Cybersecurity in manufacturing: Risks and best practices

Cybersecurity is a constant and evolving threat in manufacturing. In today’s interconnected manufacturing landscape, absolute security just isn’t feasible. Even if a company were to disconnect entirely from the internet, the risk of a technological breach would remain if physical access were available to malicious actors or their associates.

The advent of cloud-based enterprise resource planning (ERP), digital transformation and Industry 4.0 solutions has revolutionized manufacturing. These innovations create efficiencies, enhance customer engagement and provide business intelligence that significantly improves operations and profitability — benefits analog systems simply can’t match. However, this increased digitization means manufacturers have a larger attack surface they must defend.

Keep reading to learn about the cyberthreats manufacturers need to be aware of and to explore some defense strategies to mitigate those risks.

What is cybersecurity in manufacturing?

The concept of cybersecurity in manufacturing is simple: Protect data, networks, systems and physical assets from unauthorized access, disruption or damage caused by cyberattacks. In practice, cybersecurity is a layered combination of controls, procedures and policies designed to reduce risk at every level of the organization.

A complete cybersecurity program typically includes:

• Software: Antivirus and anti-malware programs, real-time threat monitoring tools, security information and event management (SIEM) platforms, and endpoint detection and response (EDR) solutions.
• Hardware: Purpose-built security devices such as firewalls, intrusion detection systems and network access control appliances that monitor and filter traffic at the perimeter and inside the network.
• Policies and procedures: Documented standards governing how data is accessed, stored, shared and protected — including acceptable use policies, access control frameworks and more.
• Cybersecurity personnel: Whether through internal IT staff with dedicated security responsibilities or third-party cybersecurity partners, organizations need knowledgeable professionals to develop security programs, monitor threats, manage vulnerabilities and respond when incidents occur.
• Incident response and disaster recovery plans: No matter how robust your cybersecurity program is, things can still go wrong. Established incident response and disaster recovery plans help your institutions ensure employees know their responsibilities following an incident, contain threats, restore operations, maintain regulatory compliance and minimize customer impact. Be sure to conduct regular tabletop exercises to help staff practice their response, identify gaps and be better prepared to act quickly during an actual event.

Together, these components form a layered defense that helps manufacturers detect threats earlier, respond more effectively and recover more quickly when a breach does occur.

Why is cybersecurity important for manufacturers?

A cyberattack isn’t just an IT problem. It can impact a manufacturer’s operations, finances and reputation. The consequences can cascade across every function of the business.

The ramifications of a cyberattack can include:

Production downtime: When systems are compromised or taken offline, production lines stop. Even a short disruption can result in significant output losses, missed delivery commitments and idle labor costs.

Technical specification alterations: Attackers who gain access to engineering or design systems can modify product specifications undetected. If those changes reach the production floor, a manufacturer could unknowingly produce non-compliant or defective parts, creating quality, safety and contractual liability exposure.

Supply chain delays: Manufacturing operations are deeply interconnected with suppliers, logistics partners and customers. A cyberattack that disrupts order management, inventory systems or procurement tools can ripple outward, delaying incoming materials and outgoing shipments throughout the supply chain.

Loss of intellectual property: Manufacturers invest significant resources in product designs, formulas, process innovations and engineering data. If that information is stolen, manufacturers can experience an erosion of their competitive position and long-term market value.

Recovery costs: Restoring systems, rebuilding data and bringing operations back online is expensive. Organizations often incur costs for forensic investigations, incident response, hardware replacement, data restoration and temporary workarounds. Costs that can reach millions of dollars, depending on the scale of the attack.

Lost revenue: Every day a production line is down is a loss of revenue that can be impossible to recover. Customer orders may be canceled, contracts may be breached and long-term customer relationships may be damaged.

Regulatory fines: Manufacturers operating in regulated industries or working with government contractors may face fines or penalties if a breach exposes protected data. Standards that manufacturers may need to comply with include CMMC, HIPAA and PCI.

Loss of customer trust: A publicized cyberattack can damage the confidence customers, partners and investors have in an organization. Rebuilding that trust takes time, resources and consistent demonstration that security controls have been strengthened.

Common cybersecurity threats in manufacturing

Manufacturers face a wide range of cyberthreats. Understanding the most common attack methods is the first step toward defending against them. While tactics continue to evolve, the following threats are some of the most common:

Phishing and social engineering

Phishing attacks use deceptive emails, text messages or phone calls to trick employees into revealing login credentials, clicking on malicious links or transferring funds. Spear phishing is a more targeted method that tailors messages to specific individuals, often impersonating a vendor, executive or IT contact to appear credible. Because these attacks exploit human behavior rather than technical vulnerabilities, they can be difficult to prevent with technology alone.

Ransomware

Ransomware is malicious software that encrypts a company’s files or systems and demands a ransom to restore access. For manufacturers, a ransomware attack can halt production lines, lock ERP systems and cut off access to critical operational data. Even after a ransom is paid, there is no guarantee that data will be fully restored or that attackers haven’t retained access to the network.

Malware

Malware is a broad category of harmful software that includes viruses, worms, trojans and spyware. It often gains access to a network through a phishing email, an infected USB drive or an unsecured device. Malware can steal data, disrupt operations or create backdoors for future attacks. On the manufacturing floor, malware targeting operational technology systems can interfere directly with equipment and production processes.

Insider threats

Not all threats come from outside the organization. Insider threats, whether intentional or accidental, occur when current or former employees, contractors or vendors misuse their access to systems or data. A disgruntled employee may deliberately exfiltrate sensitive files, while an inattentive worker may inadvertently expose the network by clicking a phishing link or connecting an unsecured personal device.

Supply chain attacks

Manufacturers rely on an extensive network of suppliers, software vendors and service providers, each of which can serve as an entry point for attackers. A supply chain attack occurs when a cybercriminal compromises a trusted third party to gain access to a target organization’s systems. These attacks are particularly difficult to detect because the initial access comes through a legitimate and trusted connection.

Manufacturing cybersecurity best practices

Protecting a manufacturing operation from cyberthreats requires more than technology — it demands a coordinated strategy that spans people, processes and systems. Here are some cybersecurity best practices your business should commit to:

Comprehensive cybersecurity training

Comprehensive employee training is a critical element of a cybersecurity program. While organizations invest heavily in technology and perimeter defenses, many attackers target employees through social engineering tactics. As a result, cybersecurity awareness must become a shared responsibility across the organization, from the shop floor to the C-suite.

Training programs should cover topics such as:

• Recognizing phishing attempts and other social engineering tactics, including smishing (text messages) and vishing (phone calls or voicemails).
• Safe browsing habits, password management and multifactor authentication best practices.
• Proper handling, sharing and storage of sensitive company and customer data.
• Identifying and reporting suspicious activities, security incidents or potential breaches.

Regular cybersecurity assessments

Manufacturers should conduct frequent cybersecurity evaluations, either through internal IT teams well-versed in current trends or by engaging external specialists. These assessments provide valuable insights into potential vulnerabilities that malicious actors could exploit. Armed with this information, companies can develop or refine protective measures and policies to bolster their defenses against cyber fraud.

By implementing these strategies and maintaining vigilance, manufacturers can build resilience against cyberattacks, safeguarding their operations, data and reputation in an increasingly digital world.

Keep software and hardware up to date

Outdated and unsupported hardware and software create vulnerabilities that hackers can exploit.

Manufacturers should establish a routine patch management process that applies security updates to all connected systems, including programmable logic controllers (PLCs), industrial control systems and operational technology (OT) equipment, as soon as updates are available. Legacy systems that can no longer receive manufacturer support should be evaluated for replacement or isolated from the broader network to limit exposure. A proactive software maintenance program reduces the attack surface and closes known vulnerabilities before they can be exploited.

Real-time cyber monitoring

Real-time cyber monitoring is the continuous, around-the-clock observation of network traffic, user activity and system behavior to detect and respond to threats as they occur. Rather than discovering a breach after damage is done, real-time monitoring enables organizations to identify anomalies as soon as they appear, reducing response time and limiting the impact of an attack. For manufacturers with complex, interconnected systems across OT and IT environments, this visibility is critical.

For example, real-time monitoring can protect against violations of impossible travel rules. Imagine a scenario in which a legitimate user, such as the corporate controller of a manufacturing firm near Chicago, logs in to the network from their home office. Then, just three hours later, the same account logs in from Tokyo. This impossible travel scenario clearly indicates that the controller’s credentials have been compromised. However, without proper real-time monitoring, this breach could go undetected for an extended period.

Protect physical and digital entry points

For manufacturers, multiple physical and digital entry points into a network can exist. These pathways may seem insignificant or sufficiently hidden, but without proper care, they can provide a way in for potential threats.

On the physical side, this means securing server rooms, restricting access to network infrastructure and controlling who can connect external devices such as USB drives or laptops to production equipment. On the digital side, every remote access point, vendor connection, cloud application and IoT-enabled device represents a potential entry point that requires monitoring and access controls. A comprehensive entry-point review covering both the shop floor and corporate systems helps ensure that no overlooked pathway becomes a gateway for attackers.

Components of strong cybersecurity for manufacturers

A multilayer security strategy is the most effective approach to resist an attack. At its most basic level, the strategy should include:

• Password protocols: Implement and enforce the use of strong, unique passwords across all systems.
• Email protections: Deploy technologies that limit spam and spear-phishing attempts to reduce the risk of social engineering attacks.
• Multi-factor authentication (MFA): MFA adds an extra layer of security by requiring users to verify their identity through multiple steps when accessing company systems or applications. It’s crucial to implement MFA across all access points, including email, VPN, cloud-based apps and internal administrative accounts.
• End-point detection and response (EDR) and security information and event management (SIEM): EDR gives manufacturers real-time visibility into suspicious activity on endpoints such as laptops, servers and workstations, helping security teams identify malicious behavior that traditional antivirus tools may miss. SIEM expands that visibility by collecting and correlating security events across the broader IT and OT environment, including firewalls, identity systems, cloud applications, servers and network devices. Together, EDR and SIEM help manufacturers detect threats earlier, investigate incidents faster and respond more effectively before an attack disrupts production, compromises sensitive data or spreads across the network. This combined approach also supports stronger compliance reporting, better incident documentation and more informed security decisions.
• Regular vulnerability scans and penetration testing: To identify and address weaknesses before they can be exploited, manufacturers should conduct monthly or quarterly penetration testing of external systems and vulnerability scans of internal systems. This proactive approach is essential for maintaining a robust security posture.
• Vulnerability management: Cybercriminals constantly probe for security gaps. To make their job more difficult, companies should regularly deploy security patches, update software, remove unnecessary programs and disable unused system processes.
• Air-gapped backups and segmented networks: To protect against ransomware and other cyberattacks, backup files should be stored on a standalone network with separate credentials. This separation mitigates the risk of compromising both primary and backup data simultaneously.
• Recovery testing: Manufacturers need to regularly test their backup and recovery processes. This ensures that in the event of a network failure or cyberattack, they can efficiently restore operations and access critical files.

By adopting these foundational measures and continuously evolving their cybersecurity strategies, manufacturers can significantly enhance their resilience against the ever-growing threat of cyberattacks. Remember, in today’s digital landscape, cybersecurity isn’t just an IT issue — it’s a critical business imperative that demands ongoing attention and investment.

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