MSP, Ransomware, Supply chain

Why MSPs are the new favorite target of cybercriminals  

key on monitor screen, cybersecurity concept

COMMENTARY: MSPs aren’t just service providers anymore - they’re high-value targets. Ransomware groups have figured out that hitting one MSP can give them access to dozens, even hundreds, of downstream victims. It’s efficient, scalable, and increasingly common. The Ingram Micro incident is a textbook case. The attack disrupted core operations, left customers in the dark, and reminded everyone how fragile the digital supply chain really is when a central player goes down.

This isn’t about hypothetical risk - it’s already happening, and the impact is massive: delays, data exposure, financial loss, and in some cases, full operational paralysis. If you’re relying on an MSP, you need to be asking better questions. What’s their plan if they get hit? How fast can they contain the damage? And are they thinking about their own security as critically as they do yours? Because if they’re not, your business is just as exposed.

Today, attacks on MSPs are no longer isolated incidents. They’ve become a deliberate strategy—exploiting the MSP’s position as a single point of failure to cause widespread damage and maximize financial gain.

These attacks are financially motivated, and the scale is what sets them apart. By compromising one MSP, attackers can reach a vast network of downstream customers. It’s supply chain exploitation: ransomware groups cast a wider net, disrupt critical operations across multiple businesses, impact financial transactions, and demand a larger collective ransom. The goal is simple—hit the main junction, the central nervous system, and hold it hostage.

The trend has escalated, particularly from 2024 into 2025. We’ve seen a series of incidents that show just how far the ripple effects of an MSP breach can reach. In March 2025, a supply chain attack on third-party provider LES Automotive compromised more than 100 car dealership websites. Malicious code was injected into their systems, tricking users into executing malware—illustrating how a single vendor vulnerability can cascade across clients.

Earlier attacks by the Akira ransomware group—on Tietoevry in January 2024 and Südwestfalen IT in October 2023—disrupted government agencies, universities, and municipalities in Sweden and Germany. Even a flaw in a core security vendor like CrowdStrike in July 2024, though not directly involving an MSP, showed the financial fallout that follows foundational IT disruptions. The estimated cost: over $1 billion.

One of the most recent examples is the July 2025 ransomware attack on IT distributor Ingram Micro. The SafePay group, a newer and aggressive ransomware operation, claimed responsibility.

Ingram Micro’s initial public response acknowledged a "cybersecurity incident" involving ransomware on "certain internal systems." The company said it had taken systems offline and launched an investigation with cybersecurity experts and law enforcement.

They apologized for the disruption to customers and partners—but their early statements lacked details. There was no clear picture of the extent of damage, which customers were affected, or what the financial fallout might be. That kind of opacity—whether part of a deliberate crisis communications strategy or not—only fuels uncertainty. Later reports confirmed the attack significantly impacted Ingram Micro’s order processing and fulfillment operations, causing widespread delays and highlighting how disruptive these attacks can be to core business functions.

The implications for an MSP’s customers can be severe: extended downtime, exposure of sensitive data, reputational harm, and substantial financial losses. For smaller businesses, a cyberattack on their MSP can be existential.

Six tips for responding to a hack

In the event of a cyberattack, these steps are essential:

  • Containment: Isolate affected systems immediately to stop the spread. That may mean taking systems offline or disconnecting devices from the network.
  • Notify your insurance provider: Contact your cyber insurer right away. They’ll often bring in legal counsel and incident response specialists. Don’t go it alone—legal and forensic expertise is critical.
  • Communicate responsibly: Avoid premature disclosures, but prepare to engage transparently with customers, partners, and regulators—guided by legal advice. Clear communication helps rebuild trust.
  • Conduct a forensic investigation: Let security experts determine how the breach happened, what data was accessed, and how deep the damage goes.
  • Remediate and recover: Use insights from the investigation to clean out malware, restore systems from clean backups, and strengthen defenses. Prioritize critical systems.
  • Post-mortem analysis: Learn from the incident. Identify weak spots and update your security posture and response plans accordingly.

The rising frequency of attacks on MSPs points to a serious supply chain risk. One weak link compromises the integrity of the entire ecosystem. It’s a wake-up call for a shared-responsibility approach to cybersecurity.

MSPs must secure not only their own infrastructure but the broader client networks they serve. Businesses that rely on MSPs need to vet their providers carefully and understand the risks involved.

Preparation, a clear response plan, and a commitment to ongoing security improvements are the best defenses against becoming the next cautionary tale.

ChannelE2E Perspectives columns are written by trusted members of the managed services, value-added reseller, and solution provider channels or ChannelE2E staff. Do you have a unique perspective you want to share? Check out our guidelines here and send a pitch to [email protected].

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Shira Shamban

Shira Shambam, vice president of cloud solutions at CYE, started her career in security as a military officer in Israel’s intelligence Unit 8200. Specializing in cloud security, Shira works to empower women and underrepresented groups in technology, volunteering as a lecturer and mentor for organizations such as SheCodes, Cyber Ladies, and Women in AppSec. She also spearheaded the local mentoring initiative Security Diva and holds the position of co-chair at OWASP Israel.

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