Digitization of the manufacturing industry has transformed how industrial manufacturers operate and expanded what they are capable of. The prevalence of digital infrastructure such as IoT devices, industrial control systems (ICS), and SCADA has revolutionized manufacturing — but it has also caused the industry to become increasingly vulnerable to cyberattacks. 

What Are Cyberattacks in the Manufacturing Industry?

Creating an effective cybersecurity strategy for manufacturing requires an understanding of what a cyberattack may look like. The majority of 2024 cyberattacks on manufacturing were malware attacks, attacks that utilize malicious software that is designed to infiltrate systems and perform unauthorized actions.  

Ransomware, included under the umbrella of malware, is a particularly prevalent concern in manufacturing. Ransomware, as the name implies, involves holding data hostage to attempt to secure a ransom payment for the release of the data.  

The potential production disruptions and losses caused by ransomware attacks make them incredibly effective against manufacturers. In fact, according to a 2024 report published by Sophos, 65% of manufacturing and production organizations reported being hit by ransomware in 2023. The average cost to recover from these attacks was $1.67 million. 

Outside of malware/ransomware attacks, other types of cyberattacks in the manufacturing industry include: 

• Supply Chain Attacks: cyberattacks that target suppliers, partners, or vendors that manufacturers rely on to produce their products. 

• IP Theft: cyberattacks that specifically aim to acquire a manufacturer’s intellectual property, often through the use of malware or by breaching a company’s network. 

• Internal Breaches: cyberattacks that occur from within the organization. This can include malicious actions by employees, such as stealing sensitive data, or unintentional breaches, such as an employee falling for a phishing attack. 

Why Is Cybersecurity Important in the Manufacturing Industry?

Based on how digitized the manufacturing process has become, it’s clear that cybersecurity needs to be a priority for manufacturers. But just how critical is it? The proof is in the numbers. 

According to IBM’s 2024 X-Force Threat Intelligence Report, manufacturing was the most-attacked industry by cybercriminals for the third consecutive year. The industry accounted for more than 25% of all cybersecurity incidents. 

It’s not only digital expansion that led to these numbers. Manufacturing has unique vulnerabilities that make it attractive to cyber criminals, notably legacy operational technology (OT) systems. Because of this, cybersecurity has become a critical component of any manufacturer’s strategy. 

These incidents can result in massive losses for manufacturers. Cyberattacks cost the industry billions of dollars every year, with projections from the World Economic Forum indicating that industry-wide costs could be as high as $10.5 trillion by 2025. 

Manufacturing Cybersecurity and Compliance

Cybersecurity is also a matter of compliance for manufacturers. A number of regulatory standards are in place to help safeguard manufacturers against cyber threats. Among these include: 

National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF)

The NIST CSF 2.0 is designed to help organizations (including manufacturers) manage and reduce cybersecurity risks. While not mandatory, CSF 2.0 provides a framework for cybersecurity best practices that many businesses utilize for crafting cybersecurity strategy. 

ISO 27001

ISO 27001 is an international standard that helps organizations manage the security of their information assets. ISO 27001 certification is valid for three years and requires annual audits. 

IEC 62443

Specifically geared toward industrial environments, IEC 62443 is designed to provide guidelines for securing ICS and OT networks. While not required, IEC 62443 compliance is highly recommended for any manufacturer utilizing Industry 4.0 technology.  

How to Improve Cybersecurity in Manufacturing

There is no way to eliminate the risk of cyberattacks, but putting safeguards in place to minimize cyber risks is essential. With the rise of cyberattacks in the industry, there is a significant amount of research available on how to improve cybersecurity in manufacturing. Let’s look at a few high-level ways manufacturers can improve cybersecurity. 

Perform a cybersecurity audit 

Cybersecurity audits are a great way for manufacturers to identify potential cybersecurity vulnerabilities within their operations, understand the effectiveness of their current cybersecurity processes, ensure compliance with regulations, and more. Many businesses choose to perform cybersecurity audits annually. 

Ensure employees are trained on cybersecurity risks 

Manufacturing employees play a pivotal role in protecting their company against cyberattacks. Implementing a training program that emphasizes cybersecurity, such as how to spot risks or how to identify social engineering tactics, can be the difference in preventing costly incidents. 

Don’t overlook updates and patches

Software updates and patches often address potential security issues. Keeping systems and software up-to-date is a simple way to mitigate risks. 

Consider continuous monitoring technology

Continuous monitoring programs can help manufacturers keep an eye on their operations 24/7. This helps companies quickly catch cyberattacks that occur on weekends, during the night, or other vulnerable times. This can allow teams to respond to incidents quickly and mitigate damage and disruption that may otherwise have become significant. 

Create a cybersecurity incident response plan (CSIRP)

No matter how well-prepared a manufacturing organization is for cyber threats, the reality is most businesses are at risk of experiencing a cyberattack. CSIRPs are designed to help businesses navigate and minimize the impact of cyberattacks when they occur. The NIST provides a framework for creating a CSIRP. 

Enhance Your Organization’s Cybersecurity Today

Manufacturing cybersecurity can be complicated. Given the complexity of scaling Industry 4.0 on its own, the challenge of implementing cybersecurity safeguards in tandem with new technologies can feel overwhelming. 

If you’re looking for a cybersecurity resource, Crescent Electric’s Application Engineers may be able to help. Our team is highly experienced and skilled with Industry 4.0 technology — and that includes how to ensure you can implement it safely at your facility. Reach out to our team today to learn how they can help!