How Supply Chain Cyber Threats Cost The Global Economy

Supply chain cyber attacks targeting physical infrastructure could cost the global economy billions in 2025, according to research from Interos.ai, a supply chain risk intelligence provider.

The company's first annual predictions report identifies emerging threats to undersea cables, satellites and data centres as organisations integrate AI systems into their operations.

These findings emerge as board-level oversight of supply chain security remains limited.

Furthermore, according to the survey, only 30% of board members possess a deep understanding of supply chain issues and just a quarter of boards have formal processes to address supply chain risks.

Interos.ai warns of infrastructure vulnerabilities

Physical infrastructure attacks represent an evolution in cyber threats, as adversaries target the hardware and systems underpinning global supply networks.

For example, the disruption of undersea cables or compromise of satellite systems could paralyse international trade.

Climate change compounds these risks, with extreme weather threatening data centre operations.

Interos.ai reports that weather events will affect 20 million businesses globally in 2025.

Trade tensions impact technology supply lines

Proposed trade restrictions could reshape technology supply chains.

Interos.ai cites potential 25% tariffs on imports from China, Mexico and Canada, affecting automotive, agriculture and consumer electronics sectors.

These regions support critical industries including agriculture, civil engineering, retail and computer manufacturing.

Additionally, more than 481 companies in the S&P 500 maintain direct connections to high-risk regions, including Eastern Europe, the South China Sea and the Red Sea.

These areas face ongoing geopolitical tensions that threaten supply chain stability and could lead to economic damages of up to US$1tn.

Climate events disrupt global operations

Catastrophic weather events pose increasing risks to supply chain infrastructure, such as hurricanes and wildfires threatening not only physical assets but also the digital infrastructure supporting modern supply networks.

The combination of these climate risks and cyber vulnerabilities requires organisations to develop integrated response strategies that address both physical and digital threats.

AI systems face new security challenges

The integration of AI into supply chain operations also introduces vulnerabilities such as data poisoning and model corruption, where attackers alter AI decision-making processes.

These threats require organisations to implement new security measures specific to AI systems while maintaining existing cyber defences.

“Forget this being a CSO or a procurement problem – supply chain risk management is a CEO dilemma," asserts Ted Krantz, CEO of Interos.ai.

"Businesses must evolve from reactive risk management to a proactive, AI-driven approach that prioritises resilience."

Inflation pressures test supply resilience

Furthermore, price volatility adds complexity to supply chain management.

Interos.ai cites examples of extreme price fluctuations, including significant increases in consumer goods prices, demonstrating the financial impact of supply chain disruptions.

The report also sheds light on convergence of physical and digital threats requiring organisations to reassess their approach to supply chain security as current models focus on software vulnerabilities while overlooking risks to physical infrastructure.

It further emphasises the need for integrated risk management across multiple domains, including cyber threats, extreme weather events, ESG regulations, government restrictions and geopolitical tensions.

Ted describes supply chains as the “bedrock of the global economy", underpinning critical sectors and daily life.

"But," he continues, "they can also bring the world to a screeching halt. This is why the biggest issue keeping CEO’s up at night in 2025 should be, 'where is the risk in my supply chain and how do I eliminate it?'."

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