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24 Pallet C e nt ral • May -Ju ne 2 0 25 1. Costly Down me When hackers strike, their goal is to cause maximum disruption. In manufacturing, even brief production delays can have devastating financial consequences. Cybercriminals exploit this urgency by launching ransomware attacks that paralyze equipment and demand a hefty payment to restore operations. 2. Hyper-Connected Supply Chains Modern supply chains rely on intricate networks of third-party vendors and global partnerships. While these connections boost efficiency, they also create multiple entry points for cyberattacks. Hackers often infiltrate systems through smaller vendors or pose as trusted suppliers to exploit funds or data. 3. Increasing Digital Complexity e push toward digital transformation, automation, and Industry 4.0 technologies has revolutionized manufacturing. However, each new system or tool introduces potential vulnerabilities, providing hackers with more opportunities to breach networks. 4. Intellectual Property at Risk Manufacturers often possess valuable trade secrets and intellectual property. Hackers recognize the financial potential of this information, whether through ransom demands or selling it on the dark web. The Top Five Cybersecurity Risks for Pallet Manufacturers Understanding the specific threats facing your business is the first step toward safeguarding your operations. Here are the five most significant cybersecurity risks for wooden pallet manufacturers and actionable steps to mitigate them: 1. Ransomware A acks Ransomware is one of the most common and damaging threats manufacturers face. ese attacks can freeze your systems, disrupt operations, and expose sensitive data, leaving you at the mercy of cybercriminals demanding a ransom. What You Can Do: • Conduct phishing email drills to train employees on identifying suspicious activity. • Enforce strong password policies and multi-factor authentication across the organization. • Partner with a managed IT provider to develop a robust recovery plan. 2. Vulnerability Exploita on Hackers often exploit weaknesses in systems, software, or processes to gain unauthorized access. In a manufacturing environment with complex networks, such vulnerabilities can be challenging to detect and address. What You Can Do: • Regularly update and patch systems to close security gaps. • Perform routine security audits to identify and fix vulnerabilities. • Vet vendors and partners to ensure their cybersecurity practices align with your own. 3. Industry 4.0 Risks e adoption of Industry 4.0 technologies like the Internet of ings (IoT), artificial intelligence, and cloud computing has transformed manufacturing. However, these tools come with unique risks that require careful management. What You Can Do: • Pilot new technologies before fully integrating them into your operations. • Train employees on proper usage and cybersecurity best practices for new tools. • Consult with cybersecurity experts to evaluate potential risks. 4. Supply Chain A acks Global supply chains are increasingly vulnerable to cyberattacks, with hackers using one company's systems "A single data breach can cost a staggering $5.56 million on average in the industrial sector—an expense few businesses can absorb. " CYBER CONT.