Did you know that 98% of organizations were affected by cybersecurity breaches in their supply chain systems in 2021? The supply chain is not just prone to physical security threats; cybercrimes are also on the rise.
According to a survey in 2021, 97% of respondents said that their organization’s supply chain was adversely affected by cybercrimes. The supply chain is more prone to external attacks due to the involvement of third-party vendors such as distributors, wholesalers, suppliers, etc., and it is very challenging to ensure the safe sharing of information in such circumstances.
The question stands, how can organizations prevent this from happening or at least minimize cyber threats? How can modern-day data management solutions like virtual data rooms streamline online data sharing and communication? Let’s find out!
What is a supply chain attack?
A supply chain attack, also known as a backdoor breach, value-chain attack, or third-party attack, is a process where hackers or cybercriminals get access to a business’s network through third-party vendors such as suppliers, wholesalers, distributors, etc. Businesses often undermine the scope of supply chain threats which proves to be costly in the end.
One way to avoid these attacks is to minimize the network, but it is hardly possible, especially for medium and large-sized businesses. The only way is to strengthen the digital channels of communication and data sharing.
Why is it important to protect the supply chain?
It is important to know that even if you have a strong internal security system, hackers can still access your data through third-party vendors connected to you. Here is a real-world example of a well-known supply chain cyberattack.
Target Corporation, retail merchandise in the US, went through a horrible cybersecurity breach in 2013. Although the company had strong cyber protection, the breach occurred when the credentials of a third party were compromised, and the hacker gained access to confidential data — 70 million customers’ personal information. The incident led to the resignation of the CEO, and the company had to pay a $200 million net penalty.
Therefore, businesses need to invest in strengthening their supply chain security to avoid data thefts, penalties, and, most importantly, the loss of reputation.
How can businesses strengthen supply chain security?
How to make the supply chain less vulnerable to cyber attacks is the most important question. Here is the answer.
Use a centralized data storage
The first step a business can take to minimize data breaches is to create centralized data storage, preferably cloud-based, such as online data room software. An online or electronic data room is an unbelievably secure, centralized document repository commonly used by businesses to store and protect their confidential information.
It is easier to protect and control a central data management system rather than having dispersed repositories. Virtual data rooms allow businesses to keep a close eye on all the activities happening in software, and thus, management can take timely actions — all for a pretty affordable price. While virtual data room pricing varies greatly, this software mostly offers perfect cost-to-quality ratio.
Secure privileged access
Hackers rarely attack the accounts of mid-to-low-level employees. Their primary targets are always senior-level officials who have access to highly confidential information. As soon as the hackers have access to such accounts, they will hit the goldmine.
The best way to prevent this is to strengthen the secure login process. For example, businesses can use two-step verification or multi-factor authorization to avoid unauthorized logins. Multi-factor authorization is a powerful feature that requires the user to go through numerous verification steps, thus minimizing the chances of a breach.
Set access permissions and restrictions
Additional layers of security are something a business must consider for its cybersecurity system. For example, online data room software boasts different protective layers that reduce the chances of cyber thefts to almost zero. Here are some remarkable security features of data rooms:
- Document access control. The management can decide the level of access for all the users/employees. They can restrict anyone from performing any function on the documents.
- View-only. It makes sure that the users in the data room software can only view the document. They won’t be able to edit, share, delete, save, print, or download the files.
- Fence view. Fence-view feature is one of the best protective measures for sensitive data. Using this feature, businesses can hide any information or parts of the document.
- Remote device shredding and purging. If the administration believes a privileged account has been compromised, they can remove it from the VDR. Apart from that, the management can also purge suspicious devices connected to the data room.
Third-party vendors often prove to be a weak link in supply chain security. One of the best ways to minimize these threats is to invest in highly secure, fully controlled, and centralized data management and communication platforms like virtual data rooms.
Should you consider using a data room for your supply chain management, iDeals, Merrill, Ansarada, SecureDocs, and ShareVault, are some worth considering data room services to strengthen your supply chain security.