What is Supply Chain Attacks / Cyber Attack

What is it?

A supply chain attack is a type of cyberattack that specifically targets a reliable third-party supplier of software or services that are essential to the supply chain.

Are you looking for cyber attack or supply chain attack, then read it completely, you will definitely know what is it.

How Software and Hardware Supply Chain Attacks Infiltrate Your Devices

A staggering 59% of organizations were completely unprepared for their first software supply chain attack.

Traditional Supply Chain Attacks | The Evolution of Supply Chain Attacks

Think “Target breach.” That 2013 attack, where hackers accessed Target through an HVAC contractor, exemplifies the classic supply chain attack: targeting weak links in trusted partnerships. Today, the focus has shifted to software itself, with malicious code injected directly into applications, posing an even greater threat. Stay vigilant!

The Evolving Threat of Software Supply Chain Attacks

Historically, supply chain attacks exploited trust to target larger partners, exemplified by the 2013 Target breach via compromised HVAC contractor systems.

Today, software supply chain risks loom larger due to reliance on accessible components like open-source code and third-party APIs. A single compromised element can endanger every user of the vendor’s software, with an average of 203 dependencies per project.

Moreover, lingering security flaws in reused software, especially in niche applications, prolong vulnerability exposure, heightening risks for organizations.

Types of Supply Chain Attacks (Condensed List)

Software-Based

• Third-party software attacks: Exploiting vulnerable software from vendors.
• Software supply chain poisoning: Distributing malicious versions of legitimate software.
• Open-source library vulnerabilities: Leveraging weaknesses in commonly used libraries.

Hardware-Based

• Counterfeit components: Embedding malware in hardware during manufacturing.
• Pre-installed malware: Devices come pre-infected with malicious software.
• Firmware tampering: Compromising device firmware for later exploitation.

Social Engineering

• Watering hole attacks: Targeting websites frequented by the target organization.
• Phishing and spear phishing: Tricking employees into revealing sensitive information or clicking malicious links.
• Business Email Compromise (BEC): Impersonating vendors or colleagues to manipulate financial transactions.

Other Forms

• Cloud supply chain attacks: Exploiting vulnerabilities in cloud infrastructure or services.
• API attacks: Targeting insecure application programming interfaces (APIs).
• Island hopping attacks: Moving laterally through a network, often starting with low-security devices.
• Cryptojacking: Hijacking devices to mine cryptocurrency without user knowledge.

Supply chain attack statistics

Current State (as of February 7, 2024):

• Prevalence: While precise figures are elusive, evidence suggests a growing threat. CrowdStrike’s 2021 Global Security Attitude Survey showed:
  • 45% of organizations experienced at least one software supply chain attack in the past year, compared to 32% in 2018
  • 84% believe it’s a major threat within the next three years.
• Financial Impact: The average cost of a successful attack reached $1.4 million in 2021 (IBM X-Force Threat Intelligence Index).
• Target: Most attacks (around 58%) aim to steal data, primarily customer information and intellectual property.

Data Challenges

• Incomplete Reporting: Many attacks go unreported or remain undisclosed, making accurate statistics difficult.
• Data Breach Notices: These notices often lack details about attack types, hindering accurate categorization.
• Evolving Techniques: New attack methods emerge constantly, making it hard to track trends definitively.

Year-wise Insights (limited due to data challenges)

• 2020: Some sources show 8 confirmed attacks, while others indicate a possible upward trend from previous years.
• 2021: Data suggests a significant increase, with some sources mentioning 24 confirmed attacks (potentially quadrupling 2020 figures).
• 2022: Specific data on supply chain attacks is limited. However, overall data breaches and exposures remained high, impacting over 422 million people (Identity Theft Resource Center).

A Harsh Reality

The numbers reveal a chilling truth. An astonishing 84% of businesses foresee software supply chain attacks as a major threat in the next three years, as per CrowdStrike’s Global Security Attitude Survey. However, a mere 36% have taken the trouble to scrutinize the security practices of their existing suppliers in the past year. This complacency leaves gaping holes in their defenses, ready to be exploited.

The repercussions are grave. Forty-five percent of organizations have already fallen victim to at least one supply chain attack in the past year, marking a concerning increase from 32% in 2018. Even more concerning, 59% of these victims lacked a response strategy, leaving them scrambling when faced with a sophisticated attack.

Primary objective of a Supply Chain Attack

The primary objectives generally fall into four main categories:

1. Data Theft: This is the most common objective, with attackers aiming to steal sensitive information like customer data, financial records, or intellectual property. Stolen data can be used for various purposes, including:

• Identity theft: Selling stolen personal information on the dark web.
• Financial fraud: Using stolen financial data to make unauthorized purchases or access accounts.
• Competitive advantage: Stealing trade secrets or intellectual property to gain an advantage over competitors.

2. Disruption and Damage: Attackers may aim to disrupt operations, cause downtime, or damage critical infrastructure within the target organization or its wider supply chain. This can be achieved through:

• Ransomware attacks: Encrypting data and demanding ransom payments for decryption.
• Denial-of-service (DoS) attacks: Overwhelming target systems with traffic, rendering them unavailable.
• Software manipulation: Tampering with software or firmware to introduce vulnerabilities or malicious functionality.

3. Espionage: Sometimes, attackers might be after confidential information for intelligence gathering purposes. This could involve:

• State-sponsored attacks: Governments stealing classified information from other countries.
• Industrial espionage: Companies stealing trade secrets from competitors.

4. Gaining Access to Other Targets: Supply chain attacks can be used as a stepping stone to access other, more valuable targets within the supply chain network. This could involve:

• Targeting a vendor with weak security to gain access to their customers’ data.
• Compromising a software supplier to inject malware into their products and infect its users.

Forms and Methods of Supply Chain Attacks details

Supply chain attacks can be launched through various forms and methods, exploiting vulnerabilities at different stages of the supply chain. Here’s a breakdown of some common ones:

1. Software-Based Attacks

• Malware injection: Malicious code is inserted into software or firmware during development, distribution, or updates. Examples include:
  • Backdoors: Providing unauthorized access to attackers.
  • Ransomware: Encrypting data and demanding payment for decryption.
  • Trojans: Disguised programs that steal data or download additional malware.
• Vulnerable libraries and dependencies: Open-source libraries or third-party components used in software development might contain vulnerabilities attackers can exploit.
• Software supply chain poisoning: Malicious versions of legitimate software are distributed through compromised repositories or updates.

2. Hardware-Based Attacks

• Tampering with hardware components: Malicious actors modify hardware components during manufacturing, shipping, or installation to introduce vulnerabilities.
• Pre-installed malware: Devices come pre-installed with malware, enabling attackers to gain access upon activation.
• Counterfeit components: Fake components containing hidden malware or backdoors are used to infiltrate target systems.

3. Social Engineering Attacks

• Phishing and spear phishing: Emails or messages are used to trick employees into revealing sensitive information or clicking malicious links that download malware.
• Watering hole attacks: Legitimate websites frequented by targets are compromised to deliver malware when users visit them.
• Business email compromise (BEC): Emails imitating legitimate vendors or colleagues trick employees into making unauthorized payments or transferring sensitive data.

4. Physical Attacks

• Theft of devices or data: Physical devices containing sensitive data are stolen or lost, leading to unauthorized access.
• Insider threats: Malicious insiders with access to systems misuse their privileges to compromise them.

5. Other Forms

• Cloud supply chain attacks: Exploiting vulnerabilities in cloud infrastructure or services used by an organization.
• API attacks: Targeting insecure application programming interfaces (APIs) to gain unauthorized access to data or systems.
• Island hopping attacks: Attackers move laterally through a network, compromising connected systems, often starting with low-security devices.
• Cryptojacking: Hijacking users’ devices to mine cryptocurrency without their knowledge, often through compromised websites or malicious software.

How Do Supply Chain Attacks Work?

Supply chain attacks exploit vulnerabilities within an organization’s interconnected network of vendors, suppliers, and software providers. Here’s a breakdown of how they typically work:

1. Identifying the Weak Link

Attackers meticulously scan an organization’s supply chain, searching for the weakest link. This could be a vendor with lax security practices, outdated software, or even physically insecure access points.

2. Gaining Initial Access

Once the weak link is identified, attackers employ various methods to gain initial access. This could involve:

• Phishing emails targeting employees within the vulnerable vendor or organization.
• Malware injection into software updates or libraries used by the target.
• Exploiting software vulnerabilities in outdated or unpatched systems.
• Compromising physical access points through social engineering or physical intrusion.

3. Moving Laterally

With initial access secured, attackers leverage their entry point to move laterally across the interconnected network. This might involve:

• Privilege escalation to gain higher-level access within the compromised system.
• Exploiting internal network vulnerabilities to access other connected systems.
• Utilizing stolen credentials to access sensitive data or resources.

4. Achieving the Objective

Having infiltrated the target system or network, attackers can now achieve their primary goals, such as:

• Data theft: Stealing sensitive customer information, financial records, or intellectual property.
• Disruption and downtime: Launching denial-of-service attacks or manipulating software to disrupt operations.
• Ransomware deployment: Encrypting critical data and demanding ransom payments for decryption.
• Espionage: Stealing confidential information for intelligence gathering or industrial espionage.

5. Concealing Their Tracks

To avoid detection, attackers often cover their tracks by:

• Erasing logs and activity traces.
• Deploying malware that removes itself after achieving its objective.
• Establishing backdoors for future access.

Examples of Supply Chain Attacks

Here are some examples of supply chain attacks:

Hardware-Based

1. Meltdown and Spectre (2018): These critical vulnerabilities in Intel, AMD, and ARM processors allowed attackers to potentially bypass security protections and access sensitive data in memory. Attackers could have exploited these vulnerabilities through compromised components within the hardware supply chain.

2. Supermicro motherboard compromise (2018): Hackers allegedly inserted malicious chips into Supermicro motherboards during the manufacturing process, potentially granting them access to networks of companies using those motherboards.

Software-Based

1. SolarWinds supply chain attack (2020) Hackers infiltrated the software development environment of SolarWinds, a company that provides network monitoring software, and injected malicious code into their Orion platform updates. This allowed attackers to access the networks of SolarWinds’ customers and initially infected about 18,000, including government agencies and private companies, for several months before being detected.

2. Codecov supply chain attack (2021) Attackers compromised the build pipelines of Codecov, a company that provides code coverage analysis tools, and injected malicious code into their software updates. This code gave attackers access to the source code of Codecov’s customers, including some major technology companies.

3. Colonial Pipeline ransomware attack (2021) Hackers used a compromised password to gain access to the networks of Colonial Pipeline, a major operator of pipelines in the United States. They then deployed ransomware that encrypted Colonial Pipeline’s systems, forcing them to shut down their operations for several days.

4. BS ransomware attack (2021) Hackers used a supply chain attack to target Kaseya, a company that provides remote monitoring and management software for IT professionals. They exploited a vulnerability in Kaseya’s VSA software to deploy ransomware to Kaseya’s customers, including JBS, a major meatpacking company.

5. Log4j vulnerability (2021) A critical vulnerability in the Log4j logging library was exploited by attackers to launch large-scale attacks against a wide range of organizations. The vulnerability allowed attackers to take remote control of vulnerable systems.

6. NotPetya ransomware (2017): This destructive ransomware disguised itself as legitimate software updates, targeting Ukrainian tax software and then spreading through connected networks, including multinational companies like Merck and Mondelez.

Social Engineering

1. Magecart attacks: These ongoing attacks involve injecting malicious skimming scripts into e-commerce websites, often through compromised third-party plugins or extensions. These scripts steal customer payment information during checkout.

2. Business Email Compromise (BEC): These targeted email attacks impersonate legitimate vendors or colleagues to trick employees into making unauthorized payments or transferring sensitive data.

Other Forms

1. Cloud supply chain attacks: These attacks exploit vulnerabilities in cloud infrastructure or services used by an organization. For example, an attacker could compromise a shared cloud service provider to gain access to data from multiple organizations using that service.

2. Island hopping attacks: Attackers move laterally through a network, compromising connected systems, often starting with low-security devices like printers or smart TVs. This allows them to gain access to more valuable systems within the network.

Why Should You Be Worried?

The potential impact of a successful supply chain attack is significant:

• Data breaches: Hackers can steal sensitive customer information, financial records, or intellectual property.
• Disruption and downtime: Attacks can cripple operations, leading to lost revenue and reputational damage.
• Ransomware: Attackers may encrypt critical data and demand ransom payments for decryption.
• Espionage: Sensitive information can be stolen for intelligence gathering or industrial espionage.

Preventing and Detecting Supply Chain Attacks

Supply chain attacks pose a significant threat to organizations of all sizes. Thankfully, implementing a multi-layered approach can significantly improve your chances of preventing and detecting them:

Prevention

1. Vet your vendors thoroughly

• Assess their security practices, track record, and compliance with industry standards.
• Conduct regular security audits and penetration testing of their systems.
• Require them to have strong security measures in place, including secure coding practices and vulnerability management programs.

2. Secure your software development environment

• Implement secure coding practices and use static code analysis tools to identify vulnerabilities early.
• Control access to development environments and limit privileges.
• Utilize code signing and verification to ensure software integrity.

3. Monitor your network and systems for suspicious activity

• Deploy intrusion detection and prevention systems (IDS/IPS) to monitor network traffic for anomalies.
• Use endpoint security solutions to monitor system activity for suspicious behavior.
• Implement security information and event management (SIEM) tools to aggregate logs and analyze event patterns.

4. Educate your employees

• Train employees to identify and avoid phishing attacks and social engineering scams.
• Teach them about secure software download practices and the dangers of installing unauthorized software.
• Reinforce the importance of reporting suspicious activity immediately.

5. Keep your software updated

• Patch vulnerabilities promptly to minimize the risk of exploitation.
• Update operating systems, applications, and firmware regularly.
• Consider using vulnerability management tools to automate patch deployment.

Detection:

1. Monitor for unusual activity

• Be vigilant for changes in network traffic patterns, system resource usage, or user behavior.
• Investigate any unexplained anomalies or deviations from the norm.
• Look for indicators of compromise (IOCs) associated with known supply chain attacks.

2. Analyze software behavior

• Use sandboxing to analyze downloaded software before deploying it on your network.
• Monitor software behavior for unexpected activity or attempts to access unauthorized resources.
• Utilize threat intelligence feeds to stay informed about emerging threats and vulnerabilities.

3. Investigate security incidents promptly

• Have a well-defined incident response plan in place.
• Gather evidence and analyze the attack to understand its scope and impact.
• Share information with relevant authorities and industry partners.

4. Conduct regular security assessments

• Regularly assess your organization’s security posture and identify potential vulnerabilities.
• Conduct penetration testing to simulate real-world attacks and identify weaknesses.
• Use vulnerability scanning tools to identify known vulnerabilities in your systems.

Stay Ahead of the Curve

The threat of supply chain attacks is constantly evolving. Staying informed about emerging threats and adopting a proactive security posture is essential for safeguarding your organization’s digital infrastructure and assets. By implementing robust security measures and fostering a culture of cybersecurity awareness, you can build resilience against these sophisticated attacks and navigate the digital landscape with confidence.