Cybersecurity in manufacturing is not just an option anymore, but an absolute necessity. With increasing digitalization, nowadays, manufacturers are more vulnerable to cyberattacks that can disrupt operations, compromise sensitive data, and cause significant financial loss.

Understanding cybersecurity in manufacturing is key to protecting your business, ensuring uninterrupted production, and maintaining trust with customers and partners. Continue reading for essential knowledge on enhancing your company’s smart factory’s cyber resilience, in today’s digital landscape.

Understanding Cybersecurity in Manufacturing

In the context of manufacturing, cybersecurity refers to the measures taken to protect internet-connected systems, hardware, software, and data in manufacturing organizations from cyber threats. As manufacturing becomes increasingly digitized, with interconnected machines and devices forming the backbone of production processes, the need for robust cybersecurity has never been greater.

But it is not just about protecting sensitive information; it’s also about ensuring the smooth operation of your production lines. One single breach, due to a cyberattack could lead to significant downtime, impacting both your productivity and profitability.

Some of the common cybersecurity threats in the manufacturing sector are:

  1. Industrial Espionage: Cybercriminals can target manufacturing companies to steal proprietary information, such as trade secrets, blueprints, or customer data.
  2. Ransomware Attacks: These involve hackers encrypting a company’s data and demanding a ransom in exchange for the decryption key. Manufacturers are often targeted due to their reliance on real-time data for operations.
  3. Supply Chain Attacks: During a supply chain attack, attackers infiltrate a manufacturer through less secure elements in the supply chain, such as smaller suppliers or third-party service providers.
  4. Internet of Things (IoT) Vulnerabilities: With many manufacturers adopting IoT technology for improved efficiency, the increased connectivity also opens up new avenues for cyberattacks.
  5. Insider Threats: Disgruntled employees or those with malicious intent can pose a significant risk, as they have access to sensitive systems and data.

If you want to address these common threats, you should think about implementing a comprehensive cybersecurity strategy that includes regular risk assessments, employee training, implementation of advanced security measures, and a well-planned incident response protocol.

Feature image with letters spelling cybersecurity in manufacturing

Impact of Cyber Threats in the Manufacturing Industry

In the spring of 2022, multiple U.S. government agencies issued warnings about the rising threat of malicious custom malware aimed at industrial control systems (ICS) and supervisory control and data acquisition (SCADA) devices. The following examples underscore the importance of robust cybersecurity measures in the manufacturing sector. The potential risk and cost implications are too substantial to ignore, making such cybersecurity controls a critical aspect of modern manufacturing operations.

FACC AG

FACC AG, an Austrian aerospace manufacturer, fell victim to a «whaling» cyber attack in 2016. Fraudsters posed as the CEO and duped the accounting department into transferring 42 million euros (around $47 million) for a fake acquisition. FACC, realizing that they were tricked, adopted countermeasures and was able to stop the transfer of 10.9 million euros (around $11.5 million) to the recipient accounts.

Norsk Hydro

In 2019, multinational aluminum manufacturer Norsk Hydro experienced a significant disruption when a LockerGoga ransomware attack forced shutdowns at several of its plants worldwide, including those in Norway, Qatar, and Brazil. The perpetrators likely obtained credentials through the dark web or a prior phishing incident. The cyberattack reportedly resulted in approximately $71 million in damages.

Renault-Nissan

In 2017, the global automotive manufacturer Renault-Nissan was hit by the infamous WannaCry ransomware, halting operations at five of its plants across England, France, Slovenia, Romania, and India. The attack, strategically launched on a Friday to exploit reduced staff levels, forced the company to disconnect the affected plants from its network to prevent further spread. Despite quickly resuming operations by the following Monday, the company did not disclose the specifics of the cyberattack or its financial impact. Global losses due to the WannaCry ransomware are speculated to be as high as $4 billion.

Applied Materials

Applied Materials, a leading technology provider in the semiconductor industry, suffered a significant ransomware attack that caused a substantial financial impact. The attack led to an estimated loss of $250 million in sales during the second quarter. The cyberattack was reportedly linked to a supplier of Applied Materials, highlighting the vulnerability of manufacturing firms and supply chains to such serious security incidents and breaches.

An image depicting four co-workers wearing safety vests and helmets, looking at a tablet on a shop floor surrounded by heavy machinery.

How Shoplogix Ensures Cybersecurity

Shoplogix is a prominent player in the manufacturing industry, providing an innovative portfolio of smart factory software solutions designed to unlock smart factories and enable data-driven decisions. Central to our offering is a manufacturing ecosystem with a strong emphasis on cybersecurity, with measures including ISO certification, an AWS partnership, and the exclusive use of IWS technology.

What is an ISO Certification?

ISO certification is an international standard that signifies a company’s commitment to implementing operational technologies and maintaining effective security protocols. For Shoplogix, this certification demonstrates their dedication to protecting customer data and ensuring the integrity of their software solutions.

What does an AWS Partnership mean?

Our partnership with Amazon Web Services (AWS) further strengthens our cybersecurity framework. AWS is known for its robust and secure cloud services, providing additional layers of protection against potential cyberattacks. This partnership not only enhances our security but also offers our clients the reliability and security inherent in AWS’s critical infrastructure itself.

What is IWS Technology?

IWS technology refers to Industrial Web Services, a set of standards for exchanging data over networks in industrial environments. Shoplogix’s exclusive use of IWS technology ensures the accurate transfer of data across connected systems, industrial internet and smart devices, minimizing risks and helping maintain strong cybersecurity.

Image of an ISO certification badge, representing the company's commitment to implementing operational technologies and maintaining effective security protocols.

9 Tips to Improve Your Cybersecurity in Manufacturing

Don’t fall into the trap of complacency, assuming that cybersecurity breaches ‘won’t happen to you’ or that you can ‘tackle it tomorrow’. Act now! Here are nine proactive steps you can take to shield yourself from cyberattacks:

  1. Regularly Update and Patch Software: Consistently updating and patching your software can help prevent cyberattacks. Manufacturers should ensure all applications their employees use are up-to-date.
  2. Replace Legacy Systems: Older systems are often more vulnerable to cyberattacks. Replacing these with newer, more secure systems can significantly boost cybersecurity.
  3. Inventory Connected Devices: Knowing what devices are connected to your network can help identify potential vulnerabilities. Regular audits of these devices can improve network security.
  4. Develop a Cybersecurity Response Plan: Having a plan in place for when a cyberattack occurs is crucial. This plan should outline the steps to take to mitigate damage and identify critical systems to recover quickly.
  5. Train Your Team. Employees should be trained to see cyber risks, recognize cybersecurity threats and know what actions to take. Regular training can help prevent accidental breaches.
  6. Set Security Expectations for Your Supply Chain: Your cybersecurity is only as strong as the weakest link in your supply chain. Setting clear security expectations with your suppliers can help prevent breaches.
  7. Get Certified: Earning certifications like ISO can demonstrate your commitment to cybersecurity and provide guidelines for best practices.
  8. Partner with a Reliable Cloud Service: Partnering with a secure cloud service provider like AWS can add another layer of protection for your data
  9. Use Secure Technology: Using secure technology like IWS can ensure secure data transfer across your systems.

Final Thoughts

Understanding cybersecurity in the manufacturing environment is crucial in today’s digital age, and taking proactive steps can help ensure the resilience and longevity of operational technology in your business. A well-crafted cybersecurity response plan can be a lifesaver during cyberattacks, and regular personnel training is crucial for recognizing and mitigating threats.

The security of your supply chain is equally important; setting clear expectations with suppliers can help prevent breaches. Earning recognized certifications and partnering with secure cloud service providers can further enhance cybersecurity measures. Manufacturers must prioritize these steps to safeguard their operations from potential cyberattacks. The integrity of your data and intellectual property, your customer’s trust, and the future of your business depends on it.