The Anatomy of a Supply Chain Cyberattack

Countless organizations have devoted considerable amounts of resources and time building cybersecurity defenses in the last decade. However, efforts to build secure supply chain networks have only begun in recent years. Indeed, it was not until the April 2021 compromise of SolarWinds software that led to a swath of intrusions across government entities and various industries that attacks on supply chain networks became a common concern within the C-Suite. The heightened threat to distribution networks compelled attorneys, among other professionals, to rethink how best to protect existing infrastructure and allocate risks. This article details the anatomy of a supply chain cyberattack, explores the existing state of supply chain protective contractual terms, and proposes actionable steps with a collective approach to guide legal professionals through their precarious endeavors.

Anatomy of a Supply Chain Cyberattack 

Unlike typical cyberattacks, a supply chain infiltration requires more sophistication and patience than a script kiddie, phishing scam, or brute force attack. However, while it is still possible that a supply chain cyberattack may commence as a typical phishing scam, the sophistication of a supply chain infiltration comes into play after the initial intrusion. To successfully execute this type of attack, the actor must remain undetected in the organization's technology infrastructure and move across different software to access the systems where the victim's data or code resides. The level of sophistication required to stay hidden, combined with the prolonged waiting periods while surveying the systems and devising a compromise plan, leads to the inevitable conclusion that a nation-state actor often conducts such attacks.