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New Supply Chain Challenges: Cybersecurity in Logistics

When we talk about challenges in logistics, efficiency and speed usually come to mind, which are fundamental in today’s globalized context, but we don’t often think about an aspect as critical as cybersecurity. And with the increasing interconnection of systems and digitization of processes, logistics companies face a major challenge in protecting their data and operations against cyber threats.

Among the most well-known and recent cases of cyber-attacks in the logistics sector are the one suffered just over a year ago by spare parts supplier TVH, which led to an interruption of its services and took weeks to become fully operational again; or the attack suffered by Kojima Industries Corporation, a supplier to Toyota, which forced the suspension of operations on 28 production lines at 14 plants in Japan for an entire day. This affected the manufacture of 17,000 cars, equivalent to one third of Toyota’s global production.

However, you don’t have to be a large company to become a target for cybercriminals. In fact, according to a report by Pandora FMS, in 2023 transport operators were the second most cyber-attacked group in the last year in Spain, and Gartner forecasts that attacks on supply chains will triple by 2025, which could affect 45% of companies worldwide.

Cyber-attacks on logistics companies can affect the security of their data, networks and computer systems, software and applications, communications, and even financial assets and means of payment. A breach in any of these channels can result in significant economic losses, as well as jeopardize the flow of the supply chain and, ultimately, the trust between the company and its customers and suppliers.

Which logistics areas are often targeted by cyber-attacks?

Logistics, with its network of suppliers, carriers and customers, presents an expanded attack surface for cybercriminals. The most affected points tend to be:

Transportation Management Systems (TMS)

TMS systems, used to manage and optimize transportation, are one of the most attractive targets for cyber attackers due to the amount of sensitive data they handle. They are often victims of ransomware, denial of service or DDoS attacks, phishing, SQL code injection, exploitation of software vulnerabilities or social engineering attacks.

Supply chain attacks

Supply chain attacks have become more frequent and sophisticated in recent years. These attacks aim to compromise a company’s security through its suppliers, business partners or related third parties. They are usually attacked by ransomware, malware, supply chain hijacking attacks, or attacks on supplier relationship management (SRM) systems.

In addition, there may be attacks on critical infrastructure such as warehouses, which could disrupt the flow of goods and services. In short, in an increasingly interconnected world, all points in the supply chain are vulnerable to cyberattack if they are not adequately protected.

Cybersecurity strategies for the logistics sector

At this point, the key question is what can we do to prevent or at least mitigate these cyberattacks? What any cybersecurity expert will tell us first of all is that the best thing to do is to prevent, that is, to protect our systems before the attack occurs, because once it has happened, the only thing we can do is to mitigate the damage. How do we do it?

  • Staff training and awareness: The most frequent entry points for malware and other types of cyber-attacks are human error. Therefore, training our staff on cyber threats and how to recognize signs of potential attacks, such as phishing emails or unknown USB devices, will reduce exposure to these threats.
  • Security updates and patches:  Another of the most frequent entry points are vulnerable systems. It is essential to keep all systems and software used in logistics up-to-date, including inventory management systems, vehicle tracking systems and any other related software.
  • Powerful firewalls and antivirus: Install reliable firewalls and antivirus software on all devices connected to the network, such as computers, servers and mobile devices.
  • Secure network access:  Implement security measures, such as two-factor authentication and VPNs (virtual private networks), to ensure that only authorized persons can access the company network. This is especially relevant when some of our staff work remotely or travel for work, and need to connect to our systems from different locations.
  • Network monitoring: Use network monitoring tools to detect suspicious or unusual activity, which can help identify potential threats before they cause damage.
  • Regular backups: Backing up all critical data on a regular basis and storing it in secure, offline locations is critical to protect against ransomware attacks or other types of data loss, one of the most common problems when a cyberattack occurs.
  • Access and privilege management: Limit employee access privileges so that they only have access to the information and systems necessary to perform their job functions.
  • Security audits: Conduct periodic security audits to identify potential vulnerabilities in the IT infrastructure and take corrective action before they are exploited by attackers.
  • Incident Response Plan: Develop and practice an incident response plan to be prepared in case a cyber-attack occurs, which will help minimize the impact and speed recovery. Above all, it is important to establish rapid and transparent communication with affected parties in the event of an incident.
  • Collaboration with partners and suppliers: Make sure that your partners and suppliers also comply with high cybersecurity standards, as they may represent a gateway for attackers.

In an increasingly digitized and interconnected world, cybersecurity has become an essential factor in today’s logistics. But to protect the supply chain against cyber threats, we need a combination of technology, training of our staff and collaboration between supply chain stakeholders with trusted partners.

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