Cost of software supply chain cyberattacks predicted to jump 76% to $81bn by 2026

The cost of software supply chain cyberattacks to business could exceed $80.6bn globally by 2026, a 76% increase on $45.3bn in 2023, estimates cybersecurity specialists Juniper Research. Publishing a new study, Juniper says a paradigm shift in cybersecurity is needed to mitigate the “staggering” costs and risks as supply chains become increasingly digitised. “The scope of what is considered a supply chain — and how to defend it against cyberattacks — needs to be not only revised but expanded,” Juniper says. It warns that software supply chains are vulnerable to attack, driven by absent security processes and increasing complexity. It says: “Shifts in wider cybersecurity processes, and the mindset around the management of the software supply chain are needed to address these risks.” More emphasis is needed on the software elements of supply chains as a critical security vulnerability, it adds. “The software supply chain has been neglected over the years as a source of risk, leading to a situation where organisations face significant issues if they cannot change the way they operate,” says Nick Maynard, head of research at Juniper Research. “As software supply chains become more complex, the problem becomes exponentially more complicated, requiring immediate attention to resolve, through regulations, SBOMs (Software Bills of Materials), embedded security and cybersecurity solutions.” Commenting on the report, security vendor Blackberry says software supply chain security must be adopted by all industries. Juniper highlights financial services, government, automotive and healthcare as high-risk sectors. To secure software supply chains against cyberattacks, Juniper advises companies and governments to: Make a concrete decision on what a strong security posture looks like, including quantifiable metrics and interpretation of required standards. Provide a full account of software update management for any products, verifying each step of the process to be tamper-free and from an authenticated source, which can be done through an SBOM. Ensure suppliers and third-party data handlers have secure data processing practices, so that organisations are not compromised by a supplier’s insecure practices, including ensuring that third-party data storage systems are properly encrypted, patched and have robust authentication procedures. Raise awareness among executives that a company’s supply chain is not just about the provenance of physical goods, but also about where and how the software and hardware systems it uses to produce its end products are managed. Consider cybersecurity as a component of safety, fully realising that cybersecurity concerns are as important as physical safety concerns. “The ramifications of cyberattacks in the supply chain – from cessation of operations to fines imposed for data breaches, or passing risks onto customers by supplying digitally contaminated goods – demand a strong focus on supply chain cybersecurity as a vital component of doing business, rather than an optional extra,” the report says.

Cost of software supply chain cyberattacks predicted to jump 76% to $81bn by 2026

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