The impact of digitization is almost in every domain, fostering several benefits for business optimization, and the supply chain is also leveraging the technological advantages of the modern digital world. The strategic shift of the supply chain into innovative digital technology facilitates more efficient business, but on the other hand, puts the supply chain ecosystem at the mercy of cybercriminals. Undoubtedly, modern digitization creates both opportunities and unprepared cybersecurity risks. In this article, I'll explain the rising cybersecurity risks targeting the supply chain, how to restrain the modern supply chain from cyber risks, and provide a few recommendations to build a cyber-resilient supply chain ecosystem. A Look into Cybersecurity Risks to Modern Supply Chain A Look into Cybersecurity Risks to Modern Supply Chain The pioneering advancement of technologies such as the Internet of Things (IoT)/Industrial Internet of Things (IIoT), artificial intelligence, machine learning, etc., facilitates interdependence among connected machines and sensors. It extends the networks of physical sensors and controls software to connect a centralized web console to receive data from distributed smart devices. Despite providing several operational and business benefits, it offers a new opportunity for hackers to disrupt critical operations for financial or reputational gain. Hackers are leveraging dark web marketplaces to utilize the services of already stolen information, empowering cyber criminals to automate the launch of cyber attacks by devouring and exploiting the weakest link in the global supply chain. Threat actors have easy access to resources from a rapidly evolving cybercrime-as-a-service marketplace. Several third-party vendors are involved directly or indirectly in the supply chain ecosystem, opening the doors to critical services. Threat actors exploit these backdoors to launch sophisticated cyber attacks, disrupting the services that can further trigger a large-scale impact across industries, from production to delivery, as modern business operations are highly interconnected. A few of the concerning facts of cybersecurity risks are: The World Economic Forum report, published in January 2025, highlighted that cyber risk about supply chain vulnerabilities is rapidly emerging. CISO emphasizes that third-party compliance and regulations are the main challenges in implementing a cyber-resilient supply chain. The third-party software vulnerabilities led to a cyber attack that later propagated into the connected ecosystem of the supply chain. The report highlighted that geopolitical boundaries impact 60 percent of cyber strategies on the interconnected supply chains. Among large organizations, 54 percent believed that supply chain challenges are the biggest obstacles to achieving robust cyber resilience. The leading cybersecurity risks include a lack of visibility, an increase in complex supply chains, and under preparedness about the security levels of the suppliers. The World Economic Forum report, published in January 2025, highlighted that cyber risk about supply chain vulnerabilities is rapidly emerging. World Economic Forum CISO emphasizes that third-party compliance and regulations are the main challenges in implementing a cyber-resilient supply chain. The third-party software vulnerabilities led to a cyber attack that later propagated into the connected ecosystem of the supply chain. The report highlighted that geopolitical boundaries impact 60 percent of cyber strategies on the interconnected supply chains. Among large organizations, 54 percent believed that supply chain challenges are the biggest obstacles to achieving robust cyber resilience. The leading cybersecurity risks include a lack of visibility, an increase in complex supply chains, and under preparedness about the security levels of the suppliers. Why Threat Actors Target Supply Chain- an Eye-Opening Example Supply chain cyber risks pose a significant threat not only to the organization but also to the customers. Threat actors exploit several direct or indirect vulnerabilities associated with the supply chain. It provides a much expanded attack surface as an open door to the threat actor compared to exploiting the IT network's perimeter entry. The initial entry to infect the supply chain ecosystem is multi-fold; thereafter, the attack propagation and later movement remain the same as with contemporary cyber attack chains. The objective can include cyber espionage, financial gain, or reputation damage. Regarding supply chain management, stealing sensitive information/data, or injecting a malware attack, such as ransomware, can be prime means for cyber threat actors. Contrary to conventional cyber attacks, supply chain cyber risks have specific characteristics that differentiate them; for example, indirect compromise is the main opportunity for hackers. At first, they compromise the third-party supplier, like software provided by the vendor or applications controlling the modern digital supply chain, or the third-party managed service providers (MSPs), and laterally penetrate the network deeper. In this way, threat actors avoid direct vulnerability exploitation to penetrate the perimeter of the organization's network. They can entirely gain access to the complete assets of the supply chain, thus avoiding the conventional cyber defence systems deployed in an organization. The worst part is that these exploitations are hard to attribute; they often look like they originate from legitimate software or products from a trusted supply chain partner. Therefore, the cybersecurity risk in the supply chain is only as substantial as the weakest link. Safeguarding Supply Chain- A Combination of Proactive and Reactive Approaches Safeguarding Supply Chain- A Combination of Proactive and Reactive Approaches With current modernization, the supply chain is becoming more digitally connected on a global scale, and there are many opportunities for threat actors to exploit the supply chain networks directly or indirectly. Cyber risks in the supply chain ecosystem pose a significant threat to connecting several parties and customers, which breaks the trust between businesses and customers. The growing cyber threat landscape must be addressed more proactively instead of complete reliance on the traditional reactive approach. In the digital modern world, the complete visibility of each segment of supply chains will facilitate organizations' positioning for the protection of digital assets. To minimize the evolving cybersecurity risks to the modern supply chain, a few of the recommendations are as follows: Strong network management and best security practices throughout the supply chain ecosystem's complete lifecycle and system borders, from receiving raw materials, manufacturing, production, and tracking and management systems. Adopt strong, robust trust and integrity programs and ensure their suppliers or vendors adhere to these programs and security best practices. Regular assessment and compliance checks are needed to identify possible weak points or paths that threat actors can exploit. Adopt regular awareness and best practices among all connected users, vendors, and businesses, as digital hygiene practices minimize many cyber risks. Implement centralized log collection and analysis to gather the attack artifacts across different system borders and collect and correlate heterogeneous events to identify abnormal malicious activities. Implement threat hunting tools to proactively monitor the different segments of supply chain networks and interconnected systems, instead of a reactive approach. It facilitates the early detection of cyber threats and their pre-emptive measures before reaching other network segments. Address the social and technical aspects of the cyber threats, as most threat actors exploit human psychology or social patterns instead of penetrating technological barriers. Technological advancements must not be a part of the undue advantages of cybersecurity risks. Increase the threat detection and response coverage by proactively monitoring the complex cyberspace. Integrate threat intelligence to minimize the propagation of cyber attacks across heterogeneous systems and network borders. Strong network management and best security practices throughout the supply chain ecosystem's complete lifecycle and system borders, from receiving raw materials, manufacturing, production, and tracking and management systems. Adopt strong, robust trust and integrity programs and ensure their suppliers or vendors adhere to these programs and security best practices. Regular assessment and compliance checks are needed to identify possible weak points or paths that threat actors can exploit. Adopt regular awareness and best practices among all connected users, vendors, and businesses, as digital hygiene practices minimize many cyber risks. Implement centralized log collection and analysis to gather the attack artifacts across different system borders and collect and correlate heterogeneous events to identify abnormal malicious activities. Implement threat hunting tools to proactively monitor the different segments of supply chain networks and interconnected systems, instead of a reactive approach. It facilitates the early detection of cyber threats and their pre-emptive measures before reaching other network segments. Address the social and technical aspects of the cyber threats, as most threat actors exploit human psychology or social patterns instead of penetrating technological barriers. Technological advancements must not be a part of the undue advantages of cybersecurity risks. Increase the threat detection and response coverage by proactively monitoring the complex cyberspace. Integrate threat intelligence to minimize the propagation of cyber attacks across heterogeneous systems and network borders. Final Thought Building an interdependent cyber resilience system helps organizations secure their business and facilitates the protection of smaller business partners in the complete supply chain ecosystem. Effective planning to optimize business continuity without disruption, robust risk management, and adherence to security standards are essential to protect the business.
