Cyber threats to the haulage industry
As the logistics industry embraces digital transformation, the risk of cyber threats has significantly increased, with a haulage firm recently going into administration after a cyberattack
NISA affected by third party attack
On 31st October 2024, retailer NISA was affected by a cyberattack aimed at third party supplier, Microlise, who supplies DHL’s delivery tracking system. The attack led to the complete wiping of servers dedicated to the tracking system used by DHL to make NISA store deliveries.
Both Microlise and DHL moved swiftly to eliminate any disruptions to NISA retailers, reporting on the same day that deliveries had resumed as scheduled via an interim system that provided delivery updates every 15 minutes.
The attack is a stark reminder of the digital risks facing modern businesses, and that the consequences of a supply chain attack can be just as devastating as an attack on an organisation’s own infrastructure. Companies need to fortify their cybersecurity defences and improve third party resilience to combat evolving threats and safeguard operational integrity.
What this means for the future of Haulage companies
As the logistics industry embraces digital transformation, the risk of cyber threats has significantly increased. Cybersecurity and data protection have become critical concerns for haulage companies, where any vulnerability can lead to serious operational and financial consequences.
The digitisation of logistics has brought undeniable benefits, such as improved efficiency and real-time tracking. But it has also opened the door to cyber threats. Haulage companies are now prime targets for cybercriminals, facing dangers like ransomware attacks, data breaches, and phishing schemes.
A successful cyberattack can cripple logistics operations, causing delays, damaging reputations, and leading to substantial financial losses. For instance, a ransomware attack could lock crucial data, forcing companies to pay hefty ransoms or face operational shutdowns.
Furthermore, a data breach involving sensitive client information can result in legal penalties and a damaged business reputation, emphasising the need for robust cybersecurity measures.
Kettering-based KNP Logistics Group, a parent company of the 158-year-old Knights of Old haulage firm, entered administration following a major ransomware attack in June 2024, that severely impacted its systems and financial standing. The attack led to the redundancy of about 730 employees, showing that no matter how long a company has been operating, every business is at risk of a cyberattack.
Cyber insurance for haulage firms
Cyber insurance has become a vital safeguard for haulage companies, with cyber policies tailored to the logistics sector providing comprehensive protection against cyber incidents, which can include cover for costs associated with data restoration, IT repairs, and legal fees.
More importantly, they also address revenue losses due to operational downtime caused by cyber disruptions. With the increasing sophistication of cyber threats, having cyber insurance in place not only mitigates financial damage but also helps businesses recover swiftly from cyber incidents.
As logistics companies become more dependent on digital systems, investing in cybersecurity infrastructure and cyber insurance is no longer optional. Protecting data and ensuring operational continuity are essential for maintaining trust and competitiveness in the modern logistics landscape. For haulage firms, this means prioritising cybersecurity as a critical component of their business strategy.
Talk to PIB
PIB works with all types of logistics companies and has particular expertise in providing protection against the fallout from cyberattack. Whether you’re a haulier, logistics company, single operator or fleet operator, we understand your business needs and the type of threats you are facing and can arrange tailored insurance that addresses your specific needs.
PIB CyberPrepare
As well as offering cyber insurance, PIB has developed a comprehensive cyber risk management platform, CyberPrepare, designed to help businesses identify vulnerabilities, receive expert analysis, and implement effective cybersecurity measures.
CyberPrepare performs an initial scan of your digital estate, delivers a comprehensive resilience report, and provides continuous access to an interactive dashboard. This dashboard presents the findings and offers extensive guidance to help your organisation address any identified gaps.
Sources:
https://motortransport.co.uk/operator-news/microlise-battling-halloween-cyberattack-which-disrupted-dhl-store-deliveries-for-nisa/24838.article
https://motortransport.co.uk/cyberattack-on-microlise-hits-operators-triggering-call-for-stronger-continuity-plans/24912.article?adredir=1
https://www.bbc.co.uk/news/uk-england-northamptonshire-66927965