Software Supply Chain Risks and How to Mitigate Them

The way we build products has fundamentally changed. Modern software development relies heavily on open-source code, third-party dependencies, and complex CI/CD pipelines. This interconnected ecosystem introduces numerous risks, making it challenging for teams to secure their software supply chain. In fact, according to new research, 71% of AppSec teams feel today’s attack surface is unmanageable, with CISOs experiencing this even more acutely at 78%.

But organizations must proactively address these vulnerabilities or face severe consequences.

This article will help, providing actionable insights into the most prominent threats organizations face, effective mitigation strategies, and how Cycode can help.

Let’s start with the basics…

What is a Software Supply Chain Risk?

Software supply chain risks are vulnerabilities introduced through third-party components, open-source dependencies, development tools, or misconfigurations within the software development lifecycle (SDLC). These risks go beyond code vulnerabilities and may involve compromised build environments, public repositories, or insufficient access controls.

Software supply chain security, then, is the practice of protecting every aspect of the software development and delivery process. To fully understand what software supply chain security must cover, we first have to explore the most prominent software supply chain risks. 

What Are the Most Prominent Software Supply Chain Risks?

Modern software development heavily relies on open-source and third-party components, which, while enhancing speed and efficiency, also introduce significant security vulnerabilities. These vulnerabilities can stem from multiple sources. 

  • Development tools, such as build systems and CI/CD pipelines, can be compromised by attackers, exposing applications to risk. 
  • The custom code written internally may lack adequate security practices, leading to exploitable weaknesses.
  • Off-the-shelf SaaS solutions used in development processes may contain exploitable flaws that remain undetected. 
  • Third-party open-source libraries, integral to many applications, can become weak points if they contain vulnerabilities that go unpatched. 

With all of this in mind, let’s look at some more specific examples of supply chain risks:

Risk Cause
Unpatched Open-Source Libraries Libraries not updated regularly, leading to vulnerabilities.
Outdated Dependencies Neglected updates or unsupported versions of dependencies.
Code Tampering Attackers modify code in repositories, often due to poor security controls.
Exposed Secrets Accidental exposure of sensitive information in repositories.
Unmonitored Changes in Public Repos Lack of monitoring allows unauthorized changes in public repositories.
Malicious Code Injection Compromised libraries or build tools introduce malicious code.
Dependency Confusion Attackers use duplicate names in public repositories to deceive systems.
Typosquatting Packages with names similar to legitimate ones are used to trick developers.
Compromised Build Infrastructure Insecure or unmonitored CI/CD pipelines allow attackers to inject malicious artifacts.
Insufficient SBOM Management Lack of comprehensive tracking of software components and dependencies.
Source Code Leakage Poorly secured repositories or misconfigured access controls expose code.

Unpatched Open-Source Libraries

Open-source libraries are widely used but require regular updates to remain secure. An unpatched library can be an entry point for attackers, as vulnerabilities in older versions are often well-documented. For example, the Apache Struts vulnerability led to the massive Equifax breach when a critical update was missed.

Outdated Dependencies

Dependencies that aren’t regularly updated may contain known vulnerabilities that attackers can exploit. This occurs when development teams overlook or delay updates, creating opportunities for breaches. Outdated libraries, like the Log4j vulnerability, can impact many applications relying on them.

Code Tampering

Code tampering occurs when attackers modify code in repositories, particularly in public or poorly secured environments. This risk compromises software integrity and can lead to malicious code being incorporated into applications. The SolarWinds incident is a prominent example where attackers injected malware into code updates.

Exposed Secrets

Secrets such as API keys, credentials, or tokens, when accidentally exposed in repositories (often public ones), can be used by attackers for unauthorized access. GitHub has reported several incidents where developers unintentionally exposed sensitive information, leading to security breaches.

Unmonitored Changes in Public Repos

Changes made to public repositories can go unnoticed without proper monitoring, allowing attackers to insert malicious code or alter existing components. Attackers frequently scan public repos for vulnerabilities or opportunities to introduce harmful changes unnoticed.

Malicious Code Injection

Attackers can insert malicious code into software dependencies or during build processes, often exploiting compromised libraries or development tools. This was evident in the SolarWinds attack, where attackers manipulated the build process to distribute malicious updates.

Dependency Confusion

This attack leverages discrepancies between public and private repositories. By publishing packages with the same names as private ones, attackers can trick systems into downloading and using malicious versions. 

In 2021, several high-profile tech companies, including Microsoft, Apple, and Tesla, experienced infiltration attempts through dependency confusion, as attackers exploited the automated dependency resolution in development pipelines to introduce malicious code. These incidents underscored the potency of dependency confusion attacks, particularly in companies heavily reliant on both public and private package management systems.

Typosquatting

Typosquatting involves attackers creating packages with names similar to legitimate ones, betting on developer typos. If mistakenly used, these packages introduce malicious code. This tactic has affected major repositories, demonstrating how simple errors can have serious consequences.

Check out this article to explore several recent examples of attacks.

Compromised Build Infrastructure

Build systems, especially CI/CD pipelines, are frequent targets. If compromised, attackers can inject malicious code into software releases. The SolarWinds breach (again) is a notable example where attackers infiltrated the build infrastructure, distributing malware through legitimate updates.

Insufficient SBOM Management

A Software Bill of Materials (SBOM) tracks all components within software. Without an accurate SBOM, vulnerabilities in components may go unnoticed. Organizations lacking proper SBOM practices struggle to identify risks quickly, increasing their exposure to attacks.

Source Code Leakage

When source code repositories are improperly secured, sensitive code can be exposed. Insufficient access controls or misconfigurations can result in data leaks, as seen in Twitter’s 2020 incident where a misconfigured permission led to a code leak, underscoring the importance of securing these environments.

Explore 20+ more examples of source code leaks.

How to Mitigate Risks in Your Software Supply Chain

Managing software supply chain risks is challenging, especially as development environments grow increasingly complex. Teams often struggle with visibility across their toolchains, dependency management, and maintaining consistent security controls. 

At the highest level, teams should focus on the following three strategies:

Prioritize Visibility Across the Entire Software Supply Chain

Achieving end-to-end visibility is fundamental to securing the software supply chain. Because, remember:  you can’t protect what you can’t see.

That means security teams need visibility into every component—from code repositories and dependencies to the CI/CD pipeline. Blind spots and gaps in visibility create unmanaged risk, often leaving room for undetected vulnerabilities or security lapses. Traditional solutions, however, often lack full coverage across the SDLC and struggle with fragmented data, creating a limited view of potential threats. That’s where a platform approach comes in…

Implement a Platform Approach

A unified platform, like Cycode’s ASPM, consolidates various security tools such as AST, IaC security, and CI/CD monitoring. This approach ensures comprehensive visibility across the software development lifecycle, reducing fragmentation and minimizing security gaps…which 78% of security professionals struggle with because of tool sprawl.

With all capabilities integrated, teams benefit from a consistent and efficient way to detect and respond to risks, enhancing overall security posture.

Adopt a “Security is a Team Sport” Mindset

Creating a culture where security is seen as a shared responsibility across development and security teams enables more cohesive risk management and is essential for effective software supply chain security.

Security must be embedded into developer workflows to reduce friction and tools must be chosen with developers in mind. The key features they look for? Fewer false positives, less alert fatigue, and contextualized insights on what needs fixing and why.

Of course, there are dozens more tactics that can help teams mitigate risks in their software supply chain. For example:

Adopt SBOM Practices

Implementing automated SBOM tools is crucial for tracking and managing software components. An SBOM offers a detailed inventory of all dependencies, making it easier to identify and address vulnerabilities. By automating this process, organizations can ensure they maintain an up-to-date and accurate view of their software supply chain.

Ensure CI/CD Pipeline Security and Hygiene

Maintaining strong security hygiene within the CI/CD pipeline is essential to prevent unauthorized access and detect vulnerabilities early. This includes enforcing code reviews, running automated scans for IaC misconfigurations, integrating artifact verification, and regularly updating tools and dependencies. By embedding these security checks at every pipeline stage, teams strengthen each development phase, reducing the chance of vulnerabilities compounding over time.

Implement Access Controls

Access to sensitive environments, such as code repositories and build systems, should be restricted using role-based access controls (RBAC) and identity management solutions. Enforcing least-privilege access minimizes the chances of unauthorized code modifications or data exposure. 

These are essential features of an enterprise-ready security solution.

Automate Policy Enforcement

Automating policy enforcement within CI/CD pipelines guarantees that security controls are consistently applied across all builds and deployments. Automated policies can block insecure code from progressing through the pipeline, ensuring compliance with security standards. This minimizes the risk of human error, increases efficiency, and ensures that security checks are embedded within the development process, creating a more resilient software supply chain.

Conduct Regular Security Audits and Assessments

Perform comprehensive security assessments of your software, infrastructure, and third-party integrations. These audits help identify misconfigurations and vulnerabilities, ensuring a secure environment. Tools that automate audit processes can increase efficiency and reduce the chances of human error.

Use Proactive, Continuous Vulnerability Scanning

Proactive security scanning is essential for maintaining the integrity of your software supply chain across all stages of development. 

This includes Static Application Security Testing (SAST) to identify code vulnerabilities early, Software Composition Analysis (SCA) for monitoring open-source and third-party components for known vulnerabilities, and Infrastructure as Code (IaC) scanning to detect misconfigurations in infrastructure scripts before deployment. Integrating these scanning tools provides comprehensive, real-time insights into potential threats, enabling quicker and more effective remediation to strengthen the overall security posture.

Importantly, using proprietary scanners (like Cycode’s) provides a higher degree of accuracy and customizability over open-source scanners, enabling organizations to detect risks specific to their environments more accurately.

Don’t Forget About Reachability Analysis

Not all vulnerabilities pose the same level of threat. Reachability analysis determines whether a vulnerability in your code is actually exploitable, allowing teams to prioritize the issues that truly impact their security posture. 

 

Cycode’s SCA reachability analysis, for example, helps focus remediation efforts on the highest-risk vulnerabilities, enabling a more efficient and targeted security approach.

Train Teams on Secure Practices

Security training is vital to build a security-conscious development culture. Educate teams on secure coding practices, dependency management, and threat detection. By instilling security awareness, organizations can reduce the likelihood of errors that could lead to breaches.

Utilize AI for Prioritization and Remediation

AI-driven tools can analyze vulnerabilities based on severity, context, and exploitability, helping teams focus on the most critical threats first. By automating this prioritization, AI streamlines the remediation process, reducing response time and increasing efficiency. Additionally, AI can provide automated remediation suggestions, guiding developers with specific steps to resolve issues accurately and promptly.

Minimize Software Supply Chain Risks With Cycode

Securing the software supply chain is a complex but essential task in today’s development landscape. The risks are diverse and continuously evolving, and the consequences of a single vulnerability can be extensive. However, understanding the most common risks and implementing a comprehensive security strategy can significantly reduce these risks and create a resilient development environment.

Cycode’s ASPM platform offers the tools and expertise needed to secure the software supply chain, ensuring that organizations can maintain a strong security posture and protect their applications from ever-evolving threats.

For example:

  • Teams can minimize AppSec Chaos by consolidating various security tools like AST, IaC security, CI/CD monitoring, and more in one Complete ASPM platform.
  • Cycode gives you the optionality to use Cycode’s owned proprietary scanners, or integrate your existing scanners
  • Our Risk Intelligence Graph (RIG) provides unmatched visibility, risk prioritization, and traceability across the entire SDLC and remediation capabilities.
  • Cycode was founded by developers and is the only platform that brings together security and development teams, helping bridge the gap and improve collaboration to ensure cyber and business resilience

Want to secure your software supply chain? 

Book a demo now to learn more.