October 5, 2016
Transportation and Logistics Industry Not Immune to Cyber Risks
The transportation industry is becoming more complex and interconnected – increasing cyber vulnerabilities exponentially. Although technological advances have been beneficial for the industry’s success, it also comes with some concerns. Highly technical communication systems and data platforms increase weaknesses and make them more difficult to detect. There are two specific risks that impact all areas of transport and logistics:
GPS tracking of cargo: where the cargo is going, who is carrying it, and what the cargo is. GPS tracking of location, status and physical conditions of cargo are being transmitted from the vehicle to the home company regularly. The risk? Cyber criminals can intercept the information or attack the network where the information it is stored in order steal or divert cargo.
The interconnectedness of business partners: companies are relying on constant digital communication between their business partners. A wide web of communication can increase exposures because each transmission and link poses a potential threat. These enmeshed systems can be difficult to protect, and the latent vulnerabilities can become a target for criminals.
What are the ramifications?
Direct financial loss as a result of physical theft or interruption of business through a data breach is one of the largest concerns. Information is a critical asset but in the wrong hands, it could be used against you.
Theft of intellectual property (IP) and trade secrets are also targeted by cyber criminals. If a part of your business that keeps you ahead of your competitors is leaked, your business could be ruined.
Loss of reputation between your customers, your business partners and you can damage your bottom line. If a customer’s data was compromised, not only will creditability be lost, notification fees will further the financial loss.
What can you do to protect your company?
More than ever, companies need to protect themselves against the threat of cyber security. The process is not as difficult or complex as you would think. Basic education on cyber security awareness for employees is absolutely necessary. You can read more about best practices and what every company should be doing to protect their networks and data here.
The Role of Insurance
Insurance can help reduce the impact of cyber incidents. Typical General Liability policies won't offer protection for these wide-ranging exposures and existing coverage can be extremely limited. Can your business afford the astronomical legal fees and notification costs in the event of a data breach? Can you reputation sustain this? Avalon’s Cyber Defense Package may protect your business in these areas. You can learn more about the Cyber Defense Package and Avalon’s Shield Network scan here.