Cyber-attacks are on the rise and manufacturing companies are not immune. Manufacturers who rely on automation, robotics and connected networks are especially vulnerable. Here are some examples of cyber-attacks and how you can protect your business to minimize the associated risks.
Know Your Risks
Spear phishing is a type of e-mail phishing campaign that targets multiple people at an organization using inside information that makes the hacker's inquiry look legitimate. This scheme is not sophisticated in that malware used to execute this attack can be purchased on the black market. Last December, hackers caused a blackout in the Ukraine by breaching the control system for a power grid using a phishing campaign.
Data breaches are one of the biggest fears of business owners and hackers often use that fear to cripple organizations through ransomware. This type of scheme entails malware that is installed on a computer or network without the user's consent. This software relinquishes control back to management only if they agree to pay ransom to the malware operators. Once the money is paid, the hackers promise to remove the restrictions.
Cyber-attacks can harm a manufacturer or distributor in many ways. They can cause safety issues, negative publicity, lost time and productivity, and compromised personal and corporate data. The average cost of a data breach in the United States is now more than $7 million, according to a 2016 study published by independent research group The Ponemon Institute.
Safeguard Your Operations
How can you reduce cyber risks? A manufacturer's first line of defense against hackers is its employees. However, employees can also be a liability if they are not vigilant and knowledgeable about cyber threats. In fact, the latest Ponemon study found that 23% of breaches were caused by negligent employees. It is critical to provide training about the latest computer scams and encourage employees to report suspicious emails immediately to the information technology department. Always insist that employees do not open e-mails and attachments that look suspicious.
Hackers looks for easy targets. It is no different than thieves who look for unlocked doors and windows. Therefore, even the simplest security measure will deter some cyber breaches. One easy option is to use inexpensive, over-the-counter encryption software and phishing filters to make it harder for hackers to get inside your network.
Reduce Losses
To minimize losses if a breach occurs, consider purchasing cyber insurance products to cover direct losses from breaches, as well as the costs of responding to them. Your traditional business liability policy probably does not include such coverage.
You can also assemble a breach response team before a breach occurs. Doing so decreases the average cost of a data breach by about 12%, according to the Ponemon study. Once it is formed, the response team can start by identifying potential weaknesses in your network and making recommendations for improvements to security.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
