Operational Downtime is the Most Common Impact of IoT-Focused Cyberattacks on Industrial and Manufacturing Organizations
Jul 24, 2019
Global Irdeto research also finds that nearly 8 in 10 manufacturers have suffered an IoT cyberattack in the past year
AMSTERDAM – 24 July 2019 – As connectivity in the Industrial Internet of Things (IIoT) promises to transform the manufacturing and production industry, new research by Irdeto underlines the importance of cybersecurity, revealing that 79% of manufacturing and production organizations surveyed have experienced an IoT-focused cyberattack in the past year. This finding demonstrates the importance of cybersecurity as IoT devices proliferate across the critical infrastructure of these organizations, to ensure that the potential business benefits of IoT can be realized safely.
The Irdeto Global Connected Industries Cybersecurity Survey of 220 security decision makers in organizations in this sector (700 respondents in total) found that of the organizations that were hit by an attack, operational downtime (47%), compromised customer data (35%) and compromised end-user safety (33%) were the most common impacts. These findings clearly point to a direct bearing on revenue as well as health safety challenges presented by unsecured IoT devices.
The research also suggests that these organizations are aware of where the key cybersecurity vulnerabilities exist with their infrastructure, but do not necessarily have everything they need to address them. The most prominent vulnerabilities within manufacturing and production organizations were in mobile devices and apps (46%). This was followed by the IT network (41%) and the software used by the organization (40%) – which if referring to the OT equipment software which runs of the factory floor, could be hugely problematic.
However, despite this awareness, 92% of respondents feel their organization does not have everything it needs to address cybersecurity challenges. 44% state that their organization needs to implement a more robust security strategy. This is followed by a need for additional expertise/skills within the organization to address all aspects of cybersecurity (42%) and a need for more effective cybersecurity tools (37%).
This is compounded by the finding that, in the manufacturing sector, a total of 91% of manufacturers and 96% of users of IoT devices state that the cybersecurity of the IoT devices that they manufacture or use could be improved either to a great extent or to some extent. Failure to address these challenges could prove costly with the average financial impact as a result of an IoT-focused cyberattack in the manufacturing space identified as more than $280,000 USD, according to the survey.
“While the benefits of IoT may be in abundance in manufacturing and industrial environments, this connectivity also increases the attack surface and these findings demonstrate that there is an awareness of the cybersecurity challenges and impacts within the industry, but potentially a need to rethink strategies to mitigate the impact of potential cyberattacks,” said Mark Hearn, Director of IoT Security and Business Development, Irdeto . “Whatever the nature of the threat, industrial and manufacturing organizations must understand the scope of their current risk, ask hard cybersecurity-centric questions to vendors, and work with trusted advisors to safely embrace connectivity in their manufacturing process.”
As organizations fight to keep pace with the cybersecurity challenges in the manufacturing sector, they do have several security measures in place, but have often not implemented enough layers into their security strategy. 21% of organizations surveyed do not currently have software protection technologies implemented, while 39% do not have mobile app protection implemented, despite identifying mobile devices and apps as the greatest source of vulnerabilities. In addition, only 50% make security part of the product design lifecycle process.
However, the majority of organizations that don’t already have these measures in place, state that they plan to implement them in the next year. In addition, 99% of the manufacturing organizations surveyed agree that a security solution should be an enabler of new business models, not just a cost. These findings suggest that attitudes towards IoT security are changing for the better.
“As the manufacturing industry embraces IoT technology it’s clear that there are many cybersecurity challenges that must be addressed, but the industry attitude towards cybersecurity is on the right track,” added Steeve Huin, Vice President of Strategic Partnerships, Business Development and Marketing, Irdeto . “As the scope of connected manufacturing grows, the opportunities and the risks are magnified and it is imperative that organizations upskill and implement robust cybersecurity strategies to ensure they mitigate the threat and safely take advantage of the benefits that IoT can bring.”
Click here to download the full report on the survey results:
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