Supply Chain Attacks: Why Your Vendors Could Be Your Biggest Risk

Supply Chain Attacks: Why Your Vendors Could Be Your Biggest Risk

Written by

— in

ThreatIntelligenceLab.com

Supply chain attacks target the weakest link in your ecosystem, and once an attacker compromises a supplier, they can worm their way into your organization.

I’ve been in the cybersecurity space long enough to know one thing: the biggest threat often doesn’t come from within your own network. It’s your trusted partners, vendors, and suppliers that could be your biggest risk.

This has never been more apparent than in recent cases like SolarWinds and Kaseya.

Both highlight how vulnerable companies are when they rely on third-party software or services.

What Are Supply Chain Attacks?

A supply chain attack occurs when a hacker infiltrates your network through an external partner, vendor, or service provider.

Instead of going after your own well-defended systems directly, attackers target a third-party vendor that has access to your network. Once they compromise the supplier, they exploit the relationship to infect or disrupt your systems.

These attacks can target software updates, hardware components, or even managed service providers (MSPs). Hackers sneak malicious code into software or hardware that you use, often going undetected for months.

The scary part is, these attacks are hard to detect because the compromised updates or systems come from trusted vendors. You expect your software updates to keep you secure—not open you up to risk.

Supply Chain Attacks
Supply Chain Attacks

Case Study 1: The SolarWinds Attack

The SolarWinds supply chain attack is one of the most notorious cases in recent years. In 2020, hackers—believed to be a state-sponsored group—inserted malicious code into an update of SolarWinds’ Orion software. This software is used by thousands of organizations, including Fortune 500 companies and U.S. government agencies.

When these companies downloaded the infected update, the attackers gained access to their systems. Once inside, they could spy on sensitive data and deploy further attacks.

This breach went undetected for months, affecting over 18,000 organizations. What made the SolarWinds attack so dangerous was its stealth. The attackers compromised a trusted piece of software, meaning companies were unaware they were installing malware.

Case Study 2: The Kaseya VSA Incident

Kaseya, a company providing IT management software, became the target of a ransomware attack in July 2021.

Hackers exploited a vulnerability in Kaseya’s VSA software, which is used by managed service providers (MSPs) to monitor and manage clients’ systems.

By breaching Kaseya’s software, the attackers indirectly affected hundreds of businesses worldwide. They deployed ransomware on their systems, demanding payment to restore access.

The ripple effect of this attack was huge. Many small and medium businesses rely on MSPs, and this attack showed how a single breach could take down multiple companies simultaneously.

Both SolarWinds and Kaseya underline the same message: if your vendors get hacked, your business could be next.

How Supply Chain Attacks Unfold

So, how exactly do these attacks happen? There are several methods hackers use:

  1. Compromising Software Updates: Attackers inject malicious code into legitimate software updates. Users download these updates, unknowingly giving hackers access to their systems. This was the method used in the SolarWinds breach.
  2. Exploiting Vendor Access: Many vendors have privileged access to your network for maintenance or support. Attackers can hijack this access to install malware or steal sensitive data. MSPs, like in the Kaseya attack, often have access to multiple companies’ systems, making them high-value targets.
  3. Hardware Backdoors: In some cases, attackers manipulate hardware components during manufacturing. These compromised devices are then sold to companies, giving hackers an entry point into their networks.
  4. Weakness in Third-Party Security: Vendors may not have the same level of security as your company, making them easier to breach. Once compromised, attackers use them as a stepping stone to get into your network.

Why Supply Chain Attacks Are So Dangerous

Supply chain attacks pose a unique challenge for organizations. Here’s why they’re so dangerous:

  • Difficulty in Detection: These attacks often remain undetected for long periods. Since the malware comes from a trusted source, companies don’t immediately suspect it.
  • Widespread Impact: A single breach can impact thousands of businesses. The SolarWinds attack affected over 18,000 organizations globally, showing how wide the damage can spread.
  • Loss of Trust: If your company falls victim to a supply chain attack, your customers may lose faith in your ability to keep their data safe. The reputational damage can be hard to recover from.
  • Cascading Effects: A compromised vendor may lead to a series of breaches. Once attackers are in your network, they can spread to other connected systems, causing widespread damage.

Building a Resilient Supply Chain

One thing is clear: you need to be proactive in defending against supply chain attacks. This starts with assessing your vendors and understanding the risks they pose.

The best way to protect your business is to ensure your suppliers are as secure as your own company. Security can’t stop at your organization’s borders. It has to extend throughout the entire supply chain.

I always tell clients that the weakest link can bring everything down. So, it’s essential to treat every external partner as a potential risk and act accordingly.

The more you can do to secure your vendors, the better protected your organization will be.

At the end of the day, no one is immune to supply chain attacks. But by being aware of the risks and implementing strong security measures, you can reduce your exposure and mitigate the damage if a breach does occur.

The key is vigilance. Always stay one step ahead. Whether it’s keeping tabs on your vendors or regularly updating your security protocols, I recommend you never get too comfortable. Supply chain attacks aren’t going away anytime soon—if anything, they’re becoming more sophisticated. Make sure you’re prepared.

Written by