Cyber-attacks cause enormous damage to the targeted companies. In Germany alone, 22% of all logistics companies experienced a cyber assault in 2022. In the EU, the rate of attacks is likely to be at least comparably high, but most likely even higher. Maurice Teltscher, CEO of INVENTRY GmbH, presented figures on this critical security issue and other facts on cyber criminality at the Riege Software’s recent networking event in Dusseldorf.
In total, the INVENTRY experts surveyed 500 logistics companies, making the findings very representative. That said, even more disturbing than the figures mentioned above, were these results delivered by security expert, Teltscher, to the 90+ attendees of Riege Software’s meeting: 95% of the companies that took part in the investigation, were unable to work online following a successful hacker attack. They were offline for an average period of thirty days, with significant economic damage as a result. Of particular concern is that almost all of them had vulnerabilities in their data security systems that hackers were able to use for their own purposes. Something that might happen again in future if deficiencies are not abolished and cyber security is not upgraded. Overall, this was true for an alarming 95% of the companies surveyed.
Paying ransoms is expensive and only helps to a limited extent
These figures also make people sit up and take notice: To recover their data from the hackers, ransoms averaging 252,000 euros were paid to criminals. And 46% of all hacked companies decided to pay to get their data back. On the one hand, this is understandable since the detection rate of hacker attacks is less than one percent. On the other hand, returning data after a ransom has been paid does not guarantee that it will not be leaked to the public through other channels. This is because hackers usually place critical information on the darknet, where others can tap them, as the security expert reported.
Cyber-attacks – another means of warfare
For some time now, it has been mainly Russian groups that have been launching cyber-attacks on Western companies. They are less interested in ransoms than in harming the economy. It is a show of force and an attempt to humiliate EU-based companies - another line of conflict in the Kremlin's fight against the Western system.
Companies that have a large number of suppliers, such as Airbus which Teltscher cited as an example, are particularly exposed to a high risk. These suppliers are often a gateway for data theft and the placement of malware because their security systems are easier to crack than the aircraft manufacturer's and defense specialist's own.
Three important safeguards
The protective measures he recommends include an efficient firewall that blocks unauthorized traffic, frequent password changes, proof of identification through two-factor authentication, regular training including refreshers for employees, and contingency plans in the event of a successful, or partially successful, hacker attack. In summary, there are three pillars that companies should definitely consider when it comes to improving cyber security: 1. Prevention by implementing high security standards, including employee sensitization, 2. Data backup with daily updates and finally - to prevent bitter and costly consequences – 3. Setting up and updating an emergency plan.
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