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Common Cyber Risks Faced by the Manufacturing Industry

Manufacturing businesses deal with cyber threats daily. And running such a business without knowing the common cyber risks is like walking blindfolded.

So, the following is the list of the most common risks you should be aware of:

Intellectual Property Theft

When hackers steal intellectual property, they can either sell it to competitors or use it to create counterfeit goods. For example, a U.S. car components business reported millions in damages after blueprints for new designs were stolen.

Losing trade secrets harms more than simply revenues; it also harms reputation and competitiveness.

Nation-State Sponsored Attacks

The sole cause of some cyber attacks is only to weaken some industries linked to the company’s economy. Such attacks are mostly common in the manufacturing sector as it creates a huge impact in the form of disrupting supply networks, causing operational delays and stealing valuable information.

There’s a popular case that happened in 2021, where some state-sponsored terrorists attacked European steel factories, causing extended production shutdowns.

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Social Engineering Attacks

Not every attack is technical – many rely on tricking people. Phishing emails, fake invoices, and phone scams can push employees into sharing passwords or transferring money.

One food processing company lost hundreds of thousands after being fooled into paying a fake supplier account. Social engineering works because attackers know employees are often the easiest way in.

Supply Chain Attacks

Even your cybersecurity systems can fall weak if your suppliers lack basic security practices. It’s easy for hackers to target smaller vendors with limited security tools to reach big manufacturing companies.

Take an example of SolarWinds attack in 2020, where one compromised supplier exposed countless bigger companies. In manufacturing, having multiple vendors is very common but what if this could open the door to your entire operation.

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Ransomware Attacks

Ransomware locks systems and halts production until money is paid. Manufacturers are attractive targets because downtime is expensive. In 2021, a global meat processor paid $11 million to get its systems back online.

For manufacturers, an assembly line stuck for days means lost money, broken contracts, and shaken customer trust.

Insider Threats

Sometimes, employees or contractors having system access can exploit their privileges. A frustrated employee might leak data intentionally or someone may fall for a phishing scam letting attackers get into the system.

Such a case happened once where a staff member leaked software information after being denied a promotion.

OT and IoT Attacks

OT and IoT devices play an important role in the manufacturing industry as the machines are dependent on them. When attackers get into these systems, physical operations can grind to a halt.

A similar case has happened to a global automaker where hackers exploited flaws in its connected factory devices. And this led to a long downtime loss.