Supply chain cyberattacks have become one of the most significant cybersecurity problems, changing how organizations worldwide face cyber threats.

These smart attacks take advantage of how modern businesses work together, where cyber criminals target trusted vendors and service providers to get access to many companies at once. The growing complexity of digital supply chains has created many weak spots that bad actors use more often with better attack methods.

Traditional security walls have become useless against threats from within trusted business relationships, forcing businesses to rethink how they protect themselves.

Today’s threat landscape means that companies can no longer protect their networks and must instead use complete approaches that fix weak spots across their entire network of suppliers, vendors and service providers to stay secure.

The Reasons Behind the Increasing Number of Supply Chain Cyber Attacks

Supply chain cyberattacks are increasing because modern institutions rely heavily on connected third-party vendors. This creates multiple entry points for cyber criminals to exploit with innovative attack methods. Between 2021 and 2023, attacks jumped by 431%, and reports show this number will likely keep rising throughout 2025.

The growth of attacks surfacing through IoT devices, cloud systems and remote work tools gives cyber criminals many entry points into supply chains. This considerable growth in digital connections has created complex third-party dependencies, with establishments relying on many vendors for cloud services, software solutions and managed IT services. The National Institute of Standards and Technology’s cybersecurity framework now works to help manage and reduce risk.

At the same time, threat actors have become much smarter, using advanced techniques like nation-state-level attacks and ransomware-as-a-service platforms. Ransomware payments in 2023 exceeded the $1 billion mark — the highest number ever seen. This mix of expanded digital dependencies and evolving threat capabilities has created a situation in which supply chain attacks offer cybercriminals the chance for maximum impact with a relatively low risk of getting caught.

Top Risks Facing Supply Chains Today

Supply chains face many cybersecurity risks, and they keep getting more complex. Research shows a 78% increase in supply chain cyber attacks recently, showing the urgent need for complete security measures. The main risks include:

• Third-party and vendor weak spots. These are the most significant threats because businesses often can’t see into their suppliers’ security practices. Some establishments don’t review their direct suppliers’ risks, creating weak links attackers can use to access outside organizations.
• Software supply chain attacks. These have become much smarter, with attackers targeting real software development and distribution processes. The number of software supply chain attacks doubled again in 2024, showing that the industry is somewhat defenseless against these growing attacks. Software supply chain threats allow cybercriminals to hide malicious code in trusted software updates and send it to thousands of unsuspecting entities.
• Phishing and social engineering. These are the primary attack methods, with cyber criminals targeting supply chain employees to gain initial access. Phishing emails are a common source of ransomware attacks. With the rise of AI, it has become easier for attackers to write well-crafted phishing emails.
• Insider threats. These create significant risks, whether from bad employees or accidental actions by authorized people who unknowingly break security. These threats are hazardous to supply chain contacts because insiders often have special access to critical systems and data.
• Lack of visibility across the supply chain. Lack of visibility remains a basic challenge, as groups struggle to oversee their extended supplier networks completely.

Supply Chain Cyber Risk Mitigation

Protecting against supply chain cyberattacks requires a complete, multi-layered approach that addresses weak spots at every level. The following six strategies provide actionable steps that organizations can use to strengthen their supply chain security:

1. Conduct a complete third-party risk check. Before starting commercial relationships, business leaders must use strict checking processes for all suppliers and vendors. A third-party risk check includes reviewing compliance certifications and their incident response capabilities.
2. Use zero-trust security principles. Zero-trust architecture works on the principle of never trusting and constantly verifying. It requires authentication and authorization for every user and device accessing network resources. This approach works particularly well in supply chain security because it limits potential damage if a supplier’s credentials are compromised.
3. Improve supply chain visibility and monitoring. Organizational leaders must develop complete visibility into their entire supply chain ecosystem. Improving supply chain visibility includes mapping all supplier relationships and understanding dependencies. It also includes using software bills of materials to track software components and their origins, setting up real-time monitoring systems to detect unusual activity and keeping detailed inventories of all third-party services and applications.
4. Update and patch the system regularly. Keeping current security patches across all systems and applications is key to preventing the exploitation of known weak spots. Website designers should set up automated patching processes where possible and keep detailed inventories of all software and systems to ensure complete coverage.
5. Foster cybersecurity awareness and training. Human factors remain a critical part of the supply chain, requiring complete security training programs for employees at all levels. Training should cover recognition of social engineering, procurement and supply chain security risks.
6. Collaborate and share threat intelligence. Adequate supply chain security requires collaboration between companies and suppliers. Participation in industry information-sharing groups, government cybersecurity initiatives and vendor security programs helps all stakeholders stay informed about emerging threats and effective countermeasures.

Real-World Examples of Recent Cyber Attacks

In February 2023, a supply chain cyberattack targeted a business partner of semiconductor company Applied Materials, disrupting shipments and costing $250 million in the first quarter of the year. While no update was provided by Applied Materials regarding how the issue was resolved, the company noted that cybersecurity insurance was expected to offset some of the losses.

In June 2025, a Whole Foods distributor, United Natural Foods (UNF), experienced a cyberattack that disrupted order fulfillment and distribution. UNF had to shut down parts of its IT network as a workaround to maintain operations.

Another June 2025 incident tapped the insurance industry when Aflac, Inc. was targeted in a social engineering scheme that was part of a major cybercrime spree that targeted the insurance industry. The cyberattack was caught by the company and shut down within a few hours.

These incidents show the importance of complete vendor management, continuous monitoring and rapid incident response capabilities.

Protecting Your Supply Chain From Cyberattacks

The growing threat of supply chain cyberattacks demands immediate and complete action for commercial groups across all sectors. Success requires adopting a layered collaborative approach that combines rigorous vendor management, complete monitoring and strong incident response capabilities. Organizational teams must recognize that supply chain security is not just an IT issue but a business necessity that requires executive, cross-functional leadership and ongoing investment in technology and human capabilities to build truly resilient supply chains.