Cybersecurity 2.0

Trend Overview

Impact:

High

Adoption:

< 5 Years

Focus Areas:

Physical & Digital Security Visibility & Resilience

Trend Clusters:

Digital Backbone

Sectors:

The trend of Cybersecurity 2.0 encompasses the next generation of solutions, processes, and standard operating rules and regulations that leverage artificial intelligence (AI) and other advanced technologies and ways of working against cyberthreats. It involves protection, detection, and response tools that not only prevent attacks but also actively predict and autonomously detect threats and respond to attacks.

Due to their critical role, logistics networks are a prime target for cyberattacks. Across the entire supply chain, technological advances in generative AI, quantum computing, and more represent an increasing challenge to traditional protection and encryption methods. Attackers seek to compromise the weakest link in supply chains, which could be a software supplier or hardware manufacturer whose products are used within the infrastructure. Meanwhile, increased usage of digital infrastructure, pervasive connectivity, and convergence expose previously isolated assets in operations (operational technology).

Not only cybersecurity teams but also every logistics professional must be vigilant. Major risks include ransomware, AI attacks, malware, denial of service, information manipulation and interference, and attempts to convince employees to share confidential information (known as social engineering). Moreover, increasingly sophisticated hacking makes it difficult to detect the launching of “dark” services such as FraudGPT and WormGPT.

Cyberattacks can significantly impact logistics organizations. Importantly, such an impact can reverberate throughout the entire supply chain, creating a ripple effect that can cause up to 26 times the loss for a company’s business ecosystem. For this reason, the trend of Cybersecurity 2.0 will undoubtedly play a pivotal role in ensuring the resilience and security of organizations in all sectors.

Here at DHL, we recognize the transportation sector is a prime target for ransomware due to its critical role in the supply chain. As logistics operations are heavily driven by digital applications and integration, enabling global reach within the supply chain ecosystem, any threat to these core tools could devastate the entire ecosystem and flow of goods.

Increases in vast data sets from the rise in Internet of Things (IoT) implementations provide attackers with a ready supply of data to sell or exploit. And just as AI and automation are helping logistics companies be more efficient, cybercriminals are using these capabilities in attacks which are increasingly hard to detect and manage.

As risks increase in the supply chain, the growing demand for skilled cybersecurity professionals outpaces the supply of qualified candidates.

Number of incidents by threat type (July 2022-June 2023)

Source: ENISA (2023): ENISA Threat Landscape 2023

Relevance to the Future of Logistics

Rise of Cybercrime in Logistics

The logistics industry is identified as being among the top 10 sectors impacted by cybercrime worldwide, as it is one of the most globally connected industries. While digitalization brings advantages, the dynamic transformation of systems can leave some security factors unconsidered. Outdated servers, unpatched systems, and knowledge gaps between employees equate to cracks in the IT infrastructure which provide loopholes for cyberattack. As this applies to all aspects of the industry, including maritime, rail, trucking, supply chain, and last-mile delivery, the potential expense of this risk is high and can disrupt global supplies, while also introducing additional liabilities like the theft of sensitive customer data during a cyberattack.

Massive losses are incurred by owners when ransomware cyberattacks compromise system access. In 2023, the average cost of a security data breach was US$ 4.45 million. The cost for cybersecurity breaches across the board is expected to grow to almost $10.5 trillion by 2025.

Cybersecurity 2.0 solutions, processes, rules, and regulations will help protect organizations from such losses, while also protecting brand reputation and customer loyalty.

Companies can use AI and machine learning (ML) to identify the unusual patterns and anomalies that indicate potential cyberattack. To mitigate damage, these technologies can quickly adapt to new threats and automate response actions. Companies can also use behavioral analytics to monitor user and network behavior, detecting the deviations from normal activity that signal potential security breaches. And automated systems are available to rapidly disseminate threat intelligence, enabling a faster response to any emerging threat.

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Anticipation & Resilience

While digitalization and new technologies create business efficiencies, the growth of (e-commerce) platforms and the masses of data being stored in the cloud increase the need for cybersecurity. Anticipating cyberattacks on these platforms not only secures suppliers but also the private data of their customers. Although logistics and the supply chain continue to operate in a very hands-on manner through the physical movement of products, this requires a significant volume of data processing and information sharing along the supply chain. The typically disparate network of parties involved in the supply chain creates more ways for would-be attackers to identify weak links in cybersecurity.

It is vitally important for logistics organizations to increase cybercrime resilience by implementing a strong digital backbone and by staying up to date with the cyberthreat landscape. The impact of IT system vulnerabilities on business processes, products, employees, and customers alike must be constantly monitored to preserve the value chain, keep the global supply chain moving, and ensure a position of cyber resilience.

Cybersecurity 2.0 brings various AI and ML tools to the table for threat monitoring and resilience within organizations. For example, continuous monitoring and real-time analytics enable security information and event management (SIEM) systems to aggregate and scrutinize activity from various resources across the IT infrastructure and analyze hardware and application security alerts. In addition, an intrusion detection and prevention system (IDPS) can monitor networks and systems for malicious activity or policy violation, taking action in real time to prevent intrusion.

Another valuable tool is vulnerability management. Regular vulnerability scanning of IT systems helps identify weaknesses that attackers could exploit. Also, automated patch management solutions keep systems up to date with the latest security patches, reducing the window of attack opportunity.

Incident response management is another effective method. Automated incident response solutions such as a security orchestration, automation, and response (SOAR) solution can automate responses to detect threats. This reduces response times and helps mitigate damage. A further tool is threat intelligence and analysis using a threat intelligence platform (TIP) to collect and analyze threat data from various sources. This provides insights into emerging threats and helps the organization proactively defend against potential attacks.

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Cybersecurity in Operations

As intelligent security expands in operations through the adoption of technologies such as computer vision, IoT devices, and AI-powered autonomous surveillance systems, so too does the possibility of cyberattack. In addition, the level of risk increases when these technologies are deployed in cloud-based solutions which capture customer data and data generated by the logistics infrastructure, automated warehouses, transportation networks, and other logistics operations.

Many operational technology (OT) devices can be deployed in the supply chain to improve visibility and for process optimization. However, these technologies and automation systems may represent a back door through which cybercriminals can access the enterprise system. Cybersecurity within the software supply chain must be increased and constantly monitored up to second and third tier levels to protect the organization from attack through these OT devices.

There are several key areas where cybersecurity needs to ensure the integrity, reliability, and efficiency of devices and technologies. For example, a supervisory control and data acquisition (SCADA) system can control critical supply chain infrastructure including energy management and manufacturing processes. Robust authentication, encryption, and regulatory security updates are required to secure the SCADA system. Another example is separating or segmenting the IT network from the operational technology network to prevent a breach in one impacting the other. Companies can use firewalls, virtual local area networks (VLANs), and dedicated communications channels, actively monitoring these in real time.

Further examples include supply chain IoT devices such as sensors and smart trackers that need to be secured against cyberthreats. These require strong authentication and regular firmware updates. Mobile and edge devices are also being used in the supply chain and these need to be protected through encryption, secure authentication, and remote management capabilities. Another area is the security information and event management (SIEM) systems that can collect and analyze log data from various sources within the OT environment for real-time detection and response to security incidents.

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Quantum Computing & Data Protection

Quantum computing can provide an extra layer of digital privacy and security to counteract hacking. For example, quantum mechanics principles can be used to create almost unbreakable cryptographic keys and ensure secure communication channels resistant to quantum attacks. Quantum computing can accelerate ML algorithms used for anomaly detection, pattern recognition, and real-time threat analysis. In addition, quantum computers can simulate complex cybersecurity scenarios and potential threats more accurately and rapidly, helping companies achieve proactive defense strategies. However, quantum computers can also accelerate hacking, and this puts the enterprise and cybercriminals in a race for the upper hand.

Quantum computing is therefore a double-edged sword, advancing opportunities for cybersecurity practitioners and raising risks in the cybersecurity environment at the same time. Although quantum computers are not yet commercially available, once they materialize and fully mature, attackers are likely to use them to break some current cryptographic systems.

Organizations are recommended to prepare for the quantum computing era by assessing their current cybersecurity position and developing transition plans. This should include evaluating the readiness of existing systems and infrastructure for quantum-safe solutions.

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Challenges

Humans are the first line of cyberattack defense, so the organization must dedicate sufficient cybersecurity resources and provide ongoing employee training, reminding personnel how to remain alert to threats and, if necessary, conducting special exercises such as sporadically imitating phishing attempts.

Responding to the increased availability of technology interfaces, fueled by AI, the organization needs a much larger pool of educated and knowledgeable cybersecurity personnel but these specialists may not be readily available.

Companies must invest more because defense against cyberattack is becoming more costly, complex, and tech-heavy.

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Outlook

The logistics cyberthreat landscape is increasing and becoming more complex with the arrival of new, improved technologies. For every company, cybersecurity and threat detection must be foundational to secure operations and protect all resources, with focus in the software value chain to more tiers, protecting the organization’s suppliers and partners as well.

Cybersecurity 2.0 offers a comprehensive approach to navigate ever-evolving cyberthreat landscapes. By prioritizing prevention, detection, and response, the organization can safeguard its data, systems, and reputation in these challenging times.

This trend should be ACTIVELY monitored,with use cases in some applications that can already be addressed today.