The packaging industry, like many sectors, is finding out fast that with increased digitalization comes heightened vulnerability to cyberattacks. Companies in the packaging industry are now facing significant cybersecurity challenges, a concern that has been underscored by recent studies, including GlobalData's latest "Cybersecurity in Packaging" report.
The packaging industry, traditionally seen as low-risk in terms of cybersecurity, is now in the crosshairs of cybercriminals. The integration of advanced technologies such as IoT, automation, and data analytics into packaging processes has created new entry points for cyber threats. These advancements, while boosting efficiency and innovation, have also expanded the attack surface, making the industry more susceptible to cyberattacks.
Findings from GlobalData's 'Cybersecurity in Packaging' report
GlobalData's report—there is a summary at the link, but you can pay for the full report—provides a comprehensive analysis of the cybersecurity landscape within the packaging industry. Key findings include:
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Increased attack surface
The adoption of connected devices and smart packaging solutions has significantly increased the number of potential vulnerabilities. Cybercriminals can exploit these vulnerabilities to gain unauthorized access to sensitive data or disrupt operations.
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Supply chain risks
The report highlights that supply chain security is a critical issue. With packaging companies relying heavily on third-party suppliers and vendors, a single weak link in the supply chain can compromise the entire system. Ensuring that all partners adhere to stringent cybersecurity standards is crucial for mitigating these risks.
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Economic impact
Cyberattacks can have severe financial consequences for packaging companies. From production downtime to regulatory fines and reputational damage, the economic impact of a cyber incident can be substantial. The report estimates that the cost of cybercrime to the packaging industry is rising year-over-year.
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Regulatory pressure
Regulatory bodies are increasingly focusing on cybersecurity compliance. Packaging companies must navigate a complex landscape of regulations aimed at protecting data and ensuring the security of critical infrastructure.
The report includes several case studies illustrating the real-world impact of cyberattacks on packaging companies. One notable example is the ransomware attack on a major packaging manufacturer, which resulted in significant operational disruptions and financial losses. It underscores the urgent need for robust cybersecurity measures across the industry.
"The packaging industry, once considered low-risk in terms of cybersecurity, now faces significant challenges due to digitalization. The integration of IoT, automation, and data analytics has expanded the attack surface, making robust cybersecurity measures essential to protect sensitive data and maintain operational integrity," said Matthew Burroughs, CISO at Novolex, which develops and manufactures diverse packaging products for the foodservice, delivery and carryout, food processor, and industrial markets.
"As the packaging industry increasingly relies on connected devices and smart solutions, the risk of cyberattacks grows, underscoring the need for stringent cybersecurity standards across the supply chain," Burroughs added.
The scope of the report includes:
- An overview of the cybersecurity value chain, case studies of cybersecurity deployments in packaging, market size and growth forecasts, specialist cybersecurity vendors for packaging companies, and analysis of the packaging companies leading in cybersecurity adoption
- A detailed value chain comprising the three segments of cybersecurity (hardware, software, and services)
- Industry analysis, including forecasts and cybersecurity revenues to 2030, alongside sector-specific analysis using GlobalData's hiring analytics
- An overview of M&A deals and partnerships driven by the AR theme and a timeline highlighting milestones in the development of AR
- Analysis of the leading adopters in packaging, their key moves in the theme, and their position in our thematic scorecards
- Breakdown of the key challenges in the packaging industry, and how cybersecurity technologies can help to solve those challenges, including the digitalization of supply chains and the challenge of the future of work
To address these growing threats, packaging companies must adopt comprehensive cybersecurity strategies. Companies should adopt industry-standard cybersecurity frameworks, such as NIST or ISO/IEC 27001, to guide their security practices and ensure compliance with regulations.
"Thinking about the broader logistics supply chain, the fraud continues to be an area of focus for companies to address," said Erika Voss, CISO, DAT Freight & Analytics. "By helping them understand their cyber attack landscape, it will only help us bolster our posture for the industry from end to end."
Regular audits and assessments of suppliers and partners are essential to ensure that they meet cybersecurity standards. Implementing strict access controls and monitoring can help mitigate supply chain risks.
Leveraging advanced cybersecurity technologies, such as AI-driven threat detection and response systems, can help identify and neutralize threats before they cause significant damage.
Having a well-defined incident response plan in place ensures that companies can quickly and effectively respond to cyber incidents, minimizing their impact and facilitating a swift recovery.
To learn from cybersecurity experts across the manufacturing and industrial sectors, attend the SecureWorld Manufacturing & Retail virtual conference on August 28, 2024. Register here to attend for free and earn 6 CPE credits.
