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Lee Muller

Manufacturing is #2 Target of Cyber Attacks


manufacturing

Manufacturing is the Number 2 target, accounting for 24% of all cyber attacks (Symantec). According to studies by the Manufacturers Alliance for Productivity and Innovation and IBM, nearly 40% of surveyed manufacturing companies were affected by cyber incidents in the past 12 months, and 38% of those impacted indicated cyber breaches resulted in damages in excess of $1 million.

Healthcare became the Number 1 in 2015, so medical manufacturing is at very high risk. Five of the eight largest healthcare security breaches since the beginning of 2010” those with more than one million records reportedly compromised”took place during the first six months of 2015. In fact, over 100 million healthcare records were reportedly compromised in 2015.

Automotive is the largest target - accounting for almost 30 percent of the total attacks against the manufacturing industry in 2015 - because there are so many facilities, and so much connection between Tier 2 suppliers and the assembly plants.

Targets of attacks on manufacturing

* Executive and board engagement - 30% of attacks

* Intellectual property - 36% of attacks

* Talent and financial - 45% of attacks

* Industrial control systems - 100% increase in attacks last year

* The industrial infrastructure

* Connected products - 400% increase in vulnerabilities since 2014

Statistics show manufacturing faces a particularly dangerous security situation:

Manufacturing was the most targeted sector in 2013, accounting for 24 percent of all targeted attacks (Symantec2).

Industrial networks top the list of systems most vulnerable to cybersecurity issues (McAfee).

IBM found that only 33% of manufacturers were performing penetration tests of their networks.

More than 1000 industrial automation and control systems (IACS) were targeted by the Dragonfly espionage malware program in 2014.

The number of attacks on industrial supervisory control and data acquisition (SCADA) systems doubled from 2013 to 2014.

Aging industrial machinery infrastructure presents huge security challenges that will continue to grow in the coming months and years.

"Indiscriminate internetworking is the biggest problem facing manufacturing today. The problem is that every message might be an attack, whether plain text or encrypted, and the consequences of attacks on manufacturing networks are unacceptable. An attack which alters recipes can make people sick." - Andrew Ginter, MBTG.

Compromise of a CNC mill, robot, or inspection system which can produce defective components, which result in massive recalls. Unlike an IT system, we cannot just "restore from backup". (76%) of companies surveyed transmit product data using Wi-Fi, and 52% reported that their connected products store and/or transmit confidential data, including Social Security and banking information. Among executives surveyed, 45% said their organization uses mobile applications, and 35% cited sensor controls. However, 40% of respondents said they have not yet incorporated connected products into their company's cyber incident response plan.

Sources of Data Compromise:

60% of all attackers are "insiders" - 39% intentional, but 21% from good employees, contractors and consultants.

32% of attacks were by phishing and pharming. 91% start with an email.

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