Supply chain attacks continue to plague the cybersecurity industry and enterprises overall. Gartner predicts that by 2025, 45 percent of organizations worldwide will have experienced attacks on their software supply chains. This is a threefold increase from 2021.
Supply chain attacks are also costly for businesses. Cybersecurity Ventures predicts that the global annual cost of software supply chain attacks will reach $138 billion by 2031. While an organization can fortify its defenses to Fort Knox-level security, compromises can take place if one vendor or supplier has a weak spot. Managed service providers (MSPs) are often caught in the middle, navigating client security needs with efficiency and workplace performance.
There are some steps, however, that MSPs can take to at least tilt the odds in everyone’s favor.
A rapidly evolving threat
The supply chain threat is especially acute because it only requires one weak spot to cause a ripple effect. “The landscape of threats is rapidly evolving,” says Edward Smyshliaiev, Chief Technology Officer at Erbis. “This puts the entire business at risk. One of the most urgent issues we’ll face in 2025 and beyond is data security.”
Data, a form of currency for cybercriminals, is harvested in more places, giving criminals more and more targets. “As supply chain networks expand, so do their points of vulnerability. Business-critical data, if compromised, can lead to severe financial, operational, and reputational damage,” Smyshliaiev shares, adding that this issue will remain a pressing concern for MSPs.
Smyshliaiev explains that to address this, companies must prioritize a multi-layered cybersecurity approach. It must include stringent data protection protocols, continuous monitoring, and threat intelligence. “For supply chain businesses, partnering with cybersecurity experts is a key strategy here,” he says, adding “They bring specialized software and the latest threat insights, allowing businesses to identify and mitigate risks proactively.”
Furthermore, such experts can implement advanced access controls, encryption standards, and real-time security monitoring tailored for supply chain needs. “This proactive stance not only protects individual data but strengthens the entire supply chain, reducing risks across interconnected systems,” Smyshliaiev points out.
Setting the standards
Joshua Copeland, Director of Managed Security at Quadrant Security says MSPs have tools at their disposal that they can use. “One of the most critical yet often underutilized resources that CISOs and MSPs should leverage is the use of standards compliance verified by an external auditor,” he explains.
Copeland emphasizes that contracts with partners should clearly specify certification requirements, such as SOC 2 Type 2, PCI DSS, ISO 27001, or other relevant industry standards. He advises that these contracts also include penalties for non-compliance and the option to terminate if standards are not met. He adds that a standards compliance audit isn’t a cure-all; it can go a long way to fortifying defenses, saying, “While compliance with standards doesn’t eliminate all supply chain risks, it establishes a shared framework and risk model. This common language enables organizations to communicate risks clearly and outline actionable mitigation strategies.”
Advices for MSPs
“Supply chain security is increasingly critical for Chief Information Security Officers (CISOs) and Managed Service Providers (MSPs). Vulnerabilities in third-party vendors and suppliers can create significant risks for organizations,” says Robert Khachatryan, the CEO and founder of Freight Right Global Logistics.
He recommends several steps for mitigating supply chain risks:
- Implement comprehensive risk management frameworks – Integrate C-SCRM principles to systematically manage risks across the supply chain. “C-SCRM helps develop clear guidelines for addressing vulnerabilities at each stage, identifying weak links before they become threats,” Khachatryan explains, adding that the National Institute of Standards and Technology (NIST) provides detailed guidance on effective C-SCRM practices.
- Conduct thorough supplier assessments – A comprehensive evaluation process, highlighted by the European Union Agency for Cybersecurity (ENISA), ensures that suppliers meet essential security standards. This process also helps identify and address potential gaps in security. “Regularly assessing the cybersecurity measures of suppliers and partners helps pinpoint potential vulnerabilities,” Khachatryan says, adding, “Enhance visibility and monitoring: Continuous monitoring tools provide real-time visibility into supply chain activities, allowing for prompt detection and response to threats.”
- Enforce strong access controls – Khachatryan notes that restricting access to only necessary systems and data minimizes potential entry points for attackers. “The Cybersecurity and Infrastructure Security Agency (CISA) advises that MSPs and CISOs establish precise network security expectations, ensuring that each party in the supply chain has limited access,” he says.
Additional steps MSPs should consider include:
- Regularly updating and patching systems
- Developing incident response plans
- Fostering collaboration and information sharing
As supply chain attacks continue to grow in sophistication and impact, it’s clear that no organization is immune. MSPs play a crucial role in defending against supply chain threats by proactively implementing robust cybersecurity strategies. They also ensure compliance with industry standards and regularly assess the security posture of their supply chain partners.
Photo: Pongchart B / Shutterstock
