Blog
09.23.2024

Top Manufacturing Cybersecurity Issues: OT Security, IoT Security, and Ransomware

In 2024, CISOs at major manufacturing enterprises face several critical cybersecurity concerns due to the increasing digitization of operations, connectivity between IT and OT (Operational Technology) environments, and the evolving threat landscape.  

Digitization of Operations and IT/OT Connectivity 

While it brings significant improvements in efficiency, productivity, and innovation, the digitization of operations also introduces serious cybersecurity concerns. The convergence of information technology (IT) and operational technology (OT) in manufacturing is creating new attack surfaces. As factories embrace smart manufacturing and Industry 4.0, more legacy OT systems are being connected to networks. These systems, traditionally isolated, are now exposed to a wider range of cyber threats, including ransomware and sophisticated attacks on industrial control systems (ICS), creating vulnerabilities in the critical infrastructure that powers manufacturing operations, especially in legacy systems that lack modern security controls.  

Cybercriminals can exploit these weaknesses to launch ransomware attacks, steal intellectual property, or disrupt critical industrial processes, potentially leading to massive financial losses, production downtime, and even physical harm. Additionally, the increasing reliance on third-party vendors and cloud platforms elevates the risk of supply chain breaches. As a result, cybersecurity strategies must evolve to secure both IT and OT environments, ensuring that the benefits of digitization do not come at the cost of security and operational stability. 

Other Top Concerns in Manufacturing Cybersecurity

 

Ransomware Attacks on Critical Infrastructure


  • Why it's a concern: Manufacturing operations are highly susceptible to ransomware because downtime directly impacts production and revenue. Attackers target operational technologies (OT) like SCADA systems and industrial control systems (ICS), causing significant operational disruptions. 
  • Response: CISOs are investing in more robust ransomware defenses, incident response plans, and backups that include both IT and OT environments, recognizing the high cost of operational downtime and the potential financial impact of a successful attack. While these investments can be substantial, ranging from advanced network segmentation and zero-trust architectures to specialized OT cybersecurity tools, the ROI is clear: a single ransomware attack can lead to millions in lost production and recovery costs, far outweighing the upfront investment.
Supply Chain Vulnerabilities
  • Why it's a concern: Manufacturing depends on a complex supply chain that often includes smaller, less-secure vendors. Cybercriminals exploit these weak links to infiltrate larger organizations. 
  • Response: Implementing stronger third-party risk management processes and zero-trust security models is becoming a priority to mitigate supply chain vulnerabilities. Manufacturers are increasingly using tools like vendor risk assessment platforms, continuous monitoring solutions, and third-party security ratings to assess and manage the cybersecurity posture of their suppliers. By enforcing stringent security requirements for vendors and leveraging technologies such as multi-factor authentication (MFA) and privileged access management (PAM), manufacturers can minimize the risk of supply chain attacks while ensuring that security is maintained across all third-party relationships.

Operational Technology (OT) Security


  • Why it's a concern: As more manufacturing processes become automated and connected to corporate networks, OT systems are more exposed to cyber threats. Legacy OT systems may lack basic security controls, making them an attractive target for attackers. 
  • Response:  CISOs are increasingly focused on securing the convergence of IT and OT, integrating industrial cybersecurity measures such as network segmentation, intrusion detection systems (IDS), and anomaly detection tools specifically designed for OT environments. To operationalize these measures, many are implementing centralized monitoring platforms that provide real-time visibility across both IT and OT networks, enabling rapid response to threats. Additionally, CISOs are fostering collaboration between IT and OT teams, conducting regular security audits, and establishing clear protocols for incident response to ensure that both sides of the organization are aligned on cybersecurity strategies and best practices.

Industrial Espionage and Intellectual Property Theft


  • Why it's a concern: Manufacturing companies often rely on trade secrets and proprietary processes that are valuable targets for cybercriminals or nation-state actors. This risk is especially high in sectors like aerospace, automotive, and pharmaceuticals. 
  • Response: Data encryption, better access controls, and enhanced monitoring of internal activities are being implemented to protect sensitive intellectual property.

IoT Security


  • Why it's a concern: Manufacturers increasingly rely on IoT devices for real-time monitoring and automation, but many IoT devices lack robust security, making them vulnerable to hacking and data breaches. 
  • Response: CISOs are adopting IoT-specific security frameworks and protocols to ensure that these devices are secure, such as the NIST Cybersecurity Framework and IEC 62443 standards, which are tailored for industrial control systems and IoT environments. These frameworks guide the implementation of key security measures, including device authentication, encryption, and regular firmware updates. Additionally, manufacturers are deploying protocols like MQTT with security extensions and CoAP with Datagram Transport Layer Security (DTLS) to ensure secure communication between IoT devices, reducing the risk of unauthorized access and data breaches. 

Zero-Day Vulnerabilities and Patching Delays


  • Why it's a concern: Manufacturing environments often rely on legacy systems and critical infrastructure that cannot easily be taken offline for patching, increasing the risk of zero-day vulnerabilities being exploited. 
  • Response: Manufacturers are adopting more proactive strategies to handle zero-day vulnerabilities and patching problems, including advanced runtime protection and vulnerability scanning. These measures are supplemented by isolating critical systems that cannot be immediately patched, reducing exposure to potential threats. Resources like Virsec's Trusted Execution technology help by identifying and stopping exploits in real-time, even for unpatched systems, which can significantly mitigate the risks posed by zero-days. 

AI and Autonomous System Security 


  • Why it's a concern: With the rise of AI-driven automation in manufacturing, there are concerns about securing AI systems from attacks that could disrupt production processes or cause safety issues. 
  • Response: CISOs in the manufacturing sector are focusing on securing AI-driven automation by implementing strict adversarial machine learning defenses to prevent attacks that could manipulate AI models or data. Specific safeguards include robust data integrity checks, AI model validation, and runtime defensive monitoring to detect any anomalies in autonomous systems. Additionally, they are adopting standards like NIST’s AI Risk Management Framework to establish best practices in AI security and prevent disruptions to production processes or safety hazards caused by compromised AI algorithms. These proactive measures ensure AI systems can operate safely and securely in dynamic manufacturing environments. 

In response to these threats, manufacturing CISOs are adopting a multi-layered security approach that includes stronger network segmentation, zero-trust architectures, continuous monitoring, and advanced threat intelligence capabilities. Regardless of these top concerns, what should security leaders at manufacturing companies small and large be doing?  

  1. Segment and Secure IT and OT Networks 
    Manufacturers should prioritize network segmentation to separate IT and OT environments, reducing the risk of lateral movement by attackers. Implementing firewalls, intrusion detection systems (IDS), and robust access controls for legacy systems can mitigate vulnerabilities and prevent cyber threats from spreading across critical production systems.
     
  2. Adopt a Zero-Trust Security Model 
    A zero-trust approach ensures that no device, user, or system is trusted by default, even within the organization. Manufacturers should deploy multi-factor authentication (MFA), least-privilege access controls, and continuous monitoring across all networks to reduce the risk of unauthorized access and insider threats.
     
  3. Strengthen Supply Chain Security
    Manufacturers must evaluate and monitor the cybersecurity practices of their third-party suppliers and vendors, using tools like vendor risk management platforms and continuous security assessments. By enforcing strict security requirements and conducting regular audits, manufacturers can mitigate supply chain vulnerabilities that could be exploited by attackers to compromise the broader network. 

 To learn more about how Virsec helps manufacturing companies, click here.