Why Your Company Needs Operational Technology (OT) Cybersecurity

OT / IT Convergence

To make matters even more complicated, the line between OT and IT has grown more blurry over the years. Before, IT and OT systems were often kept separate. However, due to technological advances, it’s becoming more common to integrate OT with IT. This is because OT and IT systems can communicate with each other to generate helpful information and make more efficient decisions. For example, let’s say you ordered a package and want to track its location and estimated delivery time. An IT system can access information from the OT shipping container location and combine it with traffic and weather data to predict when the order will arrive. 

While OT / IT convergence has several advantages, it also presents new risks in the realm of cybersecurity. Before convergence, OT systems existed in an “air-gapped” environment, meaning they weren’t linked to any external networks or digital technology. As such, OT cybersecurity simply wasn’t necessary because there was no risk of outside threats. However, linking OT systems to IT networks has opened up a whole new attack surface for hackers, and many have begun targeting OT systems. In fact, IBM reported a 2000% increase in OT cybersecurity incidents in 2019 and predicted that incidents would continue to grow by 30% every year. 

What Threats Do OT Cybersecurity Breaches Pose?

Without an effective cybersecurity system in place, the consequences for your company can be severe and even deadly. Here are a few ways OT cybersecurity attacks can harm your business, employees, and consumers:

1. Production Disruptions

Whereas IT attacks focus on data theft, OT attacks are more interested in physical disruptions to equipment and production. OT system attacks usually result in equipment malfunctions that can delay or even completely shut down production. Because of OT / IT convergence, attacks to IT systems can also hold extreme consequences for OT systems. In 2021, a ransomware group infiltrated a major oil pipeline’s IT system through an unprotected VPN. The company, Colonial Pipeline, had to take its OT systems offline in order to prevent the attack from spreading. While halting production was the safest option, the decision ultimately caused a fuel shortage that impacted consumers across the nation. 

2. Financial Loss

When your company’s production is disrupted or tampered with, you can expect to see some level of financial loss. On average, the annual cost of cybercrimes totals around $13 million per company. However, depending on the severity and sophistication of the OT cyberattack and your security system’s effectiveness, the financial consequences will vary. For example, if your company’s cybersecurity is particularly weak, it may cause lengthier delays in production that in turn lead to higher financial losses. Another potential financial consequence is that an OT attack might result in a company sending out defective products, forcing them to issue a product recall and refund customers. For certain industries such as pharmaceuticals or automotives, defective products can cause serious health risks or injury that may result in lawsuits and legal fees. 

3. Reputational Loss

Unfortunately, many OT cybersecurity breaches happen because a company didn’t take steps to properly secure its networks or identify cybersecurity risks posed by third parties. Preventable mistakes like these reflect poorly on a company’s reputation, as they demonstrate gross negligence regarding customer safety and privacy. Many companies find it difficult to bounce back from reputational damage caused by an OT breach, which can be even more severe and long-lasting than the financial costs. 

4. Loss of Life

In the worst-case scenario, OT breaches can even result in loss of employee or consumer life. Unlike IT, OT breaches are unique because of their potential for real physical harm. Consider the 2021 attack on a water treatment plant in Oldsmar, Florida. Malicious hackers infiltrated the company’s system and raised the level of sodium chloride in the water supply over 100 times the usual amount, effectively poisoning the water. While watchful employees were able to halt and reverse the attack, the incident showcased how critical OT cybersecurity is to protecting public health. These incidents will likely only increase over time, as Gartner predicts that cyber attackers will have weaponized OT environments to successfully harm or kill humans by 2025.