Transportation may not seem like an industry with a large cyber exposure. However, as shown in an online report from AmWINS Group there are critical internal and external networks that transportation and logistics companies rely on. Here is AmWINS' top 10 list:
- Contingent system failure of a firm's client or vendor, causing a business interruption loss. Cyber business interruption can be extended to cover contingent system failure.
- Social engineering including business email compromise to cause a fraudulent transfer of funds loss.
- Network corruption causing spoilage or lost shipments - property damage in addition to data loss.
- Loss or theft of private and confidential information.
- If truckers are subject to an electronic logging device (ELD) mandate, disabling the device by a virus, ransomware or hacking causes a business interruption loss.
- State and federal privacy laws with varying breach notice requirements cause reporting problems for companies operating across state lines.
- Outsourced cybersecurity firm errors can lead to claims by regulators or customers.
- Employees using mobile devices at work can compromise network security.
- Employee errors can lead to loss of data and/or business interruption.
- Data hacking can lead to bodily injury or property damage claims. In a worst case scenario, neither conventional nor cyber policies would cover if this risk is not addressed.
Not all of these risks are peculiar to transportation and logistics, but this list shows that no industry is immune from cyber risk.