A supply chain cyber attack is a type of cyber attack where threat actors target vulnerabilities in an organisation’s supply chain to gain unauthorised access, compromise systems, or disrupt operations.
Instead of directly attacking the primary target, hackers exploit weaknesses in third-party vendors, suppliers, or service providers that the target organisation relies on.
Key characteristics of supply chain cyber attacks
- Indirect access. The attackers compromise a third-party supplier, vendor, or partner to gain entry into the primary target’s network.
- Software or hardware exploitation. These attacks often involve tampering with software updates, hardware components, or other tools provided by third-party vendors.
- Wide-scale impact. By compromising a supplier, attackers can affect multiple organisations that use the supplier’s services or products.
Common methods of attack
- Software supply chain attacks. Hackers inject malicious code into software updates or applications a trusted vendor distributes.
Example: The SolarWinds cyberattack (compromised updates).
- Hardware supply chain attacks. Malicious components or backdoors are embedded in hardware during manufacturing or distribution.
Example: Alleged instances of compromised chips in servers.
- Third-party service provider exploitation. Attackers access the target organisation through compromised credentials or vulnerabilities in a third-party service provider.
Example: The 2013 Target breach, where attackers exploited an HVAC vendor.
- Open-source component exploitation. Insertion of malicious code into widely-used open-source libraries or dependencies.
Example: Log4j vulnerability exploitation in 2021.
Impacts of supply chain cyber attacks
- Data breaches. Unauthorised access to sensitive data.
- Operational disruption. Interruption of business operations due to compromised systems.
- Reputational damage. Loss of trust from customers and partners.
- Regulatory fines.: Organisations may face legal penalties for failing to secure their supply chain.
Why supply chains are vulnerable
- Complexity. Modern supply chains involve numerous interconnected entities.
- Trust relationships. Organisations often trust third-party vendors, sometimes without rigorous security checks.
- Globalisation. The widespread use of global vendors increases the attack surface.
- Resource constraints. Smaller vendors may lack the resources to implement robust cybersecurity measures.
To mitigate risks, organizations should adopt supply chain security measures, such as vendor risk assessments, zero-trust security models, regular audits, and enhanced monitoring.
Real-life example of a supply chain attack - SolarWinds
A well-known example of a supply chain cyberattack is the SolarWinds Cyberattack that came to light in December 2020. Here’s a breakdown of what happened:
Background
SolarWinds is a US-based IT management company whose software, Orion, is widely used by government agencies, corporations, and other organisations to manage their IT infrastructure.
The attack
- Infiltration. Hackers, believed to be a sophisticated group with ties to a foreign government (widely attributed to Russia), gained access to SolarWinds’ systems.
- Malicious code injection. Between March and June 2020, the attackers injected a backdoor, called SUNBURST, into the Orion software updates.
- Distribution. When customers downloaded and installed the compromised updates, they inadvertently allowed the attackers to access their systems.
- Exploitation. Once inside, the attackers could spy on networks, steal sensitive data, or manipulate systems.
Scope of Impact
The attack affected 18,000 organisations that downloaded the compromised update, including:
- US federal agencies such as the Department of Homeland Security, Treasury Department, and Department of Defence.
- Major corporations like Microsoft and Intel.
- Other global organisations across multiple sectors.
Despite this, only a fraction of the victims were specifically targeted for deeper exploitation.
Consequences
- Data theft. Sensitive government and corporate data were exfiltrated.
- Operational risks. Exposed vulnerabilities in software supply chains and reliance on third-party vendors.
- Regulatory and financial fallout. SolarWinds faced significant reputational damage, scrutiny from lawmakers, and financial repercussions.
Lessons learned
- Organisations recognised the importance of vetting their third-party vendors.
- There was an increased emphasis on implementing zero-trust architectures, enhancing software supply chain security, and improving threat detection and incident response processes.
This attack remains a textbook case of the dangers of supply chain vulnerabilities in cybersecurity.
