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Third-party supplier risks to OT systems: cyber security for operational technology

According to a recent World Economic Report, the Covid-19 pandemic has increased our reliance on the global supply chain, the internet and has accelerated the digitisation of business processes (1). To remain competitive, manufacturing companies are increasing their reliance on suppliers to help adopt 4IR innovations such as Artificial Intelligence, Machine learning, IoT, and Big Data. This has exponentially increased risks from a cybersecurity perspective. Supply chains have become integrated, interconnected and increasingly complex. Supply Chain cyber-attacks are on the increase as they are very effective. Suppliers are most likely the second or third biggest risk in terms of cybersecurity.

A supply chain attack targets third-party suppliers who already have access to their customer's systems. This is easier than trying to hack customer's systems directly. This is effective as it hides the malware inside trusted software which is then distributed to thousands of customers. A recent example is the SolarWinds hack - one of the largest ever recorded cyber-attacks(2). SolarWinds provides tools for thousands of organisations to monitor their I.T networks and infrastructure systems. Early in 2020, hackers used a supply chain attack to insert malicious code into SolarWind's systems. SolarWinds then inadvertently sent out software updates to customers that included the hacked code (3).

The exploit created a backdoor through which hackers could gain access to customer's I.T systems. Hackers could then access system files, exfiltrate or alter data and impersonate user accounts. The backdoor could also be used to install more malware, allowing them to escalate and maintain their hold on I.T systems. The malware evaded and went undetected for months. This affected up to 18,000 customers, including critical agencies in the US government. More than 80% of the targets were Fortune 500 companies, i.e. Microsoft, Cisco, Intel, and Deloitte.

This was a complex attack and required material resources. Nation-state hackers are believed to have been responsible, i.e. Russia's Foreign Intelligence Service, known as the SVR. The real danger to enterprises is that once this approach has been used, it is out in the 'wild' and can be re-used or modified by other groups with far fewer resources.

Supply Chain attacks are only one of the cyber risks from third-party suppliers; here are a few more to take note of: 

  • New vendors and technologies are emerging all the time. IoT devices are a major concern as the focus is mass-producing low-cost connected devices, not protecting customers from cybersecurity threats. 
  • Support staff accessing your systems on-site or remotely with insecure connections or devices. This can introduce malware or open new vulnerabilities to your systems. 
  • Insecure software development can result in software being installed that can be easily exploited. This is especially risky with internet-facing systems. 
  • Improperly trained support staff who neglect to apply basic security configurations. 
  • Insecure configurations of cloud and or software as a service are common. 

Regular risk assessments need to be conducted on third-party providers to address all the potential risks that they can introduce to your organisation. This will identify, assess, measure, monitor any risks associated with the relationship. The next step is to implement mitigating controls to address the risks. Third-Party providers need to be effectively managed throughout the whole 'Vendor Lifecycle" from selection, on-boarding to offboarding. Suppliers need to be challenged about their approach to cybersecurity and what security certifications and frameworks they have adopted. If they develop software or are a cloud or SaaS provider, they should have mature, secure development processes and apply cloud security principles (4). 

Secure development applies fundamental, sound, and secure software development practices based on established secure software development practice documents from organisations such as BSA, OWASP, and SAFECode (5). If they do not have anything in place, they should commit to a prioritised roadmap to improve their cybersecurity posture. Procurement and I.T should build a cyber-reputation scorecard and avoid suppliers with a poor record. This will require effective and regular threat intelligence. Threat intelligence is information that helps organisations understand, identify, prevent, and respond to security threats (6). Supplier contracts should be updated to address cybersecurity and introduce penalties should breaches be resulting from any negligence. 

Targeted cybersecurity training should be conducted for OT and Procurement staff. Adopting a best-practice cybersecurity framework is important. This provides a holistic view of what is needed and will help establish your organisations current level of maturity and provide a roadmap for improvement going forward. This will be covered in detail in the next article.

Please do not hesitate to contact me to share your ideas, if you have been breached or need help – bryan@wolfpackrisk.com or https://alertafrica.com/report/.

You can also report breaches at the National Computer Security Incident Response Team (CSIRT) at cshubcsirt@cybersecurityhub.gov.za

1 WEF, 2021 Advancing Supply Chain Security in Oil and Gas: An Industry Analysis: http://www3.weforum.org/docs/WEF_Advancing_Supply_Chain_Security_in_Oil_and_Gas_2021.pdf

2 Business Insider, 2021 - The US is readying sanctions against Russia over the SolarWinds cyber attack. Here's a simple explanation of how the massive hack happened and why it's such a big deal, https://www.businessinsider.com/solarwinds-hack-explained-government-agencies-cyber-security-2020-12?IR=T

3 Chatham House, 2021 - The SolarWinds hack: A valuable lesson for cybersecurity, https://www.chathamhouse.org/2021/02/solarwinds-hack-valuable-lesson-cybersecurity?gclid=EAIaIQobChMIhOT948Lp8gIVGqd3Ch0fTw0_EAAYBCAAEgJjZvD_BwE

4 Cloud Security Alliance, https://cloudsecurityalliance.org/

5 Nist, 2021 - Secure Software Development Framework, https://csrc.nist.gov/projects/ssdf

6 ZeroFOX, 2021 - What is External Threat Intelligence, https://www.zerofox.com/blog/what-is-external-threat-intelligence/

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