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Blog Overview Chronicles Top 5 cyber fraud to watch out in 2022 in the logistics industry

Top 5 cyber fraud to watch out in 2022 in the logistics industry

Top 5 cyber fraud to watch out in 2022 in the logistics industry

Digital automation has proven to be a boon for the logistics industry. It has made the supply chain easier, especially amidst the pandemic. Lack of digital literacy amongst the end-users is leading to cyber fraud in India in the logistics industry.

The logistics industry ranks second in the list of ‘sectors most affected by cybercrime worldwide’. As per an Infosys survey, 38% of logistics companies have unresolved queries around data privacy and security.

If you are in the transportation business, you definitely need to beware of these top 5 cyber fraud in India in 2022.

  • Ransomware: This is a sophisticated form of attack where hackers take control of the company’s IT infrastructure and encrypt the servers or the whole system. This malware renders all the data & technology unusable unless the company pays a ransom. Ransomware attackers have become more inventive over time. They demand impossible-to-trace payments such as bitcoins, which lets the hackers remain unknown. The servers of Maersk – the World’s largest shipping company were hacked in 2017. Along with a loss of millions of dollars, it also led to a global supply chain crisis with 100s of containers stranded at the Mumbai JNPT trust.

 

  • Phishing emails: Phishing includes cyber thieves impersonating a real person.  On getting access to the company’s database, they may contact the customers via email, phone, or text message. The goal is to trick the receiver into divulging important information & passwords. The attacker poses as a trusted entity, usually a genuine/real person or a firm with which the victim does business.  Though one of the oldest forms of cyberattacks, it is one of the most common and harmful ones which you need to watch out for.

 

  • Freight forwarding fraud:  Here, scammers impersonate a reputable organization using fake domains. They replicate the official company website with the goal to defraud innocent customers. Imagine a scenario where upon searching for you on Google, your customers reach out to a fake helpline number or a fake website.  Unknowingly, they hand over their precious goods to the scammers.  A scary scenario like such can cause irreversible damage to your goodwill.

 

  • Corporate hacking: Your competitors might hire hackers to steal sensitive information from your company servers. As your mailing system gets compromised, your competitors can read & review all the internal communications. This innovative way of corporate espionage keeps your competitor a step ahead of you. Imagine, you are bidding for a government tender worth hundreds of crores, and you lose it by only a few lakhs. It would definitely hurt.

 

  • Remote worker exploitation: The massive surge in remote working since the pandemic has led many employees vulnerable to exploitation by hackers. In the logistic industry, this becomes even more challenging.  Thousands of truck drivers and freight forwarders work on the field in the remotest corners of the country.  These employees are outside the company’s firewall and may not be tech-savvy.  Hackers may take advantage of this fact and access all the sensitive information from their devices when they are working remotely. They may even place malicious software on company servers when the employees join the company’s network.

How to safeguard yourself from cyber fraud in logistics

Make cybersecurity – a company priority

The size of cyber frauds in India confronting transportation and logistics organizations is big. The potential for losses is in the tens of millions. Hence, taking precautions to protect IT systems from cyber-attacks is critical. Everything begins with security. Understanding the risks, identifying possible IT system vulnerabilities, and taking actions to mitigate them through best-practice security and access restrictions are all part of this process

Get yourself insured

The evolving nature of cyber-attacks makes it difficult to stay ahead of hackers. Transportation and logistics companies are incorporating cyber liability insurance into their larger haulage and logistics insurance programs. This will help mitigate financial and reputational damage if the worst happens.

Educate & train your employees

It’s important to organize training workshops for your employees on how to operate in a remote setting & spot cyber attacks. Since your employees are the first line of defense, most of the attacks can be curbed if they are aware of what to watch out for.

Have the right vendor onboarding partner

Make sure you have a trusted workforce who you can count on.  Choose the right vendor to onboard your employees to ensure that a competitor or hacker with past cyber-criminal records doesn’t enter your workforce. Check out IDfy’s vendor onboarding solution here.

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