Shielding Warehouses from Cybersecurity Threats

Supply chains face many obstacles, but cybersecurity is one of the most prominent today. As warehouses implement more digital technologies and rely more heavily on data, attacks are rising in frequency and severity.

Supply chain cyberattacks rose by 51% in the second half of 2021, but just a third of companies believe they can respond to these incidents quickly and effectively. Industry leaders must work with cybersecurity experts to address this issue and protect against rising threats. Here are five steps to achieve that goal.

Train Employees

Training all employees in security best practices is one of the most critical parts of warehouse cybersecurity. Because these threats are relatively new to the sector, many workers may need to learn the risks they face or how to address them. These knowledge gaps are dangerous in a world where 82% of data breaches involve a human element.

Basic cybersecurity training should be part of warehouse employee onboarding. Regular refreshers are also important, as they will help keep best practices in workers’ minds. Specific protocols may vary between companies, but this training should at least cover password management, spotting phishing attempts and shadow IT risks.

Secure IoT Devices

Many warehouses today are implementing more Internet of Things (IoT) devices as part of their Industry 4.0 initiatives. While these devices have many benefits – like cost savings and reduced equipment downtime – they introduce unique security risks organizations must address.

The first step in IoT security is segmenting networks to keep IoT devices separate from other endpoints and data, restricting lateral movement. Warehouses must also encrypt all IoT traffic and change default passwords, enabling multi-factor authentication (MFA) if available. Some devices may have other risky default settings like auto-connect features that warehouses should disable.

Restrict Access Privileges

As logistics organizations gather more data and implement more cloud systems, they must also revisit their access controls. Employees should only be able to access what they need for their roles to prevent privilege misuse and minimize risks from breached accounts. Because restrictions are only effective alongside reliable verification methods, warehouses should also use controls like MFA before granting users access.

Many supply chains are also ramping up data-sharing with third parties as more try to embrace sustainable manufacturing and transparency. Amid this shift, warehouses should limit their third parties’ data access privileges to prevent breaches on their end.

Employ Continuous Monitoring

Another critical step in warehouse cybersecurity is monitoring networks for suspicious activity. Modern warehouses are becoming increasingly connected with rising IoT endpoints and cloud systems. Amid this shift, organizations need continuous monitoring to catch and contain attacks that might have slipped through the cracks.

Continuous monitoring is only feasible with automation. Manually monitoring networks around the clock is highly impractical – especially amid IT talent shortages – but AI tools can automate these tasks.

Create an Incident Response Plan

Regardless of warehouses’ other steps, they need an emergency response plan. Cyberattacks are too common and attack methods advance too quickly to assume a breach will never occur. Having a detailed response and backup plan will help mitigate the costs.

Plans must include backup systems, communication protocols and specific steps for containing breaches. It is also essential to regularly test and review these strategies, as companies that test their incident responses save $2.66 million on average in a data breach compared to those that do not.

Warehouses Need Better Cybersecurity Controls

Supply chain attacks have far-reaching consequences and many facilities in the industry are vulnerable. As cybercriminals take advantage of these opportunities, warehouses must invest more in cybersecurity controls.

These five steps will help any warehouse improve its security posture. If facilities implement these improvements, they can prevent and mitigate breaches, potentially saving millions of dollars in losses.