious and misused vendor software using Allow-listing, Ringfencing™, storage control, elevation control, and a reputation intelligence engine that monitors app usage 24/7.

Vulnerability Assessments: Knowing your network is secure from internal and external threats is crucial. Vulnerability Assessments identify holes in your systems to provide insights on necessary action items to secure your perimeter.  

Managed Perimeter Security: After you expose vulnerabilities, it’s time to assess what your network needs to become secure. A Managed Perimeter Security solution allows you to scale services by integrating Next-Generation Firewall, SD-WAN overlay, LTE failover, and Virtual Private Network (VPN) to provide advanced threat detection and prevention with intelligent routing based on your requirements.  

Cybersecurity Operations Center: Proactively manage information systems and monitor your network 24/7 using a dedicated Cybersecurity Operations Center (CyberSOC) that scales services according to your evolving network demands. Through best-in-class features like managed extended detection and response (MXDR), web filtering, firewall configuration, cybersecurity incident response, advanced endpoint detection and response (EDR), and active directory hardening, manufacturers can utilize a CyberSOC to deter third-party attacks and manage incidents at a fraction of the cost.  

Test Your Network: Reduce third-party risks by proactively testing your network’s security and identifying if unauthorized users can access your corporate systems via the supply chain using Penetration Testing. Simulate real-world scenarios attacks on your network by exploiting weaknesses hackers would use after entering your supply chain and provide a comprehensive/systematic approach to cybersecurity risk management using Penetration Testing services.  

Please note, if you employ SCADA equipment, you should NOT test your legacy equipment as it can cause disruptions to the supply chain. Instead, run a Penetration Test on the layers of security around that equipment.

‍Conclusion

With constant new outside security risks from customers and vendors, supply-chain cybersecurity has become a proactive effort for manufacturers. By educating staff on the current tactics used by threat actors and cost-effectively deploying cybersecurity, manufacturers can defend themselves from third-party security gaps and ensure they stay protected 24/7.