Supply Chain Malware: How can Software Development be helpful?

Introduction

• The open source development ecosystem has witnessed a significant rise in malicious software components by putting all the organizations on a high alert for software supply chain attacks.
• Malware can infiltrate the open-source software development at an triggered rate, according to a recent report from a software supply chain management organization, Sonatype. The company had found over 500,000 new malicious packages since last November 2023 across famous Java, JavaScript, Python and .NET packages registries.
• Any new malicious component would account for over 70% of 700,000 malware packages the organization tracked since 2019 when it first began to offer this statistics to its annual state of the software supply chain report.
• This malware wave adds to the challenge already posed by the quality of open-source components that the organizations choose for integration in their applications. Sonatype's data shows that the average number of third-party components per enterprise application is more than 180, which itself is a challenging number to manage.
• Moreover, the company also found over 80% of vulnerable application dependencies which remained unpatched for more than a year although 95% had safer alternatives available. Even after updates have been applied, in 3.6% of cases, vulnerable dependencies were updated to other insecure versions.
• A critical vulnerability in the logging library for Java, known as Log4 Shell, was identified in December 2021 in millions of applications. That flaw and a few others that cropped up shortly afterwards got much attention, but nearly three years later 13 percent of log4j downloads from the Maven Central Java repository remain for vulnerable versions.
• "Managing open-source risks requires that you optimize your security policies and practices in concert with the rapid acceleration of new OSS libraries," Sonatype wrote in its report. Organizations struggle with the impracticality of slowing down DevOps processes for manual vulnerability reviews, which is frustrating for the developers.

Now, further let us understand how Malware can make supply chain compromises.

Malware: How it can comprise Supply Chain management

• Just like in case of desktop viruses, the malicious components uploaded into the open-source package repositories may have different objectives and not all of them equally impact.
• Sonatype classifies almost half of all malicious components as "potentially unwanted applications" (PUAs), which are largely harmless in practice but hide functionality not provided to the end user. That includes protestware, where the software component's creator includes protest messages or actions intended to draw attention to a cause they care about.
• But another 12% are flagged as "security holding packages," which at some point in the past a maintainer of the ecosystem deemed malicious, and they have been replaced by a clean placeholder package so people using them draw attention to themselves.
• The others have pretty serious consequences which can result in supply chain compromises. Almost 14% of packages are distributed through phishing techniques, i.e. they use dependency confusion to impersonate internal packages used by companies with the goal of dropping further malware on development systems.
• Around 14% of malicious packages are built to steal sensitive files and data from machines like environment variables, authentication tokens, password files, and many other pieces of information that could help the attackers to compromise more systems later on. A subset of 3% of packages also focus on personally identifiable information and 3% would deploy backdoors and trojans on machines.
• Some other kinds of malicious actions are. Dropping cryptocurrency mining programs (1.2%), corrupting file systems or compromising the IDE tools which developers leverage to write code or continuous integration platforms.
• Some recent undesirable packages include: a developer uploading approximately 14,000 fake packages onto NPM for some cryptocurrency scheme to reward contributions to open source, attackers using typosquatting to push a Python package with a name very close to a very popular library that used to deploy the Lumma Windows stealer, and the ZX Utils backdoor - an example of years' worth of infiltration attack of a legitimate project by a rogue developer with the intent to poison the code.
• "Traditional malware scanning solutions are unable to detect these novel forms of attack, leaving developers and DevOps environments uniquely at risk," wrote researchers at Sonatype. "As the volume continues to grow so too will the clear and present danger facing organizations."

Now, further let us understand what are a few different types of Open source software security risks that you should know of before securing all your data.

10 well known software security risks

Below is a list of top 10 open source software risks, as per OWASP

Known vulnerabilities

• OSS components consist of known vulnerabilities like software flaws, often inadvertently introduced by a software developer and software maintainer and then it is disclosed publicly, usually by security researchers in the community.
• These vulnerabilities might be exploitable depending on the context in which it is used by an organization and an application. Although this point might seem trivial, it isn’t failing to offer developers with this context which can lead to a significant toil, wastage of time, frustration and often towards IT security departments.
• Moreover there are challenges, like the CISA Known Exploited Vulnerability catalog and an Exploit Prediction scoring system.
• Organizations can take the following actions to mitigate risk OSS components with known vulnerabilities involve scanning all OSS components used and prioritizing findings based on methods such as known exploitation, exploitation probability, reachability analysis, which can reduce as much as 80% of noisy findings and more.

Compromise of a legitimate package

• A malicious actor realizes the value of compromising a legitimate package to impact the downstream consumers in both an organizational and an individual way. Moreover, there are a number of methods which can be used to pursue this attack, hijacking the accounts of any project maintainer or exploiting a vulnerability in the package repository is one of them.
• These malicious codes can also volunteer to become maintainers only to pursue their criminal intentions down the road. This is exactly what happened in the recent XZ Utils incident as someone was posed to be a legitimate contributor over a longer course of time before embedding a backdoor in the code.
• Suggestions to tackle these risks consist of using emerging resources and guidance like Microsoft’s Secure Supply Chain consumption framework but there are more similar frameworks in the industry.

Name confusion attacks

• This kind of malicious code is where attackers build malicious components whose names resemble legitimate OSS packages or components with the hope they will be inadvertently installed and consumed by potential victims. These kinds of attacks are brought into the IT environments of an organization and can then impact the confidentiality, integrity and availability of the systems and data.
• Making sure the open-source software (OSS) packages or components developers want to obtain are authentic is the first step in thwarting name-confusion assaults. In this case, educating developers about the potential for name-confusion attacks is essential.

Unmaintained software

• One harsh fact of open-source software (OSS) in contrast to proprietary software is the absence of a "supplier." The program is provided "as is" by OSS maintainers, which means there is no guarantee that it will be updated, maintained, or sustained.
• 85% of the codebases analyzed contained OSS components that were more than four years old and hadn't seen any fresh development in the previous two years, according to reports like Synopsys' OSS report.
• Software ages quickly, and according to annual NVD measurements, new vulnerabilities are appearing at a record-breaking rate. These trends don't look good for the security and hygiene of contemporary apps that rely on out-of-date OSS components.
• The majority of OSS is funded by unpaid volunteers. There's a chance that software components won't be actively developed or maintained, and that when they are, they won't be fixed on time for the software user who needs the component(s) or in line with the proprietary vendor's SLA for fixing vulnerabilities with downstream customers. You own an Open Source Software component (OSS) if you use it.
• According to researcher Chinmayi Sharma's publication "A Tragedy of the Digital Commons," which is highly recommended reading for those seeking a thorough analysis, nearly 25% of OSS projects have just one developer contributing code, and 94% of projects are maintained by ten or fewer developers. This is another significant factor leading to unmaintained OSS.

Outdated Software

• In this instance, a project is utilizing an antiquated version of a component even if there might be an update and/or newer version available. This is indeed the norm, occurring in the vast majority of code bases and repositories, as stated in the Synopsys research.
• Naturally, this is made more difficult by the complex and overwhelming number of dependencies that many contemporary software projects and apps have. Reports from organizations like Sonatype and Endor Labs, the latter of which released "The State of Dependency Management," underline this issue by demonstrating that transitive dependencies are linked to 95% of vulnerabilities.

Untracked Dependencies

• In this case, a project is using an outdated version of a component even when a newer or updated version might be available. According to the Synopsys research, this is the standard and can be seen in the great majority of code bases and repositories.
• Of course, this is made more challenging by the voluminous and intricate dependencies seen in many modern software projects and applications. Studies from companies like Sonatype and Endor Labs, who published "The State of Dependency Management," highlight this problem by showing that 95% of vulnerabilities are related to transitive dependencies.

License and regulatory risk

• This risk arises when projects or componentry might not have the necessary licenses or might have licenses that prevent downstream users from using them as intended. According to OWASP, companies must make sure their use of open-source software (OSS) components complies with the relevant license terms of such components. If you don't, you risk licensing violations, copyright infringement, and perhaps legal action.
• The increased usage of OSS components by enterprises in their proprietary goods, services, and offerings may have an impact on M&A activity, corporate business goals, and other areas.
• By determining the appropriate licensing for the components they use in their software and how they plan to use them, organizations can take steps to reduce these risks. Additionally, the report suggests that businesses refrain from using unlicensed components.

Immature software

• Because maintainers vary in their amount of involvement, software is not created evenly and instead exists on a maturity spectrum.
• It's possible that certain open-source software projects aren't utilizing safe software development techniques, such those listed in the NIST safe Software Development Framework (SSDF). A few specific instances may be the absence of review rules, regression testing, documentation, and many other best practices.
• Uncomfortable as it may be, a lot of developers don't care about security. Studies like this one conducted by the Laboratory for Innovation Science at Harvard University (LISH) and the Linux Foundation support this. They found that developers of free and open-source software dedicate only 2.3% of their effort to making their code more secure.

Unapproved change

• OWASP alerts developers to circumstances in which changes to a component might occur without their knowledge, approval, or review. This highlights the importance of safe transit and can happen when download links alter, point to un-versioned sites, or even involve tampered-with insecure data transfers.
• Using resource identifiers for assurance and linking to the same immutable artifact are examples of suggested actions and mitigations. Before installing and utilizing components, you can also confirm their signatures and digests. Furthermore, enterprises should employ secure protocols for network traffic transfer and communication in order to reduce the possibility of components being compromised while in transit.

Undersized dependency

• There are instances where parts may have a great deal of capability, of which only a small percentage is really utilized, or very little functionality at all. It's commonly referred to as "software bloat."
• Because of the small number of lines of code, the component in the undersized dependence example becomes dependent on security-related upstream projects. In contrast, code bloat, or an exponential increase in the amount of lines of code, results in an expanded attack surface as well as potentially exploitable code and dependencies that aren't really needed or employed for the intended reasons.

Best Practices for Securing Open Source Software

As organizations increasingly rely on open-source software (OSS) components, implementing robust security measures is essential to mitigate risks associated with malicious software. Here are key best practices to enhance the security of OSS:

Implementing Security Policies

• Establish Comprehensive Security Frameworks: Organizations should develop and enforce security policies that govern the use of OSS. These policies should define acceptable usage, risk assessment procedures, and guidelines for integrating third-party components. A well-defined framework helps in setting clear expectations and accountability across teams.

• Regular Policy Updates: Security policies must be dynamic, reflecting the evolving threat landscape. Regular reviews and updates ensure that organizations stay ahead of potential vulnerabilities and incorporate lessons learned from recent incidents. Engaging stakeholders in these reviews can foster a culture of security awareness.

Regular Audits and Scans

• Conduct Frequent Security Audits: Regular audits of OSS components help identify vulnerabilities before they can be exploited. This process should include both automated scans and manual reviews to ensure thoroughness. Organizations should prioritize auditing critical components that are integral to their applications.

• Utilize Automated Scanning Tools: Employ tools like Snyk, Black Duck, or Sonatype Nexus to automate the detection of known vulnerabilities in OSS components. These tools can provide real-time alerts about newly discovered vulnerabilities, allowing organizations to respond proactively.

Dependency Management

• Implement Dependency Management Tools: Use tools such as npm audit for JavaScript or Dependabot for GitHub repositories to track and manage dependencies effectively. These tools help ensure that all components are up-to-date and secure while minimizing the risk of introducing vulnerabilities through outdated libraries.

• Strict Version Control: Maintain strict version control policies to prevent unintentional updates to vulnerable versions of OSS components. This practice minimizes the risk of introducing new vulnerabilities during updates. Organizations should also consider using lock files to ensure consistent dependency versions across environments.

Education and Training

• Educate Developers on Security Risks: Conduct training sessions to raise awareness among developers about the risks associated with OSS. Topics should include identifying malicious packages, understanding license compliance, and recognizing phishing attempts related to dependency confusion. Continuous education can empower developers to make informed decisions regarding OSS usage.

• Promote a Security-First Culture: Foster a culture where security is prioritized throughout the development lifecycle. Encourage developers to consider security implications when selecting and integrating OSS components. Recognition programs for secure coding practices can also motivate teams to adopt security-first mindsets.

Incident Response Planning

• Develop an Incident Response Plan: Organizations should have a clear incident response plan in place for dealing with security breaches involving OSS. This plan should outline steps for containment, eradication, recovery, and communication during a security incident. Regular drills can help teams familiarize themselves with their roles during an actual event.

• Simulate Security Incidents: Conduct regular simulations of security incidents to test the effectiveness of the incident response plan. This practice helps identify gaps in procedures and ensures that all team members are prepared to act swiftly in case of a real threat.

By implementing these best practices, organizations can significantly reduce their exposure to risks associated with open-source software while fostering a secure development environment.

Future Outlook on Open Source Software Security

As the landscape of open-source software continues to evolve, several trends and predictions can shape its security:

• Increased Regulation: Governments and regulatory bodies may impose stricter regulations on software supply chains, requiring organizations to demonstrate compliance with security standards. This could lead to more formalized frameworks for assessing and managing OSS risks, compelling organizations to adopt rigorous compliance measures.

• Advancements in Threat Detection Technologies: The integration of artificial intelligence (AI) and machine learning (ML) into security tools will likely enhance threat detection capabilities. These technologies can analyze vast amounts of data to identify patterns indicative of malicious activity more effectively than traditional methods, enabling faster response times.

• Growing Importance of Supply Chain Security: As supply chain attacks become more prevalent, organizations will prioritize securing their entire software supply chain. This includes vetting not only their own code but also third-party libraries and dependencies. The focus will shift towards holistic risk management approaches that encompass all aspects of software development.

The Role of Organizations in Shaping Security Standards

• Collaboration with Open Source Communities: Organizations will increasingly collaborate with open-source communities to establish best practices for security. By contributing resources and expertise, companies can help improve the overall security posture of widely-used OSS projects. This collaboration can lead to shared vulnerability databases and collective defense strategies.

• Investment in Secure Development Practices: Companies will invest more in secure software development practices, including adopting frameworks like DevSecOps that integrate security into every stage of the development lifecycle. This shift will promote a proactive approach to identifying and mitigating vulnerabilities early on, ultimately leading to more resilient applications.

How hiring an Outsourced software development company help

The source of open-source software has increased with security threats being a serious problem. A partnership with an outsourced development company may lead to several benefits that increase security and efficiency.?

Here are a few key benefits:

• Expertise in Security Best Practices: Development firms mainly specialize in security best practices and actually have groups dedicated to understanding and looking into the risks brought about by the presence of open-source components. Organizations can make use of such expertise to avoid the perplexities of OSS security by finding out if it is correctly implemented at every stage of the development process.
• Access to Advanced Tools and Technologies: Companies are already investing in advanced security tools and technologies for vulnerability scanning, dependency management, and threat detection. Organizations can benefit from a host of advanced security measures without buying or maintaining these themselves.
• Proactive risk management: Proactive risk management on the part of the outsourced software development company will be achieved if it frequently audits and continuously monitors the open-source components. Thus, this enables the vulnerabilities before they can be exploited, and there is a reduction of prospects to supply chain attacks.
• Scalability and Flexibility: An outsourced team can scale development quickly without compromising security. This flexibility is most useful in fast-moving environments that offer a trade-off between speed of deployment and good security practices.
• Focus on Core Business Functions: By contracting the software development to an external agency, organizations focus on their core business operations and leave the complexities of software security to specialized experts. This is a strategic delegation, which enables internal teams to focus on innovation and customer engagement instead of getting bogged down by security concerns.
• Enhanced compliance and regulatory support: The outsourced companies are generally well informed about the requirements of open source software compliance for use. They help organizations deal with any licensing issues so that all components used are in conformity with relevant regulations with minimal legal risks associated with the OSS.
• Continuing Education and Training: Several firms outsourcing their development ensure the teams receive on-going training about emerging threats and best-practice solutions. A commitment to education on an on-going basis will ensure that developers have knowledge of the emerging risks which could impact the security development environment.

Then, by leveraging the advantages of an outsourced software development firm, the organization is able to strengthen its overall security posture and is in a position to deal with the complexities arising from open-source software integration. This, again, lowers risk but gives organizations the room to be agile and responsive in their approach to developing software in an increasingly rough scenario.

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Conclusion

The malware threat in open source software is a significant threat to the security of supply chains, thereby requiring organizations to take up a robust practice of security, including regular audits, dependency management, and training of employees. The future environment will require collaboration between organizations and open-source communities as well as investment in secure development practices.?

Other practice-based approaches in outsourcing software development for enhancing security would be possible through specialized expertise and advanced tools. Effective navigation of the complexities of open-source integration can be done by prioritizing security alongside innovation.

FAQs

1. What are the core risks in open-source software?

The known vulnerabilities, compromise of legitimate packages, name confusion attacks, unmaintained or outdated software, and license compliance issues have been the core risks in open-source software.

2. How do organizations secure their open-source components?

Organizations need to implement security policies, regularly conduct audits, use dependency management tools, and educate developers on the security risks.

3. Why is malware now a significant threat in open-source code?

Malware is spreading because more and more bad packages are popping up, and the difficulties associated with many third-party components make it complicated for firms to manage the respective problems.

4. How do outsourced companies that develop software help make it safer?

Outsourced firms bring in specialization in security best practices, employ advanced tools, proactively manage risks and educate developers to keep current on security.

5. How do firms remain open-source license compliant?

Organizations need to be informed about the terms of the license with which the OSS components are being used and should perform regular reviews for compliance as a part of their security policies.