Supply chain security has quickly become one of the most important (and complex) areas of Cyber Security. Why? Because as organisations grow more connected, the number of third parties they rely on increases and so do the risks.
From software providers and cloud platforms to logistics partners and hardware suppliers, every external link in your supply chain could be a potential entry point for attackers. And in many cases, these links aren’t as secure as your internal systems.
The threat landscape is shifting, fast. It’s no longer just about defending your own perimeter, but understanding and managing the broader ecosystem you operate in.
In this blog, we’ll unpack why supply chain attacks are becoming more common, explore real-world examples, and give you a practical step-by-step plan to strengthen your defences.
The Current State of Supply Chain Attacks in the UK
Supply chain attacks are no longer rare. They’re happening more often and they’re hitting UK businesses hard.
Research from Orange Cyberdefense found that 58% of large UK financial services firms were hit by a supply chain attack in 2024. Even more worrying, 23% were attacked three or more times.
This shows a clear pattern. Cyber attackers are targeting third parties because they know these suppliers often don’t have the same level of protection.
The research also looked at how companies assess supplier risk. The results were mixed:
- Many firms only assess risk when a new supplier comes on board
- Others carry out checks once or twice a year
- But just 14% are continuously monitoring third-party risk
Why does this matter? Because the more often companies check for risks, the better their chances of avoiding an attack.
Here’s what the data showed:
- 68% of firms that only did checks at the start were breached
- That number dropped to 57% for those doing regular checks
- It fell even further to 32% for those with continuous monitoring
It’s clear that supplier risk needs to be reviewed often, not just at the beginning of the relationship. Threats change quickly. So should your approach to managing them.
Why Supply Chain Cyber Attacks Happen
Cyber attackers are always looking for the easiest way in. And often, that means targeting someone you do business with — not you directly.
Your suppliers, service providers, or software vendors might have access to your systems or sensitive data. But they may not have the same security standards in place. This makes them a tempting target.
The Attack Methods Of Third Party Risk Management
It’s not just one method they use, it’s a blend of tactics that exploit trust, access, and complexity.
Compromised software builds:
Attackers infiltrate the software development lifecycle itself, embedding malicious code in updates or packages before they even reach the customer. The SolarWinds supply chain attack is the most famous example — and it showed how even trusted vendors can become a delivery vehicle for malware.
Third-party access abuse:
Many suppliers are given privileged access — whether it’s admin rights, VPN access, or integration into critical systems. If their credentials are compromised or access isn’t tightly controlled, attackers can move laterally into your environment without ever breaching your perimeter directly.
Dependency hijacking:
Attackers exploit the way software packages are managed — registering malicious versions of libraries or modules that get automatically pulled into builds. This technique is growing, especially in open-source ecosystems.
Watering hole attacks
In some cases, adversaries compromise websites or tools commonly used by a specific industry or group of suppliers, waiting for the right person to unknowingly download a malicious file or visit a tampered site.
Email-based social engineering:
If a trusted supplier’s email domain is spoofed or worse, compromised — it becomes a powerful tool for phishing and fraud. A well-timed email from a “known” partner can easily trick even vigilant employees.
Why Attackers Use This Route on Supply Chain Vulnerabilities
It’s efficient. Compromising one third party can open the door to dozens sometimes hundreds of targets. It’s also harder to detect and creates confusion around responsibility. When the threat comes from a known and trusted source, security teams can take longer to spot the issue and act.
These attacks work because they exploit three key things:
- Trust between organisations
- Extensive access across networks
- Limited visibility into supplier environments
Why These Attacks Are a Big Risk
When a supply chain attack hits, the impact doesn’t stop at the source. It spreads quickly and widely.
The Business Impact
A supplier breach can lead to:
- Operational disruption — If a key vendor is taken offline or compromised, your own systems or services may grind to a halt. This is especially true for cloud-based software, IT support providers, and logistics platforms.
- Financial loss — Downtime, recovery costs, legal fees, and regulatory penalties all add up.
- Reputational damage — Even if the breach wasn’t technically your fault, your customers, partners, and regulators may still hold you accountable for failing to manage third-party risk.
The Customer Impact
Many supply chain attacks result in:
- Data exposure — Sensitive customer information (such as payment details, email addresses, or personal data) can be compromised if third parties aren’t properly secured.
- Loss of trust — Customers don’t always distinguish between you and your suppliers. If their data is breached, they’ll look to you for answers — and reassurance.
The Operational Risk
These attacks often require:
- Time-consuming investigations
- Emergency patches and containment
- Wider security reviews
Long story short. It’s not just an IT problem
Real-World Examples Of Supply Chain Attacks from the UK
When we talk about supply chain attacks, it’s easy to think of them as distant or unlikely but the reality is very different. These attacks have hit major UK organisations in recent years, causing real-world disruption to services, operations, and customers.
Here are two examples that show just how impactful and varied supply chain attacks can be:
Blue Yonder Ransomware Attack (2024)
In November 2024, supply chain software provider Blue Yonder was hit by the Termite ransomware group. The attack disrupted services for major UK retailers, including Morrisons and Sainsbury’s, affecting warehouse operations.
Termite claimed to have stolen 680GB of data, including documents, databases, and email lists. Blue Yonder is still investigating and working with Cyber Security experts to restore services.
Find out more about the attack here.
British Airways Skimming Attack (2018)
In 2018, British Airways suffered a major supply chain attack that exposed data from 380,000 online transactions. Attackers injected just 22 lines of malicious code into the website and mobile app, stealing names, emails, and full card details — including CVVs.
The Magecart group was linked to the attack, which used third-party code to slip past BA’s defences. It remains a clear example of how even small, trusted scripts can be weaponised.
Read the full information here.
What Can You Do to Reduce the Risk: Vendor Risk Management
Managing supply chain risk isn’t about ticking off a checklist it’s about building a clear, ongoing process. Before we dive into the step-by-step plan, here are some key principles to keep in mind:
- Don’t Stop at the Basics
It’s not enough to ask if a supplier has controls — ask how those controls are tested and maintained. Look for recognised certifications but also request evidence like pen test results or audit reports.
- Involve the Wider Business
Supply chain risk spans more than IT. Legal, procurement, and compliance teams should help set the standards for what’s expected — and what happens if things go wrong.
- Limit Access
Always follow the principle of least privilege. Suppliers should only access what they need — and nothing more. It’s one of the simplest ways to reduce exposure.
- Don’t Assume — Verify
If you’re using externally developed systems, don’t assume they’re secure. Ask questions, request documentation, and when needed, carry out your own testing.
With those fundamentals in place, the next section outlines a clear plan to help you build a more resilient and secure supply chain.
A 9 Step-by-Step Supply Chain Security Plan: Your Third Party Risk Management Framework
A strong security strategy starts with knowing where your risks are — and having a clear plan to manage them. Here’s a step-by-step approach to help reduce your exposure to supply chain threats:
Step 1: Map Your Supply Chain
Start by identifying who you rely on. List all third-party suppliers, service providers, and software dependencies. Highlight those with access to sensitive data or critical systems.
Step 2: Conduct Supplier Due Diligence
Before engaging with a new supplier, review their security practices. Look for certifications like ISO 27001 or Cyber Essentials Plus, and confirm they meet your compliance needs.
Step 3: Assess Their Security Controls
Ask for evidence of security testing — such as penetration tests or vulnerability scans. If possible, include your suppliers in your own security reviews.
Step 4: Formalise Security Agreements
Include Cyber Security expectations in your contracts. Define responsibilities, incident response requirements, and SLAs for managing security risks.
Step 5: Monitor in Real Time
Use tools that give you visibility into third-party activity. Early detection of unusual behaviour helps you act fast if something goes wrong.
Step 6: Prepare for Incidents
Have a robust incident response plan that includes third-party breaches. Know how you’ll communicate, contain the issue, and recover even if the source is outside your organisation.
Step 7: Layer Your Defences
Use multi-layered security controls to protect systems that rely on external code or software components. This reduces the risk if one layer fails.
Step 8: Review and Improve Regularly
Security isn’t static. Schedule regular audits of your suppliers and update your supply chain policies based on emerging threats or business changes.
Step 9: Educate Your People
Train staff to spot suspicious activity and understand the risks of third-party tools or services. Include supplier-facing teams in your security awareness training too.
Protect What You Can’t See: Start Securing Your Supply Chain Today
Supply chain threats aren’t going away — but with the right steps in place, you can take control and reduce the risk.
If you’re unsure where your weak spots are, we can help. Our team of Cyber Security experts can work with you to assess your supply chain, test supplier security, and build a more resilient strategy. Let’s work together. Call us on 0121 663 0055 or email us at enquiries@equilibrium-security.co.uk.
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