Thousands of utility companies and manufacturing businesses across the United States rely on computers. Cyber attacks can disrupt service and severely inhibit business. Learn more about cyber risk threats to utilities and manufacturers and potential solutions.
Common Cyber Threats
- Phishing/pharming
- Abuse of information technology systems
- Computer viruses or malware
- Errors and/or omissions
- Financial theft
- Security breaches
- Vulnerable critical infrastructure
- Intellectual property theft (primarily manufacturing)
- Targeted attacks on executives for access to company strategies or financial gain
Almost seven in 10 utility companies around the world has experienced at least one security compromise in the past year. These compromises have disrupted operations and affected confidential information; however, less than 30 percent of companies place security as a priority.
According to the Manufacturers Alliance for Productivity and Innovation (MAPI), four in 10 manufacturing companies experienced a cyber incident this past year and reported losses exceeding $1 million. Additionally, less than 50 percent of manufacturing executives trust that their assets are safe from external threats.
The Effects of Cyber Risk Threats
The effects of cyber threats on utilities and manufacturing companies can be severe and affect millions of people. If a utility were infiltrated and held for ransom, customers' personal data could be stolen and essential services such as natural gas, water, electric, or sewer could be compromised.
Manufacturing companies rely on expensive, specialized technology to automate production, develop intellectual property, and coordinate with supply chains. If that technology is compromised, production can come to a halt and proprietary designs or processes may be exposed.
Protecting Utilities and Manufacturing
Both utility and manufacturing companies are responsible for implementing protective cybersecurity measures, though those measures can require temporary service disruptions and significant expense. Despite the inconvenience and cost, detection and prevention measures protect customers, clients, and supply-chain partners.
Municipal and gas utilities can explore tailored coverage and risk-management resources such as Municipal Owned Natural Gas Utilities Insurance to address specialized exposures.
Manufacturers may consider industry-specific policies and services, for example Metalworking and Plastics Products Manufacturers and Distributors Insurance, as part of a broader cybersecurity and operational risk plan.
- Employ a full-time cyber risk monitor.
- Train and organize IT and operational technology staff to work together to detect and secure data.
- Partner with the supply chain, employees, and customers to ensure they implement data security precautions.
- Upgrade equipment regularly and secure all devices, including mobile devices.
- Train all employees on cybersecurity protocols and plan for a breach to recognize and neutralize threats quickly.
- Be willing to disrupt service temporarily to perform system upgrades and other necessary security measures.
Preparing for cyber threats limits service disruption and protects utilities, manufacturers, and the people and businesses that depend on them.
Frequently Asked Questions
What are the most common cyber threats to utilities and manufacturers?
Common threats include phishing, malware, targeted attacks on executives, theft of intellectual property, and vulnerabilities in critical infrastructure systems.
How can a utility or manufacturing company detect a cyber intrusion quickly?
Continuous monitoring, strong IT/OT collaboration, employee training, and incident response planning help detect and contain intrusions sooner.
Will cybersecurity measures require service interruptions?
Some upgrades and patches may require brief service disruptions, but planned interruptions can prevent longer, more damaging outages from a breach.
How should companies prepare for a potential breach?
Maintain up-to-date backups, implement access controls, train staff on response procedures, and have a clear communications plan for stakeholders.