Manufacturing companies are rapidly embracing digital transformation, which has led to increased production. However, this shift also exposes them to higher cyber risks due to the reliance on robust online systems.
Recent data from Checkpoint indicates that the manufacturing sector has experienced a 41% increase in weekly cyber attacks by the end of 2021. This highlights the importance for manufacturers to be aware of the cyber security threats they face and establish effective protocols for alert triage, incident response, and threat hunting. This article aims to provide an overview of the top risks and recommendations to address them.
Understanding the Risks of the Manufacturing Sector
Traditionally, manufacturing companies operated within closed internal networks with limited internet connectivity. However, as technology advanced, they began adopting hybrid systems, resulting in increased cyber vulnerability. This shift has placed the manufacturing sector among the top ten most targeted industries.
The COVID-19 pandemic further exacerbated cybersecurity challenges as companies relied more on remote workforces and faced supply chain disruptions. Manufacturing firms are now prime targets for cyber attacks, prompting both companies and government agencies to enhance data protection measures.
According to IBM Security’s X-Force Threat Intelligence Index, manufacturing is a key target for cybercriminals. Some key findings from the report include:
- The manufacturing sector experiences four times more Business Email Compromise (BEC) attacks compared to other industries.
- Ransomware attacks in 2021 aimed to disrupt global supply chains, with manufacturing organizations being primary targets.
- 47% of manufacturing attacks resulted from unpatched vulnerabilities, underscoring the importance of prioritizing vulnerability management.
Several recent attacks on manufacturing companies further demonstrate the severity of the situation. For instance:
- REvil/Sodinokibi and DarkSide, two Russian-based groups, launched ransomware attacks on major U.S. manufacturers.
- REvil targeted JBS, a leading meat processing company, demanding an $11 million ransom.
- DarkSide attacked Colonial Pipeline, impacting gas supplies along the East Coast.
- In another incident, a campaign targeted German manufacturing industry customers with Osiris trojan and REvil payloads.
- Olympus, a Japanese technology giant, fell victim to a ransomware attack by REvil, disrupting operations in multiple regions.
- A ransomware attack on Ferrara Candy, a candy corn factory, caused production disruptions just before Halloween.
The frequency of cyber attacks against manufacturing companies is expected to rise in 2022. These examples underscore the importance of proactive measures to prevent such incidents. The subsequent section will delve into the primary cyber threats facing the manufacturing sector.
Top Cybersecurity Threats to the Manufacturing Sector
Ransomware
Ransomware has become a prevalent form of malware for cybercriminals due to its ease of execution and lucrative returns. These attacks often begin with phishing emails that trick employees into opening infected attachments or links, leading to data encryption and extraction.
Impact on manufacturing: Ransomware attacks result in financial losses, production disruptions, recovery costs, fines, and reputational damage. Companies must prioritize cybersecurity measures to mitigate such risks.
Recommendation:
- Establish a phishing investigation pipeline leveraging automation to analyze URLs and attachments, enabling faster response and attack prevention.
Intellectual Property Theft
Manufacturing companies hold valuable intellectual property essential for innovation and competitiveness. Theft of trade secrets or proprietary information poses a significant risk to their core operations.
Impact on manufacturing: Unauthorized access to intellectual property can severely harm a company’s competitive edge and potentially lead to business failure.
Recommendation:
Supply Chain Attacks
Supply chain attacks targeting transportation and warehousing systems are increasingly common. The interconnected nature of a manufacturer’s supply chain amplifies the impact of a cyber breach, affecting multiple entities.
Impact on manufacturing: Digitalization and cloud adoption in manufacturing heighten the risk of supply chain attacks. Companies must assess and mitigate risks associated with partners and stakeholders.
Recommendations:
IoT Attacks
IoT devices play a crucial role in manufacturing operations by enabling remote equipment monitoring and data collection. However, the inherent vulnerabilities of IoT devices make them prime targets for cyber attacks.
Impact on manufacturing: Compromised IoT devices can disrupt operations, halt production, and serve as entry points for further cyber intrusions.
Recommendations:
Final Thoughts on Cybersecurity for Manufacturers
Manufacturing companies must proactively address cybersecurity risks associated with digital transformation. By understanding and mitigating key threats, organizations can safeguard their systems, data, and intellectual property. Implementing robust security practices and leveraging automation tools can help prevent substantial losses.
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