Recent studies have shown that cybersecurity risks in the supply chain are on the rise, with companies facing an increasing threat from cyber attacks. The research indicates that nearly all companies have at least one supplier that has been, or will soon be, breached by hackers. This alarming trend poses a significant risk to businesses, as breaches can lead to financial losses, regulatory penalties, and reputational damage.
A report by Resecurity highlights the fact that over 60% of all company breaches originate from within their supply chain, rising to over 90% when technology providers are included. This underscores the importance of monitoring suppliers for potential security vulnerabilities and breaches. While some companies assess the risk of potential suppliers during the evaluation phase, very few have the resources or mandate to monitor all their suppliers continuously.
The lack of proactive monitoring can leave companies vulnerable to cyber threats that could be exploited by threat actors. To address this challenge, companies can leverage Cyber Threat Intelligence (CTI) practices to monitor their suppliers and assess their cybersecurity risk profile. By implementing CTI strategies, companies can better understand the risks associated with their supply chain and take proactive measures to prevent breaches.
One notable example of a supply chain breach is the case of the hackers known as CL0P (TA505) exploiting a zero-day vulnerability in MOVEit, a file transfer software managed by Progress Software. This breach impacted over 62 million individuals and over 2,000 organizations, with an estimated financial impact exceeding $10 billion. The majority of breached organizations were based in the US, highlighting the global reach of cyber threats in the supply chain.
In light of such incidents, companies must prioritize cybersecurity risk management in their supply chain to mitigate the potential impact of breaches. By conducting continuous monitoring of suppliers and assessing their cybersecurity posture, companies can identify vulnerabilities and take proactive measures to protect their data and systems. CTI services can provide valuable insights into potential risks and help companies make informed decisions to safeguard their supply chain.
Additionally, companies and their CTI vendors need to recognize that a one-size-fits-all approach does not work when it comes to cybersecurity. Each company has unique needs and constraints that must be taken into account when implementing CTI solutions. By collaborating closely with CTI vendors and tailoring solutions to their specific requirements, companies can enhance their cybersecurity defenses and reduce the risk of supply chain breaches.
Overall, the increasing cyber threats in the supply chain underscore the need for companies to invest in proactive cybersecurity measures. By leveraging CTI practices and continuous monitoring of suppliers, companies can better protect themselves against cyber attacks and mitigate the impact of supply chain breaches. In today’s digital landscape, cybersecurity risk management is not just a best practice—it’s a business imperative.