May 6, 2024

Facing Logistics Cyber Risks

With the advent and proliferation of logistics marketplace software, the logistics industry has undergone a profound transformation that is shaking its very foundation. These platforms are crucial intermediaries, connecting logistics service providers with their customers, streamlining transactions, and facilitating efficient communication.

Many cyber companies, such as digital freight forwarders, logistics marketplaces for warehouse space, or providers of last-mile delivery solutions, have demonstrated the immense revenue potential of these types of marketplaces, with millions of dollars in annual earnings. However, amidst the opportunities presented by these advancements, there lies a significant challenge: cybersecurity.

As the custodians of vast volumes of sensitive personal and corporate data, logistics marketplaces are prime targets for cybercriminals. The outcome of a successful cyber attack can be catastrophic for businesses of any size, leading to financial losses and, more severely, considerable damage to the reputation and credibility of the affected organization.

IBM’s data reveals that the average cost of a data breach in the transportation industry has skyrocketed to 4.18 million dollars in 2023 alone, underscoring the pressing need for robust cybersecurity measures.

supply chain cyber attack

The Top Cyber Risks for 2024

Social Engineering

In contrast to traditional cyber threats, social engineering attacks target human vulnerabilities rather than technological ones. Cybercriminals employ tactics such as pretexting, baiting, or phishing to manipulate people into divulging sensitive information.

The Anti-Phishing Working Group (APWG), an international effort of counter-cybercrime responders, law enforcement agencies, forensic investigators, and other authorities and organizations, reports over 1 million social engineering incidents only in the fourth quarter of 2023.

DoS (Denial of Service) and DDoS (Distributed Denial of Service) attacks

These attacks overwhelm a platform with a flood of network requests, rendering it inaccessible to users. A DoS attack is carried out by a single source, while a DDoS attack is orchestrated from multiple sources, making mitigating more difficult. For instance, Google’s DDoS Response Team detected and mitigated the most extensive campaign in its history, peaking at over 398 million requests per second last year.

Malware

Malicious software, or malware, poses a grave threat to logistics marketplaces. These insidious programs aim to infiltrate a site’s defenses, potentially wreaking havoc by installing various scripts. These scripts are designed to use the marketplace’s computing power for other purposes, which can slow down the platform and increase its vulnerability to other attacks.

The accumulation of malware is alarming, with some reports revealing an 89 percent increase in malware activity in the final quarter of 2023. Ransomware is a particularly concerning criminal activity. It is a type of malware that can paralyze a marketplace by encrypting user data until a ransom is paid.

Data Protection and Privacy

The logistics industry handles an abundance of sensitive information, ranging from customer details to shipping data and financial transactions. Protecting this data is paramount to avoid economic losses and safeguard the reputation of logistics marketplaces. Implementing advanced cybersecurity measures, like multi-factor authentication, regular security audits, and employee training on identifying phishing attempts, is imperative to prevent unauthorized access and data breaches.

supply chain cyber attack

Ensuring Supply Chain Continuity Against Cyber Threats

Data security is not the only concern about cyber threats. The operational continuity of the supply chain should be assured regardless. For instance, a ransomware attack can encrypt critical shipping information, leading to delivery delays and operational halts.

Similarly, a DDoS attack can overload the network, making it impossible to track shipments or communicate with suppliers, resulting in substantial financial losses. The recent emphasis on last-mile deliveries further amplifies the significance of supply chain security, as any disruption in the final leg of the delivery process can have devastating effects.

Cybersecurity, a key pillar in safeguarding the supply chain against evolving threats, is a collective responsibility. By strengthening the digital infrastructure of logistics marketplaces and implementing proactive security measures, organizations can mitigate the risk of cyberattacks and ensure uninterrupted operations. However, the collaboration and information-sharing among stakeholders truly enhance cyber resilience across the supply chain, making each cybersecurity expert a vital part of the solution.

As logistics marketplaces continue to expand and the reliance on digital freight systems deepens, the significance of cybersecurity in the supply chain cannot be overstated. At Last Mile Logistics, we rely on our trustworthy transportation network, which understands the top cyber risks, implements robust security measures, and promotes a culture of vigilance. So please call us so we can evaluate your transportation needs and build your resilience in the face of cyber threats, inspiring confidence in the future of your business.