Hello, Today we are going to talk about one such cybersecurity threat that silently enters our system and causes a lot of destruction – Supply Chain Attacks. These attacks are so silent that companies do not even know when their data and system got compromised. In a digital-first economy like India, where the craze for UPI, Aadhaar and cloud services is increasing, this threat becomes even more critical. So let us understand – what is supply chain attacks, why is it so dangerous, and how can it be stopped.
What Is a Supply Chain Attack?
A supply chain attack is a cyber security attack where hackers target the company's trusted vendors, suppliers or third party services rather than directly targeting the company, which makes it easier for them to get access to the main organisation
Imagine a plan to hack a fort's trusted gatekeeper and enter inside - exactly like that!
If a company's system runs on some third-party software, and a hacker injects malware during the update of that software, then all the companies using that software automatically get infected. Just one small mistake can bring down the entire system!
Why Is It So Dangerous?
The attack comes from a trusted vendor, which is difficult to detect .A single attack can affect thousands or millions of systems. Like the case of SolarWinds (2020), in which 18,000 organizations were compromised.
According to the ENISA 2021 report, supply chain attacks cannot be detected for months or years . State-sponsored groups like China's APT-41 and Russia's Cozy Bear use these attacks for espionage and attacking infrastructure.
In 2023, a compromised software update of an Indian IT service provider leaked sensitive data of multiple clients.
Recent Research: What Do the Numbers Say?
Cowbell Cyber Risk Report (2025): Supply chain attacks have seen a growth of 431% between 2021-2023.
Data Theorem Survey (2024): 91% of organizations are those that faced a software supply chain attack last year.
Gartner (2023): According to Gartner, by 2025, 45% of global organizations can fall victim to supply chain attacks.
ReversingLabs (2024): According to ReversingLabs, malicious packages in open-source repositories have increased by 28%.
India Cyber Threat Report 2025: Finance or healthcare sectors are most likely to be at risk, especially due to AI-driven attacks.
Indian Context: Challenges and Examples
• Digital Boom
UPI did transactions worth more than ₹200 lakh crore in 2024 – and this whole ecosystem is heavily dependent on third-party vendors.
• Vendor Ecosystem
Indian companies depend on global vendors (cloud providers, software tools) – which become entry points for attackers.
• Geopolitical Tensions
According to the report, China and Pakistan-backed groups like Cosmic Leopard are actively targeting Indian orgs.
• Lack of Audits
According to PwC India (2024) survey, only 23% organizations monitor real-time vendor security.
• Example: In 2023, a Mumbai-based IT service provider's software update contained malware which leaked financial data of many companies. This clearly shows that Indian companies will have to focus more on their vendor ecosystem
Real-World Global Examples
• SolarWinds (2020): Russian hackers injected malware into an update of SolarWinds' Orion software - affecting 18,000 organizations - including Microsoft and US gov.
• MOVEit (2023): The Cl0p ransomware group exploited a zero-day vulnerability in MOVEit's file transfer tool, compromising 620+ organizations, including BBC, British Airways.
• Wipro (2020): Hackers launched a phishing attack using Wipro's systems, stealing sensitive data from clients. This incident clearly shows that Indian companies are also vulnerable to cyber attacks.
• XZ Utils (2024): A backdoor was hidden in the open-source tool which was not detected for years – this highlights that open source dependencies can also be risky
How Do These Attacks Happen?
Malicious code is injected into software updates or libraries.
Vendors and employees are targeted through Phishing & Social Engineering
and credentials are stolen.
Malware is pre-installed in hardware components.
Unknown vulnerabilities are exploited like zero- Day vulnerabilities
AI-driven malware and deepfake technologies are making supply chain attacks more dangerous (India Cyber Threat Report 2025).
India-Specific Challenges
• Regulatory Gaps: IT Act, 2000 is outdated, does not cover modern supply chain threats.
• Lack of Awareness: SMEs have a lack of cybersecurity training and vendor audits.
• Import Dependency: Nuclear and defense systems are dependent on foreign hardware/software.
• Geopolitical Threats: Groups like China's Salt Typhoon are targeting financial and government systems.
Prevention and Mitigation Strategies
Do security checks of every vendor, make audits mandatory.
Do not blindly trust any access – use continuous verification.
Use Software Composition Analysis tools to detect open-source vulnerabilities.
SBOM (Software Bill of Materials): Keep a detailed list of every software component.
Keep sensitive data secure with AES encryption.
Regularly test systems for vulnerabilities.
Train staff on phishing and social engineering attacks.
Be prepared for quick response and recovery.
Increase the use of local software and hardware to reduce foreign risk.
Indian Initiatives and Future Outlook
• CERT-In: Provides guidelines and alerts against supply chain attacks.
• NCIIPC: Works on security of critical sectors like finance, energy.
• RBI Guidelines (2024): Vendor audits and zero trust rules made mandatory for banks.
• Make in India: Development of local cybersecurity products is increasing.
But gaps still exist. As per PwC India’s 2024 survey, Indian organisation need to increase cyber budgets by 6-15%. Public-private partnerships, like India Stack for Aadhaar, could be a game-changer in cybersecurity in the future.
Supply Chain Attacks are a silent killer – a single weak vendor can collapse the entire digital ecosystem. In a rapidly digitizing country like India, this threat becomes even more dangerous. According to 2025 reports, AI and open-source vulnerabilities are making these attacks even more intense.
But if we take steps like vendor management, zero trust and proactive monitoring, we can stop this silent killer.
Share your thoughts in the comments
written By Parvesh Dahale
From THM Nagpur Core Team
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