In 2023, the average cost of a ransomware attack hit around £1.4 million, with an average downtime of 24 days. As manufacturing processes become more reliant on digital technologies, the risks posed by cyberattacks are growing rapidly. At PlastikCity Insurance, we explore the unique cybersecurity challenges faced by the plastics industry and how businesses can safeguard themselves against these threats.
The Growing Cybersecurity Challenge
As manufacturing becomes increasingly automated, cyberattacks targeting production systems can cause serious disruption. A successful attack could halt operations, affect product quality, and delay delivery schedules—leading to financial losses and reputational damage. In a highly competitive sector like plastics manufacturing, such interruptions can put customer relationships at risk and impact long-term contracts.
The plastics sector has its own additional set of challenges and considerations:
- Production Disruption: Attacks on automated production systems, affecting product quality and delivery schedules.
- Intellectual Property Theft: Loss of proprietary formulations, design processes, or manufacturing techniques impacting your market share.
- Supply Chain Vulnerabilities: Compromised systems hitting suppliers or customer relationships and causing cascading issues.
- Data Breaches: Exposure of sensitive customer data or confidential business information.
- Ransomware Attacks: Locking of critical systems or data, impacting production and causing financial strain.
Hacktivism and Criminal Cyberattacks
Not all cyberattacks are financially motivated. The plastics industry is also vulnerable to hacktivism, where businesses are targeted ideologically rather than for financial gain. A quick search of “Cyber Attacks Plastics Industry” reveals two key types of threats:
- Political Attacks: Businesses are targeted specifically to cause the most disruption, with the survival of the business being incidental.
- Criminal Attacks: Businesses are often selected at random, with attackers using ransomware or malware to extort money or sell stolen data.
Risk Management Practices
Whether facing political or criminal attacks, mitigation is key. Here are some fundamental strategies to protect your business:
- Regular Updates and Patches: Ensure all systems are up-to-date with the latest security patches.
- Employee Training: Educate staff on recognising phishing attempts and following cybersecurity best practices.
- Access Controls: Implement strong authentication mechanisms and access controls.
- Incident Response Plan (IRP): Develop and test an IRP to address and mitigate breaches effectively.
Cyber insurance complements these practices by providing financial protection and supporting the establishment of robust incident investigation and recovery procedures.
Preparing for the Future
Unfortunately, no strategy is 100% foolproof, and all businesses, large and small, must prepare for the strong likelihood of a system breach at some point. Cybercriminals continue to evolve, and with advancements in AI and deep-fake technology, preventing attacks becomes even more challenging.
At PlastikCity Insurance, we help businesses stay ahead of these evolving threats by ensuring they have the right coverage and support in place to recover swiftly in the event of an attack.
How PlastikCity Insurance Can Help
PlastikCity Insurance offers tailored solutions to meet the unique needs of the plastics industry. Contact us today to learn more about how we can help protect your business against cyber threats.
As part of our commitment to the community, PlastikCity Insurance donates to the Midlands Air Ambulance Charity for every enquiry we receive, regardless of the outcome. Find out more at www.midlandsairambulance.com.
PlastikCity Insurance policies are arranged and administered by PHL Insurance Brokers Limited.
