Supply Chain Cyber Security

Supply Chain Cyber Security Threats Business Logistics and Transportation

Supply chain cyber security refers to the protection of digital assets, data, and systems within the supply chain network from cyber threats. This includes manufacturers, suppliers, distributors, and other entities involved in the production and distribution of goods and services. These entities play a critical role in ensuring products and services reach end-users effectively and securely. However, they also introduce new risks that can be exploited by bad actors.

With the increasing digitization and interconnectedness of supply chains, cyber security has become a crucial concern for businesses globally. Supply chains now rely heavily on digital technologies and third-party services to optimize productivity and streamline operations. This technological reliance creates vulnerabilities. Every supplier, distributor, and transporter serves as a potential entry point for cybercriminals looking to exploit weak links.

Supply Chain Cyber Security Threats

A recent report by BlueVoyant revealed that an alarming 93% of organizations feel the direct impact of their suppliers’ security weaknesses. In addition, while awareness of supply chain cyber threats is growing, many organizations are still unaware of the risks associated with hardware-based attacks. These attacks involve the manipulation of physical devices, making them harder to detect through traditional cyber security measures that focus mainly on software and network defenses.

The potential for hardware-based attacks poses a unique and severe challenge. This is especially true considering how integrated today’s supply chains are across various industries, such as logistics and transportation. Each step in the production, storage, and distribution of goods presents opportunities for malicious actors to introduce compromised hardware or infiltrate sensitive networks.

Supply Chain Cyber Security Threats Business Logistics and Transportation
Managing Cyber Risk Across the Extended Vendor Ecosystem, BlueVoyant, 2021

Cybercriminals often exploit the vulnerabilities of interconnected supply chains to launch widespread attacks from a single point. The logistics and transportation sectors, in particular, face significant risks due to the sheer complexity and scope of their operations. Transporting goods across global networks exposes companies to various cyber threats, as critical data and physical hardware move between multiple locations and entities.

High-profile attacks, such as the SolarWinds and Kaseya incidents, highlight the fragility of modern supply chains. According to BlueVoyant, a staggering 97% of organizations have experienced cyber security incidents within their supply chain, demonstrating how common and far-reaching these threats can be.

Hardware-based attacks present a unique challenge because they often go undetected. Cybercriminals can compromise suppliers and insert Rogue Devices, which allow them to attack multiple victims through interconnected systems. Transportation plays a critical role because malicious devices can be introduced into the supply chain at any point during the movement of goods.

However, not all hardware-based attackers exploiting supply chain cyber security threats are opportunistic. Many have a specific target in mind. Often, in such instances, the target is of high value (such as critical infrastructure providers), meaning they are extremely well protected and, thus, difficult to physically breach. Suppliers, on the other hand, may not implement such stringent security measures, leaving them more exposed. The perpetrator, typically a state-sponsored entity with significant resources, performs comprehensive reconnaissance to pinpoint vulnerabilities within the supply chain. They then gain physical access to one or more of the less secure suppliers. From there, the bad actor implants a Rogue Device that executes an attack. Due to the interconnectedness of the supply chain, this attack impacts the intended target.

How Attackers Exploit Supply Chain Logistics to Bypass Defenses

Suppliers are not always victims of a hardware-based attack themselves. They might act as a pathway for an attack tool to enter a target organization.

Let’s use an example. Assume that a police precinct wants to update all keyboards, mice, and security cameras in the building. Following a cost-benefit analysis, they decide to purchase Logitech keyboards and mice and Samsung security cameras. These products get assembled along a production line involving several suppliers, moving from point A to B, B to C, etc. At any such point, one or more of the devices can get manipulated by a hardware-based attacker posing as an employee (or by an actual employee acting with malicious intent), who takes the device(s) off the production line and inserts an attack tool inside (Raspberry Pi Risks – A Friend or Foe ?). The Rogue Device, known as a spoofed peripheral, gets put back in transit. It eventually reaches the precinct and executes an attack.

The Threats Facing Supply Chain Cyber Security

Exploiting supply chain cyber security threats through hardware-based attacks is highly appealing for malicious actors as Rogue Devices go undetected. Spoofed peripherals impersonate legitimate HIDs, appearing genuine to both humans and security software solutions, such as NAC, EPS, IDS, or IoT Network Security. Just as the former lack x-ray vision, the latter lack Layer 1 visibility – and both are necessary to identify hidden hardware attack tools.

Without Layer 1 visibility, Rogue Devices remain in the entity’s infrastructure. This allows for harmful activities, such as data theft, malware injection, DDoS attacks, and MiTM attacks, to occur. To mitigate supply chain cyber security threats, organizations must achieve comprehensive asset visibility. This includes detecting any Rogue Devices that may have infiltrated through their suppliers during logistics and transportation.

Sepio’s Solution for Supply Chain Cyber Security

Sepio’s platform addresses the visibility gap, ensuring complete device management to prevent hardware-based attacks. Sepio’s deep visibility capabilities detect and manage all IT, OT, and IoT devices. This enables organizations to enforce security policies and ensure comprehensive device management.

By adopting Sepio’s Zero Trust Hardware Access approach, organizations can strengthen their defense against supply chain cyber security threats. This ensures that Rogue Devices are stopped at the first line of defense.

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March 22nd, 2022