Recent research by HFW and CyberOwl highlights that the maritime industry is a prime target for cyberattacks, with the cost per attack tripling to $550,000, and ransom demands surging by over 350% to an average of $3.2 million.
Marine Cyber Risk
The report is based on a survey of 150 industry professionals – including C-suite leaders, cyber security experts, seafarers, shoreside managers, and suppliers – and reveals significant gaps in cyber risk management that exist across shipping organizations and the wider supply chain, despite progress made by IMO 2021.
The research was carried out by the maritime technology research agency Thetius.
Key findings
The financial cost of a maritime cyberattack can be extreme:
- Average cyberattack costs have surged by 200% to $550,000 compared to 2022.
- Ransom demands skyrocketed by over 350%, with the average payment now at $3.2 million, up from $3.1 million in 2022.
- Alarming 24% of cyberattack victims fell prey to transferring funds to criminal organizations.
Despite these eye-watering costs, most shipping organizations significantly under-invest in cyber security management:
- a third spend less than US$100,000 per year
- 25% of survey respondents said their organization does not have insurance to cover cyber risk.
Although overall levels of preparedness seem to be improving:
- 80% of survey respondents understand what actions would be required of them in the event of a cyber security incident (up from 74% in 2022)
- 64% said their organisation has cyber risk management procedures for dealing with suppliers (up from 55% in 2022)
Insights Of Partner
Tom Walters, Partner, HFW:
The maritime industry has seen improvements in cyber security, but it remains a vulnerable target. Cyberattacks have surged in frequency and cost, especially with the growing reliance on technology in shipping operations. The consequences of a breach can be severe, affecting vessel communication, navigation, ballast water, cargo, and engine systems, potentially leading to grounding and supply chain disruptions. It’s crucial for the shipping sector to enhance cybersecurity to safeguard against such threats.
Words Of CEO and MD
Daniel Ng, CEO, CyberOwl:
“The good news is that the conversation on vessel cyber risk management has clearly shifted away from the ‘why’ towards the ‘how’. There is less scepticism about the need to manage the risk, more thoughtfulness on how best to spend each dollar in shoring up defences.
“What works in other sectors may not work in shipping. And applying a generic approach could lead to expensive wastage.”
Nick Chubb, Managing Director, Thetius:
“Our research shows that the industry has improved dramatically in a short space of time. But it also shows that cybercriminals are evolving faster. The costs of cyber-attacks are growing. The impact that can be created in the global supply chain by exploiting a single easy target means the entire maritime industry needs to raise the bar.”
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Source: HFW
