Understanding the Importance of Cyber Security in Manufacturing

The manufacturing industry is one of many sectors that is rapidly adopting innovative technologies like IoT (Internet of Things), AI (artificial intelligence) and cloud computing to improve efficiency and productivity. 

However, this scale of improved connectivity and integration opens up new vulnerabilities that intuitive cybercriminals and malicious actors can exploit. Even the slightest of openings can spell disaster for manufacturers if compromised, and the results can be financially devastating, and possibly result in serious reputational harm. 

A breach can lead to losses of highly sensitive or personal data, intellectual property theft, and large-scale operational disruptions. This isn’t even accounting for the knock-on effect that a manufacturer’s cyber breach can have on its suppliers, stakeholders and customers.  This is why it’s crucial for manufacturers to step up their cyber security efforts and ensure that data, systems and assets remain robust and risk-free. By doing so, they will be safeguarding themselves and all the important parties within their supply chains. 

This guide outlines some of the common cyber threats that face manufacturers, why they are at risk, the possible consequences, and the mitigation steps that they can take to ensure they retain a robust cyber security posture.

Common cyber security risks to manufacturers

Manufacturers face a wide range of cyber risks and threats that can severely impact their business. These include:

• Data theft – Restricted and ‘in-progress’ product designs, proprietary manufacturing processes, and customer or employee information are prime targets for cybercriminals. Compromising this data paves the way for possible distribution on the dark web or identity theft.

• Ransomware attacks – Malware that locks down critical systems and restricts access unless a hefty ransom is paid. This severely disrupts production lines and leads to large financial losses if businesses comply with the cybercriminals’ demands.

• Manipulation of control systems – Hackers can remotely tamper with RFID or GPS-enabled assets, IoT sensors, PLCs and SCADA systems to sabotage operations and affect the real-time visibility of personnel and equipment in facilities or in transit.

• IP and trademark infringement – Product plans can be stolen to allow for the production of cheap knockoffs from rival companies that undercut sales, damage brand reputation stemming from leaked information, and affect the manufacturers’ bottom line.

• Regulatory non-compliance – Cyber breaches lead to hefty penalties for violating privacy laws like GDPR and any other regulatory bodies that manufacturers answer to. Fines depend on damage severity and the scale of the compromised data. 

Why manufacturers make easy hacking targets

Manufacturing companies face heightened cyber security risks for a number of reasons:

• Legacy systems – Older, unpatched machines with insecure and outdated protocols are highly prone to attacks. Often these systems are not backed up with Multi-factor Authentication (MFA). It usually takes a large-scale penetration testing exercise to reveal the extent of the system’s weaknesses.

• Complex supply chains – More touchpoints throughout supply chains mean more potential entry vectors for cybercriminals across the product lifecycle. It’s unlikely that all connected parties have adopted the same level of cyber protection.

• Limited in-house capability – Manufacturing IT solutions are often focused on increased availability and visibility, with security regularly overlooked. As such, many staff may lack adequate skills to detect and respond to sophisticated threats, much less contain them.

• Weak identity management – Some firms will have granted excessive access privileges to users across multiple systems. If these user permissions are not controlled, it may prove easy for hackers to access and laterally move across the firm’s infrastructure.

Consequences of a cyber attack

The implications of a successful breach can be severe. Extended downtime and disruptions can bring production lines to a screeching halt, with it proving more costly to remediate the longer it takes. Businesses could lose valuable sales revenue if counterfeit and imitation products are made in excess, which can often stem from compromised data and product plans. 

Depending on the nature of the breach, firms could face excessive public scrutiny. Publicised, high-profile attacks erode customer and stakeholder trust, which can, in turn, result in stock prices plummeting (from lower demand) and profits taking a severe blow. 

Furthermore, if a business does not safeguard data, it could incur heavy penalties, litigation costs and settlement payments. Such reputational and financial damage may be so severe that it results in large amounts of layoffs or complete shutdowns. 

What’s more, competitors may use a firm’s ‘fall from grace’ as a PR opportunity or as a means to undercut prices and target desensitised audience segments in their future marketing strategies.

Steps to strengthen cyber security

While the outlook may look bleak for manufacturers, the good news is that it’s relatively easy to enhance cyber resilience. Taking the key steps outlined below will drastically improve your cyber security posture almost immediately, which can prove invaluable as you continue to navigate the complex digital terrain.

• Conduct regular cyber security audits – Businesses need to uncover the most common exploitation points, gaps, and vulnerabilities within their existing defences. This requires a comprehensive, digital forensic analysis of all devices, endpoints and networks. In turn, establishing concrete cyber incident response plans and constant monitoring will ensure constant stability and real-time threat detection.

• Update legacy systems – Isolate and upgrade outdated hardware and software to eliminate security flaws. All devices must be regularly patched with the most up-to-date security upgrades to ensure that vulnerabilities are not exploited.

• Implement secure architecture – Businesses should deploy enterprise-grade firewalls, security and malware detection software across the entire enterprise. In addition, they should segment networks, and ensure that network passwords and usernames are only distributed to authorised personnel.

• Provide staff training – Educate employees on cyber risks, attack techniques, policy compliance and how to avoid becoming a victim of cybercrime. Enrolling all staff in regular, regimented cyber training is crucial for establishing a culture of increased cyber awareness and resilience.

• Control third-party access – Companies should limit access to shared systems via secure virtual private networks (VPNs) and MFA. Over time, companies should exercise more control over all suppliers and partners, ensuring they are thoroughly vetted and not granted excessive privileges.

• Backup critical data – Regularly back up and encrypt sensitive intellectual property, designs and operational data, ideally in a highly secure, patched server that stays on company premises. Companies should regularly test restores to ensure continuity after incidents.

Implementing a comprehensive cyber security strategy

Building a robust cybersecurity programme requires patience, commitment and diligence. For maximum effectiveness, companies need to make cyber security a priority at the director level, backed by sufficient resources and funding. If your company does not have the budget to allocate an appointed CISO with a team of dedicated specialists, analysts and engineers, consider outsourcing your most integral requirements to trusted third-party firms.

Internally, however, it is up to you to develop stringent policies, standards and baselines for all your processes, ranging from threat monitoring and auditing your systems. Ensure your policies adequately address emerging threats and new business demands whilst maintaining a robust, reliable level of security across your estate.

With cyber attacks growing in frequency and impact, manufacturers cannot afford to ignore their digital security. By making strategic investments driven by risk assessments, manufacturers can secure their most critical intellectual property and operations from criminals and contribute to more aligned, resilient security across their supply chains.