Supply Chain Cyber Attacks Skyrocket by 431% Since 2021, Exposing Businesses to Unprecedented Risks!

The manufacturing sector faces the highest risk from cyber threats.

According to the latest Cyber Roundup Report, supply chain cyber-attacks have surged by 431% since 2021, highlighting the growing risks linked to interconnected businesses. Cowbell, an insurance provider for SMEs and middle-market companies, publishes the report. It draws on a comprehensive three-year dataset from over 46 million SMEs across the US, UK, and Japan, distinguishing it from similar reports globally.

“The digital age has opened up some incredible avenues for business growth,” said Cowbell founder and CEO Jack Kudale. “But in the same breath, it’s also brought a complex set of cyber risks. Across the board, we’re seeing cybercriminals capitalise on interconnectivity, automation, and emerging tools like AI to launch increasingly sophisticated attacks.”

The report highlights:

  • Supply chain attacks have increased by 431% since 2021, highlighting growing vulnerabilities in interconnected business ecosystems.
  • The manufacturing sector is the most at-risk, with cyber risk scores 11.7% below the global average, driven by its heavy reliance on automation and the sensitivity of its intellectual property.
  • Public administration and educational services are also highly exposed, with ransomware attacks on schools rising by 70% over the past year.
  • Five high-risk technology categories were identified: operating systems, content management tools, virtualisation technologies, server-side technologies, and business applications.

“This report underscores one particularly critical reality: no business – large, small, or niche – is immune to cyber threats. Larger organisations are key targets because of their vast data and complex operations, while smaller businesses are at risk due to supply chain vulnerabilities and limited cybersecurity resources. The latter may face a lower frequency of attacks overall. However, the consequences of a single incident can be devastating, including significant financial losses, crippling downtime and business interruption, and, in some cases, closure. The stark 70% rise in attacks on educational institutions, many under-resourced, highlights how vulnerable underprepared sectors can be.” Kudale said.

The report stresses the need for a well-rounded strategy to tackle these escalating threats. Key recommendations include implementing thorough third-party risk management practices to ensure that external partners and vendors adhere to strict cybersecurity protocols. It also highlights the importance of identifying and addressing technology vulnerabilities, particularly in high-risk areas such as operating systems and business applications. Regular employee training is deemed essential, equipping teams with the skills to identify and respond to threats like phishing attempts. Furthermore, the report underscores the necessity of developing and continually enhancing robust Incident Response Plans (IRPs) to enable rapid and effective responses to cyber incidents, reducing operational downtime and data loss.

“To stay resilient, leaders across businesses of all sizes and sectors need to prioritise cybersecurity just as they would any other core aspect of their operations. At Cowbell, we’re committed to equipping SMEs and mid-market businesses with the insights and resources they need to protect themselves in this evolving threat landscape,” Kudale adds.

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