Published 28. February 2023 by Bianca Heitmann
A powerful duet: Digitalisation and cyber security in the logistics sector
In the logistics industry, digitalisation is gaining momentum. Many freight forwarders are well aware of this fact: Rapid change is necessary to remain competitive in the future. However, IT security in logistics must not be left behind in this fundamental dynamic. Otherwise, businesses will open their doors to cyber criminals - with serious economic consequences. Logistics companies should therefore always combine digitalisation strategies with technical and organisational IT security measures.
Digitalisation and cyber security in the logistics sector: Better together!
Logistics 4.0 is characterised by IT connectivity and automated processes. However, organisations do not only benefit from the digitalisation offensive. Particularly if the dynamic nature of the transformation means that security gaps go unnoticed. Outdated servers, unpatched and therefore unupdated systems or a lack of expertise are just some of the potential threats to cyber security in logistics. Many players in the market have already recognised these challenges.
According to the Bitkom study a good 50 percent of German freight forwarders increased their IT security measures last year - but not without hurdles. For example, 89 per cent of those surveyed saw the lack of specialists in IT departments as the biggest obstacle to conscientiously closing IT security gaps in logistics. In addition, small and medium-sized companies in particular described the existing technical expertise as inadequate, according to the results of the 16th Hermes Barometer. The possible consequence: Cybercriminals are knocking on companies' doors - and getting in unhindered.
Making plans: Being prepared protects transport chains
In order to protect company data and your own transport chains, two concepts are coming into focus: Detection and prevention. IT security vulnerabilities in logistics should therefore not only be considered and remedied in an emergency. Organisations should therefore prepare well in advance and rely on contingency and communication plans. In the event of an attack, such plans will give everyone involved a clear direction and enable a rapid response. Freight forwarders should also take into account industry-specific issues - and, of course, legal requirements.
For example, due to the various parties involved - from freight forwarders, customers and suppliers to warehouses and carriers - a look at the General Data Protection Regulation is mandatory. If attackers have introduced ransomware into logistics and personal data has been blocked or stolen as a result, there is a legal obligation to report this. Data controllers must report this breach to the regulator within three days. Contingency and communication plans should include such relevant information to ensure a rapid response.
What cyber security measures can logistics companies implement?
Technical measures
- Using encrypted disks and drives
- Implementing two-factor authentication for VPN and cloud access
- Implementing off-network backups
- Ongoing monitoring of existing programmes
- Updating as quickly as possible
- Establishing routines for regular monitoring.
Organisational measures
- Training staff: Focusing on safe use of email, internet and social media
- Establishing contingency plans with contacts that employees can turn to
- Defining decision-making powers for teams or individuals
- Creating an offline backup of all plans
- Checking with employees to make sure everything is clear and well understood.
In practice: Technical IT security measures for logistics operators
Planning a sensible preventive response to a cyber security incident is one thing. Protecting your company from attacks in the long term is another. Many logistics companies have - often unnoticed - IT security vulnerabilities that they should actively address. This is because digitalised processes and numerous interfaces mean that basic protection is no longer sufficient.
A holistic view of the entire supply and value chain is required. Technical cyber security measures start with firewalls and antivirus software and end with regular system checks. Outdated software and hardware components are also an often underestimated risk. They provide a large potential target for cyber security in logistics.
Using state-of-the-art cyber security methods such as Security Information and Event Management (SIEM), logistics companies can quickly identify acute threats and take targeted counter measures.
EDR (Endpoint Detection and Response) is also used in the logistics sector to keep an eye on IT security vulnerabilities. The focus here is on end devices connected to the corporate network.
Vulnerability management completes the technical cyber security measures: It analyses weak points in the entire IT system and is considered the basis for cyber security in logistics.
Organisational cyber security responsibilities
To ensure comprehensive cyber security in logistics, organisations must also consider another aspect: people as a target. Cyber criminals are increasingly using social engineering to gain access to the company through employees. Attackers rely on people's ignorance and exploit this to gain access to confidential data.
One of the most important cyber security measures an organisation can take is to make employees aware of the real dangers. Training courses can help employees improve their knowledge of criminal tactics and techniques. In addition to theory, practical demonstrations such as live hacking events are useful. For example, ransomware in logistics can be presented in a realistic scenario. The result: Employees can practise how to react to attacks and thus make an important contribution to cyber security in logistics.
Conclusion
Digital transformation brings with it efficient, transparent and sustainable processes. To ensure cyber security in the logistics sector, companies need one thing above all else: holistic solutions. Technical and organisational cyber security measures working in harmony make a significant contribution to protecting organisations and their supply chains.
The basis for this is a tailor-made strategy that guides you through the jungle of cyber security solutions. With the logistics experts of the q.beyond subsidiary logineer, whose expertise combines digitalisation and cyber security, organisations can develop and implement efficient cyber security strategies. This enables them to identify IT security vulnerabilities and take timely action.
Related links
- Read more about cyber security for logistics companies here.
- Do you want to increase the security awareness of your employees? Then please click here.
Author: Bianca Heitmann
Bianca Heitmann (born 1984) works as Solutions Manager CargoWise at logineer. She began her career with an apprenticeship as a forwarding agent, then studied business administration/transport economics (DAV) and completed a three-year management trainee programme at Röhlig Logistics from 2009 - at its branches in South Africa and New Zealand. She then worked primarily at Röhlig's head office in Bremen, where she was most recently Head of Global Commercial Operations. Born in Hamburg, she joined logineer in December 2021. Bianca Heitmann lives in the Hamburg area and enjoys travelling.