Rise in Supply Chain Cyber Attacks: What Small Businesses Must Know in 2025

Why supply chain attacks are surging

Recent reports show a sharp increase in cyber attacks targeting supply chains, with nearly one in three UK business leaders claiming they’ve seen a rise in attempts over the past year. Attackers are changing tactics. Instead of going directly after large, well-protected companies, they now exploit the smaller suppliers and service providers those companies rely on. Once hackers infiltrate a trusted vendor, they can use that access to compromise entire networks downstream—creating widespread damage.

This evolving threat is particularly concerning for small and medium-sized enterprises (SMEs), which often form key links in larger business ecosystems but lack the advanced cyber defenses of big corporations.

How supply chain attacks actually work

Unlike traditional hacks that target your own systems, supply chain attacks focus on third parties that have digital or operational connections to your business. Attackers compromise software providers, IT service vendors, or even hardware manufacturers, embedding malicious code or gaining credentials that allow them to move laterally through trusted connections.

In many cases, these attacks remain undetected for weeks or even months. Because the activity originates from a “trusted” source, standard security tools don’t always flag it as suspicious. For SMEs, that trust can become their biggest vulnerability.

Why small businesses are especially at risk

Small businesses are particularly exposed to supply chain threats for several reasons. Many SMEs don’t conduct regular security audits of their suppliers or partners. They also tend to have limited IT resources, which makes it harder to monitor third-party systems effectively. Attackers know this—and they exploit it.

Even if your business has solid internal protections, a weak link in your supply chain can undo them. For example, if a vendor that handles your invoicing software is compromised, attackers could use their access to inject malware into your environment or steal sensitive customer data.

Simple steps to reduce supply chain risk

While supply chain threats are complex, defending against them doesn’t have to be. Start with the following actions:

1. Assess vendor security practices.
Before partnering with a supplier, ask about their cyber security policies. Do they use multi-factor authentication? How often do they update their systems? Have they achieved certifications like Cyber Essentials or ISO 27001?

2. Limit access to your systems.
Vendors should only have the permissions they absolutely need. Use role-based access and separate external connections from internal ones to prevent unauthorized movement across your network.

3. Include cyber security clauses in contracts.
Make security part of your business agreements. Require vendors to follow best practices, report breaches immediately, and maintain compliance with UK data protection laws.

4. Monitor continuously.
Supply chain risk isn’t static. Regularly review and monitor your vendors’ performance, especially if they handle sensitive data or critical systems.

5. Prepare for incidents.
Even the best defenses can fail. Maintain secure, offsite backups and a clear incident response plan that outlines what to do if a supplier suffers a breach.

How Pilotiq protects small businesses

At Pilotiq, we help small and medium-sized businesses take control of their cyber security—beyond their own walls. Our cyber assessments identify potential vulnerabilities across your vendor network, while our managed security services monitor and protect against real-time threats. We also help SMEs strengthen supplier contracts, ensuring partners uphold the same high standards of security that you do.

Our pay-as-you-grow model makes it simple for small businesses to build enterprise-level protection without enterprise-level costs. Whether you work with five suppliers or fifty, Pilotiq helps you operate securely, confidently, and without compromise.

Supply chain attacks may be rising, but they’re not unstoppable. With a proactive plan, trusted partners, and expert guidance from Pilotiq, your business can stay resilient and ready—no matter how complex the threat landscape becomes.