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Cybersecurity in Manufacturing: A Guide to Risk and Security Best Practices

Written by Tara Swaminatha | Oct 13, 2023 7:10:34 PM

In the modern, interconnected world, cybersecurity in the manufacturing industry has become increasingly important. Creating a resilient manufacturing organization requires an awareness of the cyber risk inherent in maintaining manufacturing operations and doing business. Assessing risk and proactively understanding how to implement security best practices are becoming more critical than ever in the manufacturing sector.

What is Cybersecurity for Manufacturing?

Manufacturing cybersecurity refers to the set of practices, protocols and measures a manufacturing organization takes to safeguard its digital systems, networks, data, physical assets and workforce from cyber threats, attacks and unauthorized access. 

As manufacturing processes have evolved and integrated new advanced technologies and data-driven approaches, this has created new vulnerabilities that cybercriminals can now target. 

Cybersecurity in the manufacturing industry involves strategies to identify those vulnerabilities and mitigate these risks. Establishing robust defense mechanisms can help prevent disruptions and data breaches that can suspend production processes and damage the manufacturing organization.

Why is Cybersecurity Important in the Manufacturing Industry?

The manufacturing industry needs to prioritize cybersecurity due to the persistent threat landscape. Manufacturing’s critical role in global supply chains is a notable factor driving this urgency. With supply chains becoming increasingly international, manufacturers have moved into the crosshairs of hostile nation-state actors. Manufacturing is a desirable cybercrime target as it includes vast intellectual property and sensitive financial data. Many manufacturing companies have been slow to implement cybersecurity programs, which has left their systems vulnerable to attack.  
 
IBM Security’s 2023 X-Force Threat Intelligence Index underscored the gravity of the situation, revealing that the manufacturing sector encountered the highest number of ransomware cyberattacks and ranked among the most extorted industries in 2022. A prime example occurred in 2022 when the Chernovite threat group emerged. Using an advanced Industrial Control Systems (ICS) hacking platform called PIPEDREAM, Chernovite targeted manufacturing technologies supported by various third-party vendors.

Cybersecurity Statistics for the Manufacturing Industry

The statistics demonstrate the across-the-board cybersecurity challenges for the manufacturing industry:

  • Confidence in Asset Protection: A study conducted by Deloitte and MAPI found that only 52% of surveyed manufacturing executives are very confident or extremely confident in their organization's protection against external threats.
  • Breach Incidents: Per the same study, 39% of manufacturing companies experienced a breach in the past 12 months.
  • Financial Losses: Among those companies that experienced breaches, 38% reported losses ranging from $1 million to $10 million, according to the Deloitte/MAPI study. The financial impact of cyberattacks can be substantial.
  • Lack of Incident Response Plans: According to a Manufacturing Leadership Council Survey, 38% of manufacturers still need an incident response plan. The good news is that this number has dramatically improved over the 2018 survey results, when 67% of respondents reported no incident response plan in place.
  • Fragmented Ownership of Cyber Risk: Cyber risk ownership is often fragmented within organizations, leading to limited visibility of the overall risk landscape and hampering the influence of cybersecurity policies and strategies.
  • Holistic Incident Response: The Deloitte/MAP study reports that approximately 40% of manufacturers do not incorporate products targeted in cyber breaches within their broader incident response plans. This underscores the need for a more comprehensive approach to cyber risk management.

Cybersecurity Threats in the Manufacturing Industry

According to a 2021 IBM study, the manufacturing sector experienced more cyberattacks than any other industry. This trend continued in 2022, with manufacturing cyberattacks even outpacing those targeting the finance and insurance industry.

Major cyber threats for manufacturers include:

Ransomware

Ransomware is a type of malicious software designed to encrypt the target’s files or data. Cybercriminals demand payment (ransom) for the decryption key to restore access.

Mitigation strategy: Manufacturers should have robust security measures in place, such as access limits, regular data backups and employee training. This illicit activity compromises proprietary information and poses broader security risks, as seen in instances like the theft of COVID-19 vaccine formulas in 2021.

Supply Chain Attacks

Supply chain attacks target supply chains by exploiting vulnerabilities in interconnected systems, often infiltrating less-secure third-party partners to gain valuable access to data and disrupt operations within a supply network. 

Mitigation strategy: Regularly examine the cybersecurity of partners and suppliers, establish strict access controls and watch for compromised systems.

Internet of Things (IoT) Vulnerabilities

Interconnected devices are targeted by cybercriminals who exploit security weaknesses to gain unauthorized access and manipulate the interconnected devices for malicious purposes. 

Mitigation strategy: Implement stringent device management policies, constantly check their systems for flaws, and instantly install security updates and upgrades as they are released.

The Financial Impact of Cyberattacks in the Manufacturing Industry

Manufacturing downtime due to cyberattacks can cause significant financial damage even when the shutdowns are short-term. 

According to a Siemens report, unplanned downtime costs manufacturers an average of $148 a second, almost $9,000 a minute. 

The revenue-risk nature of manufacturing supports why manufacturing cybersecurity has become a priority for many manufacturers. A recent survey by Deloitte notes that cybersecurity concerns have also slowed the integration of smart factory technologies – 48 percent of surveyed manufacturers have identified operational risk, including cybersecurity, among the greatest dangers to smart factory integration.

Tips to Improve Cybersecurity in Manufacturing

Safeguarding against ransomware attacks has become a priority for many manufacturing companies. A multi-faceted approach provides a robust strategy for navigating the ever-changing risk landscape. 

Consider implementing the following steps to increase your company’s cybersecurity efforts: 

  1. Develop an Industrial Control System (ICS) Security Assessment Framework as a security shield for industrial control systems. An ICS assessment will comprehensively safeguard ICS by helping organizations identify and prioritize security risks. This framework can then guide the creation of strategies to counter these threats, ensuring the deployment of necessary measures to safeguard equipment from potential sabotage.

  2. Employing security segmentation is a powerful tactic in protecting valuable assets. Manufacturers can better manage cybersecurity concerns by grouping assets based on communication and security requirements. This approach allows for streamlined management of security needs within asset groups, bolstering overall protection.

  3. Implement access controls to ensure secure user authentication and authorization processes. Security access controls grant access to sensitive data solely to verified personnel.

  4. Effective risk management strategies assess internal and external environments to identify potential risks. These risks are then prioritized based on potential damage and likelihood of occurrence. Strategies can then be developed to manage these risks, which typically include establishing technical controls, secure process design and awareness and training initiatives.

Finally, manufacturers should create an incident response plan that provides proactive preparation for security incidents. Manufacturers should establish and communicate this plan throughout the organization, outlining steps for reporting, investigating and addressing security breaches.

By integrating these strategies, manufacturers can fortify their resilience against the growing array of cyber threats targeting the industry.

Why Choose ZeroDay Law?

ZeroDay Law offers personalized cybersecurity solutions for the manufacturing industry. Your organization will work directly with our principal attorney, who brings years of experience and knowledge in defending organizations of all sizes from cyberattacks.

Contact ZeroDay Law to learn more about our cybersecurity services specifically designed for manufacturers.