Are Hackers Setting Their Sights on Global Shipping?

Cyber attacks on the shipping industry have surged dramatically, with Nigerian criminal gangs often at the forefront of these incidents. Solicitor Henry Clack from London-based HFW highlights the prevalence of 'man-in-the-middle' fraud, where hackers intercept communications between parties to steal sensitive information. The shipping sector has seen the costs of cyber incidents rise sharply, making cyber security a critical concern for global trade.

Last updated: 05 October 2023 (BST)

Understanding the Rise of Cyber Attacks in the Shipping Industry

The increase in cyber attacks within the shipping industry has become a pressing issue for global trade. Cyber criminals, particularly those linked to organised crime groups in Nigeria, have exploited vulnerabilities in the shipping sector with alarming frequency. According to recent reports, the costs associated with such attacks have skyrocketed, prompting maritime organisations to seek more robust cyber security measures.

Key Takeaways

• Nigerian organised crime is a significant threat to shipping firms, particularly through cyber fraud.
• Costs of cyber attacks in the shipping industry have doubled, averaging £410,000 between 2022 and 2023.
• The average ransom payment demanded by cyber criminals has reached £2.5 million.
• Cyber attacks on shipping have increased from 10 incidents in 2021 to at least 64 in 2022.
• New technologies have made shipping operations more vulnerable to cyber threats.

The Nature of Cyber Attacks

Cyber attacks in the shipping sector primarily manifest in the form of 'man-in-the-middle' fraud, a sophisticated tactic used by hackers to intercept communications between parties. This method allows criminals to impersonate both sides, extracting sensitive data such as login credentials and financial information. Such attacks can lead to significant financial losses and operational disruptions for shipping firms.

Henry Clack explains that these incidents have become increasingly common, with many cases involving shipping companies falling victim to fraud. "The most common counterparties we've encountered are Nigerian organised criminal organisations," he notes, underscoring the geographical link to the rise in cyber crime.

Financial Implications of Cyber Crime

The financial impact of these cyber attacks is staggering. HFW's data indicates that the cost of dealing with a cyber attack has doubled in just one year, with the average expenditure now around £410,000. Furthermore, in instances where cyber security experts are unable to eliminate the hackers, the average ransom payment has escalated to approximately £2.5 million. This escalating cost poses a serious threat to the viability of shipping firms, which are integral to the global economy.

Industry Vulnerabilities and New Threats

As the maritime industry continues to digitise, vulnerabilities have multiplied. The introduction of advanced communication technologies, such as Elon Musk's Starlink satellite service, has made ships more connected than ever, but also more susceptible to hacking. For instance, a notable incident involved a US Navy chief who was relieved of her duties for installing an unauthorised satellite dish on a combat vessel, enabling internet access but compromising security.

Moreover, the average age of cargo ships is around 22 years, making it challenging for shipping companies to keep their systems updated with the latest security measures. This outdated technology can leave ships vulnerable to attacks, as highlighted by incidents of GPS jamming and spoofing, where hackers send false navigation data, leading vessels off course and potentially into dangerous waters.

GPS Vulnerabilities and Their Consequences

GPS spoofing has emerged as a significant threat, as demonstrated by a recent incident involving the MSC Antonia, which ran aground in the Red Sea following a suspected GPS spoofing attack. This kind of cyber sabotage not only threatens the safety of the vessels but also poses broader risks to international shipping routes. Reports suggest that some GPS targeting incidents in regions like the Baltic Sea have been linked to state actors such as Russia.

Industry Responses and Regulatory Changes

In light of the rising threat landscape, the shipping industry is taking proactive measures to enhance cyber security. In 2021, the International Maritime Organization (IMO) implemented new cyber security provisions as part of its global safety management code for merchant shipping. These provisions mandate that ship management systems include robust cyber risk management practices, addressing deliberate cyber attacks and incorporating extensive security measures.

Tom Walters, a shipping expert at HFW, explains that these regulations now require shipping companies to adopt stringent cyber security protocols, ranging from basic hygiene practices to advanced operational and IT measures. This shift marks a significant improvement in the industry's readiness to combat cyber threats compared to previous years.

Increased Awareness and Future Outlook

Industry professionals, including John Stawpert from the International Chamber of Shipping, express optimism about the shipping sector's ability to counter cyber threats. "There's hugely increased awareness across the industry of cyber attacks and cyber crime," he notes, suggesting that this heightened awareness will continue to grow in the coming years. The maritime industry is gradually evolving to protect itself against these sophisticated cyber criminals.

Communication with Criminals

In the unfortunate event of a cyber attack, communication with the perpetrators is typically conducted through electronic text. Clack mentions that these interactions are kept brief and often occur during ransomware ransom negotiations. "Communication is via online messaging services, maybe one message, no more than a couple of sentences, each day," he explains, underlining the tense nature of such exchanges. This highlights the challenges faced by shipping firms in navigating the complexities of cyber crime while striving to protect their operations.

What Happens Next?

The future of cyber security in the shipping industry will likely hinge on continued advancements in technology and regulations. As the sector becomes increasingly reliant on digital solutions, the need for comprehensive cyber security strategies will only intensify. Stakeholders must remain vigilant and proactive in addressing emerging threats, ensuring the integrity and safety of global trade.

As shipping continues to play a pivotal role in the global economy, the fight against cyber crime will remain a priority. Will the maritime industry rise to the challenge and secure its operations against these evolving threats? Only time will tell. #CyberSecurity #ShippingIndustry #MaritimeSafety

FAQs

What are the main types of cyber attacks in shipping?

The main types of cyber attacks in the shipping industry include 'man-in-the-middle' fraud, GPS spoofing, and ransomware attacks. These tactics allow hackers to steal sensitive information or disrupt shipping operations.

How much does a cyber attack cost the shipping industry?

The average cost of dealing with a cyber attack in the shipping sector has doubled to approximately £410,000, while ransom payments can reach up to £2.5 million if hackers are not easily removed.

What measures are shipping companies taking against cyber threats?

Shipping companies are implementing stricter cyber security protocols as mandated by the International Maritime Organization (IMO), which includes risk management practices and enhanced operational security measures.

Why is the shipping industry a target for cyber criminals?

The shipping industry is a prime target due to its critical role in global trade, the interconnectedness of its operations, and the potential for significant financial gain for cyber criminals.

What is GPS spoofing and why is it dangerous?

GPS spoofing involves sending false location data to navigation systems, potentially leading ships off course and into dangerous situations, which can cause physical damage and operational delays.