Small and medium‑sized businesses (SMBs) increasingly rely on a network of cloud providers, software vendors and managed service providers to run everything from payroll to production. This digital ecosystem accelerates growth and efficiency, but it also exposes companies to a threat that doesn’t always make the headlines: supply‑chain cyber attacks. A single weak link in a supplier’s security can give attackers a path into your business, with potentially devastating consequences.
The rise of supply‑chain attacks
The Canadian Centre for Cyber Security’s National Cyber Threat Assessment 2025‑2026 warns that adversaries “continue to launch digital supply chain attacks where a threat actor compromises or exploits a software, information technology (IT) or cloud services vendor to enable it to exploit the customers that use the service”. Such attacks exploit the trust organizations place in their vendors and can cascade across thousands of downstream customers. In 2023, for example, the CL0P ransomware group exploited vulnerabilities in popular file‑transfer software (GoAnywhere and MOVEit), impacting an estimated 2,750 enterprises and 94 million individuals. The assessment notes that breaches against “digital chokepoints single points of failure within supply chains, can have cascading and system‑wide disruptive impacts” and that threat actors are even launching double supply‑chain attacks, where one compromise enables another.
At the geopolitical level, Canada is a prime espionage target for state‑sponsored actors. The report specifically highlights that Russian cyber threat actors are very likely to target Canada via supply‑chain compromises. For SMBs, which often use the same off‑the‑shelf software and cloud services as larger enterprises but have fewer resources to vet those providers, this trend is especially concerning.
Why SMBs are at risk
SMBs are prime targets for cybercriminals because they often have perceived vulnerabilities and limited resources. Many do not have dedicated security teams, yet they still depend on vendors for everything from email hosting to inventory management. A compromise in any of these services can expose sensitive data or disrupt operations. Threat actors know this and will exploit third‑party relationships to bypass stronger front‑line defences.
Building supply‑chain resilience
Addressing supply‑chain risk requires a shift in mindset. Instead of focusing solely on your own network, you must evaluate the security practices of the partners and vendors you rely on. Key steps include:
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Maintain a vendor inventory: Track all third‑party software, cloud services and contractors. Identify which systems or data they can access and what potential impact a compromise might have.
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Conduct vendor risk assessments: We perform these assessments regularly at 010grp; they evaluate the security posture of your suppliers, the maturity of their patch‑management processes and their history of breaches. Based on the risk level, you can decide whether to accept, mitigate or transfer the risk.
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Require contractual security controls: Mandate security measures (such as encryption, multi‑factor authentication, access logging and incident‑notification timelines) in vendor agreements. When possible, select vendors that adhere to recognized frameworks (ISO 27001, SOC 2, etc.).
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Enforce patch management: The CL0P campaign demonstrates how unpatched systems open the door to large‑scale compromises Ensure your suppliers promptly apply security updates and that your own systems are patched and configured to minimize privilege.
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Segment and monitor: Limit a vendor’s access to only the systems or data they need. Network segmentation and continuous monitoring help detect anomalies and contain attacks before they spread.
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Prepare for incidents: Develop contingency plans to deal with vendor‑related breaches. Ensure backups are immutable and tested. Consider tabletop exercises that simulate a supply‑chain attack to evaluate your response capabilities.
Our approach at 010grp
At 010grp, we recognize that every link in your digital supply chain matters. That’s why our tailored solutions for SMBs include vendor risk assessments and infrastructure strategies to safeguard your business from supply‑chain compromises. We combine this with comprehensive employee training and phishing‑simulation tools to strengthen your first line of defence. Supply‑chain attacks often start with social engineering, so educating staff is essential.
We also monitor emerging threats, such as AI‑driven attacks and the geopolitical tensions highlighted in the NCTA, and we adapt our threat‑hunting practices accordingly. Our 24/7 monitoring, rapid incident response and proactive threat hunting give you visibility into suspicious activity before it escalates.
Looking ahead
Supply‑chain attacks will almost certainly continue to grow in sophistication. For SMBs, that means security isn’t just about what you do within your own walls- it’s about the security of every partner you depend on. By taking a proactive stance, vetting vendors carefully and building layered defences, you can reduce the risk of your business becoming collateral damage in an attack on someone else.
At 010grp, we’re committed to helping Canadian businesses navigate this complex threat landscape. If you want to strengthen your supply‑chain resilience or have questions about evaluating your vendors’ security, we’re here to provide guidance and support.
