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Manufacturing is facing a new era of cybercrime

Ransomware in manufacturing is rising fast. Manufacturing companies face a growing array of challenges related to cybercrime, largely due to the evolving nature of their IT systems and their reliance on operational technology (OT). These challenges stem from the convergence of IT and OT environments, the complexity of supply chains, and the shift towards more digital and connected manufacturing processes (Industry 4.0). In many cases, there is a need for modernization of system recovery and data protection technologies to combat threats that have emerged for a more connected OT environment. Below are some key challenges:

1. Convergence of IT and OT

IT/OT Integration: In modern manufacturing, IT systems (information technology) handle business functions like finance, inventory, and communications, while OT (operational technology) systems control physical processes such as machinery, robotics, and production lines. These two environments are increasingly integrated for improved efficiency, but they have different security requirements. OT systems are often older and not designed with cybersecurity in mind, making them vulnerable when connected to the broader IT network.

Legacy OT Systems: Many manufacturing plants use equipment with extended lifecycles that cannot be easily updated or patched. These systems, while operationally critical, were often designed without consideration for modern cyber threats, leading to vulnerabilities.

2. Ransomware and Disruptions to Production

Ransomware Attacks: Ransomware has become a major threat to manufacturers. Attackers can lock down critical systems or encrypt data, halting production processes and causing significant financial losses. For instance, if a ransomware attack disables a factory’s production control systems, it could lead to downtime, missed deadlines, and reputational damage.

Production Downtime: Even brief production stoppages can have a large financial impact, particularly in industries where just-in-time (JIT) manufacturing is crucial. Cyberattacks that disrupt OT systems can lead to costly downtime as plants scramble to restore operations.

3. Supply Chain Vulnerabilities

Third-Party Risk: Manufacturing companies often rely on extensive global supply chains, working with multiple suppliers and contractors. These third-party relationships can introduce vulnerabilities, as cybercriminals may target less secure suppliers to gain access to larger manufacturers. The attack on Target in 2013, for example, occurred when hackers accessed the company’s systems through a third-party HVAC vendor.

Supply Chain Attacks: Cybercriminals may inject malware into software or hardware components within the supply chain, compromising the final product delivered to customers. Supply chain attacks are difficult to detect and can propagate through an entire ecosystem of partners.

 

4. Intellectual Property Theft

Targeting Trade Secrets: Manufacturing companies often possess valuable intellectual property (IP), including patents, product designs, and proprietary production methods. Cybercriminals, particularly those engaging in corporate espionage or state-sponsored attacks, seek to steal this IP for competitive or geopolitical advantage. For example, hackers may target a company’s R&D department to access confidential product designs.

Data Breaches: Cybercriminals may breach IT systems to steal sensitive information about products, processes, and customers. Loss of intellectual property can result in competitive disadvantages and legal consequences, especially in highly competitive industries like automotive or aerospace.

5. Vulnerabilities in Industrial IoT (IIoT) Devices

Increased Attack Surface: The rise of Industrial Internet of Things (IIoT) devices has introduced new vulnerabilities. Connected sensors, controllers, and devices in factories can be exploited if not properly secured. Many IIoT devices lack built-in security features or use default passwords, making them prime targets for cyberattacks.

Real-Time Monitoring and Control Risks: IIoT enables real-time data collection and monitoring, improving operational efficiency. However, it also means that an attack on these devices could disrupt real-time control systems, potentially leading to unsafe conditions, equipment damage, or production errors.

6. Phishing and Social Engineering

Targeted Phishing Attacks: Manufacturing companies are not immune to phishing, and employees in these organizations may be targeted through deceptive emails designed to steal login credentials or introduce malware into the system. Spear-phishing attacks may be highly customized, impersonating suppliers or partners to trick recipients into clicking malicious links.

Human Error: Social engineering attacks, such as phishing, exploit human vulnerabilities, often bypassing even well-established cybersecurity protocols. In environments where employees are managing both IT and OT systems, a single mistake could lead to a system-wide breach.

7. Lack of Cybersecurity Awareness and Training

 Skill Gaps: Many manufacturing employees, especially those working in OT environments, may lack sufficient training in cybersecurity. The focus is often on ensuring the smooth operation of machinery and production lines, with less emphasis on understanding how cybersecurity impacts these systems. This creates an environment where staff may not recognize the signs of a cyberattack.

Cybersecurity Culture: Some manufacturing environments may prioritize production efficiency over security practices, leading to a culture of neglect when it comes to cybersecurity. This can manifest as poor password management, delayed system patches, and a lack of proper network segmentation.

8. Regulatory and Compliance Challenges

Compliance with Security Standards: Depending on the industry and the countries they operate in, manufacturers must comply with various cybersecurity standards and regulations. These can include the NIST Cybersecurity Framework in the U.S. or ISO 27001 globally. In the EU, regulations like the General Data Protection Regulation (GDPR) can come into play if the cyberattack results in the loss of personal data.

Managing Multiple Standards: The challenge for manufacturing companies is that they often have to comply with multiple cybersecurity and safety regulations across different regions. Maintaining compliance can be difficult, particularly when IT and OT systems have different requirements.

Conclusion

Manufacturing companies must navigate a new and complex cybersecurity landscape where threats come from many directions. The integration of IT and OT systems, increased use of IIoT, and reliance on third-party suppliers make the sector highly vulnerable to cybercrime. Addressing these challenges requires not only robust cybersecurity measures and investment in new system recovery and data protection technologies, but also a culture of security awareness and continual vigilance.

Contact the Cristie Software team if you are looking to improve system recovery and replication for manufacturing operational technology and administrative IT, or to learn more about system replication and our system recovery integration with leading backup solutions from vendors including IBM, Dell Technologies, Rubrik and Cohesity.

Cristie Software Ltd

New Mill, Chestnut Lane
Stroud, GL5 3EW
United Kingdom

©2024 Cristie Software Ltd. Registered in England & Wales Number: 06395450
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