In the news we see incidences of cyber attacks on government agencies, defense and high tech companies, or economic crimes with losses of more than a million dollars. In fact, in the previous month alone, there has been 12 major cyber attacks on developed countries. From Canada to Japan, cyber criminals are doing everything to steal information, control information systems, and cause damage on infrastructures.
However, government, financial, and the information technology sectors are the only industries that cyber criminals focus on. According to Maxxsure, with reports from IBM threat intelligence, the manufacturing industry is one of the most attacked industries by cybercriminals. In today’s article, we’ll shed light on this matter.
The Damage of Cyber Attacks on the Manufacturing Industry
On average, the manufacturing industry loses $4.47 million for each breach that they encounter. For each attack, the industry is at risk of:
- Failure to fulfill orders from customers
- Theft of intellectual property
- Exposure of sensitive corporate and customer data
- And worst, closure of manufacturing facilities.
When the worst occurs, a ripple effect ensues. In an instant, and this is one of the significant consequences of a production shutdown, is financial loss. A company is not producing goods or services during a shutdown, and this can lead to revenue loss.
Down the line, a production shutdown can disrupt an entire supply chain. Suppliers will have to stop their production, and customers will inevitably face delays in receiving their orders. Unfortunately, this can strain relationships between suppliers and customers. When this happens, manufacturing companies will have to face reputation damage and loss of market share.
When manufacturing companies close, they are also at risk of diverting their resources and attention away from innovation, and research and development. Reduced innovation and development can affect a business, especially its long-term competitiveness. And if they ever want to restart their business, there will be increased costs such as hiring new staff, training them, and purchasing new equipment for their use, as well as the maintenance of such equipment.
On the other hand, if a manufacturing company decides to rehire or keep their old employees, they are at risk of losing employee morale and productivity because of layoffs, reduced work hours, or furloughs. Employee turnover will also increase if this happens.
There will also be operational challenges if a manufacturing facility wants to restart production after a shutdown. Workforce reintegration, quality control, and equipment readiness may be some of those challenges.
Facilities facing shutdown may also face financial struggles. Financial institutions, banks, and creditors may go after them for their financial obligations. As a result, companies may experience regulatory and legal issues. Safety standards, regulatory compliance, and contractual obligations may also contribute to this dilemma.
In the long run, industry-wide or large-scale production shutdowns will have wider economic impact. It may affect regional economies, unemployment rates, and even have effects on GDP.
Top 10 Cyber Attacks on the Manufacturing Industry
According to the IBM and Ponemon Institute, as reported by Maxxsure, here are the top 10 cyber attacks on manufacturing companies in 2023:
Mondelez International is a confectionery, food, holding, beverage and snack food company based in the US. It has an annual revenue of about $26.5 billion and operates in approximately 160 countries. It suffered an encrypting malware attack in 2023, costing the company $100 million in damages. The attack had a global impact on all their branches.
Renault-Nissan is a partnership between Renault and Nissan, both automakers. They experienced a ransomware attack in 2023, but the companies never disclosed the financial cost of the damage that the attack created. Their Romania, India, France, Slovenia, and England branches were affected.
Norsk Hydro is an industrial company that manufactures sustainable aluminum and provides renewable power production in the Nordics and Brazil. In 2023, the Norway-based company also experienced a ransomware attack which affected their operations in Norway, Brazil, and Qatar.
FACC is an Austrian manufacturing company that produces advanced aircraft components and systems. It suffered a whaling attack in 2023 that resulted in $61 million in damages. Fortunately, although the company operates in 13 countries, their main office in Austria was the only one affected by the cyber attack.
Dupont is a chemical manufacturing company that offers a wide range of industrial products from adhesives to construction materials. Their office in Delaware in particular received insider cyber threats in 2023 resulting in more than $400 million in damages.
Advantech is a manufacturer of MIT products including displays, systems, motherboards, and peripherals. Their office in Taiwan suffered $14 million worth of damages in 2023 because of a ransomware attack.
JBS is a meat processing company based in Brazil and operates in many countries worldwide, including the USA. They produce processed beef, pork, and chicken meats. In 2023, the company suffered $11 million in financial losses due to remote access hijacking and ransomware attack. Their branches in Canada, US, and Australia were affected.
Hanesbrands is the company behind the popular line of men’s and women’s underwear available all over the world. The company unfortunately had their website compromised in 2023 and breach was made in their records. They did not disclose the financial extent of the breach, but revealed that around 900,000 customers were affected.
Visser Precision is a provider of manufacturing solutions. In 2023, the company’s Denver office suffered a ransomware attack. However, they did not disclose the extent of the damages that the attack caused.
Oxo International is a manufacturer of kitchen utensils, office supplies, and housewares. The company experienced a data skimming attack in 2023. The attack affected their operations in New York, although the company never disclosed the cost of the damage.
References:
https://www.statista.com/statistics/221293/cyber-crime-target-industries/
https://www.csis.org/programs/strategic-technologies-program/significant-cyber-incidents
https://blog.comeca-group.com/en/5-major-consequences-of-production-shutdown
