Cyber security in manufacturing industry lacks action  

1st June 2022

Cyber security in manufacturing industry lacks action  

Manufacturing industry security report  

A recent report conducted by Financial Times’ Longitude found some interesting statistics when it comes to cyber security in manufacturing companies. The research surveyed 350 industrial companies across Europe and the USA. According to the survey, 75% of organisations were aware of the present cyber risks, with 40% of them having faced a cyberattack within the last 12 months.

“Three quarters of manufacturing companies claim they are aware of cyber risks and can deal with most of them — but, in reality, many still lack the skills and security practices to do so...” says the report.

Cyberattacks statistics in Manufacturing   

Cyber attacks lead to huge losses for any company, but, as we have discussed in our blog previously, the real cost of a data breach is more than just money. The study reveals that among those companies that experienced a cyberattack, half of the respondents acknowledged the negative impact on profitability and loss of profits. This is followed by reputational damage and legal costs, recognized by 40% of those attacked.  

It was found that medium-sized companies are more likely to experience an attack, while small companies (valued at less than $500 million) are less likely to be aware of the attack until it is too late.  

With that in mind, researchers were surprised to find that medium-sized manufacturers appear to be less prepared when it comes to the dangers of a cyberattack.   

Cyber Security in manufacturing industry needs improvement  

When asked if manufacturers are prepared for the common types of attacks, including scamming, phishing, MITM (man-in-the-middle attack), ransomware and SQL injection, medium-sized companies turned out to be the least prepared. They had the lowest level of preparedness across the four categories, only having the same level of security as the small companies when it comes to phishing attacks.  

Cyber hygiene turned out to be poor across all companies, no matter their size. Only a third of the companies encouraged their staff to regularly change passwords and update software. Less than half of the organisations held regular cyber security training and backed up their data.  

When it comes to holding people responsible, it turns out the senior management lacks the proper cyber security governance in place. As few as 36% of the respondents gave one of the board members direct responsibilities for cybersecurity or even reported on the state of cybersecurity every year.  

Although research points out that there were few manufacturers with effective cyber security measurements in place, most companies need to invest more resources into having proper security measures. 

Get in touch with RiskXchange to find out how you can improve cyber security in manufacturing industry and better mitigate digital risks.