Supply Chain Attacks: Moving From Third-Party Risk Checklists To Intelligence-Led Monitoring

Supply chain attacks are now one of the most pressing challenges in cybersecurity. By exploiting trusted vendors, contractors, and third-party services, adversaries can bypass even the strongest internal defenses. Recent incidents like SolarWinds and the MOVEit breach have shown that just a single weak link can cause tremendous damage and impact thousands of organizations at once.

Traditionally, third-party risk management has been done with static checklists, questionnaires, and periodic audits. These methods will tell you what a vendor’s security looked like at the moment you asked the questions or ran the audit, but attackers don’t wait for your next scheduled check-in. Every day spent waiting for the next audit is another day of blind spots that adversaries can exploit.

Intelligence-led monitoring closes these gaps. Instead of backward-looking reports, it delivers a live picture of your vendor ecosystem, revealing new vulnerabilities as they appear and helping teams act before a threat spreads. In a landscape that evolves by the hour, this shift from static oversight to continuous intelligence is the only way to stay ahead.

Key takeaways:

Understanding Supply Chain Attacks

A supply chain attack is an indirect cyberattack in which adversaries compromise third-party vendors, tools, or services to infiltrate their ultimate targets. Rather than striking organizations head-on, attackers exploit the trust placed in partners and suppliers.

Because most organizations lack deep visibility into their vendor ecosystems, even small suppliers or overlooked open-source libraries can become vulnerable entry points. Modern applications depend on hundreds of third-party components, creating an enormous and complex attack surface. Just one compromised dependency can cascade across thousands of organizations, amplifying the impact far beyond the initial target.

Common Supply Chain Attacks

Supply chain attacks take many different forms, depending on the vendor, service, or technology being targeted. Below are some of the most common attack methods that organizations need to understand and defend against:

Vendor data breaches

Attackers target third-party providers to steal customer data, credentials, or payment information. Because these vendors often serve multiple clients, a single breach can ripple out to dozens or even hundreds of organizations at once. The stolen information may then be sold, leaked, or reused in further attacks, compounding the impact.

Technology vulnerability exploitation

Threat actors scan vendor environments for unpatched software, misconfigurations, or exposed services. Once inside, they can use that initial foothold to launch broader attacks against the vendor’s customers.

Ransomware extortion campaigns

Threat actors compromise a supplier, encrypt data, and threaten to publish sensitive files on dark web leak sites. Often, these disclosures appear before the vendor has even detected the breach, adding pressure on both the supplier and its downstream customers to pay quickly.

Infrastructure and domain compromises

Malicious actors hijack vendor-owned domains, email systems, or network infrastructure. This allows them to impersonate the vendor, send phishing emails, or distribute malware under the guise of legitimate communications.

Trusted access abuse

Adversaries use stolen vendor credentials or exploit privileged relationships to bypass security controls. Since the vendor already has legitimate access, these intrusions often evade detection for long periods.

Fourth-party service attacks

Instead of targeting a direct supplier, attackers compromise shared platforms or cloud providers that many vendors rely on. This creates a multiplier effect, where a single incident cascades across entire ecosystems of dependent organizations.

Open-source component tampering

Attackers inject malicious code into widely used open-source libraries, APIs, or software packages. Once adopted by vendors, the backdoored components spread downstream to customers without raising immediate alarms.

Managed service provider and contractor targeting

Managed service providers (MSPs) and consultants often hold broad, privileged access across multiple clients. By compromising a single MSP, attackers can simultaneously reach dozens of customer environments with minimal effort.

High-Profile Supply Chain Attacks

In the past few years, a series of high-profile supply chain incidents has made clear just how fragile and interconnected today’s digital ecosystem is. These events have shown that compromises at a single vendor can ripple outward to disrupt critical infrastructure, expose sensitive data, and impact millions.

SolarWinds

The SolarWinds cyberattack, uncovered in December 2020, was one of the most significant supply-chain breaches in history. Attackers infiltrated the build environment of SolarWinds’ Orion IT management software and inserted malicious code into routine updates. These updates were downloaded by roughly 18,000 customers, giving intruders a backdoor into high-value networks, including U.S. federal agencies and private firms. The adversaries then exfiltrated sensitive emails, source code, and other proprietary information, highlighting the fragility of digital ecosystems built on interconnected vendors.

The breach underscored the urgent need to strengthen supply-chain security. CISA issued Emergency Directive 21-01, requiring agencies to disable compromised Orion versions, while policymakers and companies worldwide began reassessing how much trust to place in third-party software.

MOVEit Breach

In 2023, a critical SQL injection flaw (CVE-2023-34362) in MOVEit Transfer triggered one of the largest data theft campaigns in history. Exploited by the ransomware group Clop, the bug allowed attackers to exfiltrate, alter, and delete sensitive files. Security firm Emsisoft estimated that more than 62 million people and over 2,000 organizations were affected worldwide, from government agencies to universities and financial institutions. One lawyer in the resulting lawsuits called it a “cybersecurity disaster of staggering proportions.”

The MOVEit breach illustrated how a single vulnerability in widely deployed enterprise software can cascade across entire supply chains. File transfer tools like MOVEit sit at the core of data exchange between organizations, making them high-value targets. When compromised, they expose partners, customers, and millions of individuals, turning a single flaw into a global crisis. Progress Software, the vendor, now faces dozens of class-action lawsuits and regulatory investigations as scrutiny over the platform continues.

The Problem with Traditional Third-Party Risk Management

Vendor ecosystems have grown so large and complex that traditional oversight methods no longer provide meaningful assurance. What once worked when companies had a handful of core partners now struggles under the weight of hundreds or thousands of suppliers, each with their own dependencies. As reliance on outside vendors increases, organizations are forced to depend on assurances that may not reflect the reality of today’s risks.

These weaknesses show up in several key areas:

Moving to Intelligence-Led Monitoring

Threat intelligence on third-party vendors gives security teams the clarity and velocity to act on what matters most. The following capabilities illustrate how threat intelligence transforms supply chain risk management into a proactive discipline:

The security at Novavax has changed drastically since implementing Recorded Future. We sharpened a lot of processes by introducing Third-Party Intelligence into our risk assessments, so we can make informed decisions about the vendors we do business with…A couple times now, Recorded Future has alerted us to something prior to the third-party vendor. That’s huge when we’re trying to protect our data.

Nathalie Salisbury

Strategic Threat Intelligence Analyst, Novavax

Best Practices for Enterprises

Protecting against modern supply chain attacks requires more than technical controls alone. Enterprises must establish disciplined processes that improve visibility into their vendor ecosystem, ensure business and security teams work in lockstep, and give organizations the flexibility to adapt defenses as conditions change.

The following best practices outline where organizations should focus to build resilience against supply chain threats:

How Recorded Future Strengthens Supply Chain Defense

Recorded Future moves enterprises beyond static, reactive approaches to a proactive, intelligence-driven model for supply chain security.

Instead of snapshots that quickly go stale, organizations gain continuous visibility into vendor ecosystems, backed by real-time monitoring, transparent risk scoring, and AI-powered insights. This combination reduces blind spots, prioritizes the threats that truly matter, and enables faster, more confident decision-making.

Here’s how Recorded Future strengthens supply chain defense:

By uniting intelligence, automation, and context, Recorded Future enables enterprises to see risk across their entire supply chain in real time and act before attackers can exploit the weakest link.

See how Recorded Future can help your organization protect your entire supply chain. Request a demo to get started.

What are supply chain attacks?

Supply chain attacks target an organization's vendors or partners to gain access to the organization’s network or systems. These attacks often involve compromising software updates, hardware, or third-party services that are integral to an enterprise’s operations. The goal is usually to exploit vulnerabilities in the supply chain to infiltrate and potentially cause widespread damage.

Why are supply chain attacks on the rise?

Supply chain attacks are becoming more common due to the increasing complexity of global supply chains and the growing reliance on third-party vendors. Attackers are targeting these weaker links to gain access to high-value targets, exploiting vulnerabilities in trusted relationships and technology partnerships. The rise of interconnected systems and remote work also contributes to the increased risk.

Why are traditional third-party risk checklists not enough?

Traditional third-party risk management methods, such as static checklists and manual assessments, often rely on self-reported data and do not provide real-time visibility. These methods are reactive and fail to adapt to the constantly evolving threat landscape. As a result, enterprises lack the ability to identify emerging risks and respond quickly to threats.

How can enterprises detect and prevent supply chain attacks in real-time?

Enterprises can detect and prevent supply chain attacks in real-time by integrating threat intelligence solutions that provide continuous monitoring, early warning signals, and automated risk scoring of supply chain vendors. These platforms offer up-to-date insights, enabling security teams to identify vulnerabilities and potential threats as they emerge, allowing for proactive defense measures.