No company can afford to ignore cybersecurity risks in today’s digital world. Cyberattacks and data breaches can lead to severe financial losses and reputational damage and impact operations and physical assets.
As manufacturers adopt new technology, such as Industry 4.0, they must be aware of the potential threats and how to protect themselves. Smaller manufacturing companies with fewer security protocols in place are particularly vulnerable.
Business Disruption and Unplanned Downtime
Manufacturing companies rely on computer-controlled machinery and industrial control systems that hackers can compromise. This can result in production disruptions that can cause significant issues for the company.
Unplanned downtime can be costly for the company, affecting revenue and reputation. In addition, it can lead to increased stress among employees.
The fact that manufacturers frequently keep sensitive data on the network, such as customer information and product designs, is another reason why they need to deploy cybersecurity resources for manufacturers. Attackers can use this information to steal trade secrets and other intellectual property that could harm the manufacturer.
Cyber attacks on manufacturers have risen significantly, putting the industry in the top ten most attacked industries by cybercriminals. These attacks are typically motivated by nation-states.
Intellectual Property Theft
Intellectual property (IP) theft is a growing concern for many manufacturing companies. It can result in losing critical information and trade secrets, such as plans for a new product launch, a proprietary chemical formula or company contact lists.
IP theft can also happen when employees send sensitive information to unauthorized parties without authorization. Human error is the number one cause of intellectual theft, but other reasons include negligence or carelessness, such as losing a device with confidential company data on it.
Intellectual property theft can be devastating, not only to the victim’s reputation and trust but also to their business operations. Dealing with stolen IP is expensive and exhausting, often requiring years of legal wrangling to recover damages.
The best way to avoid this problem is to monitor IP files carefully and be proactive in reporting any activity that doesn’t seem right. Then, you can stop the thief from ever stealing that information in the future. By doing so, you can significantly reduce the likelihood of having to deal with theft in the future.
Supply Chain Attacks
A supply chain attack is a manufacturing company’s most damaging threat. These attacks disrupt a single link in a company’s supply chain, causing a wide-scale disruption affecting thousands of people and industries.
A supply chain attack usually targets a third-party vendor connected to the target’s business. It begins with an attacker finding the weakest cybersecurity measures in the third party’s system and exploiting them to access the primary target.
Supply chain attacks can involve hardware or software-based attack techniques. These methods include compromising software building tools, stolen code-sign certificates, specialized code shipped into hardware components or malware installed on a third party’s devices.
As manufacturing companies expand, they must be careful about their third-party vendors. They must also be wary about the financial, intellectual, and operational information they share with these vendors.
Internal Breaches
In manufacturing, intellectual property (IP) theft is a significant concern. It can damage a company’s reputation and destroy its value.
Often, IP theft occurs because employees or other people within the organization have access to the company’s network and are not adequately monitored. This can lead to a data breach and loss of confidential information.
Another type of internal breach is business email compromise fraud, which occurs when hackers use their email accounts to manipulate communication threads and divert funds to charges that they control. This can be done by disgruntled former employees or hackers looking to access sensitive information.
These attacks especially damage manufacturers relying on computer-aided design files (CAD) for their workflow. CAD data can become encrypted and unusable, disrupting production operations and negatively impacting customer product delivery.
Ransomware
Ransomware is a growing threat to manufacturers and other critical sectors. Manufacturers are a prime target because they have high operational costs and a low tolerance for downtime.
Fortunately, there are ways to reduce the risk of a cyberattack. To begin, manufacturers must implement robust security policies and procedures that include regular testing of backups.
These measures can protect against the threat of downtime and business interruption, both of which are common after a ransomware attack.
In addition, manufacturers must protect their sensitive data and prevent cyber criminals from accessing it. This includes securing their email systems, protecting against phishing scams and understanding how to handle data privacy issues.
Moreover, manufacturers must prioritize cybersecurity because it can be costly to fix after an attack. A recent study found that ransomware attacks can cost companies up to $22,000 per hour of downtime.
