ThreatScan · Feb 15, 2022 · 5 min read
Retailers and consumers expect faster delivery speeds than ever before. Now everyone wants their products delivered to their doorstep instantly after a click on their digital screens.
To accelerate their operations, logistics businesses have scaled up technologies to automate manual processes and enhance efficiency. However, digitization has exposed them to massive cybersecurity risks along with operations benefits.
Media is flooded with reports of supply chain disruptions because of cyberattacks. For instance, Colonial Pipeline Co. paid nearly $50 million to hackers for ending a week-long shutdown of oil supplies in the US, May 2021. Cyberattacks against logistics and transportation companies have become commonplace. Criminals are strategically targeting high-value logistics organizations and supply chains since it’s easier and cheaper than ever to launch cyberattacks.
Logistics companies need to identify cybersecurity gaps and major threat vectors to avoid costly downtime and disruption.
Logistics supply chain components such as trucking, shipping, railways, last-mile delivery, etc. are all prone to cyberattacks. With operational technology connecting central systems to remote assets digitally using wireless networks, the potential attack surface has become enormous.
Digitally interconnected ecosystems of logistics companies also expand third-party exposure since organizations depend on external suppliers, distributors, technology vendors, and other partners for day-to-day operations. Any breach from one weak link can compromise the integrity of the entire supply chain.
Attack surfaces are expanding rapidly within organizations as well. Customer-facing applications like shipment tracking tools, order management portals, and mobile apps can serve as lucrative entry points since they store customer and operational data.
Organizational cybersecurity maturity levels vary widely and most firms take a reactive approach by resolving issues as they arise. Cybersecurity expertise and staffing shortages also contribute to the problem even if leadership tries to be proactive about security. Attackers are quick to exploit these weaknesses.
Geographical and industry-specific compliance and cybersecurity regulations differ across regions. Since logistics operations are often global, companies have to deal with an overlap of regulations. While existing standards don’t specifically focus on logistics cybersecurity risks, several new standards like EU Network and Information Security (NIS) Directive, CLC/TR 50701, and EN 50126 (railways) are emerging.
Internet of Things (IoT) devices are being used throughout supply chains to monitor shipments and authenticate deliveries in real time. However, many manufacturers behind these IoT devices don’t practice basic cybersecurity hygiene. These vulnerable IoT devices can help attackers manipulate data feeds, give commands, and exfiltrate sensitive information.
Reduce risk from IoT devices by changing vendor default credentials, encrypting sensitive data while in transit, and ensuring remote employees can only access them through secured networks.
Bring Your Own Device (BYOD) is very common among logistics drivers and field employees. Cybercriminals can exploit weak security controls on these personal devices through phishing attacks, malware infection, and unauthorized access.
Issue employees company-owned devices with hardened security controls or train field employees and drivers on safe browsing habits, secured network connections, and malware risks if BYOD is permitted.
Ransomware is a critical threat to logistics companies. For example, freight company Forward Air made $7.5 million in lost revenues due to a ransomware attack in December 2020. The company later found out that sensitive employee information was accessed during the attack.
Ransomware encrypts your systems and demands a ransom in exchange for decryption keys. If one of your partners get compromised, they can disrupt your organization through common systems and customer data.
Attackers have perfected the art of sending realistic emails, texts, and phone calls to bait victims into revealing credentials or installing malware on their systems. Logistics companies are prime targets since employees and customers are likely to receive frequent communications related to package deliveries.
In December 2020, threat actors used a high-level executive’s email address at Haier Biomedical, a supplier for COVID-19 vaccines, to target transportation companies managing cold-chain logistics. Cybersecurity firm IBM warns that threat actors were likely trying to steal credentials to gain access to company networks.
Attackers often pretend to be real freight forwarders to request payments or cargo from shipping companies. Fraudsters either clone real freight forwarders’ websites or lure customers with low shipping rates. Attackers have also been known to hold onto Bills of Lading until ransoms are paid.
Validate SSL certificates and ensure sites force HTTPS. Check URLs for spelling mistakes and verify quoted prices with industry standard rates before engaging with new freight forwarders.
There’s no silver-bullet solution to cybersecurity for logistics firms. However, you can apply these best practices to minimize cyber risks.
Test your systems and networks by conducting frequent vulnerability assessment and penetration testing (VAPT) exercises.
Define and implement security standards that your partners must comply with. Evaluate IoT vendors for security capabilities before integrating their technologies into your environment.
Be proactive about cybersecurity by identifying major risks, developing an incident response plan, and assigning a team to manage cybersecurity. Don’t forget to train employees on phishing, password hygiene, and security best practices.
Protect your organization’s critical data by enforcing a zero-trust model which verifies every user and monitors network traffic to block unauthorized data access.
Enable auto-updates for software programs and security patches. Create encrypted backups of your critical data so that your organization can recover quickly from ransomware attacks.
The cyber risk landscape for logistics companies is continually evolving, but cybersecurity doesn’t have to be complicated. ThreatScan is a cloud-based application vulnerability management and penetration testing platform that detects risks across your applications and networks. Instant threat scoring, organizational risk reporting, and an easy-to-use dashboard to keep track of vulnerabilities and penetration tests keep security teams on top of their games.
ThreatScan also has Diana, an AI-based chatbot that can help manage your penetration tests and answer cybersecurity-related questions. Connect with ThreatScan’s 24/7 support team via email, join us on Jira, or Slack to resolve issues faster and collaborate better.
Talk to an expert about how ThreatScan can help secure your logistics operations against emerging cyber threats.
https://securityintelligence.com/posts/ibm-uncovers-global-phishing-covid-19-vaccine-cold-chain
https://www.marshcommercial.co.uk/articles/seven-cyber-risks-facing-transport-and-logistics