In 2024, 80% of manufacturing firms experienced an increase in security events and breaches, with costs to those affected of between $200,000 and $2m.
Manufacturers have become prime targets for online criminals and bad actors, partly because of the widespread adoption of technologies defined as Industry 4.0.
Industry 4.0 is a boon for manufacturing, driving major improvements in efficiency and productivity. It also creates unprecedented cybersecurity challenges. In the rest of this article we’ll discuss what manufacturers need to know about Industry 4.0 and cybersecurity risk.
Industry 4.0: There’s No Going Back
Manufacturers of all sizes are adopting Industry 4.0 because it works. Benefits include:
- Improved productivity. Industry 4.0 allows you to allocate resources more effectively, increasing throughput and productivity with advanced automation and integration.
- Reduced downtime. Enhanced machine monitoring and predictive maintenance keep machinery up and running and catch problems before they undermine factory performance.
- Improved efficiency. Automated processes, tracking systems and resource management lead to significant efficiency gains.
- Optimised supply chains. Intelligent supply chain management systems allow for real-time monitoring, identifying bottlenecks before they impact production lines.
There are many more, but suffice to say that Industry 4.0 – and the progression towards the “smart factory” – is revolutionising the manufacturing sector.
It is doing so by utilising technologies like the Internet of Things (IoT), artificial intelligence, machine learning, cloud computing, big data analysis and advanced automation and robotics.
The Expanded Attack Surface
While these technologies improve production line performance, they also significantly expand the attack surface available to cyber criminals. The proliferation of connected devices creates a network of new entry points for potential attackers.
Similarly, the convergence of IT and operational technology (OT) systems has removed traditional boundaries, putting manufacturers at greater risk of highly disruptive cyber attacks.
Another issue is that many manufacturers are moving towards Industry 4.0 in a somewhat piecemeal way. New technologies are working side by side with older systems that do not operate to the same security standards. Any system is only as strong as its weakest point, and legacy systems in manufacturing represent a significant vulnerability.
Finally, manufacturers tend to be part of complex supply chains. Raw materials or components are sourced from suppliers on one side, and finished products are sold to customers on the other. These interconnected networks mean that attacks on one link can rapidly spread along the chain. It’s difficult for SMEs in particular to properly vet the cyber security credentials of every third party they deal with.
Industry 4.0 and Cyber Security: The Consequences of Getting It Wrong
What happens when cybercrime meets Industry 4.0? In poorly defended set-ups, the results can be highly damaging.
In one recent study, 80% of manufacturers reported an increase in cybersecurity incidents in 2024. Nearly a third (31%) said they incurred financial losses as a result. Since 2019, manufacturing organisations have seen a 300% surge in attacks.
Common attack channels include:
Phishing and Social Engineering
Attackers trick employees into revealing sensitive information by mimicking internal departments or trusted third parties and creating a sense of urgency.
Ransomware
Malware, often introduced by phishing emails or through vulnerabilities in legacy systems, locks businesses out of their critical systems until a ransom is paid. Interconnected IT and OT systems allow ransomware to spread rapidly.
Intellectual Property Theft
Bad actors target proprietary designs or technologies, often through phishing attacks or by directly targeting connected devices.
How Manufacturers Can Protect Themselves
The attack surface has expanded significantly, and so has the sophistication of hackers, who are now using AI and machine learning to make smarter, more targeted strikes. Against this, what can manufacturers do?
Most importantly, cybersecurity must be at the centre of your technology strategy, rather than at the fringes. Sector leaders should understand that cybersecurity is becoming a commercial necessity. Downtime can be disastrous and, increasingly, customers will refuse to work with those they consider a potential security risk.
A change in perception at the top of organisations is essential. After that, any Industry 4.0 cybersecurity strategy should include:
- Regular security assessments of both IT and OT environments – and the links between them
- Zero trust architectures and strong authentication measures. With sensitive data and systems, only give access to those that really need it.
- Cybersecurity training for everyone. All employees should be able to spot a phishing email. Operational staff should have training relevant to their roles.
- Secure-by-design principles. New systems should have security baked in, not added as an afterthought.
Industry 4.0 continues to evolve, and manufacturers’ cybersecurity strategies must evolve with it. The rapid adoption of Generative AI adds another boost to productivity – and another potential backdoor to your data. Forward-looking organisations know that the benefits of technology can only fully be realised when the risks have been minimised.
How Codestone Can Help
Codestone offers CyberCare, a Security Operations Centre (SOC) that gives you peace of mind. We deploy cutting-edge solutions to fortify your enterprise against evolving threats. We will monitor your network, assess your risk, and empower your business to forge ahead with confidence.
Talk to us today!
