Cyber attacks on shipping industry in 2023 cost the target organisation an average of $550,000, a threefold increase from $182,000 in 2022, according to a new report by law firm HFW and maritime cyber security company CyberOwl.
The new 44-page report , ‘The Great Disconnect’ released in October 2023, said the shipping industry remains an ‘easy target’ for cyber criminals and ransom demands surged by more than 350%, with the average ransom payment reaching $3.2m, up from $3.1m in 2022. About 24% of the victims of cyber attacks were tricked into transferring funds to criminal organisations.
The report revealed that despite these financial risks, many shipping organisations allocate inadequate resources to cyber security, with one-third investing less than $100,000 annually.
Insurance coverage and claims are also uncertain. Nearly two-thirds (42%) of the participating industry professionals are indecisive about their insurance coverage for cyber attacks. A quarter (25%) believe no insurance is in place.
The report, however, noted that green shoots of improvements in industry’s preparedness can be seen. It found 80% of the survey respondents understand the actions needed during a cyber security incident, up from 74% in 2022.
Furthermore, 64% reported their organisations now have cyber security management procedures for supplier interactions, a notable increase from 55% the prior year.
HFW partner Tom Walters said, “As the use of technology continues to increase across all aspects of shipping – from ship networks to offshore installations and shoreside control centres – so does the potential for cyber security breaches.”
Maritime operational technology and fleet operations management are now almost entirely digital, meaning that a cyber attack could compromise anything from vessel communication systems and navigation suites to the systems managing ballast water, cargo management and engine monitoring and control. This is a critical issue for all parties involved in the shipping sector and it is clear that the industry has to do more to protect itself against cyber attacks. M