Threats to Manufacturing Security Growing
The manufacturing industry has become the main target for cybercriminals over the years. The news, trade journals, and professional organizations such as the Michigan Manufacturing Center (MMTC) and the Michigan Manufacturers Association (MMA) all have stressed the importance of manufacturers becoming aware of this growing threat.
- IBM released a study in 2016 titled, X-Force Research 2016 Cyber Security Intelligence Index, which found that the manufacturing sector was second only to healthcare as the most attacked industry in the country.
- The most recent Carbon Black Threat Report places the manufacturing industry at the top of the target lists for ransomware and malware.
- According to the Ponemom Institute, the average price for a small business to clean up after they have been hacked stands at $690,000; for mid-market companies, it is more than $1 million.
The Carbon Black Threat Report states that when considering the total amount of ransomware seen in 2016, manufacturing companies (16% of total ransomware instances), utility/energy companies (15.4% of all ransomware instances) and companies (12.6% of all ransomware instances) led the way.
The Carbon Black Threat Report also states that overall, malware continues to target every industry with manufacturing companies (21.8% of total malware), non-profit organizations (16.4% of total malware), and utility/energy companies (15.6% of total malware) leading the way in 2016.
DoD Guidelines
Manufacturers with government contracts, issued by the U.S. Department of Defense, have until December 31 to conform to new federal guidelines mandating suppliers adopt a variety of cybersecurity best practices, countermeasures, and reporting standards to continue to qualify for contracts. The new mandates, covered in the standards described in NIST Special Publication 800-171, apply to contractors for the Department of Defense, National Aeronautics and Space Administration (NASA) and the General Services Administration.
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Yeo & Yeo Technology and Yeo & Yeo CPAs & Business Consultants understand the challenges facing the manufacturing industry and are ready to help you approach these issues proactively. For more information on the and accounting solutions we can offer contact Jeff McCulloch, president of Yeo & Yeo Technology, via email at jefmcc@yeoandyeo.com or call 989.797.4075 or Amy Buben, CPA, CFE, Manufacturing Services Group leader, at amybub@yeoandyeo.com or call 989.793.9830.