Indirect attacks via suppliers account for 40% of security breaches. Here's what to look out for.

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How safe is your supply chain?

Indirect attacks via suppliers account for 40% of security breaches. Here's what to look out for.

While companies across sectors have been shoring up their cybersecurity defenses with technologies such as firewalls, endpoint protection, and Network Detection and Response, one area often remains overlooked: Securing the supply chain.

Indirect attacks against weak links in the supply chain now account for 40 percent of security breaches, according to the Accenture Security / Third State of Cyber Resilience Report. Indeed, the days of having well-defined data boundaries are gone, and traditional data protections are no longer sufficient to secure such vast ecosystems.

How can you protect your supply chain from data breaches, including intellectual property theft, while recognizing that many of the companies that work in the supply chain have neither the revenue nor the capacity to really run an in-house Security Operations Center

As IronNet’s Co-CEO General (Ret.) Keith Alexander recently discussed with Sandy Carter, VP, Amazon Web Services, during a Carahsoft webinar on the federal supply chain, "What companies are now looking at is securing the supply chain: Getting an umbrella over the thousands of companies in the defense supply chain to help secure them is part of our future. We have got to do it.”

We’re no longer talking about just a physical supply chain of moving a product from production to market. Today’s supply chain is an extended, connected web that spreads in every direction. It can be a digital supply chain where risks such as compromised code present a third-party risk (as recently revealed in a malicious iOS SDK used in 1,200 apps downloaded in total about 300 million times a month). 

In its “Meeting the Requirements of the Supply Chain Imperative," white paper, the government IT solutions provider Carahsoft reported that across the federal IT supply chain last year, for example, CISA identified nine threat groups, including counterfeit parts and insider threats. 

“As IT supply chains grow more complicated, they also become more vulnerable. Much like a physical chain has physical links, IT supply chains contain interrelated parts that can become prey for bad actors.”

Securing the weak spots in your supply chain

While an individual company may have hundreds, even thousands of third-party entities, across its supply chain, it’s important to keep in mind that a single company’s brand and reputation are on the line. Supply chain vendors often remain behind the scenes, yet they can inadvertently open the so-called back door through which large-scale supply chain attacks are launched. 

Case in point: the massive Target breach in January 2014, which led to the theft of the Personal Identifiable Information (PII) of 70 million customers and 40 million credit cards and debit cards from the retailer. Consumers remember Target — not the HVAC vendor responsible for the infiltration.

Clearly it’s time to scrutinize third-party risk with vigilance. Where are the weak spots?

5 common types of supply chain attacks 

Sophisticated attackers know where the weak spots are, and they are taking advantage of these backdoor ways to infiltrate a company’s ecosystem. Here are some techniques they are using to attack:

  1. Business Email Compromise (BEC): Often associated with financial transfers, where criminals leverage the fact that business is often conducted via email.
  2. Using vulnerability information gleaned from OSINT tools: Finding weaknesses in supplier or vendors in your supply chain to exploit in order to gain entry to your networks.
  3. “Living off the land” (or “fileless”) attacks: Gaining additional access using tools that already exist in the computing environment.
  4. Embedded systems: Accessing backdoors through network-aware embedded systems, Operational Technology (OT), and IoT devices.
  5. Service providers: Taking advantage of the potential risk associated with the usage of third-party service providers.

How to defend against these attacks

The question is how to detect and defend against these attacks. Discover in IronNet’s new white paper, “A web of weak spots,” how to secure your supply chain, including specific ways to stave off these common types of attacks and best practices for strengthening third-party risk management programs.