Shocking figures have circulated the world's media: as many as 80 per cent of manufacturing companies have fallen victim to cyber attacks in the last year. This is an alarming indication of the growing weakness of the industrial sector in the face of digital threats.
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Worse still, only 45 per cent of these companies are adequately prepared to fend off attacks. These sobering statistics are the result of a global study by the renowned Omdia, which sheds new light on the pressing issue of cyber security in industry.
A blessing or a curse?
The era of Industry 4.0 has brought about a revolution in manufacturing processes. Companies are massively deploying innovative solutions based on the cloud, artificial intelligence (AI) and the Internet of Things (IoT). The convergence of information technology (IT) and operational technology (OT) is increasing the efficiency, scale and resilience of operations.
Unfortunately, this also has its dark side. This is because the field of potential attacks is widening and critical sectors are becoming a greedy morsel for cybercriminals, especially in the context of ransomware attacks.
In fact, this was discussed many months ago by the eminent cyber security specialist Ryszard Korzeniecki, who was a guest in the Automation Trader studio. - In my opinion, very simple arguments play their part here. Business is followed by money and this is the temptation to make a big and easy buck. This is the thinking of the people responsible for the attacks. Maybe they will succeed. Let's give it a try. Out of ten companies, two are bound to succumb. Easy money - said Korzeniecki.
Gigantic losses
Easy money and big money - sounds good, but what scale are we really talking about? At this point, then, concrete figures should speak for themselves. - How much does such an attack cost on average? According to recent reports, we are talking about a value of between 1 and 1.2 million dollars. As for those record ransoms, it was 30 million $ in 2020 and just twelve months later it was 240 million $ - he concluded.
The aforementioned Omdia study, which surveyed more than 500 technology executives from around the world, analysed how companies are addressing cyber security challenges in the age of digital transformation. The report, produced in collaboration with Telstra International, the global telecoms giant, leaves no illusions: manufacturers are in serious trouble.
The consequences of cyber attacks for manufacturing companies are catastrophic. Problems with system availability and resilience generate losses running into hundreds of thousands or even millions of dollars. Companies whose corporate systems or production controls have been breached suffer the greatest losses.
Geraldine Kor, head of Global Enterprise Business at Telstra International, warns. - Greater connectivity between IT and OT is essential for implementing manufacturing innovation, but it also increases the risk of breaches. Unfortunately, few companies are aware of how to effectively protect themselves from cyber threats. There is a lack of consistent security accountability, which can lead to chaos in the event of an attack, she said.
There is no other way
Adam Etherington, senior analyst at Omdia, believes that the key to better protection is understanding the problem. - Our study identifies key attack vectors and provides valuable lessons for IT and OT leaders. Increasing connectivity between IT and OT is essential in modern manufacturing.
- Companies need to leverage cloud technologies, IoT, AI and private networks, and IT/OT convergence is enabling this. Most companies face costly downtime and security incidents because traditional security measures, policies and organisational culture have not kept pace with changing threats. A better understanding of the causes of downtime is key to preventing them effectively, he added.
The conclusions of the Omdia report are therefore clear. Manufacturing companies must immediately take decisive steps to strengthen their cyber security. Otherwise, they will become an easy target for cyber criminals, which can lead to serious financial losses, reputational damage and even bankruptcy.
The future of the industry lies in the hands of those who can effectively protect their systems from digital threats. Unfortunately, it is proving to be not that easy at all, and without understanding the problem and educating themselves, companies will always be a step or even two behind the criminals.
