The situation is alarming; according to reports and studies, in 2023, a staggering 2769 entities in the United States fell victim to cyber-attacks on the supply chain. This represents a shocking 58 percent increase since 2017, indicating the mounting threat. These figures are not mere statistics; they are a call to action for immediately installing a system for threat detection in the Supply Chain.

The supply chain is not just a sequence of operations; it’s an intricate network of interdependent organizations that actively contribute to completing work. As the industry’s reliance on digitization grows, so do the cybersecurity vulnerabilities in the supply chain. If digital integration and supply chain automation have raised the performance standards, they have also made them susceptible and open to cyber-attacks.

Importance of Supply Chain Cybersecurity

The complexity and advancement in technology also empower hackers. They do not have any set pattern or motive for infringement or defined purpose or objective for attacking a supply chain. There can be numerous motives for hacking a system and disrupting a company’s supply chain—penetrating a system can even be for fun and random demands. The motive could impair an organization’s operational, reputation, or financial aspects and impact growth and business.

However, some of the common motives for securing supply chain networks and adopting resilient supply chain security measures could be—

• Attack on Software—Software is an integral part of the system for institutions such as banks, hospitals, or others. If a hacker successfully infests the system with malware to seek personal and trusted data, it can harm the company’s reputation.
• Attack on the Network—Small retailers outsource their work to third-party logistics providers. To win retailers’ confidence, third-party service providers should prioritize securing logistics networks. Without secure supply chain communication, delivery will be delayed, and heavy losses can incur due to order cancellations. Cyber-attacks are mostly used to sabotage the position of a vendor or a retailer in eCommerce.
• Remote Working—Post-pandemic, the remote working culture has taken off, proving to be much more productive in many ways. However, most companies have adopted it without considering cyber resilience in the supply chain. Cybercriminals target the workforce in remote centers, with the weakest line of defense. Organizations should be able to identify and detect these threats and nip them in the bud.

Common Threats to Supply Chain

With cybersecurity concerns accelerating, supply chain risk management will be the most prominent recruiter. Cybercriminals adapt to technological advancements and send malicious wares to jeopardize an organization’s supply chain. To fight back, the Supply Chain Risk Assessment team should be aware of the following malware that can steal, destroy, and damage data and computer systems—

• Phishing—Phishing is the oldest and most common method of attacking a system. It is especially prevalent during peak e-commerce periods, such as Black Friday or Cyber Monday when customers are on a shopping spree. The purpose of this malicious ware is financial fraud, stealing sensitive data or credentials, and delivering malware into the system.
• Ransomware—Hackers plant ransomware into the system, encrypt files, and then make unreasonable demands for decrypting. Once encrypted by this virus, files can only be stored if a backup is available; otherwise, the system has to be restored.
• Mobile Malware—As the use of mobile apps increases, employees use mobiles to access sensitive information. Malicious mobile apps are similar to computer malware apps that can destroy the system instantly.
• Cryptominers—Cybercriminals mine cryptocurrency in the victim’s system to make profits.
• Trojans—These attack financial information and steal the credentials of banks and other financial institutions.
• Social Media—It is the most common place for data breaches. By taking advantage of social vulnerabilities, attackers use the same platform to find their prey.
• Man-in-the-Middle Attacks—Attackers intercept communication between two parties and alter the course of communication. For example, if a retailer or a customer pays a supplier or a vendor, the amount is credited to the attacker’s account instead of going to the supplier.
• Cloud Security—Security breaches often happen in cloud computing unless data is encrypted and secured. A single misconfiguration could cause essential data to land at the wrong terminal.

Best Practices for Supply Chain Security

As discussed above, cybersecurity is an increasing concern, becoming more sophisticated every day. It is essential to understand supply chain management to adopt best practices for supply chain security. Based on that, a cybersecurity framework for the supply chain can be developed and adopted. Some supply chain security best practices are—

• Supply Chain Threat Intelligence—A robust threat intelligence system to identify, detect, and counter any attempt to harm the security of supply chain networks. It should be able to locate any form of nefarious acts in the system.
• AI & Machine Learning—Artificial Intelligence and Machine Learning can be quite instrumental in the process as they strengthen supply chain defenses against cyber-attacks. AI-powered anomaly detection can detect any behavior that is different from usual.
• IoT Security—The Internet of Things can build efficient security for the supply chain. The IoT ecosystem requires device authentication and data encryption to share information, and devices are continuously monitored for security.
• Blockchain—It is a decentralized, tamper-proof, and immutable ledger that organizations can use for transferring information along each vertical of the supply chain without any concern of cyber-attacks or compromise of data.
• Secure Procurement Processes—Organizations must recognize risks involved in procurement and identify the weaker links. Points such as vendor software, access points for staff, IT interconnectivity and collaboration, drills to check email phishing, and permission to access information should be limited and encrypted. Analyzing and reviewing vendor security before initiating procurement prepares for adversities and secures the system.
• Vendor Risk Management in Supply Chain—Cyber threats in the supply chain have multiple vectors to attack its multiple points. Vendors are among the weakest links in a supply chain and are at a very high risk of cyber-attacks; they damage an organization’s supply chain ecosystem. If there is unanimity in Cybersecurity compliance in the Supply Chain, the chances of attack by malicious wares are reduced significantly.
• Supplier Cybersecurity Assessments—To secure and build a robust supply chain, it is essential to embrace reality. Supplier cybersecurity assessments can only do this; they can evaluate the suppliers’ security and ensure that the data shared is encrypted. Technological advancements make the encryption algorithm so solid that it is impossible to breach.
• Supply Chain Incident Response—The first step is to get acquainted with malware and threats to stay prepared for incident response. This should be an ongoing process as it evolves daily, and one should stay connected with the solution provider to enhance encryption and secure the system. Predictive analytical data help forecast and design a methodology for immediate action in case of cyber-attacks. Frequent reviews of the entire system should be conducted to secure the system. An ideal chronological process should be to stay prepared, identify, contain, eradicate, recover, learn, and continue improvement.