The supply chain industry has always been a target for cyberattacks, but in recent years the frequency of these threats has increased dramatically. Attacks on the supply chain not only disrupt US shippers like Pharmaceutical Companies and Automobile Manufacturers, but they can also lead to large-scale data breaches that affect all businesses across the globe. These attacks have major implications and can lead to the loss of customer trust, business opportunities, and ultimately business survival if not addressed quickly.

The broad and diverse transportation industry is vulnerable to these attacks, as it has few cybersecurity regulations as compared to other industries. There have been multiple cyberattacks in this sector in recent years, including cargo theft and ransomware. According to BCI’s recent study, almost 30% of reported supply chain disruptions are caused by cyberattacks. In 2020 there was a 4.8% increase from the prior year. 

With cybersecurity issues increasing in different industries, supply chain and transportation remain the most vulnerable with 150% more cyber attack reports since January 2020. Loss of revenue, production delays, and disruptions to customer service were some of the immediate effects of these attacks.

Supply Chain’s Cyber Security Struggles

To combat supply chain cyber threats, companies need a layered security approach that covers both their networks – as well as those of all their business partners and third-party vendors. This requires constant and real-time monitoring for suspicious activity based on risk factors including country-level geopolitical tension, access to sensitive data, and the potential impact of a cyber-attack.

Companies must monitor for suspicious activity against their supply chain partners – even if they are not part of that company’s network. This can mean taking proactive steps such as setting up monitoring systems before an attack occurs or partnering with third parties who specialize in supply chain risk management.

To ensure that supply chains are secure from cyber threats, manufacturers at all levels of the production process must take cybersecurity precautions – whether by using cloud security or setting up stronger network infrastructures. In addition, companies should rely on their business partners as additional resources for information and technology support in case they run into trouble on the cyber front that their internal IT employees may not be equipped to handle. Don Cox, an experienced CIO & CISO recently told Robins Consulting, 

“Understanding the systemic risk faced by your organization is paramount to survival. One small business misstep can be your demise. Don’t let it be the equivalent “of the flat tire” that shuts down the use of your automobile. Invest in a partner trained to understand the contributors or causes of systemic risk in your digital business system.”

Supply Chain Preventative Measures

FireEye, a privately held cybersecurity company headquartered in Milpitas, California, recently released a study about cybercrime revealing that over half of the respondents had experienced some kind of cyberattack in 2021, with many being targeted repeatedly. Almost 85% of global companies experienced a cyberattack which was the highest attack rate since 2013.

The supply chain industry is a global one and companies need to take a serious approach to cybersecurity that works on a global scale. This entails focusing on proper preparation and the use of threat intelligence. These include the following: 

Risk assessment

Understanding data flow throughout supply chains to identify risks at various points based on criteria like company size and location.

Threat identification

Security should be integrated into existing frameworks and processes rather than taking place after isolated incidents or disruptions.

Security infrastructure development

Companies need military-grade cyber defense mechanisms that can adapt quickly to new threats without sacrificing user experience or productivity.

Dr. Rodolfo Santamaria, PhD, MBA, CMBB, a highly experienced Supply Chain Cyber Security Expert recently told Robins Consulting, 

“The supply chain provides vast opportunities for a Iot devices and at the same time opens the door for vulnerabilities. IT Professionals need to protect these devices against malicious attacks exploiting supply chain security gaps. In the Industrial Internet of Things (IIoT), many network operators recognize these risks, and the most important part is that specific vulnerabilities are very difficult to isolate. These risks are far reaching and extend beyond the manufacturer’s locations to shippers, distributors and other commerce partners. As the network grows and includes more integration points, the risk that malicious code injected into it will replicate increases. The code itself may not be malicious; however it can present an open port that can compromise the supply chain systems. IIoT device purchases by transportation and supply chain companies are increasing and more frequent than before, and it would be a good idea to set up a formal assessment to ensure that all vendors and products are vetted.”

The supply chain industry is susceptible to cyberattacks, and companies need to be aggressive and proactive to ensure their security measures are sufficient. The holiday season brings with it an increased risk so it’s important for you to stay up-to-date on the latest trends so you can take appropriate action when necessary.