Cybersecurity in Food Manufacturing: Protecting Your Business in a Digital Age

Cybersecurity in Food Manufacturing: Protecting Your Business in a Digital Age

The food manufacturing industry is increasingly vulnerable to cyberattacks due to its complex supply chains, reliance on legacy systems alongside modern technology, and the growing integration of operational technology (OT) and information technology (IT). While cybersecurity investments may not offer immediate returns, the costs of neglecting cybersecurity can be substantial. Attacks can result in significant financial losses, including ransom payments, incident response expenses, data recovery costs, regulatory fines, and production disruptions. For example, the 2021 cyberattack on JBS, a global meat processing giant, forced the company to pay millions in ransom and incident response costs, resulting in temporary closures of meat processing plants worldwide.

Direct Costs

• Incident Response: Hiring cybersecurity professionals to identify the breach, contain the damage, and recover systems can be a significant expense. In the 2021 attack on JBS, a global meat processing giant, the company reportedly spent millions on incident response alone on top of the ransom they paid.
• Data Recovery and Remediation: Recovering lost data and repairing compromised systems can be a lengthy and costly process. Depending on the severity of the attack, this could involve restoring entire databases or rebuilding critical infrastructure.
• Regulatory Fines: Data breaches involving sensitive consumer information can trigger hefty fines from regulatory bodies. For instance, the European Union’s General Data Protection Regulation (GDPR) allows for fines of up to €20 million or 4% of a company’s global annual turnover, whichever is higher.
• Production Disruptions: A cyberattack can compromise your ability to produce and distribute food. Hackers may disrupt critical automated systems on factory floors, leading to production slowdowns or even complete shutdowns. Perishable goods may spoil, forcing costly recalls. JBS’s attack, for example, caused temporary closures of meat processing plants across the globe, impacting their production and likely leading to lost revenue.

Indirect Costs

Cyberattacks can have long-lasting effects on a business. Here are some residual consequences that can cost a company:

• Loss of Sales: Consumers may be hesitant to buy products after a data breach, fearing their personal information is at risk. This can lead to a decline in sales and market share, and recovery can potentially take years.
• Damaged Brand Reputation: News of a cyberattack travels fast, and even a minor breach can severely damage a company’s image. Consumers may perceive the targeted company as careless with sensitive data, eroding trust in its brand. A study by IBM found that data breaches can cost companies an average of $4.45 million in brand reputation damage.
• Increased Insurance Premiums: Cyberattacks can significantly increase cyber insurance premiums. This additional cost can further strain finances, especially if the company hasn’t adequately prepared for a cyberattack.

Cyberattacks also pose severe reputational risks. Consumers are increasingly concerned about data security, and a breach can erode trust in a brand, leading to lost sales and market share. News of an attack spreads rapidly, potentially raising doubts about a company’s commitment to data protection and even the safety of its products.

To mitigate these risks, food manufacturers need a comprehensive cybersecurity strategy that addresses their unique challenges. Implementing robust security infrastructure, such as firewalls, intrusion detection and prevention systems, and rigorous patch management, is crucial. Equally important are strong access controls, including multi-factor authentication, the principle of least privilege, and regular access reviews. Companies should also develop and regularly test an incident response plan, prioritize data backup and recovery, and provide ongoing cybersecurity awareness training to employees.

Given the complexity of OT environments, partnering with cybersecurity experts specializing in this area can be invaluable. These experts can provide tailored solutions, such as OT zero trust systems, portable malware inspectors, and intrusion prevention systems designed for OT-specific vulnerabilities.

By proactively addressing cybersecurity, food manufacturers protect their financial stability, brand reputation, and consumer trust in an increasingly digital world. For a deeper understanding of how to safeguard your food manufacturing business, refer to Financial and Reputational Risks of Cyberattacks in Food Manufacturing by TXOne.