Top Cyber Threats Facing Manufacturing and How To Mitigate Them

The top cyber threats facing the manufacturing industry are ransomware, supply chain attacks, insider threats, phishing and social engineering attacks. In 2023, the manufacturing sector accounted for 25% of all cyber attacks, making it the most targeted industry. As the manufacturing industry increasingly relies on the Internet of Things (IoT) to improve efficiency and productivity, addressing security risks has become essential. 

Continue reading to learn about the importance of cybersecurity in manufacturing, the top cyber threats the industry faces and the security measures needed to mitigate these threats.

Why cybersecurity is critical for manufacturers

As manufacturing processes like production lines, control systems and inventory management become more automated and technology-driven, strengthening cybersecurity must also become a priority. Here are three reasons why cybersecurity is important in the manufacturing industry. 

Increasing cyber threats

Cyber threats, such as ransomware and insider threats, are increasingly targeting manufacturers. Cybercriminals exploit digital systems to breach operations, disrupt production and steal sensitive data. These breaches can cause significant disruptions, leading to delays, quality issues and financial losses.

Complex network environments

Manufacturing networks combine rapidly evolving Information Technology (IT) and Operational Technology (OT), which makes them harder to manage. IT systems handle data, communications and planning, while OT controls things like production equipment, sensors and robots. For example, IoT devices such as sensors and cameras collect data in real time. This helps manufacturers improve productivity by optimizing operations, predicting maintenance needs and better managing inventory. However, the growing number of connected devices also increases the risk of cyber attacks. Without strong security, cybercriminals can take advantage of weaknesses to gain access, making it important to strengthen cybersecurity to protect these systems.

Stricter regulations and compliance

Manufacturers are subject to cybersecurity laws and regulations. In addition to the EU’s General Data Protection Regulation (GDPR), organizations must comply with industry-specific standards such as ISO 27001 and the National Infrastructure Protection Plan. Adhering to these regulations not only ensures product quality and data security but also builds trust among customers, partners and stakeholders. Failing to comply with regulations can result in reputational damage, penalties and disruptions to business operations. 

Top cyber threats facing the manufacturing industry

Cyber threats come in various forms, posing numerous risks. Here are some of the most critical risks manufacturers should address in their security strategies. 

Ransomware attacks

Ransomware attacks encrypt manufacturers’ data or systems and demand a ransom in return for the decryption key. In the manufacturing industry, production control systems and inventory management systems are particularly frequent targets. Successful ransomware attacks can halt production, cause delivery delays and lead to substantial financial losses. 

In February 2022, Bridgestone Americas, a leading tire manufacturer, fell victim to a ransomware attack. The incident caused widespread disruption, forcing its networks to shut down across manufacturing facilities in North America and Latin America for several days. The cybercriminals gained access to numerous business records, including files containing sensitive customer information, and threatened to publicly leak the stolen data unless the ransom was paid. 

Supply chain attacks

Supply chain attacks occur when cybercriminals exploit vulnerabilities in third-party suppliers or service providers to breach a factory’s security. In these attacks, the cybercriminals don’t target the company directly; instead, they infiltrate the network through a less secure partner or vendor in the supply chain. A successful supply chain attack can have a ripple effect, impacting multiple organizations across the network. 

In 2020, SolarWinds, an IT management and software solutions company, was targeted in a supply chain attack. Cybercriminals injected malicious code into the SolarWinds Orion software system, which was used by thousands of organizations, including the US federal government. This backdoor access allowed cybercriminals to access customer IT systems, allowing them to deploy additional malware and compromise even more networks. 

Insider threats

Insider threats refer to threats that originate within the organization and are typically caused by employees or contractors. An employee with unnecessary system access may unintentionally make operational errors or deliberately leak information. Whether the insider’s actions are malicious or not, these threats can result in data breaches that severely damage a company’s reputation. 

In 2023, Tesla suffered its largest data breach as a result of an insider threat. Two former Tesla employees leaked the personal information of over 75,000 people, including staff, to a foreign media outlet. Although the outlet claimed it would not publish the leaked information, Tesla faces the potential for a $3.3 billion fine for violating the GDPR data privacy law.  

Phishing and social engineering attacks

Phishing and social engineering attacks are common cyber threats that target employees by using manipulation and deceptive tactics to steal sensitive information or trick them into performing harmful actions. These attacks often come in the form of fraudulent emails, text messages, phone calls or spoofed websites, all designed to deceive employees into revealing confidential information. With the connection between IT and OT in manufacturing, these attacks can lead to serious consequences, such as compromised systems, operational disruptions, financial losses, data theft and a damaged reputation. 

In 2019, Toyota Boshoku Corporation, a subsidiary of Toyota, fell victim to a phishing attack. The cybercriminals used a Business Email Compromise (BEC) tactic to impersonate a trusted partner and convinced a Toyota employee to approve a fraudulent wire transfer. As a result, the company lost $37 million in a matter of hours. 

How to mitigate cyber threats in manufacturing

Manufacturers can mitigate cyber threats by enforcing strong account security, conducting regular security training, developing an incident response plan and implementing other proactive measures. 

Enforce strong account security

Implementing strong passwords is an important security practice, as it makes it more difficult for cybercriminals to gain unauthorized access to systems. However, a more secure alternative is the use of passkeys. With passkeys, users don’t need to enter a password but instead authenticate using biometrics or a swipe pattern, enhancing both security and convenience. 

Multi-Factor Authentication (MFA) is another security measure that helps prevent unauthorized logins. Even if a password is compromised, a cybercriminal cannot access the account without the second form of authentication. MFA is especially important for privileged accounts, as they have the highest level of access across systems, making them prime targets for cybercriminals. 

Provide employees with regular security training

It is important to instill strong security awareness in all employees to prevent attacks caused by negligence or lack of knowledge. In manufacturing, security training is often overlooked in favor of prioritizing productivity and safety. However, providing regular security awareness training is crucial to closing this gap. This training should focus on practical topics such as identifying phishing emails, creating strong passwords, using passkeys when available, enabling MFA and following best practices for network security.

Ensure software and firmware are up to date

Always ensure that software and firmware are kept up to date, as updates often include security patches that address vulnerabilities. Cybercriminals frequently exploit these vulnerabilities to gain unauthorized access to an organization’s systems. Outdated software or firmware leaves any critical equipment, networks and systems exposed to attacks. Often, these outdated systems no longer receive updates or patches from their developers, which poses huge security threats. If it isn’t practical to replace these systems, consider separating OT networks from IT networks and use firewalls and access controls to enhance this separation.

Segment your organization’s network

Segmenting your organization’s network into smaller, controlled segments with specific access controls and security measures helps contain potential threats and prevents them from spreading. This approach reduces the attack surface, minimizing the impact of security incidents. Segmenting networks also enhances visibility, enabling better monitoring and quicker detection of any suspicious activity.

Implement strict access controls

Given the complexity of manufacturing network environments, it’s important to limit the exposure of critical systems and sensitive data to reduce the risk of cyber threats. Implementing strict access controls, such as Role-Based Access Control (RBAC), enforces the Principle of Least Privilege (PoLP) by ensuring that users are granted only the minimum level of system access necessary for their roles. 

A Privileged Access Management (PAM) solution, like KeeperPAM, incorporates RBAC to provide full visibility into privileged accounts that have access to critical systems. This enables organizations to effectively track and record user activities during privileged sessions while securing these accounts to prevent misuse. 

Enhance network visibility

In the manufacturing industry, a variety of devices are connected to the network, including production equipment, control systems and internal servers. Having a clear view of which devices are communicating with which networks can help identify potential security risks early on. To achieve network visibility, use tools such as Security Information and Event Management (SIEM) systems to detect abnormal traffic or suspicious communications. SIEM tools analyze log data and event information collected across the network to identify irregularities and respond to potential threats. 

Regularly back up data

Manufacturing environments rely on critical data for production processes, supply chain operations and inventory management. Losing this data can lead to significant financial and reputational damage. Regular backups enable companies to recover quickly from data loss caused by cyber attacks. Additionally, performing regular backups helps manufacturers meet industry compliance regulations, ensuring data protection and business continuity. 

Create an incident response plan

An incident response plan outlines the responsibilities and procedures to follow in the event of a cybersecurity incident, such as a data breach, data leak or man-in-the-middle attack. If something goes wrong, the plan helps regain control, minimize damage and prevent panic. The plan should include a dedicated team, known as the Computer Security Incident Response Team (CSIRT), tasked with responding to and managing cybersecurity incidents appropriately.

Follow cybersecurity guidelines and regulations 

Manufacturers must comply with a range of cybersecurity laws and regulations to ensure the security and integrity of their operations. Specific regulations, such as the GDPR and the National Institute of Standards and Technology (NIST) cybersecurity framework, help ensure data protection and operational security. These standards provide practical guidance for addressing security risks faced in the manufacturing industry. Compliance not only ensures legal operation but also strengthens an organization’s security posture. 

Mitigate cyber risks in manufacturing with KeeperPAM®

As manufacturing companies continue to adopt new technologies and expand their networks, it’s important to address the associated risks by investing in a PAM solution like KeeperPAM. KeeperPAM helps organizations maintain strict control over access rights and privileged accounts, preventing unauthorized access and reducing the risk of privilege abuse. It can also be integrated with SIEM systems, creating a comprehensive security approach that enhances both network visibility and real-time threat detection.

Request a demo of KeeperPAM to see how it can enhance your organization’s cybersecurity and protect against cyber threats.