Guidance is coming; but hackers aren’t waiting and it’s a risk to supply chains

Supply chains have become the soft underbelly of cybersecurity; with recent high-profile breaches demonstrating how attackers can exploit third-party vulnerabilities to infiltrate organisations. In 2022; the UK’s National Cyber Security Centre (NCSC) issued supply chain security guidance; aimed at helping organisations assess and secure their supplier networks. Still; supply chain attacks continue.

More recently; further guidance is emerging; including the Cyber Assessment Framework (CAF) and the upcoming Cyber Security and Resilience Bill; action remains slow; and supply chain hacks continue to occur. The UK government’s 2025 guidance on securing government supply chains highlights the need for stronger risk management; but in the interim; hackers are exploiting supply chain vulnerabilities in greater numbers than ever before. Which raises the question: is it time for businesses to push for stronger; industry-wide measures?

Why supply chains are exposed

Expanding digital ecosystems: each third-party supplier for cloud, IT and operational support is a potential entry point.
Weaponised AI lets attackers automate attacks, find vulnerabilities at scale and craft convincing phishing.
Inadequate assessment: only 13% of UK businesses regularly review immediate-supplier risk, and just 7% assess the wider chain.
State-sponsored espionage like China’s Silk Typhoon targets shared remote management tools and cloud services.
Regulatory pressure from GDPR, NIS2 and DORA demands stricter supplier due diligence.

Why supply chains are increasingly vulnerable

The risk associated with supply chains is escalating due to several factors:

Expanding digital ecosystems

Relying on a tapestry of third-party suppliers for cloud services; IT management; and operational support is the norm for many businesses now. However; each supplier presents a potential entry point for cyber threats.

More AI; more cyber threats

AI is being weaponised by attackers to automate attacks; identify vulnerabilities at scale; and create highly convincing phishing campaigns. This exacerbates the challenge of securing supply chains; as AI-powered threats can adapt quickly. Similarly; if you’re adopting AI technologies and not applying rigorous due diligence to them; they come with significant risk. Don’t choose innovation over security. They need to go hand in hand.

Inadequate risk assessment

Despite the increasing number of attacks; data from the NCSC suggests that only 13% of UK businesses regularly review the risks posed by their immediate suppliers; and just 7% assess their wider supply chain.

State-sponsored cyber espionage

Nation-state actors; such as China’s Silk Typhoon; are shifting tactics to target remote management tools and cloud services; which are often shared across multiple organisations.

Regulatory pressure and compliance challenges

As cyber threats increase; regulatory frameworks such as GDPR; NIS2; and DORA (for financial-services) require stricter due diligence on suppliers; adding complexity to compliance efforts. Cybersecurity professionals are juggling a lot of different frameworks and priorities; with many indicating that they feel burnt out as reported by insights provider; Gartner.

Inside a Silk Typhoon attack

Microsoft’s Silk Typhoon report shows the group now targets IT service providers, identity management solutions and remote monitoring software.
Unpatched applications and stolen credentials let attackers reach downstream customer networks.
Perimeter security is bypassed — indirect access points through suppliers are the attractive vector for cybercriminals.

Recent attacks highlighting supply chain risks

Microsoft’s latest report on Silk Typhoon reveals a troubling evolution in supply chain cyber threats. The state-sponsored group has shifted its approach to target IT service providers; identity management solutions; and remote monitoring software. By exploiting unpatched applications and using stolen credentials; they can gain access to downstream customer networks and bypass traditional perimeter security measures.

Just one of many examples; the takeaway is clear: indirect access points through suppliers are an increasingly attractive vector for cybercriminals and it needs a solution.

Supply chain risk regulation - what’s happening globally?

The European Union’s NIS2 Directive tightens security requirements for critical infrastructure providers; demanding stricter supplier risk assessments and real-time threat reporting. The United States’ Executive Order on Improving the Nation’s Cybersecurity mandates software bill of materials (SBOM) transparency for federal contractors to mitigate risks from vulnerable software components. Meanwhile; Asia-Pacific nations; including Australia and Japan; are implementing stricter cybersecurity supply chain frameworks; recognising the economic and national security implications of these attacks.

Despite these measures; enforcement and compliance remain a challenge; with organisations needing to integrate global standards into their security strategies and juggle the evolving need and threats.

Region	Regulation	Supplier requirement
European Union	NIS2 Directive	Stricter supplier risk assessments and real-time threat reporting for critical infrastructure providers
United States	Executive Order on Improving the Nation’s Cybersecurity	Software bill of materials (SBOM) transparency for federal contractors
Asia-Pacific (Australia, Japan)	Stricter cybersecurity supply chain frameworks	Recognises the economic and national security implications of attacks

AI cuts both ways

AI-powered phishing generates hyper-personalised attacks that bypass traditional detection mechanisms.
Adversarial attacks can manipulate machine-learning models and corrupt data integrity in AI-driven supply chain systems.
Automated vulnerability discovery finds security gaps in supplier software faster than traditional methods.
AI-driven defences like behaviour-based detection and automated patching belong in your AI risk management strategy.

AI and the future of supply chain cyber threats

AI is a double-edged sword in cybersecurity with some heralding it as a future strength in threat detection; whereas others see it as potentially its greatest weakness. While organisations use AI-driven tools to detect anomalies and automate threat response; adversaries leverage AI for advanced cyberattacks. We’re seeing worrying trends:

• AI-powered phishing campaigns can generate hyper-personalised attacks that bypass traditional detection mechanisms.

• Machine learning models can be manipulated through adversarial attacks; potentially corrupting data integrity in AI-driven supply chain management systems.

• Automated vulnerability discovery enables attackers to identify security gaps in supplier software much faster than traditional methods.

This means organisations must integrate AI-driven defence mechanisms; such as behaviour-based threat detection and automated patching; into their supply chain risk management strategies.

Securing supply chains: best practices

Zero Trust architecture: trust no entity automatically and enforce least privilege access for suppliers.
Continuous third-party monitoring to detect anomalous behaviour in supplier networks.
Secure API and data access: restrict suppliers to only necessary systems and enforce API security.
Threat intelligence sharing with industry groups and government agencies.
Regular cybersecurity audits of supplier security and compliance with international standards.

Best practices for securing supply chains

To strengthen resilience against supply chain cyber threats; taking a multi-layered approach is best; such as:

Zero Trust architecture

Adopt a Zero Trust model where no entity; internal or external; is automatically trusted. This includes enforcing least privilege access for suppliers.

Continuous third-party monitoring

Deploy continuous security monitoring solutions to detect anomalous behaviour in supplier networks.

Secure API and data access

Restrict supplier access to only the necessary systems and data and enforce API security measures.

Threat intelligence sharing

Collaborate with industry groups and government agencies to stay ahead of emerging threats.

Regular cybersecurity audits

Conduct independent audits of supplier security measures and ensure compliance with international cybersecurity standards.

In Hicomply’s experience

Waiting for CAF and the Cyber Security and Resilience Bill to force the issue is a gamble — the organisations that fare best treat supplier risk as continuous, not a once-a-year questionnaire. We map third-party controls once and monitor them for drift, so evidence stays audit-ready across GDPR, DORA and NIS2 rather than being rebuilt each time. See how continuous supplier monitoring works.

Supply chain cyber risks are advancing. With the addition of AI; something that was once cutting-edge is now commonplace and opening the door to further risk.

CAF; the Cyber Security and Resilience Bill and the supply chain guidance for public sector procurement represent a reassuring future-state when all are in play together. However; until that is in place; organisations must take charge of their own supply chain security; because waiting for the perfect alignment of guidance could mean waiting for a breach.