Digital Fraud, Threat Intelligence

Cyber attacks on the outsourcing and supply chain

By Content Team on

Cybercrime generated many disruptions and damages in 2022. Credential theft, abusive use of social engineering, data leaks, and ransomware attacks were some of the main examples. 

In this scenario of growth and concerning tactics of cybercrime in 2022, we also witnessed the strengthening of other strategies, such as supply chain attacks. This practice involves exploiting a company's supply chain to gain access to the company's systems or networks. With the increasing trend of outsourcing in the technology and security market, this is a trend that deserves to be analyzed in more detail, as we will do in this article.

 

Outsourcing processes are already a reality

The reality we live in is interconnected and, consequently, extremely dependent on technology, creating a demand for IT and security solutions that also allow companies to reduce costs. That is why the outsourcing movement has been occurring in recent years and has gained even more strength with the scenario created by the pandemic. Consequently, global spending on outsourcing is expected to reach $731 billion in 2023, according to Deloitte.

There are specific reasons that clarify this trend of outsourcing in the provision of services and solutions, namely:

  • The talent gap in the IT field
  • Latent demand for operational optimization
  • The search for a competitive advantage
  • The need for compliance 

 

This movement generates an expansion of opportunities, vulnerabilities, and challenges for security in organizations.

 

Expanding opportunities and vulnerabilities

Outsourcing presents itself as an ally in process improvement and agility, allowing companies to have a full-scale IT system based on a predictable and affordable monthly subscription. In a global recession scenario like the one we are facing today, coupled with the search for acceleration and new opportunities, it justifies the extent of this movement.

Unfortunately, as outsourcing expands, it creates vulnerabilities and challenges for security, such as supply chain attacks. A longer chain and broader cycle in development represent more vulnerable points and avenues for exploitation, and cybercriminals are aware of this.

Additionally, outsourcing has widened the risk surface, with more attack vectors, and allows attackers to reach multiple companies in a single attack. It becomes evident that this outsourcing scenario requires meticulous risk management, which is often overlooked by companies that, in their eagerness to seize opportunities, neglect a more careful approach to security.

 

Lack of risk control: where the danger lies

Since outsourcing services almost always represent access to the corporate network, it necessitates efficient risk management, addressing all layers and vectors of access to the company. This is because, if an attacker can exploit a weakness in a supplier's cycle, they can attempt to inject malicious code into a signed and certified application.

By contaminating update servers or development tools, inserting code into executables, or simply replacing real packages with fakes, adversaries can gain access to victims along the supply chain. It is also important to consider that this chain can consist of home connections or even corporate networks without proper security. Therefore, lacking visibility and mitigation of such threats enables the main risks and paths for supply chain attacks, making the infrastructure much more vulnerable than many companies think.


Main tactics for supply chain attacks

Cybercriminals are targeting the supply chain for a simple reason: greater potential for results with less effort and work. As we have understood here, there is a dynamic that not only enables but also facilitates the work of cybercrime. After all, if an attacker succeeds in an attack on a supplier, they can escalate privileges, spread malware, and spread harmful effects through the network.

Some examples of tactics that can be used by cybercriminals:

  • Fake updates: The criminal creates fake software updates and distributes them to suppliers and users to invade the network and systems.
  • Phishing: A way to induce an employee of the outsourcing company to grant access to the company's systems or networks.
  • Malware: A means for the attacker to inject malicious software to gain access to confidential data or disrupt company operations.
  • Infostealers: Malware designed to steal data from cookies, usernames, and passwords, used to gain initial access to company infrastructure.
  • Leaked credentials: With access information in hand, attackers can gain access to systems, escalating privileges. If cybercriminals gain access to a supplier, they can "contaminate" the contracting company, spreading the effects of attacks and operational problems, including ransomware, with disastrous consequences.


Consequences of a supply chain attack

The results of supply chain attacks can have significant impacts, not only on the targeted company but also on all those involved. We highlight:

Exposure of confidential data Damage to the company's reputation Legal consequences related to privacy laws Disruption of operations and financial losses Alarmingly, these attacks have targeted major platforms in recent years, reinforcing that all technology providers are potential targets. It is necessary to implement a comprehensive and effective risk management strategy to mitigate these threats.

From prevention to monitoring: security needs to be comprehensive Trends indicate that the outsourcing movement will continue, requiring increasingly assertive risk management and security measures from companies. Here are some essential measures in this scenario:

Establishing a clear policy for the integrity of source code applications, where only authorized applications can be executed. Implementing continuous threat detection and monitoring, identifying, cataloging, and combating threats such as phishing, fraud, and other risks. Tracking leaks and exposures in different databases with personal information, enabling the discovery of their origin and greater accuracy in response and damage mitigation. Continuously searching for mentions of your company on major closed channels, groups, and forums used by cybercriminals. These measures form a proactive and continuous strategy to address vulnerabilities that enable exploitation in outsourcing and supply chain attacks. The Axur platform incorporates these and other security measures, applying Cyber Threat Intelligence (CTI) solutions, and leveraging the precision of Artificial Intelligence in its operations.

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ESPECIALISTA CONVIDADO

Eduardo Schultze, Coordenador do CSIRT da Axur, formado em Segurança da Informação pela UNISINOS – Universidade do Vale do Rio dos Sinos. Trabalha desde 2010 com fraudes envolvendo o mercado brasileiro, principalmente Phishing e Malware

AUTHOR

Content Team

Experts in creating relevant external cybersecurity content to make the internet a safer place.