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Protecting MSPs and MSSPs: Navigating the Challenges of Supply Chain Attacks


Compass Advisory Group LLC | www.compassadvisorgroup.com

Protecting MSPs and MSSPs: Navigating the Challenges of Supply Chain Attacks


Introduction to Supply Chain Security for MSPs and MSSPs

Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs) are recognizing the urgent need to fortify their defenses against supply chain attacks. These attacks not only compromise the security of the providers but also threaten the vast networks of clients reliant on their services. High-profile incidents like the Azure Partner Portal hack and the Kaseya VSA ransomware attack serve as stark reminders of the vulnerabilities inherent in supply chains and the catastrophic impact of their exploitation.


Understanding the Risks: The Azure Partner Portal Hack

In the case of the Azure Partner Portal hack, an MSP was compromised even after achieving a significant compliance milestone of a SOC 2 Type 2 audit. It failed to review and adjust the MFA token settings, allowing an MFA token with an unusually long four-day

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lifespan. This oversight permitted the hacker to maintain access within the system for an extended period, exploiting the configuration flaw to deploy Azure Virtual Machines across various client accounts without detection. The incident underscores the critical need for MSPs and MSSPs to ensure their security settings, especially concerning token lifetimes, are regularly reviewed and adjusted to more secure standards, such as reducing the token lifetime to a recommended duration of 30 minutes to limit the window of opportunity for attackers. This proactive approach to configuration review and continuous monitoring is essential to detect and respond to abnormal activities and prevent potential breaches.


The Kaseya VSA Ransomware Attack: A Case Study in Supply Chain Vulnerability

The Kaseya VSA ransomware attack dramatically exemplifies the potential financial and

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operational repercussions of supply chain vulnerabilities. Targeting MSPs through compromised software updates, this attack disrupted the operations of approximately 60 MSPs and impacted 1,500 businesses. The substantial financial losses incurred underscore the importance of robust security measures and the potential high costs of breaches that span across supply chains.


Strategies for Mitigating Risks in MSP and MSSP Operations

To combat these threats, MSPs and MSSPs are advised to adopt stringent security protocols that include:

  • Regular Audits and Account Management: Disabling inactive accounts to reduce unauthorized access risks.

  • Enhanced MFA Practices: Implementing robust MFA settings to minimize the window of opportunity for attackers.

  • Contract Transparency: Ensuring clear delineation of cybersecurity roles and responsibilities in contracts with clients.

  • Vendor Communication: Collaborating with software vendors to align with the best practices in cybersecurity, focusing on the management of open source software and software bills of materials (SBOM) to ensure integrity throughout the supply chain.


Leading with Proactive Cybersecurity Measures

As the cybersecurity landscape continues to evolve, MSPs and MSSPs must remain vigilant by implementing advanced security measures, adopting proactive security strategies, and consistently educating personnel. By doing so, they can safeguard against the increasing threat of supply chain attacks and ensure the security and trust of their clients in a digital age. Enhancing security practices not only protects operational integrity but also positions MSPs and MSSPs as leaders in cybersecurity, ready to defend against the next generation of cyber threats.



Compass Advisory Group LLC | www.compassadvisorgroup.com

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