ArticlesEnsure Supply Chain Cybersecurity through ERP

Ensure Supply Chain Cybersecurity through ERP

A supply chain is a manufacturers and distributors most prized possession. It is the glue that holds all operations together. Order processing, production management, inventory management, warehousing, packaging, delivery, and much more are all functionalities of a supply chain.

Now, imagine if someone came along and targeted that core infrastructure. The financial loss would only be one part of a complex disaster. Customer data, advanced machinery, and valuable designs are all potential victims.

Enterprise resource planning (ERP) software provides security from cyberthreats and ensures supply chains aren’t targets of malware attacks.

Why are Supply Chains an Attractive Target
for Malicious Actors?

Supply chains are complex infrastructures that involve multiple tiers of outsourcing. Vendors, suppliers, organizations all work together to provide an array of product that has a global reach.

So, when one link in the chain is compromised, the whole chain is affected, and the vulnerabilities extend across the complete product and service lifecycle. Everyone involved – including customer data, are exposed.

Additionally, due to the nature of supply chains and the multitude of agencies involved, threat actors can derail a higher volume of organizations through one supplier. In other words, instead of targeting one external company, they can target a higher volume.

A prime example is Quanta Computer, a Taiwanese technology manufacture and Apple partner, was targeted in 2021 by a ransomware group. While there was a data breach, the end goal was to not only extort Quanta but Apple as well.

What Are Common Cyberattacks
on Supply Chains?

Open-Source Software

Open-source technology, while popular for its freely available programming and public source code, has become a target for cyberthreats.

The lack of cybersecurity means threat actors can easily target organizations via typosquatting, malicious code injection, and dependency confusion.

Undermining
Code Signing

A method used to validate the authenticity and integrity codes; it is targeted by ransomware through altered code all while maintaining the integrity of the signature.

Without realizing it, a user at an organization could incorporate the malicious additions to the code through compromised certificate authority or acquiring the private keys of a developer.

Hijacked
Updates

The amount of integrated software in a supply chain is huge. Just imagine the number of emails that are sent to notify users of upcoming software updates. Most recipients don’t think twice when it comes to clicking on those emails and links.

Certain spywares incorporate malicious code in these emails and links as it comes from a trusted sender.

Hardware Threats

Attacks on hardware and physical products are becoming less common due to the digitization of supply chains and software.

That being said, it is still possible for supply chains running on hardware to be compromised. In this instance, malware or altered components are exploited once the user deploys the physical system.

Phishing

Phishing has become so common that most organizations have programs in place to educate employees on identifying harmful emails.

Cybercriminals have become so sophisticated that phishing emails look so legitimate it can be extremely tricky to know the difference. Not to mention, taking a further step by sending threats via WhatsApp, text, and phone calls impersonating a friend or family member.

Cryptojacking

According to a 2023 SonicWall Cyberthreat Report, cryptojacking increased 399% in the first half of 2023 in comparison to the previous year.

Crytojacking is a type of malware script hijacked on devices that threat actors use to search for cryptocurrencies. It increases energy usage, drains computer resources, and infects systems without the user knowing.

How to Improve Supply Chain Cybersecurity

Did you know? The average loss associated with a cyberattack is $46,000 USD and can sometimes costs companies upwards of $1 million USD.

It makes sense that more and more businesses are investing in risk management and supply chain security to protect sensitive data and avoid major loss.

Here are a few security best practices to follow to mitigate supply chain risks:hines throughout their cycle by analyzing problems and adjusting to avoid breakdowns or failures. Sensors collect data and communicate with users to prepare for upcoming machine maintenance or potential issues. 

Avoid Open-Source Software

As mentioned above, it’s a surefire way to ensure a sensitive information breach. Not only vital operational data, but that of customers as well.

Choose a Vendor-Based ERP Solution

A unified ERP system means core infrastructure under one roof and deployment options with secure databases that are constantly updated to ensure top protection.

Educate Employees

82% of security incidents involve a human element. With such a high percentage and cybercriminals becoming more and more evolved, organizations must provide internal staff with the necessary tools to detect cyber trends.

Incorporate Risk Management

Incorporate incident responses to address real-time supply chain threats. A process that documents attacks, is updated as threats evolve and regulations change, and provides strategic answers can be the difference between minimal disruption and massive loss.

Introduce Technology Best-Practices

Multi-factor authentication (MFA), updating software, and leveraging proper firewall settings are just a few ways to safeguard the company and employees from cyberattacks.

Invest in a Cloud ERP

With a staggering 66%, cloud security is the area that most companies are investing in. Its encryption, off-site databases, and constant monitoring of suspicious activity make it hard for cybercriminals to breach.

Epicor ERP Strengthens Cybersecurity in Supply Chains

Epicor ERP has three different deployment options: on-premises, in the cloud, and hybrid. And with two powerful ERP systems: Kinetic for Manufacturing and Prophet 21 for Distribution, Epicor is a trusted partner in enterprise resource planning (ERP).

A team of security pros and an on-going development team handle evolving cyberthreats, whereas the technology base of Epicor is secure, operational, and an essential requirement for companies looking to stay competitive and safe.

Protect Your Supply Chain with EC Solutions

With more than 20 years of experience, EC Solutions has been helping customers migrate to the cloud, enforce security programs via ERP implementation, and manage resiliant supply chain infrastructures through Epicor ERP.


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