Supply chain cyber threats have emerged as a significant concern as companies increasingly rely on digital systems for their operations. These threats pose serious risks, from data breaches and financial losses to production and distribution disruptions. Understanding and addressing supply chain cyber threats is essential for protecting your business.
What are Supply Chains Cyber Threats?
Do you know who you do business with? A question with a seemingly obvious answer. But let me rephrase. Do you really know who you do business with? Who has access to your sensitive information? Who is sharing your sensitive information? Is that information being shared with other suppliers? Don’t know the answer? Don’t worry. You’re not alone in supply chain cyber threats.
According to a survey conducted by the Ponemon Institute, it was found that only 35% of companies had a list of all the third parties they were sharing sensitive information with. And only 18% of companies knew if those vendors were, in turn, sharing that information with other suppliers.
The Growing Risk of Third-Party Breaches
The same survey revealed that 56% of organizations experienced a security breach due to a vendor. The average number of third parties with access to sensitive information has risen from 378 to 471, largely due to globalization. With many companies using third-party hardware, vulnerabilities in the hardware supply chain have increased. These third-party relationships leave room for cyber threats in the supply chain, as hardware often passes through several hands before it reaches the end user.
Common Cyber Threats Targeting the Supply Chain
Cybercriminals are increasingly using hardware attack tools to execute malicious actions in the supply chain. Threats include:
- Spoofed Peripherals: These devices mimic legitimate devices, avoiding detection by existing security measures.
- Network Implants: Operating at the physical layer, these implants go undetected by traditional security software.
- Rogue Devices: Covert devices embedded with malware enter through third-party suppliers, allowing attackers to access sensitive data.
These tactics make hardware cybersecurity essential. Following the global economic downturn, budget cuts have led to reduced reliance on authorized resellers, increasing the chances of compromised hardware from unfamiliar manufacturers.
The Importance of Hardware Cybersecurity
What’s worse is that, following the world economic crisis, budget cuts for manufacturing and security validation led to a decline in the use of authorized re-sellers. As a result, orders today are coming from manufacturers in the Far East as the prices are lower. All these various layers leave plenty of time for that hardware to be compromised; maliciously or ignorantly. Every vendor and third-party organization your company interacts with is a security risk as they have people who are outside of your direct scope of policy control. So it’s probably best you know who you’re dealing with. But one criminal is hard to spot in a company employing hundreds, if not thousands, of employees… So it’s probably better to implement some mitigation solutions.
“We worry about manipulation, we worry about espionage, both nation state and industrial level, and we worry about disruption.” Edna Conway, Chief Security Officer for the global value chain at Cisco Systems, Inc.
Hardware with embedded malware can enter your organization from a third-party supplier. That supplier may have a vicious employee looking to create damage, or one that has unknowingly allowed for this to happen. Either way, for the criminal the jackpot is to get an organization to use the malicious hardware to extract sensitive data. Ultimately, we need to make sure that not only do our third-party suppliers have sufficient risk management methods in place. However, as Eric Doerr emphasized, also ensure that the employees work thoroughly, and with the right intentions. So employing someone with a history of cyber crime is probably not someone you would want your supplier to higher.
Securing the Hardware Supply Chain with Sepio
Securing the hardware supply chain is critical in managing supply chain cybersecurity risks. Sepio’s platform offers a comprehensive solution for detecting malicious assets in enterprise environments and infrastructure. The platform’s Asset Risk Management (ARM) framework integrates zero trust principles, ensuring every device is scrutinized.
- Comprehensive Asset Visibility: Sepio utilizes the physical layer to detect and identify all network assets, ensuring no device is left unmonitored. Each asset is assigned a risk score, combining visibility with actionable intelligence to assess and manage risks effectively.
- Robust Policy Enforcement: Sepio’s suggests optimal policy practices tailored to the specific needs and context of the enterprise. Administrators can establish either stringent or detailed rules to control hardware access, supporting a zero trust approach. Upon detecting policy violations, Sepio automatically initiates mitigation procedures, preventing unauthorized hardware access instantly.
Gain Control Over Your Supply Chain Cybersecurity Risks
Managing supply chain cyber risks requires a proactive approach. Sepio’s platform provides the visibility, control, and protection needed to secure your organization against supply chain cyber threats. Schedule a demo with a Sepio expert today to understand how to strengthen your asset risk management and protect your hardware supply chain effectively
