5 Best Practices for Mitigating Supply Chain Risk

Supply chain cyberattacks are among the most pressing threats businesses face today. Cybercriminals have discovered the value of targeting key points in the complex tapestry of suppliers, manufacturers and service providers that power global commerce. Over the past year, an estimated 40% of business cyberattacks originated from vulnerabilities in the supply chain. However, businesses can take a few proactive steps to reduce the risk posed by their suppliers, vendors, partners and service providers.

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5 actionable strategies for combatting supply chain cyber-risk

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Supply chain attacks exploit the interconnectedness of modern business ecosystems, making it essential for organizations to secure not just their own networks but also the entire supply chain. To combat the continuing danger of supply chain cyberattacks, businesses must adopt a proactive and layered approach to cybersecurity.

These five best practices can help IT professionals mitigate supply chain risk for businesses:

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 1. Conduct thorough vendor risk assessments

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A robust vendor risk management program is the cornerstone of supply chain security. Businesses should evaluate the cybersecurity posture of every supplier, partner and service provider before developing a relationship. It is also a smart idea to monitor their ongoing commitment to cybersecurity, with regular evaluations and check-ins to ensure that everyone is on the same page. Here are a few key elements to include in a vendor risk management program.

• Compliance checks: Ensure that suppliers are maintaining compliance with relevant industry and regulatory standards, such as GDPR, NIST CSF, ISO 27001 or the NIS2 directive.
• Penetration testing: Is the supplier or partner undergoing regular penetration tests to identify vulnerabilities and validate their security measures?
• Incident response plans: Assess whether suppliers have a formal, tested incident response plan and specialized plans for common threats to facilitate swift action in case of cyber trouble.
• Questionnaires and audits: Use detailed cybersecurity questionnaires and conduct periodic audits to evaluate each vendor’s or partner’s risk profile.

By maintaining a clear understanding of each vendor’s cybersecurity practices, organizations can determine the risk level of each of their business relationships and if they want to continue them.

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2. Enhance endpoint protection

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The devices and systems that connect to your network, whether through internal users or third parties, represent critical attack vectors in supply chain attacks. Advanced endpoint detection and response (EDR) solutions are essential to monitor and secure these entry points.

• Real-time monitoring: Deploy EDR solutions that provide continuous monitoring and instant alerts for suspicious activity.
• Behavioral analysis: Use tools that identify unusual behavior patterns, such as a vendor’s device accessing systems it doesn’t normally interact with.
• Automated response: Implement automated containment measures, such as isolating a compromised device from the network to prevent the spread of malware.

Strong endpoint protection ensures that even if an attacker gains access, their ability to cause damage is minimized.

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 3. Monitor for anomalies

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Artificial intelligence (AI) offers businesses many analysis and monitoring capabilities that may have been out of reach in the past. Advanced monitoring tools powered by AI and machine learning are invaluable for detecting and preventing supply chain attacks. These tools can analyze large volumes of data in real-time to identify deviations from normal activity.

• Threat intelligence feeds: Leverage external threat intelligence to stay informed about emerging vulnerabilities and attack methods targeting supply chains.
• Network traffic analysis: Monitor data flows between your organization and vendors to identify suspicious patterns that could indicate trouble, such as unexpected spikes in data transfers or access attempts from unusual locations.
• Predictive analytics: Use AI-powered tools to predict potential vulnerabilities in your supply chain based on historical data and industry trends.
• Anti-phishing solutions: Bad actors often utilize fake vendor emails to launch cyberattacks, like business email compromise. An AI-driven anti-phishing solution can spot and stop suspicious emails before they reach employees.

Early detection of anomalies can stop an attack before it escalates, protecting both your organization and downstream partners.

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 4. Implement strong security policies

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Cybersecurity is only as strong as its weakest link. Many security failures, including falling victim to attacks that originate from a company’s supply chain, are the unfortunate result of employee errors. Inadequately trained personnel may not understand their role in maintaining security, resulting in non-compliance with security or data handling policies.

Businesses can combat this by instituting:

• Regular employee training: Provide ongoing training to employees on emerging threats, such as phishing, social engineering and ransomware. Include real-world examples of supply chain breaches to emphasize the importance of vigilance.
• Security policies: Set appropriate security and data handling policies and ensure that every employee, from the bottom to the top, is following them.
• Phishing simulations: Test employees with simulated phishing attacks to evaluate their readiness to resist phishing threats and provide additional training where needed.

A well-trained workforce is essential for minimizing human error, one of the leading causes of cybersecurity incidents.

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5. Diversify suppliers

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Over-reliance on a single supplier or vendor can amplify risks in the event of a cyberattack. Diversification helps mitigate this risk through:

• Redundancy: Work with multiple suppliers for critical products and services to ensure continuity of operations in case one is compromised.
• Risk distribution: Spread supply chain risk across multiple regions and vendors, reducing the likelihood that a single attack will disrupt a company’s entire operation.

Diversifying your supply chain not only strengthens cybersecurity but also ensures business resilience in the face of unexpected disruptions.

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Mitigating supply chain attacks is a business priority

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Fortunately, many businesses are getting a handle on supply chain risk. In the Kaseya Cybersecurity Survey Report 2024, we revealed that the percentage of organizations experiencing supply chain attacks has dropped dramatically. In 2023, 61% of respondents said that their organizations had experienced a supply chain attack. That percentage plummeted to 19% this year as more organizations reached security maturity.  Another spot of good news is that our respondents do not anticipate supply chain risk to be a major attack vector in the next 12 months. This is an excellent illustration of how elevating security to the next level pays off.

Have you experienced a supply chain attack through your supplier or service provider?

Response	2024	2023
Yes	19%	61%
No	66%	33%
I don’t know	15%	6%

Source: Kaseya

Defending against supply chain cyberattacks requires a commitment to continuous improvement, collaboration and investment in advanced technologies. By implementing these strategies, businesses can not only mitigate dangerous cyberthreats that may impact their operations but also foster stronger relationships with partners who share their commitment to cybersecurity. In an era where supply chain attacks are growing more frequent and sophisticated, proactive defense is the only viable path forward.

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Smart solutions help businesses mitigate supply chain risk

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Our innovative solutions feature time–saving automations and smart innovations that enable defenders to build a strong foundation for robust security.

BullPhish ID: This effective, automated security awareness training and phishing simulation solution provides critical training that improves compliance, prevents employee mistakes and reduces a company’s risk of being hit by a cyberattack. 

Dark Web ID: Our award-winning dark web monitoring solution is the channel leader for good reason. It provides the greatest amount of protection around with 24/7/365 human- and machine-powered monitoring of business and personal credentials, including domains, IP addresses and email addresses.

Graphus: This automated anti-phishing solution uses AI and a patented algorithm to catch and quarantine dangerous messages. It learns from every organization’s unique communication patterns to continuously tailor protection without human intervention. Best of all, it deploys in minutes to defend businesses from phishing and email-based cyberattacks, including zero day, AI-created and novel threats.

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