Your operational technology (OT) network’s security is only as strong as the weakest link in your supply chain. Threat actors are increasingly finding ways to locate and break that weakest link.
Supply chain attacks surged by an alarming 742% leading up to 2022, with the global cost predicted to reach a staggering $138 billion by 2031. Exploiting supply chain vulnerabilities is lucrative, granting influence over hundreds, even thousands, of connected businesses.
Implementing a robust third-party risk management program requires a combination of assessment, analysis, tools, and training – all of which must be tailored to OT environments.
This blog post exposes the dangers posed by third-party partners in your OT environment. You'll gain vital insights into prevalent OT supply chain risks and learn strategies to fortify defenses.
From software vulnerabilities to data leaks and poor visibility of assets, third-party risks are diverse and forever evolving. Let’s assess five of the most common and pervasive risks facing supply chain OT today:
Third-party software integrated into your OT environment can serve as an entry point for threat actors. The consequences of exploiting third-party software can be severe, ranging from operational disruption and data breaches to compromising critical infrastructure.
Several recent high-profile incidents demonstrate the risk of software vulnerabilities, such as the attack on 3CX’s VoIP software which impacted 600,000 global business users, including Fortune 500 companies.
Similarly, a vulnerability in MOVEit Transfer software led to breaches affecting over 1,000 businesses and over 60 million individuals, resulting in damages exceeding $9.9 billion.
Sourcing hardware components from third-party suppliers exposes your OT environment to tampering risks.
Compromised hardware can introduce backdoors and malicious firmware into OT systems, enabling attackers to bypass security controls and establish a presence within the network.
Business leaders tend to overestimate their security strategies, and OT security in particular has only become a priority in the last decade or so. There’s still much catching up to do, and in many cases, security practices across the supply chain are simply not up to par.
Honeywell vice president and general cybersecurity manager Jeff Zindel told TechTarget in 2022 that there’s "very little awareness" about OT security risks, with many IT and cybersecurity managers wrongly believing their infrastructure is secure.
If one supply chain partner fails to implement and maintain robust security practices, the risk spreads to connected businesses. OT security, therefore, is both an individual and collaborative effort.
Confidential data and intellectual property entrusted to external entities are vulnerable to unauthorized access or misuse.
In a study from the Ponemon Institute, 74% of businesses admitted that recent data breaches could have been caused by third-party data access.
The consequences of data leakage can be severe, with the average cost of a data breach globally reaching $4.45 million. And that’s before considering downtime, reputational damage, and potential regulatory investigations.
Introducing third-party components and services into OT environments reduces visibility and control over the attack surface.
A report commissioned by the UK government alarmingly found that only 12% of businesses thoroughly review and monitor risks from their immediate suppliers. A mere 5% extend scrutiny to the wider supply chain network.
Comprehensive supply chain visibility must be a top priority for OT security leaders. Without it, your risk exposure remains misunderstood and unmanaged.
With the above risks in mind, let’s move on to explore effective strategies for fortifying OT defenses, from conducting thorough risk assessments to securing access and staff training.
It’s worth mentioning that third-party risk prevention and mitigation strategies differ by business, sector, and jurisdiction. The US, Canada, Japan, the UK, and the EU all have policies in place to safeguard supply chains, particularly for organizations linked to critical infrastructure.
It’s first essential to question the risks of working with a particular third-party vendor.
What systems will they access, and how could an incident involving them affect your OT network? What are the potential costs?
Map out all potential attack paths a compromised partner could introduce and that attackers could use to disrupt industrial processes, quantifying impacts like:
Also, consider if your organization could maintain operational continuity in the short term without the vendor’s products or services. How long could you reasonably operate under constraints or downtime? How long would it take to restore a backup or repair a compromised system?
Answering these questions within the context of your network helps steer the vendor selection process.
When screening vendors, establish strict criteria based on their security credentials, compliance with industry standards, and the strength of their cybersecurity practices.
This should include an assessment of cybersecurity frameworks, such as NIST SP 800-161 for supply chain risk management, ISA/IEC 62443 for industrial automation and control systems security, and ISO/IEC 27036 for supplier cybersecurity.
Conduct in-depth risk assessments that factor in the vendor’s role, their IT/OT attack surface, data protection practices, offshore activities, and exposure to high-risk regions. Screening should include checks against denied entity lists and links to threat groups.
Your contracts and service-level agreements (SLAs) should be airtight, with security obligations, regular audits, and breach notification procedures woven into the agreements.
Mandate that vendors implement and maintain appropriate cybersecurity controls aligned with industry best practices.
Clearly define incident response responsibilities – vendors should rapidly notify you of potential breaches or suspicious activity impacting your OT assets.
The SCADAdefence Governance Portal simplifies the creating, organizing, and monitoring of OT security protocols across multiple sites.
Third-party vendors, support teams, and remote operators will often require remote access, but each connection represents a potential attack vector.
Implement secure remote access solutions with stringent access controls. Consider enforcing multi-factor authentication and encrypted communication channels between your organization and the vendor. And don’t forget to decommission systems and revoke access privileges when they’re no longer required.
Safely onboarding a third-party partner is only one half of the battle. From there, you’ll need to monitor their activities, how they access and use your systems, and whether this changes over time.
Implement continuous monitoring to detect and respond to anomalies originating from the supply chain. Leverage OT-specific security tools and technologies, like the SCADAfence Governance Platform, to maintain visibility and stay one step ahead of potential threats.
Remember – establishing initial trust is important, but ongoing monitoring is crucial as risks often evolve over time.
Your employees are often the first line of defense against supply chain threats.
Educate staff on supply chain attack vectors, such as malicious code injection, counterfeit components, phishing, and social engineering attacks. Reinforce fundamentals like secure data handling, incident reporting procedures, and handling removable media.
Supply chain risks are inherently shared. Staying connected and informed can help you stay one step ahead of emerging OT threats and network vulnerabilities.
Establish a routine for exchanging insights on potential threats and security updates with your partners. Integrate third-party risk evaluation into cybersecurity governance and stay up to date with the latest attack vectors.
The goal is to foster a culture where information flows freely, allowing you and your partners to anticipate and mitigate threats before they escalate.
Remember, a supply chain threat to one is a threat to all – by working together, you can strengthen the collective defense of your OT environment.
Securing your OT environment against third-party risks is an ongoing process that requires vigilance, proactivity, and collaboration.
By understanding key risks and implementing the strategies discussed in this blog post, you can comprehensively enhance your organization’s resilience.
By committing to best practices and investing in the tools and training required to implement them, you can continue to benefit from third-party partnerships while safeguarding your OT assets.
SCADAfence offers purpose-built tools for OT security, offering deep visibility into third parties and their assets.
If you’re looking to bolster your OT network’s security against third-party threats, reach out to SCADAfence for a free demo.