Digital supply chain security: How to secure your supply chain with DLP and Secude

Ensuring digital supply chain security is a fundamental part of the EU’s NIS2 Directive - and for good reason. 

In recent years, digital supply chains have become the main targets of cyberwarfare, with 

supply chain attacks rising 2,600% since 2018. Given it only takes one security breach to infect a whole supply chain, it’s no surprise that the European Union Agency for Cybersecurity (ENISA) has listed software supply chain attacks as the primary cybersecurity threat from now until 2030. 

Many organizations rely on data loss prevention (DLP) software for their digital supply chain security. But traditional DLP protection does not kick in until after data is stored, so you’re putting your business at risk when sharing data with your supply chain partners. 

Why DLP software is insufficient for digital supply chain security

From monitoring sensitive data access to blocking suspicious activity, DLP software performs a wide array of crucial data security functions. However, traditional DLP solutions only protect data at the storage level, therefore creating a significant risk window when data is generated or shared with supply chain partners. 

Given the greater frequency and variety of cyber incidents along the digital supply chain, relying on traditional DLP puts your organization at risk in three core ways:

• Compliance risks. “Addressing risks stemming from an entity’s supply chain and its relationship with its suppliers” is a key requirement of the EU’s Network and Information Security Directive (NIS2), which came into effect in October 2024. Organizations with more than 50 employees that do not have adequate supply chain security measures in place risk non-compliance, resulting in fines up to €10 million and reputational damage. 

• Economic risks. Beyond non-compliance fines, supply chain attacks incur considerably more financial damage than the average cyber breach (costs $4.88 million), with supply chain attacks to organizations in key industries, such as aerospace and defense, costing $82 million. In addition, the loss of reputation among customers, partners and vendors can lead to cancelled contracts (or even contract ineligibility if you work US Department of Defense contracts), while losing your IP and trade secrets can lead to a loss of market competitiveness. 

• Production risks. Supply chain incidents threaten to slow down or even shut down production until they are resolved - especially in the case of ransomware attacks. Given the interconnectedness of your supply chain, one minor security lapse at a fifth-party contractor could be enough to grind your entire business operations to a halt. 

The solution? File protection software that automatically secure’s data as soon as it’s generated. 

How Secude plugs the DLP security gap between data generation and storage

Secude’s products embed Microsoft’s Zero Trust protection and data governance from their point of origin, securing your sensitive files between data generation and storage. 

As our approach embeds protection at the application level rather than just at storage like DLP solutions, our sensitivity labels and access controls secures your sensitive data in transit and at rest for the lifetime of the file - no matter if it’s accidentally leaked or stolen. 

This continuous protection is crucial for NIS2 compliance, which requires comprehensive protection throughout your entire supply chain. By working alongside your existing DLP solutions, Secude ensures there are no security gaps between data generation and storage. 

Secude complements your existing DLP software

Secude and DLP solutions work together at different stages of the security journey. While DLPs provide strong protection after data is stored, Secude provides Zero Trust protection before data is stored. 

For example, Secude’s HaloCAD protects your IP or CUI contained in CAD files, while Secude’s HaloCORE automatically monitors, classifies, and secures sensitive data downloaded from SAP, such as spreadsheets containing financial data. 

Meanwhile, Secude’s HaloSHARE streamlines digital supply chain workflows and HaloCONNECT enables secure file collaboration with third parties without you sending over the actual files or requiring supply chain partners to download decryption software. 

For more information on how Secude works with DLP to bolster your digital supply chain security, get in touch. 

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