Phishing in Supply Chain: Vendor Impersonation by Attackers

The world of business and commerce has also become more integrated than ever before, and one of the most commonly seen threats in the business world these days are phishing supply chain threats. These attacks take advantage of the complex interconnections between vendors and companies so it’s essential to understand how phishing attacks target your supply chain.

Supply Chains: The Target of Phishing

The supply chain is a series of interconnected businesses that are interdependent on one another. That has made them attractive to cyber crooks:

• Complex Relationships: Vendors and service providers often exchange sensitive data making them delicious pickings for phishing.
• Trust and Becoming Verbal: Vendors are generally trusted by corporations resulting in reduced scrutiny of such communications.
• Access Levels: Vendors often obtain high access to vital systems and data, making them a rich target for attackers.

PHISHING of Supply Chain

Phishers are crafty, employing several tactics to penetrate supply chains:

• These types include: Attackers posing as a trusted vendor make requests of the victim that appear to be legitimate.
• Invoice Scams: The scammer sends a fake invoice that looks real to companies and if paid will deposit the funds into their fraudulent account.
• Credential theft is a 3rd party attack vector — Phishing is big business; A successful phisher will gain credential that gives access to multiple networks by attacking a vendor.
• Communication Spoofing: Fake emails or messages are also common, purporting that technical glitches have occurred or even attempting to change payment methods.

Case Studies

Learning about real-world examples can show you the severity and tactics of supply chain phishing as you consider the worst-case potential:

Case Study 1: The Retail Breach

Phishers breached a vendor, then compromised a large retailer. They compromised a company that provided HVAC services to the retailer, utilizing that vendor’s email system to mount spear-phishing attacks on the retailer itself.

• Result: Millions of credit cards details were compromised.
• Lesson: Authentication and strict email security protocols are critical.

Case Study 2: Manufacturer Leakage of Data

When a phishing email caused their design vendor’s email account to be compromised, a manufacturing firm also saw proprietary designs leaked.

• Outcome: Strained litigation and diminished market share.
• Takeaway: Vendors must train their employees to identify phishing attacks.

Prevention: Best Practise

Strong defenses must be enacted to prevent supply chain phishing:

• Lead Author/Developer of Cyber Security a chunk of the ecosystem here.
• Access Management: Only provide a vendor with access to what they need to access, reducing what systems they have access to.
• Controlled Renting Options: Think about renting firewalls, servers, and routers to keep your security infrastructure updated without a significant capital investment.
• Employee Training: Schedule periodic trainings for your employees and vendor partners to identify phishing attempts.
• Incident Response Plans: Have a detailed response plan in place to respond quickly if an incident takes place.
• Regular audits: Regularly audit your vendors to make sure their security standards meet your expectations.

Finally, protecting your company against phishing attacks in the supply chain can be achieved through a combined effort between you and your suppliers. Your investments in things like stronger email security and vendor protection are rewarded with fewer phishers at your gates. By knowing how these phishing supply chains work, companies can build skills for defense and protection to become a seamless process.