What is software supply chain security?

Software supply chain security helps protect companies against compromise from malicious actors. It aims to reduce the risk of a supply chain attack by monitoring and managing the software development process across all stages.

Without effective security measures, software development initiatives are vulnerable to undetected compromises for weeks or months. Implementing effective security controls helps eliminate software risks at their point of origin, rather than forcing organizations to detect, identify, and remediate these issues after they've disrupted operations or deleted key data.

Software supply chain security aims to protect all elements involved in software solutions' design, development, and release. These elements include application code, protocols, application programming interfaces, development tools, and developer best practices.

Just as physical supply chains require protection at every stage, the digital supply chain demands similar security measures. If attackers can compromise any point of the design or development process, they could add or remove code, potentially accessing applications on demand and infiltrating corporate networks.

Software supply chain security aims to prevent these problems by improving visibility at all stages of the design, development, and deployment process.

Software supply chain attacks can compromise applications before they're distributed to end-users or organizations. Because the now-compromised software comes from a reputable source, organizations are predisposed to trust provided apps or code. This offers the perfect opportunity for malicious actors to explore corporate networks and exfiltrate or destroy key data. And with the compromised code hidden within trusted apps, organizations are unlikely to detect software supply chain issues until it's too late. By the time security teams discover missing data or identify strange application behavior, attackers could have already made their move.

Indeed, supply chain software attacks are on the rise. A report from Cybersecurity Ventures found that by 2031, supply chain attacks may cost companies nearly $138 billion worldwide.

Software-driven supply chain attacks come with several other risks.

If attackers can access applications, they could potentially steal and exfiltrate source code. If this code is new or proprietary, attackers could demand a ransom for its release or distribute it publicly, damaging corporate finances and business reputation.

Malicious actors may leverage supply chain attackers to compromise storage systems that contain valuable staff or customer data. For example, an infected human resources tool could let attackers see all employees' personal details, including pay histories, benefits, salaries, and medical histories. Attackers could then ransom this data, sell it on the dark web, or delete it.

By compromising software components, attackers can lay in wait and then attempt to take control of operations such as production line machinery, supervisory control and data acquisition systems, industrial control systems, or data reporting and analysis tools.

In February 2023, malicious actors exploited a vulnerability in Jfrog Artifactory, a binary repository manager Microsoft uses to store and distribute software components. Accessing the Artifactory allowed attackers to inject malicious code into software in development, enabling them to access Microsoft networks and steal source code.

Software supply chain security has the following three key components:

Reducing security risk begins with identifying what's at risk and what happens if systems are breached. Organizations must prioritize software tools and operations across form and function. Which tools are critical for operation? Which solutions house essential data? Understanding where risk exists helps pinpoint effective mitigation strategies.

Security checks and controls must be implemented across the software development life cycle. These controls may include tools that automatically scan for vulnerabilities and malware, sign and verify software during installation, ensure manual penetration testing, and continually track changes.

By evaluating security controls at least once a year, organizations can ensure software security solutions keep pace with emerging supply chain risks.

The more organizations know about their application and software stacks, the better. Continuously monitoring all stages of the software development life cycle increases security teams' abilities to detect and address issues before applications are completed, tested, and deployed.

When problems occur, response speed is a key factor in protecting critical assets. Software supply chain security gives organizations more lead time to identify and respond to issues as they emerge rather than after the fact. Improved response means there is less time for attackers to carve out hidden niches for themselves in software code.

Deploying supply chain security controls can also reduce attacks' economic and operational impact. Consider an undetected issue in mission-critical software for a manufacturing plant. If the problem lets attackers take control of production line machinery, the organization could lose days or weeks of operation. The longer the disruption persists, the greater the impact on business revenue and brand reputation.

With supply chain security, early detection means early action, which can help reduce the attack's scope or prevent it entirely.

The software supply chain isn't static. As IT networks expand and the number of connected applications increases, the challenges of software supply chain security become more pronounced.

If attackers can take advantage of this increase by infiltrating and infecting software components in the development stage, they could potentially avoid standard security practices and gain undetected network access. From there, they can conduct reconnaissance, create application back doors, install malware, or exfiltrate data.

By adopting a supply chain security approach that focuses on improved visibility and continual monitoring, organizations can reduce the risk of potential compromise and improve their ability to respond when software incidents occur.

Interested to learn more about how software supply chain security could benefit your organization? Explore how Dynatrace protects the software development and delivery lifecycle.