Keeping up with the tech trends is a boardroom agenda for every business, regardless of the industry they are operating in. Logistics is nothing outside of this concept; we have seen multiple changes in this sector to get maximum efficiency in the process. For instance, a fully autonomous warehouse managed by robots works completely autonomously with close to no human intervention.
Another great example is delivering packages through smart drones directly to your doorstep. Sounds so cool. Like we are already living in the future. A world of complete automation.
New tech in the logistics domain brings a new set of opportunities. But with every implementation comes implications and threats which enterprises need to determine and address before they start eating up the profit.
Why Cybersecurity is Important for Logistics Enterprises
Logistics holds an essential position out of all industries. The global supply chain management market is estimated to be around USD 28.9 billion in 2022, per the MarketAndMarket report. It is a backbone for many industries, such as retail, healthcare, BFSI, etc.
As a custodian of millions of dollars in business, the logistics domain often falls under the focal target of cyber attackers. A report published in Security Magazine stated that 98% of supply chain organizations had poorly been impacted due to cyber breaches.
Moreover, the damages are not just limited to revenue but also include many hidden costs like operational disruption and hurting the brand reputation.
A cyber breach affects not only the logistics company but all the other companies directly or indirectly associated with it. Hence, rooting for a robust cybersecurity shield for logistics enterprises is the sensible way to end third-party breaches.
Most Common Cybersecurity Problems that Modern Logistics Enterprises Face
Threats are inevitable. Going beyond competitors often brings new opportunities and a set of challenges for businesses. While mitigating every cyber security threat will be difficult, companies can focus on general security concerns to lay a strong foundation.
Here are the top 5 standard logistics cybersecurity threats:
Transparency and Data Governance
When working within a multi-enterprise network, the goal is to facilitate data exchange between businesses and grant access to the data to enable viewing, sharing, and collaboration by multiple enterprises.
Data Protection
Business transactions rely heavily on data, which must be securely stored and controlled both at rest and in motion to prevent unauthorized access or tampering. In addition, ensuring secure data exchange also involves placing trust in the other source, whether it be a third party or an e-commerce website.
Data Points
Critical data necessary for business operations can be found at all levels of the supply chain, making it essential to identify, categorize, and safeguard it, regardless of its location. Furthermore, in addition to logistics, many other regulated industries require data to comply with industry standards and government mandates.
Third-party Involvement
It is inevitable to involve third parties in different supply chain levels, and each third party brings new risks based on their approach to managing their vulnerabilities.
Fraud Prevention
Whenever data is transferred between different parties or moved within various systems, each transfer point allows for potential tampering, whether intentional or accidental. Thus, measures must be taken to prevent fraud and maintain data integrity throughout the supply chain.
Build a Resilient Logistics Security Mechanism
A logistics company can build resilient security against cyber breaches by implementing automation tools and a skilled security testing team. Here are a few steps that businesses can take to improve their security even further:
- Conducting Regular Cybersecurity Audits: Regularly assessing the security infrastructure can help identify vulnerabilities in the network and systems. This can help address potential threats before cybercriminals exploit them.
2. Implementing Multi-Factor Authentication: By demanding additional verification beyond a password, such as biometric identification or a one-time code given to a mobile device, multi-factor authentication allows an extra layer of protection to the login process.
3. Providing Employee Cybersecurity Training: Employees can be the weakest link in the cybersecurity chain. Regular cybersecurity training can help employees become more aware of potential threats and avoid unintentional security breaches.
4. Implementing Firewalls and Antivirus Software: Firewalls and antivirus software are essential tools to help detect and block cyber threats, including malware and ransomware.
5. Implementing Data Encryption: Data encryption can safeguard sensitive information by turning it into an unreadable format that can only be decoded using a unique key. This can aid in the prevention of illegal access to sensitive information.
In addition to the above measures, Quality Assurance can significantly develop a resilient security infrastructure against cyber breaches.
Partnering with the right QA provider can help ensure that security protocols are in place and are being followed consistently. This can include regularly reviewing security policies and procedures, conducting testing to identify vulnerabilities and monitoring for potential security breaches. The QA engineering team can help prevent security breaches and protect sensitive data by ensuring that security measures are in place and followed consistently.
