Cybersecurity for Logistics Companies

Global logistics play an integral part of our economy. Canada’s largest port is Vancouver which makes it a hub for transportation and logistics companies, including companies in maritime, rail, trucking, package delivery, and more secondary sectors. As part of the global supply chain these companies work fast to make our economy work; in order operate at this speed and efficiency, they have become increasingly reliant on digital systems. As a result, the industry has also become more vulnerable to cybersecurity attacks. Investing in world-class cybersecurity is an absolute requirement for logistics companies because a cyber-attack can cause a signification disruption to our supply chain, cost millions of dollars in remediation and lost business and completely halt any form of transportation or logistics of goods. 

In recent years, attacks against the largest logistics companies in the sector have drawn global attention. Here’s a summary of three that have had major impacts on our supply chain.   

Expediators: In 2022, the Seattle-based freight company had most of their operating systems globally shutdown to investigate a ransomware attack that cost them $60m in remediation ($20m) and lost business ($40m) resulting from their limited ability to conduct operations.  

Hellman Worldwide Logistics: In 2021, German logistics firm reported a ransomware attack that involved the theft of sensitive data from compromised servers that included business agreements, company emails, and more.  

Maersk: In 2017, the WannaCry ransomware cryptoworm locked users out of their system and encrypted data until a ransom was paid. More than 200,000 computers across 150 countries were affected, as well as $200-300m in damages. 

Why is this Industry so Vulnerable?  

Digitalization is widespread in the logistics sector. Some of the most common security challenges are as follows: 

• Security vulnerabilities in the IT infrastructure  
• Increased risk of operational interruptions 
• Higher number of users with privileged accounts 
• Use of applications with hard-coded credentials  
• IoT device compromise

Consequences

• Reputational damage
• Data loss / breach 
• Litigation  
• Downtime 
• Lost business 

Best Practices for Cybersecurity in Logistics 

To stay protected against cyber threats, transport and logistics organizations need to invest in the best-in-class security solutions, implement best practices, like Security Awareness Training, regular cybersecurity assessments, access controls, incident response plans, cybersecurity policies and third-party vendor management. A strategic approach is necessary to isolate IoT devices to prevent a potential compromise of smart products.  

Cyber-attacks target smaller logistics companies as well. No business is immune from these threats. Nucleus Networks can help by offering a comprehensive cybersecurity solution (powered by AI) that includes threat monitoring, risk assessments, incident response planning. Additionally, we can assist in implementing security measures such as data encryption, Multi-Factor Authentication (MFA), network segmentation, safeguard critical assets and information, and minimize the risks of cyber-attacks. You might not have the resources for an internal Chief Security Officer, but with the right provider, you’ll have the security expertise your logistics company needs to adapt to the changing threat landscape.