3 Interesting Ways How Cyber Attacks Affect the Logistics Industry

3 Interesting Ways How Cyber Attacks Affect the Logistics Industry

The adoption of technology has improved the quality of services in the logistics industry. However, digitization has been accompanied by increased cyber risk in the logistics environment. It is documented that the transport and logistics sector ranks second in a group of industries most affected by cybercrime globally.

First, logistics is among the largest and most profitable industries worldwide, which is prone to organized cyber-attack groups driven by monetary gain. Second, increased technology use means that logistics stakeholders are sharing data more than ever before. This alone allows cybercriminals, while the greater number of parties involved in the logistics chain provides an opportunity to exploit weak links in logistics cybersecurity. It is time industry players assess the effects of cyber-attack on the logistics industry.

1- Operational Logistics

Security lapses in the Information and Technology (IT) environment of the logistics industry can lead to loss, misuse, and theft of data. Cyber-attacks have a dangerous impact on the brand’s image leading to material damage. This may cause the company to be sued and fined.

This challenge causes extra operational costs. If ransomware attacks and data exposure cannot be stopped, the logistics chain suffers financially. Also, cyber-attack increases the threat of operational interruptions. In identifying security challenges and focusing on important tasks, computerization is vital for the flow of the operation and to safeguard the dangers of unauthorized access to the logistics chain.

Specialists agree that the security challenges are caused by general-purpose computers in the company and linking to internal networks from outside. The Privileged Access Management (PAM) which identifies cyber threats and prevents unauthorized access to critical resources is one of the ways to curb operational interruptions.

2- Security Logistics

With the interventions in the logistics chain, the access to data contained in the procurement process from within and outside the institution has increased. Cloud data is accessed by numerous people within the logistics web for operations to be conducted efficiently and effectively. This high access by authorized accounts makes it difficult to manage, and the control system is exposed to cyber-attacks.

One of the security challenges is the employment of applications with hard-coded qualities. The infusion of commercial off-the-shelf (COTS) gadgets into the logistics industry together with IoT can result to an increase in the number of users with hard-coded credentials, resulting in unauthorized use of the system.

Another challenge is the use of shared accounts. The increase in the number of shared accounts and the authorized people to these accounts makes it hard to track the parties in the operation chain.

3- Remote Worker Logistics

The development of digitization used in the operations of the logistics industry makes it easy for workers to operate remotely. This process occurs over an unguarded connection. The fact that hackers develop new methods to exploit security loopholes is bad news for businesses with remote workforces, like the logistics industry.

Logistics companies need to focus on cybersecurity measures and employee awareness to prevent serious damage. Devoting resources toward cybersecurity will make a large impact on a logistics company’s future and bottom line.

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