Emerging cyber-terrorism in the freight and logistics industry
The risk of cyber-attacks on transport systems has seen an alarming increase in cases annually, which have led to major financial and sensitive data losses within the freight and logistics world. According to IBM’s latest X-Force Threat Intelligence Index, transportation was ranked as the second most cyber-attacked industry in 2018.
Stephen Morris, Acting Director General of FIATA (the International Federation of Freight Forwarders’ Association), sees transport as the lifeline of every nation.
“It’s disturbing that this industry is becoming increasingly vulnerable to cyber terrorism because, in most cases, when one entity is attacked many others are affected.”
The logistics and transport industry was dealt a heavy blow in June 2017, when close to 80 ports and terminals worldwide either came to a standstill or suffered major delays in their operations.
A ransomware attack on the shipping company A.P. Moller-Maersk resulted in infected computer systems, costing the company around $300 million. Maersk reportedly had to rebuild a large part of its IT infrastructure and had to install more than 50,000 new computers, servers and applications over a two-week period.
According to Andre Du Venage [pictured, below], Managing Director at Secure Logistics, cybercrime is a lucrative business for hackers and extortionists.
“Business takes place via the Internet and therefore, any information cyber attackers can sell to extort companies or individuals is accessible to hackers. They can freeze up or “detain” a company database in totality, making operations impossible until a ransom is paid. The payment method of choice is often Bitcoin, as it is untraceable.”
The world of freight and logistics consists of many role players, with multi-billion-dollar transactions taking place daily, making it a lucrative target for phishing and malware authors. The consequences of cyber-attacks include shipments that can be diverted to other destinations by manipulating order information. Intelligence on high value and in-demand shipments can be sold to crime syndicates to target shipments along the supply chain. Customers’ trading terms can also be sold to the opposition and new entrants into the logistics market, leading companies to possibly lose their trade IP advantage.
“A business can close down if sensitive customer information is exposed. In the process, large scale civil claims may ensue, the company suffers severe reputational damage and investors withdraw investments,” he adds.
With increased digitisation, personal information of C-suite executives can be obtained via many inventive cyber-attack entry points, targeting high net worth individuals. Executives should put strict cyber security protection measures in place when travelling, especially since free Wi-Fi is offered everywhere. Hotspot areas in hotels, restaurants, coffee shops, airports and offices offer opportunities for hackers to apply spyware or malware to business communications.
Hackers can decipher passwords within seconds and therefore these need to be changed often. Everything is linked to company operating systems, including CCTV cameras, desktops, desk telephones, hard drives and printers, which are all control points that could be used to enter a database illegally.
No database in the world is immune to a cyber-attack. Experts warn that insiders within businesses often willingly cooperate with outsiders to gain access, while uninformed staff open emails and documents that could allow hackers access to the company database.
To avoid this, businesses should design cyber security policies that also include contingency and recovery planning. “A team should be managing this with one or multiple experts in cyber security as consultants reporting to the inhouse team leader. Cyber terrorism prevention is an on-going effort and not a once-off exercise,” Du Venage explains.
Morris urges companies within the freight and logistics industry to implement training programmes and policies in a bid to raise awareness around cyber terrorism to teach entry level staff how to identify threats. “Cyber safety starts with enforcing measures as basic as regulations around flash drives and hardware usage, passwords and updating software.”
The annual FIATA World Congress is to be held at the Cape Town International Convention Centre from 1-5 October 2019.
The event is organised in conjunction with The South African Association of Freight Forwarders (SAAFF) and will serve as an international platform for industry leaders to discuss sustainable solutions within the freight forwarding and transport sector in Africa.
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Issued by HWB Communications Pty Ltd on behalf of FIATA.
Editors Notes:
About FIATA:
The International Federation of Freight Forwarders’ Associations (FIATA) is the recognised global organisation representing the interests of the freight and logistics industry worldwide. FIATA, a non-governmental organisation, today represents an industry covering approximately 40,000 forwarding & logistics companies, employing approximately 10 million people in 150 countries.
About SAAFF:
The South African Association of Freight Forwarders (SAAFF), established in 1921, is a national association that is a non-profit organisation governed by a constitution. SAAFF’s mission is to lead strategic initiatives that deliver successful outcomes through service, information, and advocacy. The association is striving to be the leading authority in the freight forwarding industry, achieving local, regional, and international recognition. SAAFF adds value by encouraging integrity, professional conduct, leadership, and delivery of results.
Freight forwarding plays an essential role in international trade and SAAFF members are dedicated to facilitating this activity through their involvement in the management of transportation, customs clearing, documentation, third party payments, and many other elements of international supply chains.
A member of FIATA since 1979, SAAFF derives benefit from FIATA’s international standing, its participation in many trade-related world forums, and its knowledge of international forwarding affairs.