How can the logistics and transport sector combat rising threats?
Gary Cannon, Transport Practice Lead at global cyber security firm NCC Group, shares his thoughts on the cyber threats facing the logistics sector and how companies can mitigate risk to protect the operations of the global supply chain.
As the world becomes more connected and reliant on technology, the transport and logistics sector is operating at pace. The integration of AI and automation has boosted operational efficiencies in global supply chains. However, advancements introduce new cyber risks that organizations must proactively address.
According to IMARC’s Logistics Market Report, the global logistics market is a vast, expanding sector, integral to the movement of goods and services worldwide. In 2024, the market size was estimated at USD 5.7 trillion, and projections indicate that by 2033, it will reach around USD 8.1 trillion, with a compound annual growth rate of 4.02 percent during the period from 2025 to 2033.
With much of the global supply chain reliant on technology, an incident can create a domino effect, causing chaos and halting operations. As technology evolves, the sector has become a target for cyber criminals that seek to exploit vulnerabilities in operational systems or hold data hostage via ransomware attacks. The IBM’s 2023 ‘Cost of a Data Breach’ report found that one in five supply chain businesses are likely to experience a data breach. It’s key to understand the risks posed to supply chains and how to prevent attacks.
Why is the logistics sector a target for cyber crime?
Traditionally reliant on manual methods, technology has been integrated into all aspects of the sector, from inventory tracking to delivery management. While new
technological developments have revolutionized supply chain operations, they also create vulnerabilities, making the sector attractive for cyber criminals.
The demand for real-time tracking, faster delivery through interconnected networks, and the migration of critical operations to cloud platforms, has introduced scalability and reliance on numerous third-party providers. Such factors have created a complex ecosystem where a single weak link can expose the entire network to cyber threats.
The Internet of Things (IoT)
The adoption of IoT devices – from GPS trackers to real-time shipment monitors – has enhanced operational visibility. However, this interconnectivity also generates vast amounts of sensitive data, making it an appealing target that could expose sensitive data, or lead to the hijacking of delivery vehicles or cargo.
AI and automation
While AI and automation have streamlined supply chain operations and bolstered efficiencies, many logistics companies still rely on outdated legacy IT systems that are vulnerable to cyber threats due to their lack of modern security protocols.
Human error
Despite advancements in automated cyber-attack techniques, human error remains a vulnerability. Insider threats, whether intentional or accidental, often arise from poor security hygiene, such as falling victim to phishing campaigns.
The impact of cyber attacks on the supply chain
The potential impact of a cyber attack on the supply chain should not be downplayed. We’ve seen cases that have caused disruption such as the September 2024 Network Rail attack on 19 UK railway stations, and the attack on the Port of Seattle and Seattle-Tacoma International Airport which disrupted baggage handling systems and flight and baggage information screens. The Seattle attacks may have contributed to Biden’s Executive Order aimed at improving the cyber security measures of US ports.
Cyber attacks can devastate critical infrastructure, causing operational shutdowns, massive delays, and financial losses. Attacks may also result in long-term reputational damage for logistics providers and their partners. With successful ransomware attacks, huge payments can be demanded by hacker groups for the release of data or access to systems.
Global supply chains are complex. Logistics companies must work with third-party vendors, suppliers and partners, each with their own cyber security protocols. Supply chains often span different countries with varying rules and regulations around security measures. Just one weak link can expose the chain to cyber threats and disruptions.
So how should the logistics sector prevent and prepare for cyber attacks?
Supplier management
Logistics companies must have a comprehensive understanding of their entire supply chain across different jurisdictions. This is critical for ensuring compliance with regional and international cyber security frameworks such as the GDPR for data protection, the NIST cyber security framework, the EU Network and Information Systems (NIS) Directive and NIS 2, and the Maritime Cyber Risk Management Guidelines (IMO 2021).
Employee education
It is not only leadership teams and decision makers that must understand cyber threats – but an awareness should filter through all levels. An effective way to improve cyber security measures is to instill a foundational level of education amongst the companies’ employees. By spotting signs of attacks like phishing scams, employees can play a role in mitigating a successful attack.
Integrating new frameworks and technologies
Adopting frameworks like the NIST Cyber Security Framework for comprehensive threat management, ISO/IEC 27001 for robust information security management, and the MITRE ATT&CK Framework for understanding and mitigating adversarial tactics can help companies enhance their cyber security posture and resilience against threats.
By considering the potential cyber security challenges facing the logistics sector, companies will be in a better position in the case of an attack. There are also opportunities to improve security through the integration of advanced tech like blockchain, IoT, and cloud solutions.
Other technologies include:
Zero trust architectures to reduce the risk of data breaches by assuming that no party within or outside of a network should be trusted by default, which means that every connection is rigorously verified.
Blockchain for secure transactions and data integrity by using cryptography to secure data and make it more difficult to change or manipulate.
Advanced encryption for secure data protection whilst improving processing speed.
AI-powered threat detection systems that use advanced algorithms to analyze huge volumes of data in near real-time to identify potential threats.
Finally, companies need to invest in cyber security and staff training and take a proactive approach to integrating new technologies across all operations.
What’s in store for the future?
While the logistics sector faces escalating cyber threats, collaborating with cyber security experts and integrating advanced security technologies will enable organizations to safeguard their operations. By adopting best practices and staying ahead of emerging threats, companies can continue to leverage new technologies to enhance efficiency and resilience.
For a list of the sources used in this article, please contact the editor.
Gary Cannon is Transport Practice Lead at global cyber security firm NCC Group. NCC Group is a global expert in cyber security and risk mitigation, working with businesses to protect their brand, value and reputation against the ever-evolving threat landscape. Its transport assurance practice blends together the extensive offerings across the business and utilizes industry specific experts to provide the very best cyber security, functional testing and escrow services to clients. The dedicated practice provides support to customers in the automotive, maritime, aerospace and rail sectors across the globe.