Chertoff Group CEO and Co-Founder Chad Sweet joined CNBC’s ‘Power Lunch’ on September 20 to discuss how Israel’s supply chain attack in the Middle East was carried out, the potential impact for U.S. companies and more.
“Physical infiltrations of supply chains takes a long time to execute,” Sweet said. “In this case, Israel successfully set up a front company in Hungary to infiltrate Hezbollah’s supply chain.”
Hezbollah shifted to low tech devices to avoid the detection capabilities of more sophisticated technology such as smart phones. Drone strikes are often carried out by determining a subject’s location via smart phone. Conversely, smart phones are smaller and more compact than radios and pagers, which makes it harder to pack such a device with enough explosive material to do significant damage. However, in terms of vulnerability, cell phones can be penetrated virtually through software attacks.
The recent attack highlights the importance of the overall supply chain, both physical and virtual, for commercial entities. Whether it is a criminal enterprise or a state actor, companies need to mitigate risk and establish resilience around their supply chains.
“We all have to be vigilant in diversifying and protecting supply chains,” Sweet said. He pointed to CBP’s CTPAT, which is a trusted supply chain public-private partnership. Both the private sector and government are using more technology to keep supply chains safe.
“Our adversaries are intent on finding our weaknesses,” Sweet said.
Watch the interview on CNBC.
The Chertoff Group helps corporations strengthen supply chains, enhance risk management and business continuity planning, and improve cybersecurity and resiliency.
