Cybercrime affects manufacturers small and large, public or private. Without clarity of your cyber exposure and the risk to your business, how can you implement the essential security solutions to prevent and detect cyber threats, and respond to events to minimize business disruption and financial losses?
A study released by The Ponemon Institute presented findings in the 2020 Cost of Insider Threats. One of the key takeaways from this study was that credential theft was the most expensive insider threat per incident. Since 2016, both the frequency and cost of such incidents have increased. The frequency of incidents per company has tripled from an average of 1 to 3.2 incidents per year. The average cost had increased from $493,093 to $871,686 in 2019.
Insider threats are an expected source of incidents within any business. However, many leadership teams do not recognize threats from their service providers. Beazley Breach Response Services released a briefing outlining the reported incidents of their policyholders in 2019.
They recorded an increasing number of ransomware incidents that resulted from attacks on managed service providers (MSPs) and other IT service and support companies. In some cases, these attacks halted operations for hundreds of businesses downstream from the attacked IT provider or vendor. Beazley reported other disturbing facts from policyholders:
· 78% of manufacturing losses were caused by hacking or malware
· 39% of all reported incidents in manufacturing were caused by ransomware
· 131% increase of ransomware incidents in 2019 over 2018
· 38% of middle-market companies were impacted by ransomware events
· 62% of small and medium businesses were impacted by ransomware