Navigating cybersecurity for supply chains

Living in a virtual and interconnected world of e-commerce, website services, data platforms, and digital connectivity brings both opportunities and challenges. As e-commerce accelerates, technologies like AI, web services, and data platforms become integral parts of supply chains. Organizations must be prepared to address the unintended consequences and risks associated with this interconnected landscape.

Hundreds of data breaches occur every second worldwide, many of them in your supply chains. The cybersecurity firm Kaspersky’s Cyberthreat Real-Time Map shows live graphics of data breaches per second and the most infected countries.

Data breaches: The integration of technology into supply chains has heightened the risk of data breaches, leading to financial losses, reputation damage, and legal consequences. Some examples include:
- EasyJet's 2020 cyberattack exposed personal data of millions of people, emphasizing the need for robust cybersecurity measures.
- Amazon's 746 million euro fine in 2021 for GDPR violations underscores the risks of non-compliance.
- SolarWinds was targeted in a cyberattack in 2020 when hackers compromised software updates to distribute malware to numerous organizations linked to the Austin, Tx.,-based software provider, including government agencies and Fortune 500 companies, highlighting supply chain attack risks.
- Colonial Pipeline Ransomware attack: A ransomware attack on Colonial Pipeline in 2021 led to operational shutdowns, fuel shortages, and price spikes, emphasizing critical infrastructure vulnerabilities to cyber threats.
Software dependency in manufacturing: As manufacturing becomes software-dependent, cybercriminals target software systems to disrupt operations, steal valuable intellectual property, or cause financial harm. In many industries over 50% of manufacturing processes is controlled by software.
Ransomware: Ransomware attacks have evolved into a profitable business model for cybercriminals. Hackers are becoming more sophisticated in their tactics and target supply chains at vulnerable points and times.
- JBS – May 2021: Ransomware attackers targeted the food company’s network resulting in US$11 million ransom payment and the closure of some of its cattle slaughtering operations. The knock-on effects included supply chain disruptions, food supply shortages, stranded cargo, animal welfare issues, logistics issues, and large financial losses.
- Federated Co-operatives Limited – July 2021: A ransomware attack on the Canadian company infected its software resulting in 500 Co-op retail stores shut down as point-of-sale tills and self-service checkouts stopped working.
Information security in supply chains: Supply chains are interconnected networks that are audited for various aspects such as quality, environmental impact, and work conditions. However, it is crucial to assess the security of these supply chains from an information security perspective. Conducting vulnerability assessments of critical suppliers and penetration testing can help identify weaknesses and vulnerabilities.
Employee role in information security: It is important to recognize that employees play a significant role in information security incidents, accounting for over 95% of breaches. Addressing cybersecurity from a technical, cultural, and behavioral perspective is essential. Providing cybersecurity training, enforcing password controls, and raising awareness about phishing and malware attacks can mitigate associated risks.

Protecting data and information technology (IT) infrastructure is critical in today's digital landscape. By integrating cybersecurity standards, conducting assessments, and investing in training, organizations can enhance resilience against cyberthreats.

Beyond IT: Embracing collective digital transformation and security

In today's digital world, organizations must go beyond viewing digital transformation and information security as solely IT issues. It is crucial for the entire organization to understand that these are collective challenges that impact the entire business.