Supply Chain Cyber Attacks Are Targeting Terre Haute Businesses More Than Ever—Here’s How to Fight Back in 2025

The cybersecurity landscape has never been more dangerous for businesses in Terre Haute and across Indiana. Third-party involvement in breaches has doubled, rising from 15% to nearly 30%, according to the 2025 Verizon DBIR, and software supply chain attacks have increased from an average of just under 13 a month during the eight months of February-September 2024 to just over 16 a month from October 2024 to May 2025, an increase of 25% in the most recent eight-month period. For local businesses that depend on third-party vendors, suppliers, and technology partners, this surge represents a critical threat that demands immediate attention.

Understanding the Supply Chain Threat Landscape

Supply chain cyber attacks exploit the interconnected nature of modern business relationships. As companies continue to expand their reliance on third-party vendors, cloud-based services, and global logistics networks, cybercriminals are exploiting vulnerabilities within these interconnected systems to launch attacks. By first infiltrating a third-party vendor with undetected security gaps, attackers can establish a foothold, leveraging these weaknesses to penetrate the primary business partners’ network.

These attacks take several forms that Terre Haute businesses must understand:

• Credential Theft: Attackers may steal login credentials of the supplier or vendor to gain access to the organization’s systems. This can be done through phishing attacks, social engineering, or by exploiting vulnerabilities in the supplier’s systems.
• Software Tampering: Malicious actors inject harmful code into software updates or applications provided by trusted vendors.
• Data Breaches: Suppliers frequently handle sensitive data, such as personal identification details or proprietary business information, on behalf of their clients. When such data is compromised, the supplier’s clients—along with their customers—can suffer significant consequences.

Recent High-Profile Attacks Demonstrate the Risk

The threat isn’t theoretical—it’s happening right now. Recent high-profile breaches like the 2024 ransomware attack that hit Change Healthcare, one of the world’s largest health payment processing companies, demonstrate how attackers disrupted supply chain operations stealing up to 6TB of millions of patients’ protected health information (PHI). A cyber-attack targeting a business partner of semiconductor giant Applied Materials disrupted shipments, potentially resulting in losses of up to $250 million. This incident underscores the far-reaching consequences of supply chain attacks, impacting critical industries and causing significant financial harm.

These incidents highlight a sobering reality: “Supply chain cyberattacks are no longer isolated incidents; they’re a daily reality. Yet breaches persist because third-party risk management remains largely passive, focused on assessments and compliance checklists rather than action”.

Why Terre Haute Businesses Are Particularly Vulnerable

Local businesses in Terre Haute face unique challenges when it comes to supply chain security. Many small and medium-sized enterprises rely heavily on third-party vendors for essential services like payroll processing, cloud storage, and software solutions. A small group of third-party providers supports much of the world’s technology and infrastructure, creating an extreme concentration of risk.

Industries that are particularly at risk in the Terre Haute area include:

• Healthcare: The healthcare industry relies heavily on third-party suppliers, wholesale distribution centers, R&D, lab equipment and chemical suppliers, hospitals and clinics, government buyers, and more. Healthcare, and specifically pharmaceutical companies, must manage one of the largest industry supply chains filled with 10s if not 100s of vendors.
• Manufacturing: Manufacturers depend on global supply chains for raw materials, hardware components, and logistics. Cyberattacks targeting industrial control systems (ICS) and enterprise resources planning (ERP) software can halt production, delay shipments, and lead to financial losses.
• Financial Services: A supply chain breach in this sector can expose sensitive financial data, disrupt banking operations, and lead to large-scale fraud.

Building a Comprehensive Defense Strategy

Protecting your Terre Haute business from supply chain attacks requires a multi-layered approach that goes beyond traditional cybersecurity measures. Resilience demands a complete supply chain cybersecurity approach, assessing third-party risks, continuous monitoring, threat mitigation, and incident response.

For businesses seeking professional guidance, partnering with experienced local providers like Cybersecurity Terre Haute specialists can provide the expertise needed to implement comprehensive protection strategies tailored to your specific industry and risk profile.

Essential Protection Measures for 2025

To defend against the evolving threat landscape, Terre Haute businesses should implement these critical security measures:

• Vendor Risk Assessment: The most effective place to control software supply chain risks is in the continuous integration and development (CI/CD) process, so carefully vetting partners and suppliers and requiring good security controls in contracts are essential ways to improve third-party security.
• Continuous Monitoring: “What’s needed is a shift to active defense: supply chain incident response capabilities that close the gap between third-party risk teams and security operations centers, turning continuous monitoring and threat intelligence into real-time action”.
• Multi-Factor Authentication: Implement MFA across all systems and require vendors to do the same.
• Regular Security Audits: Conduct thorough assessments of all third-party relationships and their security postures.
• Incident Response Planning: Few invest in preventive measures like formal vendor onboarding, simulations, or dedicated vendor-response plans with escalation paths.

The Future of Supply Chain Security

As we move through 2025, the threat landscape will continue to evolve. Supply chain vulnerabilities are also increasingly exploited through third-party vendors, while Gartner estimates that by 2025, over 60% of organizations will face sophisticated cyberattacks that leverage advanced AI capabilities, a significant increase from 40% in 2023.

The key to success lies in proactive preparation rather than reactive responses. As we approach 2025, the cybersecurity landscape is becoming increasingly complex and dynamic. Emerging threats such as sophisticated ransomware, nation-state attacks, and AI-driven cybercrime require organizations to adopt proactive and adaptive security measures. By staying informed about the latest trends, investing in advanced security technologies, and fostering a culture of cybersecurity awareness, organizations can stay ahead of emerging threats and protect their valuable assets.

For Terre Haute businesses, the time to act is now. Supply chain attacks are no longer a distant threat—they’re an immediate reality that requires comprehensive preparation and professional expertise. By implementing robust security measures, maintaining vigilant monitoring, and partnering with experienced cybersecurity professionals, local businesses can protect themselves from the growing tide of supply chain cyber threats while maintaining the competitive advantages that third-party relationships provide.