In recent years, manufacturing companies have become increasingly reliant on computerized systems to run their operations.
Unfortunately, this increased reliance on technology has also made manufacturing companies more vulnerable to cyber-attacks
However, only 5% of manufacturers are covered by a cyber insurance policy, while 50 percent of healthcare,in the U.S. have coverage.
Do you have clients who fall into the uninsured 95% for cyber insurance?
As a broker, it's essential to understand these threats and how they can affect your clients. In this blog post, we'll explore some of the most common cyber threats manufacturers face and what you can do to help keep your clients safe.
The Top 4 Cyber Threats for Manufacturing Companies
A cyber attack on a manufacturing company can have a number of different consequences. The most immediate and obvious consequence is the loss of data.
This can include the loss of customer data, financial data, employee data, and company secrets. A cyber attack can also lead to the loss of production data, which can hamper the company's ability to produce goods. In some cases, a cyber attack can even cause physical damage to the company's machines and equipment.
For example, In 2017, Mondelez, a multinational food, and beverage company, became the victims of an attack that leveraged the encrypting malware NotPetya. The attack permanently damaged 1,700 servers and 24,000 laptops. It also impacted production facilities around the globe.
Now that the potential risk is clear to see, let's have a look at the 4 specific types of cyber attack manufacturing companies should know :
1. Intellectual Property Theft: Innovation and creativity are at the heart of manufacturing, and having your trade secrets stolen by cybercriminals may just be enough to sink your ship.
This type of theft can take many forms, from stealing ideas and designs to copying products and trademarks. Intellectual property theft can have a serious impact on a company's bottom line, as well as its ability to compete in the marketplace.
2. Supply Chain Attacks: Supply chain attacks are a type of cyberattack that targets the systems and processes that enable a company to function. These attacks can disrupt manufacturing, logistics, and other vital operations, potentially leading to widespread economic damage.
In recent years, there have been a number of high-profile supply chain attacks, such as the WannaCry ransomware attack that hit global companies in 2017. These incidents have raised awareness of the risks of supply chain attacks and the need for companies to take steps to protect themselves.
3. Ransomware: Manufacturing plants have often been targets of ransomware attacks because they rely heavily on computerized systems. If these systems are taken down by an attack, it can cause production to grind to a halt.
This can be costly for manufacturers, as they may have to halt operations and pay the ransom to get their systems back up and running. Ransomware attacks can have a major impact on manufacturing businesses, both in terms of cost and reputation.
4. IoT Attacks: IoT attacks in manufacturing can have disastrous consequences. For example, in 2016, a ransomware attack on a German steel mill caused production to grind to a halt, leading to millions of euros in damages.
Manufacturing companies must take steps to secure their IoT devices to protect against these sorts of attacks. This includes ensuring that devices are properly configured and patched, and that appropriate security measures are in place.
How Your Clients Can Improve Cybersecurity Awareness within their Company
With 95% of cyber attacks caused by human error, it is crucial that your clients educate employees and make them aware of potential threats. A company's employees are the first line of defense when it comes to keeping your company's data safe. Manufacturing companies should take steps to keep their company data safe and make their employees aware of the risk of cyberattacks.
Here are a few recommended steps:
- Make sure you have a solid cybersecurity policy in place
- Provide training on cybersecurity topics for all employees
- Provide a way for employees to report any suspicious activity.
- Conduct regular cybersecurity audits to identify weaknesses in your system.
- Implement security measures to protect your data, such as encryption and firewalls.
- Stay up-to-date on the latest cybersecurity threats and how to protect against them.
By taking these steps, your clients can catch potential threats before they do any damage.
Get Complete Cyber Protection for Your Clients
Most manufacturing companies have long and vulnerable supply chains, making them vulnerable at many touchpoints to both first and third-party attacks. And a large portion of companies are simply not prepared for a cyberattack.
As a broker, not only do you have the opportunity to help your client mitigate one of the biggest modern threats to their business, but to improve your sales by offering cyber coverage options.
With our all-in-one cyber security, you can offer your clients the protection to avoid an attack and reduce the potential impact of one. Giving them peace of mind and trust in you as their broker.
Join forces with 1Fort today, close cyber insurance deals in minutes, and earn generous commissions!
Schedule a demo with a 1Fort team member today.