What Are Software Supply Chain Attacks? An Overview of the Types, Causes, and Consequences

Introduction

Software supply chain attacks are a growing threat to businesses and consumers alike. These attacks involve malicious actors infiltrating a company’s software development process in order to insert malicious code or tamper with components of the software. This type of attack can cause serious financial losses, reputational damage, and data breaches. Understanding what software supply chain attacks are and how they work is essential in order to protect against them.

Definition of Software Supply Chain Attacks

Software supply chain attacks, also known as “supply chain attacks” or “software supply chain security attacks,” are cyberattacks that target the software supply chain of an organization. According to the US National Institute of Standards and Technology (NIST), “The software supply chain is the set of activities, people, processes, and technologies involved in producing, delivering, and maintaining software systems.”

Overview of the Problem

Software supply chain attacks have become increasingly common in recent years. A 2020 study by Ponemon Institute found that more than half of all organizations had experienced at least one supply chain attack in the past 12 months. The same study also found that the average cost of a supply chain attack was $4.7 million.

Types of Software Supply Chain Attacks

There are several different types of software supply chain attacks. The most common types include malicious code insertion, supply chain component tampering, and unauthorized access.

Malicious Code Insertion

Malicious code insertion is one of the most common types of software supply chain attacks. In this type of attack, the attacker inserts malicious code into the software development process. This code can be used to steal data, disrupt operations, or even take control of the system.

Supply Chain Component Tampering

In supply chain component tampering, attackers modify existing components of the software supply chain. This type of attack can have far-reaching consequences, as it can allow attackers to gain access to sensitive systems and data.

Unauthorized Access

Unauthorized access is another type of software supply chain attack. In this type of attack, attackers gain access to the software supply chain by exploiting weaknesses in security protocols or by stealing credentials. Once they have access, they can manipulate the software in any way they choose.

Causes and Consequences of Software Supply Chain Attacks

Software supply chain attacks can have serious consequences for businesses and consumers. In order to understand why these attacks are so damaging, it is important to look at the causes of these attacks.

Low Security Standards

One of the primary causes of software supply chain attacks is low security standards. According to a 2019 survey conducted by NIST, only 29 percent of respondents had implemented strong security protocols for their software supply chains. Low security standards leave companies vulnerable to attack.

Poorly Implemented Security Protocols

Even if a company has strong security protocols in place, they may not be implemented properly. Poorly implemented security protocols can leave companies open to attack. As noted by cybersecurity expert Bruce Schneier, “Security isn’t just about having good technology; it’s also about having good practices.”

Lack of Quality Assurance

Another cause of software supply chain attacks is a lack of quality assurance. Companies often fail to properly test their software before releasing it, leaving it vulnerable to attack. As noted by the Ponemon Institute, “A lack of quality assurance processes can lead to vulnerabilities that are exploited by attackers.”

The Impact on Businesses and Consumers

Software supply chain attacks can have serious consequences for businesses and consumers. For businesses, these attacks can result in lost revenue, damaged reputation, and increased costs. For consumers, these attacks can result in stolen personal data, identity theft, and financial losses.

How to Mitigate Software Supply Chain Attacks

In order to protect against software supply chain attacks, companies must take steps to mitigate their risk. Some of the most effective ways to do this include implementing stronger security protocols, training employees on security best practices, establishing strict quality assurance standards, and utilizing automated security testing.

Implementing Stronger Security Protocols

Stronger security protocols are essential in order to protect against software supply chain attacks. Companies should ensure that their security protocols are up to date and properly implemented. This includes ensuring that there are proper authentication mechanisms in place, such as two-factor authentication, and that access controls are in place to limit who can access sensitive systems.

Training Employees on Security Best Practices

Employees must be trained on security best practices in order to reduce the risk of software supply chain attacks. Training should include topics such as password security, physical security, and basic cybersecurity hygiene. Employees should also be made aware of the potential consequences of a supply chain attack and the importance of reporting any suspicious activity.

Establishing Strict Quality Assurance Standards

Strict quality assurance standards are essential in order to ensure that software is secure. Companies should establish rigorous testing procedures to detect any potential vulnerabilities in the software. This includes both manual and automated testing to ensure that the software is secure before it is released.

Utilizing Automated Security Testing

Automated security testing is a powerful tool for mitigating software supply chain attacks. Automated testing can help to identify potential vulnerabilities in the software before it is released. This can help to prevent attackers from exploiting these vulnerabilities and can reduce the chances of a successful attack.

Recent Examples of Software Supply Chain Attacks

In recent years, there have been several high-profile software supply chain attacks. These attacks demonstrate the seriousness of the threat posed by these attacks and the need for companies to take steps to protect themselves.

SolarWinds Attack

The SolarWinds attack, which occurred in late 2020, is one of the most well-known software supply chain attacks. In this attack, hackers infiltrated the SolarWinds network and inserted malicious code into its Orion platform. This allowed the attackers to gain access to hundreds of networks and steal data from government agencies and private companies.

CCleaner Attack

The CCleaner attack, which occurred in 2017, is another example of a software supply chain attack. In this attack, hackers infiltrated the CCleaner network and inserted malicious code into its product. This code was used to steal information from millions of users.

NotPetya Attack

The NotPetya attack, which occurred in 2017, is another example of a software supply chain attack. In this attack, hackers infiltrated the Ukrainian software company MeDoc and inserted malicious code into its accounting software. This code was used to spread a ransomware virus throughout Ukraine and other countries, causing billions of dollars in damages.

Conclusion

Software supply chain attacks are a growing threat to businesses and consumers. These attacks involve malicious actors infiltrating a company’s software development process in order to insert malicious code or tamper with components of the software. Understanding what software supply chain attacks are and how they work is essential in order to protect against them. Companies must take steps to mitigate their risk, including implementing stronger security protocols, training employees on security best practices, establishing strict quality assurance standards, and utilizing automated security testing.