Emerging threats affecting supply chains in 2025

The backbone of the global economy is now supply chains that are being exposed to a wave of cyber threats. With the speed of digital transformation and increase in interconnected business, the means for cybercriminals to take advantage of vulnerabilities across the entire supply network is multiplying.

Ransomware Attacks

Ransomware is still one of the most damaging threats to supply chains. Logistics providers, manufacturers, and key suppliers are now often attacked, systems encryptions are breached and heavy ransoms are demanded to restore operations. In June 2024, CDK Global, a software provider for more than 15,000 North American car dealerships became the victim of a major ransomware attack.

The sensitive Social Security numbers and bank details were the target of the malware. The entire industry was forced to switch back to manual pen and paper for weeks, operations were disrupted massively and resulted in financial losses estimated to be more than 1 billion. Yet this incident is a good example of how a single ransomware attack can touch sectors in ways that completely ground them to a halt and spread from one node of the supply chain to the next.

Software Supply Chain Attacks

Cybercriminals tried to compromise the efficiency of the softwares in order to include malicious code in trusted applications and updates. Hackers revived the attacks in April 2024, using Visual Studio projects to upload malicious code to GitHub and pushed the code to the top of the search algorithms so that it would not fall too near the bottom. Cryptojacking had been present in these projects, which were designed to intercept cryptocurrency wallet addresses and redirect funds to attackers. Because businesses tend to trust and automatically update third party software, such attacks can spread very quickly, infecting many organisations at once.

Third-Party Credential Theft

Weak authentication used for the authentication of users to third party vendor networks is often exploited by attackers to gain access to corporate networks. Phishing, credential stuffing and password leaks are ways that hackers can get into many organisations through a single compromised supplier. After entering the system, attackers can steal data, disrupt the operations, and even move further inward to other connected businesses. Vendors continue to have poor security practices and a single weak link can break the entire supply chain.

AI-Powered Cyber Attacks

Cybersecurity is a double edged sword with Artificial Intelligence (AI). Companies use AI for threat detection and defense, whereas the criminals are using AI for automating phishing campaigns, bypassing security controls, and discovering the vulnerabilities in the supply chain networks. Hackers are using AI to improve the frequency of the attacks and can more easily evade traditional detection methods while also being able to target a scale attack.

IoT and OT Exploits

Internet of Things (IoT) or Operational Technology (OT) devices, like smart sensors, automated manufacturing equipment, or connected logistics systems, play a very important role in modern supply chains. Most of these devices do not have robust security and therefore, are attractive targets for hackers. Vulnerabilities are used by many cybercriminals to run distributed denial of services (DDoS) attacks or even to switch production processes and hack into the enterprises’ network. They can cause outages in production, which have occurred in the past when medical devices and industrial control systems have come under attack.

The Financial and Operational Impact

These attacks results to be very cost heavy for the organisations. Supply chain breaches, ransomware, can lead to direct losses, regulatory fines, reputational damage and blow to long term operations. Logistics and critical infrastructure attacks can disrupt those global trade routes, decrease productivity and even ruin economic stability.

Impact of U.S. Tariffs on Cybersecurity in Supply Chains

The efficacy and cost of US tariffs on imported technology, hardware, raw materials and software are felt well beyond economics. These tariffs increase the costs for businesses, which in turn leads them to find new suppliers, which may unknowingly expose them to greater security risks. Moving to new vendors, and especially to vendors in new and different geographical regions where standards for security may not be the same, enhances the possibility for supply chain attacks.

For instance, when companies have to switch suppliers, it is possible that suppliers will not have the same level of security, after which extra security assessments would be needed. In addition, to lessen dependence on foreign suppliers, many U.S. companies are implementing reshoring or nearshoring strategies. Though these are moves made to reduce the risk of foreign supply chain cyber attacks, they also bring new cyber threats of domestic infrastructure security.

In addition, new trade policies may make additional cybersecurity mandatory for companies buying certain products from particular regions, which in turn, increases costs for compliance and risk assessments. Geopolitical tensions brought by it could foster state sponsored cyberattacks of U.S. companies, which will demand keeping trade secrets and supply chain data away from spies.

Looking Ahead

Never has the supply chain landscape been so complex and vulnerable. With ransomware, software supply chain attacks, credential theft, and AI threats modifying how businesses go about their business, along with IoT/OT attacks, security can’t be ignored. Now protecting the supply chain is a priority, with vigilance and partnerships that require continual attention, as well as investment into advanced cybersecurity.

Read More:

Effects of China Mineral Ban on Semiconductor Supply Chains and India!

The Red Sea crisis and its impact on global supply chains for 2024 and beyond

Emerging Threats in Healthcare Cybersecurity: Patient Data at Risk

Securing Digital Assets: How to Protect Your Crypto Wallets from These 5 Emerging Threats