The success of your manufacturing company and ability to deliver products to customers on time depend in large part on maintaining solid supply chains. However, the interconnectivity of today’s supply chains means that a cyberattack on a supplier can cascade to affect multiple manufacturers.
For context, supply chain cyberattacks affected about 183,000 customers globally in 2024, according to the latest figures available from Statista.
Accordingly, security executives in the manufacturing industry should know that weaknesses in supply chains can lead to compromised products, counterfeit materials, or disruptions in production. These threats can lead to major hits not just to your bottom line, but also your reputation in the marketplace.
Read on for insight into supply chain vulnerabilities from criminal hackers, along with details on industry best practices to follow so you can better protect yourself in the future and avoid becoming a victim.
Chief Types of Cybersecurity Attacks
How do hackers penetrate networks and disrupt supply chains? According to a report from the National Motor Freight Traffic Association, the most common cybersecurity threats to the supply chain include:
Distributed Denial of Service (DDoS)
Hackers use automated systems to conduct DDoS attacks, which disrupt servers and networks with a torrent of traffic that prevents the supply chain organization from providing routine service.
Malware
Infecting a supply chain’s computer network with malicious programs enables hackers to steal data, destroy files and prevent the company from accessing its information.
Man-in-the-Middle
A MiTM attack spies on the flow of information between supply chain companies, with hackers motivated to steal people’s credentials and gain unauthorized access to data.
Phishing
A criminal sends authentic-looking text messages or emails to employees, who unwittingly click links to websites that steal their passwords and other information.
Third-party Vendors Attacks
A third-party vendor may be one of the weakest links in your supply chain. Hackers inject code to compromise software, preventing end users from using applications they rely on to maintain the supply chain.
Read More: Why Weak Links in Supply Chains Put Manufacturers at Risk
Examples of Recent Cyberattacks Threatening Supply Chains
You don’t want to be complacent about security risks to supply chains. Here are some prominent examples of cyberattacks to keep top of mind as you review your own supply chain’s vulnerabilities:
SolarWinds: The Russian Foreign Intelligence Service injected malicious code into the networks of the SolarWinds network management software firm, which then gave the Russian threat actor a backdoor to SolarWinds’ customers. This cybersecurity event affected about 18,00 customers, per the U.S. Government Accountability Office.
3CX: Hackers breached the networks of 3CX, a business communications systems provider that more than 600,000 companies use for enterprise voice and video conferencing. The 3CX cyber event enabled criminals to steal information from supply chain partners, as noted by Security Week.
MOVEit: Attackers took advantage of vulnerabilities in MOVEit managed file transfer software, enabling them to find and disclose protected, sensitive information, change data and initiate ransomware attacks that hold data hostage until victims pay to release their files, according to SupplyChainBrain.
How Security Executives Address Supply Chain Cybersecurity Events
Cybersecurity professionals scan and monitor their systems, looking for signs of bad actors attempting to access the computer network. Upon detection, they try to isolate the threat, which may include taking an affected computer system offline.
You’ll need to inform stakeholders about the breach and inform the authorities, such as if the criminals accessed sensitive data (such as your intellectual property and people’s protected information).
What Manufacturers Can Do to Avoid Becoming Victims of Cyber Attacks in the Supply Chain
It’s important to review your current protocols, inform employees about best practices, research your supply chain partners’ security protocols, and diversify your supply chain in case of a significant breach affecting one or more vendors.
Review Your Current Cybersecurity Processes
When did you last examine your organization’s policies and procedures to safeguard your computer networks and supply chain? Now would be a good time to review the cybersecurity processes you rely on to stay safe.
In addition to auditing your security, you need to update crucial software to address vulnerabilities the developer identified.
Anti-counterfeiting Measures
Companies fight back against counterfeiters harming the integrity of the supply chain by adding Internet of Things (IoT) devices such as sensors inside shipments.
This allows them to detect the unauthorized movement of items as criminals steal them. Companies also use electronic seals, RFID tags, DNA tags and complex markings on products with unique codes and patterns, per GlobalTrade.
Employee Education
During the onboarding process for recruits, instruct them to follow your security guidelines, from selecting robust passwords to recognizing if they are the target of social engineering attacks. You’ll also want to provide updated instructions to long-term employees so they know the latest cybersecurity threats.
They should be aware of criminals sending messages that seem to be legitimate but contain links to malware or attempt to steal their login credentials.
Research Your Suppliers’ Cybersecurity Protocols
Conduct your due diligence and evaluate suppliers to see if they have good cybersecurity processes.
Read More: 3 Ways CSOs Can Prevent Internal IT Outages, Minimize Impacts
Per the National Institute of Standards and Technology, ask questions along the lines of:
- How do you protect your systems against malware, and what do you do to detect malware attacks?
- What kind of access controls do you rely on (software and physical security of computer equipment)? When was the last time you audited cyber and physical access controls?
- Have you done quality assurance for your computational infrastructure? Did you test the quality of the code and close backdoors?
- How often do you conduct employee background checks?
- How do you encrypt data and store it?
Diversify Your Supply Chain
Your organization is only as safe as the weakest links in your supply chain. It makes sense to diversify vendors, so in case one is suddenly compromised, you can switch to a different supplier until the threat is mitigated. For example, you might select one supply chain that focuses on West Coast ports and another that relies on East Coast ports.
Back Up Data and Have a Recovery Plan
Manufacturers should have a robust backup system and store copies of their data on multiple servers in different locations so they can restore their systems if they have become compromised by a cybersecurity event designed to compromise the supply chain.
Keeping Your Manufacturing Facilities Safe Against Supply Chain Cybersecurity Events
Criminal hackers can strike supply chains from any location, at any time. To avoid idling workers in your manufacturing facilities because of a cybersecurity event, it’s prudent to create a plan to minimize security risks now. And if a data breach impacts your supply chain, you’ll need to establish protocols to get back up and running as soon as possible.
Sources/Attributions
- Statista: Annual number of customers impacted by supply chain cyberattacks worldwide from 2019 to 2024
- National Motor Freight Traffic Association: Supply Chain Cybersecurity: A Comprehensive Guide
- National Institute of Standards and Technology: Best Practices in Cyber Supply Chain Risk Management
- GlobalTrade: How To Use Technology To Avoid Counterfeits in the Supply Chain
- U.S. Government Accountability Office: SolarWinds Cyberattack Demands Significant Federal and Private-Sector Response
- Security Week: 3CX Confirms Supply Chain Attack as Researchers Uncover Mac Component
- SupplyChainBrain: Supply Chain Attacks: One of The Biggest Cybersecurity Threats of 2023
