JFrog's 2026 Software Supply Chain Security report reveals a critical 'illusion of mastery' — organizations consistently overestimate their security posture. Key findings include: 97% claim certified AI model governance yet 495 malicious models were found on Hugging Face; 96% of NVD Critical CVEs were downgraded after real-world exploitability analysis; malicious npm packages surged 451% while detection coverage stayed flat at 40%; and only 28% of organizations have secrets detection active. The report highlights three emerging attack surfaces — AI model artifacts, IDE extensions, and MCP servers — and argues that effective governance must run continuously in the pipeline, not just exist as policy documentation. JFrog promotes its platform tools (Curation, Xray, Advanced Security, AppTrust) as solutions.