Navigating the Digital Storm: How Cyber Pirates Are Setting Sail on the High Seas, and Why Maritime Businesses Needs to Brace for Impact!
Why is the issue of cyber piracy such a significant worry in the maritime industry, and is enough being done to insure against attacks?
The NotPetya cyber-attack of 2017 highlighted the profound impact a cyber breach can have on the global shipping sector. Maersk, the world’s leading container shipping company responsible for transporting 15% of global trade, fell victim to a malware attack transmitted through accounting software.
The company experienced a complete shutdown: 50,000 machines, along with thousands of applications and servers, were infected across 600 sites in 130 countries. Maersk had to resort to manual operations for 10 days, investing in 4,000 new servers, 45,000 new PCs, and 2,500 applications to recover. The financial toll on Maersk amounted to an estimated $300 million, causing substantial delays in the global movement of goods. Given that maritime trade constitutes over 80% of total world merchandise trade, its intricate connection with various industries amplifies the ripple effects of disrupted or stolen cargo. The UK Office for Science emphasises that “disruptions to the maritime freight transport network can have rapid and wide-ranging effects on economies and societies.” Lloyd’s of London has cautioned that a severe cyber-attack could inflict a cost exceeding $120 billion on the global economy.
Despite shipping companies withholding data on cyber-attacks due to potential damage to their reputation, the escalating prevalence of cyber piracy is evident. Even the US Coast Guard has issued safety alerts regarding numerous cyber threats. In June 2017, the colossal shipping entity Maersk encountered a significant cyber-attack, paralysing its port operations as malicious software locked files on employee computers. Despite Maersk’s swift response, the attack shut down 76 port terminals and incurred a staggering $300 million in costs.
In recent decades, commercial shipping has undergone significant digitisation strides driven by supply chain considerations, green technology, and industry-wide cost optimisations leading to increased automation. While this promises enhanced efficiency, it concurrently creates a substantial target for cyber-attacks. The intersection of the maritime domain and digital technology is approaching a critical juncture where digital hijacking of container ships on the high seas becomes a plausible scenario.
To mitigate this risk, it is suggested for the International Maritime Organisation to issue explicit guidance and standards for securing large autonomous networks, including identifying uniquely vulnerable systems. Despite scepticism about the enforcement capabilities of the International Maritime Organisation, its guidance has proven effective in building consensus and driving specific changes within the global shipping industry. Collaborating with port authorities, shipping companies, and national governments demands substantial adaptations in the existing cybersecurity landscape. As the threat environment evolves, the shipping industry must proactively adapt to emerging cybersecurity challenges to remain resilient.
Current Vulnerabilities
Existing vulnerabilities in commercial ships lay the groundwork for potential cyber-attacks. Traditionally, vulnerabilities are categorised into information technology and operational technology. Information systems manage data and business information, while operational systems oversee a vessel’s onboard hardware and software. The Maersk attack primarily targeted information systems, causing business-side delays and changes. However, with the increasing prevalence and necessity of interconnectivity, the once-clear distinction between information and operational systems is rapidly becoming obsolete, posing a significant challenge to onboard cybersecurity.
Firms that continually monitor and remediate digital vulnerabilities are oftentimes less likely to suffer long-lasting network outages and are able to isolate and respond to myriad of cyber-attack vectors.
Written by, Dimaggio Rigby, Head of Cyber, Media & Tech Risks
Specialty Lines Division & Sarah Talbot, Head of Marketing & Communications
