Manufacturing CEOs feeling vulnerable to cyber security risks

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More than four-fifths (86%) of the executives surveyed, reported that their companies fell victim to at least one instance of fraud over the past 12 months.

This figure is 2% higher than the global average across all industry sectors (84%), according to the latest Kroll Annual Global Fraud & Risk Report.

An even greater percentage of executives from the manufacturing sector (88%) said their companies had experienced a cyber incident or information theft, loss, or attack over the past 12 months.

Just over seven in 10 respondents (72%) reported the occurrence of at least one security incident during the past year, two percentage points above the global average.

The report reveals that respondents in the manufacturing sector are experiencing a heightened sense of vulnerability to fraud, cyber, and security risks, with information-related risks now being the area of greatest concern.

As criminals and other threat actors continue to find new ways to monetize confidential data, including personal data, data assets are becoming increasingly valuable and attractive targets.

Confidential information subject to increasing threats

Information theft, loss, or attack was again the most prevalent type of fraud experienced in the manufacturing sector, cited by 33% of respondents, up 3 percentage points from the previous year.

Corruption and bribery was second on the list, reported by 28% of executives, more than twice the reported incidence in last year’s survey (12%).

More respondents from the manufacturing sector (88%) reported cyber incidents compared to the global figure of 86%.

In the year when major viruses such as WannaCry and Petya hit across the world, nearly four-in-10 (38%) executives surveyed said their companies had been impacted by a virus or worm attack.

A quarter (26%) said they had suffered an email-based phishing attack and the same proportion suffered a data breach.

Physical theft or loss of intellectual property (IP) was by far the most prevalent type of security incident. Of those executives in the manufacturing sector whose company experienced a security incident this past year, 45% said their organisations fell victim to IP theft or loss.