IT supply chain attacks are no longer rare. They’ve become one of the most effective ways to break into secure networks. But how do they actually happen? And what can companies do to protect themselves?

This guide breaks it down. No fluff. Just real threats, real stories, and real steps you can take to stop them.

What Is an IT Supply Chain Attack?

An IT supply chain attack targets the weak links in your tech supply chain. Instead of breaking into your systems directly, hackers go after the third parties you work with.

That means vendors, software providers, cloud platforms, even IT contractors. Once attackers compromise one of them, they sneak into your network through trusted channels.

In 2023, the National Institute of Standards and Technology (NIST) reported that 62% of organisations experienced a supply chain-related cyber incident. Most of them didn’t see it coming.

Why Attack the Supply Chain?

Hackers don’t like doing extra work. Breaking into a Fortune 500 company can take months. But breaking into one of their vendors? Sometimes it only takes days.

One example came from a small software company that provided IT tools to hospitals. They had no firewall on their update server. A hacker slipped in, injected malware, and waited. Every hospital that downloaded the next software update also got infected. Patient records were stolen. Operations had to be delayed.

The attacker never touched the hospital systems directly. They went through the software vendor.

Where Are the Entry Points?

There are four main entry points for IT supply chain attacks:

1. Software Updates

Hackers love update servers. If they can plant code in one update, they can hit hundreds of systems at once.

The 2020 SolarWinds breach worked like this. Attackers injected malware into Orion, a network management tool. The update looked normal. It passed security checks. But once installed, it opened a backdoor to government and corporate networks around the world.

2. Open-Source Components

A lot of IT tools are built on open-source code. That’s not a bad thing. But it’s also a risk. If hackers insert a bug or backdoor into a popular open-source library, that flaw spreads into every product that uses it.

In 2021, a flaw in Apache Log4j triggered global panic. Millions of systems were exposed. The code was tiny, but the risk was massive.

3. Remote Access Tools

Vendors often have remote access to help fix issues or update systems. That access is a goldmine for hackers. If attackers steal the vendor’s credentials or find a weak point in the remote connection, they’re in.

One IT admin in Brisbane said, “We got hit because our printer vendor left a port open. They meant to close it after testing, but forgot. That was the entry point.” The breach cost them over $120,000 in recovery costs and fines.

4. Hardware and Firmware

Some attacks go even deeper. Attackers can tamper with hardware or firmware during manufacturing or shipping. These are rare but hard to detect. Once inside, they can survive resets and reinstallations.

One example was discovered in 2018. Tiny chips were found on motherboards used by major cloud providers. These chips weren’t part of the original design. They were added somewhere along the supply chain.

What Happens After the Attack?

Once inside, attackers usually try to do three things:

• Move laterally to access sensitive systems

• Steal credentials to gain control

• Plant malware or spyware to stay hidden 

They often wait. The average dwell time (how long they stay before getting caught) is 212 days, according to IBM’s 2024 report. That’s over half a year of spying or stealing data.

Sometimes, attackers don’t just want access. They want disruption. One attack on a global logistics company in 2022 shut down operations for three days. The source? A compromised barcode scanning tool provided by a third-party vendor.

How Can You Protect Your Company?

You can’t control every vendor. But you can build a smarter system around them.

1. Vet Every Vendor

Don’t just check references. Ask for their security policies. Ask how they manage passwords, patches, and access. If they don’t know, or don’t care, don’t hire them.

Use a vendor risk assessment checklist. NIST and CISA both provide free templates.

2. Use Zero Trust

Zero trust means never assuming any connection is safe. Even if it’s from your IT partner.

Use network segmentation. Give vendors access only to what they need. No more, no less. Use multi-factor authentication (MFA) on all remote tools.

3. Monitor Software Sources

Track every open-source tool you use. Subscribe to vulnerability alerts. If a tool gets flagged, patch or remove it fast.

Set rules for what kind of software can be added to your systems. Make sure every install has to be approved.

4. Test Your Defences

Run penetration tests. Simulate supply chain attacks. Use red team exercises to see how far someone could get through a vendor connection.

The MITRE ATT&CK framework lists common tactics used in supply chain breaches. Learn them. Train your team to spot them.

5. Plan for Recovery

Not every breach can be prevented. But a fast response makes a difference.

Create an incident response plan. Include steps for shutting down vendor connections, blocking compromised systems, and restoring backups. Practice it every 6 months.

Also, track where your company shows up online. Some attackers use media pressure after a breach. Learn how to delete news from the internet if false or outdated headlines hurt your company after the fact.

What’s the Cost of Doing Nothing?

Supply chain attacks aren’t just IT problems. They’re business risks.

The average cost of a supply chain breach in 2024 was $4.5 million, according to the Ponemon Institute. That includes downtime, legal fees, lost revenue, and reputation damage.

One breached company spent more on public relations than on cyber recovery. Another lost their biggest contract because the client lost trust.

Most victims say the same thing after it happens. “We didn’t think we were a target.”

Final Thoughts

Supply chain attacks work because trust is easy to exploit. Every connection is a risk. But with the right controls, that risk can be managed.

“Every system has weak spots, but most people don’t look for them until it’s too late,” says Marco Bitran, founder of BMF. “Whether you’re managing buildings or networks, your edge comes from asking the hard questions before someone else does.”

Vet your vendors. Watch your software. Limit access. And always assume someone might be watching.

In IT supply chains, the strongest system is the one that treats every connection like a potential threat. Because one small door can open up your entire network.