News & Updates

The painful cost of Cybercrime to the US Healthcare Sector In February 2024, UnitedHealth Group’s subsidiary, Change Healthcare, suffered a significant cybersecurity breach, which has had far-reaching consequences across the U.S. healthcare system. The attack, attributed to the ALPHV/BlackCat ransomware group, compromised both personally identifiable information (PII) and protected health information (PHI) for many individuals. Early estimates suggest that the breach affected a substantial portion of the U.S. population, with roughly 4 terabytes of data stolen. This breach disrupted UnitedHealth Group key operations, including the processing of medical claims and payments, which in turn affected hospitals, pharmacies, and other healthcare providers nationwide. As a result, some individuals were unable to use their insurance to access prescriptions, and healthcare providers faced financial strain due to frozen payments. UnitedHealth Group confirmed that the attack caused major outages, which they expected to fully resolve by the end of March 2024. In response to the attack, Change Healthcare resorted to manual processes to maintain business operations while working to restore its digital systems. The company paid an initial ransom of $22 million, but the costs related to recovery, system reconstitution, and business disruption could exceed $2.9 billion. Why Healthcare sector System Recovery needs an urgent upgrade This breach has raised broader concerns about the vulnerabilities within the healthcare sector, prompting discussions about the need for stricter cybersecurity regulations. Lawmakers are considering new policies to strengthen defenses and ensure that healthcare providers are better equipped to handle such attacks in the future. Although the HIPAA (Health Insurance Portability and Accountability Act) regulations outline specific requirements for System Recovery which we covered in a previous article, the act itself dates to 1996 with HIPAA’s Privacy Rule and Security Rule, which focus on the protection of personal health information (PHI) and electronic PHI (ePHI), being implemented several years after the act was introduced. The Privacy Rule became effective in 2003, and the Security Rule in 2005. Of course, much has changed in the world of cybercrime and data protection over the two decades since these rules became effective, but many healthcare organizations are still maintaining legacy systems supported by legacy backup and cybersecurity tools. Cristie Software can modernize System Recovery for the Healthcare sector Traditional backup and restore applications were originally designed to protect against system outages caused by hardware failures and natural disasters, they did not offer specific protection against cybercrime, or tools to assist with cyber recovery following an attack. Modern data protection applications have been designed from the ground up to secure data and aid cyber recovery with features such as immutable storage and isolated recovery. Cristie Software integrates seamlessly with modern data protection applications and takes cyber recovery many steps further by adding features such as multi-cloud disaster recovery support, advanced anomaly detection and cleanroom recovery to facilitate cyber forensics and backup integrity verification. Our system recovery software integrates with backup solutions from leading providers such as Rubrik, Cohesity, Dell Technologies and IBM. What should the US Healthcare sector focus on to improve Cyber Resilience? To reduce cybercrime, the U.S. healthcare sector must focus on strengthening its cybersecurity infrastructure, adopting mandatory standards, and investing in advanced technology. Key strategies include implementing robust encryption, multi-factor authentication, and a zero-trust architecture, which limits access to sensitive data unless explicitly verified. Regular vulnerability assessments and third-party risk management are also critical to addressing gaps in security. Additionally, comprehensive cybersecurity training for healthcare employees is essential to prevent human errors that can lead to breaches. Cyber Resilience through the adoption of AI and improved collaboration Healthcare providers should invest in AI-driven security tools and automation to detect and respond to threats in real-time. Cristie Software has incorporated features driven by Machine Learning (ML) into their software suite to provide early warning of malicious file encryption plus intelligent automated system recovery remediation which can solve many common system recovery failure scenarios without manual intervention.  Collaboration between government agencies, like the Cybersecurity and Infrastructure Security Agency (CISA), and private sector organizations can improve information sharing and coordinated responses to attacks. Public-private partnerships, coupled with federal regulations that enforce minimum cybersecurity standards, could significantly strengthen defenses against cybercrime. Such measures would not only protect patient data but also ensure continuity in critical healthcare services. Conclusion In conclusion, reducing cybercrime in the U.S. healthcare sector requires a comprehensive approach involving a modernization of data security infrastructures, regular audits, and mandatory cybersecurity standards. By investing in AI-driven tools and enhancing collaboration between public and private entities, the sector can better protect sensitive data and maintain operational resilience. Implementing these strategies will be critical to safeguarding patient information, preventing disruptions in care, and ensuring the long-term security of the healthcare system against evolving cyber threats. Contact the Cristie Software team if you are looking to improve system recovery and replication for critical healthcare systems, or to learn more about system replication and our system recovery integration with leading backup solutions from vendors including IBM, Dell Technologies, Rubrik and Cohesity.

Cristie Software in Healthcare: Balancing Patient Data Security with Rapid Recovery The healthcare industry faces a unique challenge: safeguarding sensitive patient data while ensuring rapid system recovery in the event of failures or cyber incidents. With healthcare providers increasingly reliant on digital systems to manage patient records, treatment plans, and communication, the need to maintain uninterrupted access while protecting sensitive information is paramount. This is where Cristie Software solutions come into play, offering a comprehensive approach to both data security and system recovery that aligns with HIPAA (Health Insurance Portability and Accountability Act) compliance. Cristie Software supporting HIPAA Compliance and Data Security: The Cornerstone of Patient Trust HIPAA sets strict standards for protecting patient health information (PHI). Healthcare providers must ensure that all systems handling PHI are secure, with measures in place to prevent unauthorized access, breaches, or data loss. Non-compliance can result in heavy fines and reputational damage, making compliance not only a legal obligation but also a fundamental part of maintaining patient trust. Cristie Software solutions directly support HIPAA compliance by providing robust system recovery measures to safeguard systems holding PHI. Cristie CloneManager® and Cristie Recovery software integrate seamlessly with existing healthcare IT infrastructures to ensure that PHI systems as fully protected. These tools automate backup processes, ensure data encryption both in transit, provide early warning of malicious file encryption and provide audit trails to prove compliance during regulatory assessments. The Crucial Role of System Recovery In a healthcare environment, downtime can be life-threatening. Access to critical systems, including electronic health records (EHR) and patient management systems, must be restored as quickly as possible in the event of an outage or disaster. Whether it’s caused by hardware failure, cyberattacks, or human error, healthcare providers need to recover systems rapidly to minimize the impact on patient care. Cristie Software’s solutions are designed to provide automated and efficient recovery for these critical systems. Cristie recovery and replication software offers near-instant recovery of entire systems, allowing healthcare organizations to return to full operation without losing vital data. The suite’s replication and recovery capabilities ensure minimal downtime, allowing for a seamless transition to backup systems while the primary systems are restored. With Cristie’s Bare Machine Recovery (BMR) solutions, healthcare providers can restore entire servers in a matter of minutes, ensuring that patient services continue uninterrupted. BMR capabilities allow IT teams to recover not just data, but entire operating environments, including the configurations and settings necessary to bring systems back online without additional setup. Cristie Software – Combining HIPPA Compliance with Speed One of the most valuable aspects of Cristie Software’s solutions is the ability to balance HIPAA compliance with efficient recovery processes. Cristie CloneManager® allows healthcare organizations to create synchronized, real-time system clones that can be activated when the primary system goes down. These clones replicate not only the data but also system configurations, ensuring a complete, compliant backup that can be easily restored. The synchronization data transmitted between primary and secondary systems can also be encrypted during transit for added security. This functionality means healthcare IT teams can test and validate their recovery processes, ensuring they meet the stringent data security and availability requirements mandated by HIPAA. Staying Ahead with Regular Audits and Testing Cristie Software’s focus on continuous testing and validation further strengthens compliance efforts. HIPAA mandates regular risk assessments, including testing the effectiveness of backup and disaster recovery systems. Cristie’s tools enable healthcare providers to regularly test recovery procedures without disturbing the live environment, offering real-time verification that their recovery plans meet both regulatory requirements and internal service level agreements (SLAs). These proactive measures not only provide peace of mind but also help healthcare providers avoid costly downtime and potential HIPAA violations. The ability to perform live tests without impacting system availability is particularly valuable, as it allows organizations to validate their recovery processes without disrupting ongoing patient care. Conclusion Cristie Software solutions empower healthcare providers to strike a balance between data security and rapid recovery, ensuring that they remain compliant with HIPAA regulations while also minimizing system downtime. With automated, efficient recovery tools and robust data protection features, Cristie Software helps healthcare organizations maintain the availability and security of critical patient data—key to delivering high-quality care in today’s digital healthcare landscape. Contact the Cristie Software team if you are looking to improve system recovery and replication for critical healthcare systems, or to learn more about system replication and our system recovery integration with leading backup solutions from vendors including IBM, Dell Technologies, Rubrik and Cohesity.

Cloud-Based Disaster Recovery with Cristie Software: Benefits and Considerations In today’s digital-first world, disaster recovery (DR) is no longer an afterthought for organizations—it’s a critical component of business continuity. Whether it’s natural disasters, cyberattacks, or hardware failures, unforeseen events can have devastating effects on company operations. Cloud-based disaster recovery (DR) has emerged as a reliable solution, providing organizations with a flexible, scalable, and cost-effective approach to safeguarding their data and systems. However, as with any technology, it comes with both benefits and considerations. In this article, we’ll explore the advantages and potential limitations of cloud-based disaster recovery and discuss how Cristie Software helps clients leverage these solutions to ensure uninterrupted business operations. The Advantages of Cloud-Based Disaster Recovery & Cristie Software Cloud-based DR solutions have transformed the way organizations approach disaster preparedness. Here are some key benefits: Cost Efficiency One of the main advantages of cloud-based disaster recovery is cost efficiency. Traditional DR solutions often require significant investments in duplicate hardware, data centers, and infrastructure. By moving DR to the cloud, organizations can eliminate the need for maintaining costly secondary sites. Instead, they only pay for the cloud resources they use, typically on a pay-as-you-go basis. Cristie Software’s solutions provide clients with a predictable, cost-effective pricing model, ensuring they only pay for the recovery, replication or migration licences they need, while still having access to a full suite robust disaster recovery features. Scalability and Flexibility Cloud-based DR solutions are inherently scalable. As organizations grow and their data needs expand, they can easily increase their storage capacity in the cloud without worrying about hardware constraints. This flexibility allows organizations to customize their disaster recovery solutions based on their evolving needs. Cristie Software’s solutions are designed to integrate with a wide range of cloud platforms, enabling clients to scale their disaster recovery plans effortlessly. Whether a business is expanding rapidly or undergoing periods of change, Cristie ensures that DR capabilities keep pace with operational demands. Faster Recovery Times The goal of any disaster recovery plan is to minimize downtime, and cloud-based DR solutions excel in this area. Cloud infrastructure allows organizations to replicate their systems offsite, ensuring they can recover their data and applications within minutes after a disruption. This rapid recovery capability is essential for businesses that need to maintain high availability and minimize the risk of lost revenue or productivity. Cristie Software provides clients with solutions that offer near-instant recovery, ensuring that systems can be up and running quickly in the event of a failure. Fast recovery capabilities are particularly critical for industries such as healthcare, finance, and manufacturing, where downtime can lead to significant operational and reputational damage. Automation and Reduced Complexity Traditional disaster recovery processes can be labor-intensive, requiring manual intervention and frequent testing. Cloud-based DR solutions simplify this by automating many of the processes involved in data backup, replication, and recovery. This reduces the risk of human error and ensures that businesses can maintain a high level of readiness without dedicating excessive resources to managing their DR environments. Cristie’s recovery solutions provide powerful automation features such as automated cloud target system provisioning  which can save significant time when migrating multiple systems to the cloud for redundancy as part of a DR strategy. Geographic Redundancy A key advantage of cloud-based DR is the ability to store data across geographically dispersed locations. This geographic redundancy ensures that even if a disaster impacts a particular region, data remains safe and accessible from another location. By spreading data across multiple cloud data centers, organizations significantly reduce the risk of complete data loss in the event of a localized disaster. Cristie Software is used by many clients to ensure that their cloud-based DR solutions include geographic redundancy, guaranteeing that data is available no matter where a disaster may strike. Considerations for Cloud-Based Disaster Recovery with Cristie Software While cloud-based disaster recovery offers numerous advantages, there are important considerations that organizations need to account for when implementing these solutions. Data Transfer Speeds and Bandwidth One of the potential limitations of cloud-based DR is the reliance on network connectivity for data transfer. Large volumes of data may require significant bandwidth, and slow data transfer speeds could impact the efficiency of the backup and recovery process. Organizations need to ensure that they have sufficient bandwidth to handle their data replication and recovery needs, especially during a disaster. Cristie Software can help clients to optimize data transfer speeds with features such as changed block tracking, file compression and bandwidth throttling, ensuring that recovery and replication processes are efficient and effective, even when large datasets are involved. Security and Compliance While cloud providers often offer robust security measures, organizations are still responsible for ensuring that their disaster recovery strategies meet industry-specific compliance requirements. Data encryption, access controls, and regulatory compliance (such as HIPAA, GDPR, or PCI DSS) must be incorporated into any cloud-based DR plan. Cristie Software helps clients navigate these security and compliance challenges by providing end-to-end encryption for replica synchronization, secure access controls, and solutions that comply with industry regulations. This ensures that client data remains protected throughout the disaster recovery process. Vendor Lock-In Choosing a cloud provider for disaster recovery can sometimes lead to vendor lock-in, where switching providers becomes difficult or costly due to proprietary formats or systems. Organizations should carefully evaluate their options and seek flexible solutions that allow for portability between different cloud platforms. Cristie’s recovery solutions integrate with a wide range of virtual and cloud platforms, giving clients the freedom to choose or switch between cloud providers as their needs change, without being tied to a specific vendor. Ongoing Management and Monitoring While cloud-based DR solutions reduce much of the complexity of traditional DR, organizations still need to manage and monitor their systems to ensure they’re functioning correctly. Regular testing and monitoring are essential to ensure that the recovery process will work as expected when disaster strikes. Cristie Software provides clients with tools for ongoing monitoring, testing, and reporting, ensuring that their DR environments are always ready for deployment.

Financial Services: Disaster Recovery for the Age of FinTech The financial services industry has undergone a digital revolution driven by FinTech (financial technology). With innovations like blockchain, mobile banking, AI-powered financial tools, and payment gateways, the sector has become more efficient but also more vulnerable to disruptions, including cyberattacks, system failures, and natural disasters. The rise of real-time transactions and digital ecosystems means that downtime can be devastating, both financially and reputationally. This highlights the critical importance of a reliable disaster recovery (DR) strategy. Exploring Unique Challenges and Solutions for System Recovery in the Evolving FinTech Landscape. In the financial services industry, disaster recovery isn’t just a safeguard—it’s a legal and operational requirement. Regulatory standards such as DORA, GDPR, NIS2, SOX, PCI-DSS, and FCA/PRA Operational Resilience directives in the UK mandate strict guidelines on data protection and recovery, with severe penalties for non-compliance. As FinTech accelerates innovation, firms must adapt their DR strategies to ensure business continuity, maintain data integrity, and comply with these regulations. Cristie Software provides a robust solution for this challenge through its recovery and replication software, helping financial firms protect their critical data. Key Challenges in FinTech Disaster Recovery. Real-time Transactions and 24/7 Availability In the FinTech era, consumers expect 24/7 access to financial services, whether for mobile banking, online payments, or stock trading. Any disruption, even for a few minutes, can lead to massive financial losses and a loss of customer trust. This poses a unique challenge in disaster recovery. Traditional backup systems, which perform nightly backups or periodic data snapshots, may not be sufficient. Cristie Software’s continuous data replication and near-instant recovery capabilities address this challenge by enabling real-time protection. This ensures that, in the event of a disaster, businesses can restore their operations rapidly minimizing real-time data loss, downtime and financial risk. Complex IT Infrastructures FinTech companies often operate on complex, hybrid IT infrastructures that include on-premises systems, cloud platforms, and third-party services. These infrastructures are often interwoven, making it difficult to coordinate disaster recovery efforts across multiple environments. Any failure in these systems could disrupt workflows and customer service.  Cristie’s DR solutions are designed to work across heterogeneous environments, offering seamless recovery for both cloud-based and on-premises systems. Our server replication and recovery software helps ensure that both primary and secondary systems are synchronized, enabling organizations to recover quickly across all environments. Regulatory Compliance In financial services, regulatory compliance is non-negotiable. Financial firms must adhere to strict data protection laws, such as the General Data Protection Regulation (GDPR), DORA, NIS2, Sarbanes-Oxley Act (SOX), and Payment Card Industry Data Security Standard (PCI-DSS), all of which mandate stringent disaster recovery procedures to protect sensitive customer data.  Cristie Software’s automated system recovery testing capabilities allow financial institutions to regularly validate their recovery plans without manual intervention. This ensures compliance with regulatory requirements while also providing audit-ready reports, ensuring firms remain in full control of their data protection strategies. Cybersecurity and Ransomware Threats The increase in cybercrime, particularly ransomware attacks, is a significant concern for the financial services industry. FinTech firms are prime targets due to the sensitive nature of the data they handle. If an attack compromises core systems, it could take days or weeks to fully recover unless the firm has a robust cybersecurity and DR plan in place.  Cristie’s data protection solutions advanced anomaly detection providing early warning of malicious file encryption plus cleanroom recovery to facilitate cyber forensics within an isolated environment. Additionally, point-in-time recovery options available within the backup solutions we support from vendors such as IBM, Rubrik, Cohesity and Dell Technologies allow firms to restore data to an exact moment before the attack occurred, avoiding further disruption. Client Trust and Reputation Management Any downtime or data breach can significantly damage a financial institution’s reputation. In the world of FinTech, where competition is fierce, maintaining client trust is crucial. Customers expect seamless service and absolute protection of their personal and financial data.  Cristie Software helps mitigate the risk of reputation damage by offering rapid recovery and replication solutions that ensure continuous uptime and data integrity. Our bare-metal recovery capabilities enable organizations to restore entire systems, including applications and databases, in minutes, allowing firms to minimize client impact and maintain service continuity during disasters. Key Solutions from Cristie Software for FinTech Disaster Recovery. 1. Automated Recovery and TestingCristie offers automated disaster recovery testing without interrupting live systems. This feature allows financial firms to test their DR plans frequently, ensuring their systems are ready to respond to any crisis. Regular DR testing helps businesses meet regulatory compliance standards while providing peace of mind that systems can be recovered swiftly in the event of a disaster.   2. Bare Metal Recovery (BMR)One of Cristie Software’s standout features is bare metal recovery (BMR). This technology allows organizations to recover entire systems, from hardware configurations to software applications, onto entirely new hardware. This is especially useful in the financial sector where physical machines are prevalent, and where a failed server could contain critical trading applications or transaction logs. Cristie’s BMR enables rapid restoration to minimize downtime, even on dissimilar hardware.   3. Continuous ReplicationTo handle the high availability demands of FinTech, Cristie’s continuous replication feature allows for near-instantaneous recovery points. By continuously replicating data to secondary systems, financial firms can be assured that their backup data is always up-to-date. This level of real-time protection is essential in minimizing data loss and ensuring fast failover.   4. Scalable and Flexible SolutionsCristie Software’s recovery solutions are designed to be scalable and flexible, meeting the needs of both small FinTech startups and large financial enterprises. Whether a firm is using on-premises infrastructure, cloud-based environments, or a hybrid of both, Cristie’s solutions ensure seamless integration and compatibility across all platforms. The scalability of these solutions means that as the firm grows, its DR capabilities can grow with it. Conclusion: Future-Proofing Disaster Recovery in the FinTech Era. The FinTech revolution has created both opportunities and challenges for financial services. While technology has introduced innovative services, it has also heightened the

IDC/Zerto – The State of Disaster Recovery and Cyber-Recovery, 2024–2025. IDC recently published the white paper “The State of Disaster Recovery and Cyber-Recovery, 2024–2025: Factoring in AI” sponsored by Zerto which highlights current trends in disaster protection strategies in the face of growing cybercrime. The paper also presents survey results regarding the adoption of artificial intelligence (AI) within data protection and cyber-resilience solutions. Here we examine the key findings of this report and discuss how system recovery solutions from Cristie Software can help users of backup solutions such as Zerto to address the gaps reported by the respondents to this report. Backup and recovery alone are insufficient for fast, effective Disaster Recovery (DR) or Cyber Recovery (CR). While backup and recovery (B/R) are foundational to data recovery, a complete disaster recovery solution needs to include the recovery of systems and underlying infrastructure, which in a modern IT environment, invariably involves a hybrid of physical, virtual and cloud platforms. Effective DR may involve moving application services and data to a second site using asynchronous or synchronous data replication, replicated infrastructure, plus application failover/failback processes between these diverse operating environments. CR builds upon B/R and DR processes with additional requirements for malware detection, forensic analysis, cleanroom recovery, and more. For this reason, backup modernization was among the top 3 IT initiatives for respondents to the survey over the next 12 months. When asked about the most important criteria when selecting backup and DR tools, the top response was “breadth of solution” indicating that companies are looking to modernize their entire B/R and DR toolset and processes. How does Cristie Software help with B/R, DR and CR modernization? Cristie Software recovery and replication solutions complement B/R solutions like Zerto and other leading solutions from vendors such as IBM, Dell Technologies, Rubrik and Cohesity. Our software works seamlessly with B/R solutions to deliver many benefits. Physical system recovery automation: Physical systems present the biggest system recovery administration overhead due to the frequent need for manual intervention. Cristie Software can automate the physical system recovery workflow eliminating manual intervention and facilitating automated physical system recovery at scale. Physical, virtual or cloud recovery & replication, in any direction: Although modern B/R solutions can utilize both on-prem and cloud targets, the addition of Cristie Software provides complete omni-directional system recovery between physical, virtual and cloud targets with features such as automated resource provisioning and dissimilar hardware technology. With many companies looking to move DR to the cloud, having complete flexibility over source and target system direction is a vital feature to include in any B/R modernization plan. Cleanroom recovery: The addition of Cristie Software allows recovery to isolated networks to assist cyber forensics or facilitate backup integrity verification in isolation from the production environment. Human factors impacting B/R, DR and CR: Staff availability, skills shortages and human error. The IDC survey highlights that IT personnel time and resource availability plus IT skills are in the top 3 biggest challenges organizations face with respect to disaster recovery. Human error was shown to be the biggest reason for data loss. Cristie Software can help to address each of these human factors through features such as automation, recovery orchestration, and the ongoing use of predictive AI. Recovery automation: By eliminating manual intervention IT resources can be spared and at the same time human error can be reduced. Recovery orchestration: More complex recovery workflows can be implemented through orchestration jobs further reducing IT administration overhead. Recovery failure remediation through machine learning (ML) and AI: Cristie are implementing ML and AI to provide automated recovery job failure remediation plus AI driven administrator guidance within the Cristie Virtual Appliance (VA) to reduce the need for specialist IT system recovery skills. Organizations need solutions to meet SLAs and provide the fastest recovery with the least data loss. System recovery time objectives (RTO) differ between organizations and business applications but rarely does system downtime does not equate to revenue loss, therefore the desire to reduce system recovery times featured highly in the survey responses. Meeting internal and external SLAs may require very specific RTOs with regulated industries such as financial services and healthcare having SLAs that incur may penalties if not met. To ensure that system recovery processes are capable of meeting SLAs testing should be a core component of every DR plan. Cristie Software provides several features to assist in recovery testing and verification. Recovery simulations: The simulation of any recovery job can be scheduled to provide a clear indication of the recovery time that the supporting infrastructure is able to deliver. This can provide early warning of network, storage and processing resources that may need need upgrades to meet specific RTOs. Recovery reporting: The Cristie VA serves as the single interface for all tasks and provides comprehensive reporting on recovery and replication job status. These extensive reports can help meet self-assessment and testing requirements that are often mandatory within industry regulations. Summary The findings within this report correlate with our experience as customers look to modernize their B/R solutions to support hybrid cloud architectures and multi-cloud environments. Despite the widespread adoption of virtualization, physical systems are still prevalent where application performance is vital, or to support legacy applications, therefore the automation of physical system recovery is an essential feature that organizations should include in their modernization plan. Read the full IDC report sponsored by Zerto here. Contact the Cristie Software team if you are in the process of addressing any of the challenges highlighted in this article, or to learn more about system replication and our system recovery integration with leading B/R solutions from vendors including IBM, Dell Technologies, Rubrik and Cohesity.

The True Cost of Cybercrime in the Manufacturing Sector: Impact, Case Studies, and Mitigation Ransomware is a rapidly growing threat causing the cost of cybercrime to US manufacturing to extend far beyond financial losses. As more manufacturing companies embrace digital transformation, they expose themselves to vulnerabilities in their IT and operational technology (OT) systems. The economic impact of cyberattacks on this industry includes direct costs from ransom payments, lost productivity, disrupted operations, and reputational harm, alongside indirect costs such as regulatory fines and increased security expenses. This article explores the cost of cybercrime in the manufacturing sector, highlighting specific examples from the United States and outlining strategies manufacturers can adopt to mitigate these risks. 1. The Financial Burden of Cybercrime on Manufacturing Manufacturers face considerable financial losses from cyberattacks. According to a recent report by IBM, the average cost of a data breach in the manufacturing industry is approximately $4.24 million. Costs associated with cyber incidents include: Direct Financial Losses: Immediate costs such as ransom payments and recovery expenses can quickly amount to millions. Operational Downtime: Attacks on critical systems can halt production, leading to significant losses in productivity and delayed orders. Legal and Compliance Costs: Manufacturers may face fines for breaches that expose customer or supplier data, particularly under regulations such as GDPR and CCPA. Reputational Damage: Customer trust and brand reputation can suffer after an attack, potentially resulting in lost contracts and diminished market share. Security Costs: Companies often face increased costs for enhanced cybersecurity measures and insurance following a breach. 2. High-Profile Cyberattacks on U.S. Manufacturers Several recent cyber incidents in the United States reveal the devastating impact of cybercrime on manufacturing: Norsk Hydro (2019): Although Norsk Hydro is based in Norway, its U.S. operations suffered from a ransomware attack that disrupted production for days, costing the company nearly $50 million. The attack impacted IT systems and OT environments, forcing the company to switch to manual operations temporarily. Honda (2020): A cyberattack on Honda’s U.S. manufacturing systems halted production at several plants. The attack, reportedly carried out by a ransomware group, caused significant downtime and affected Honda’s ability to meet market demand. While Honda did not disclose exact figures, such disruptions likely resulted in millions of dollars in lost productivity and recovery costs. JBS USA (2021): The world’s largest meat supplier, JBS, fell victim to a ransomware attack that forced the company to shut down plants across the United States. JBS paid an $11 million ransom to resume operations, highlighting the high-stakes nature of attacks on critical manufacturing infrastructure. Kaseya Supply Chain Attack (2021): Although Kaseya itself is not a manufacturer, the ripple effects of the attack impacted numerous U.S. manufacturers who relied on its IT management software. This supply chain attack affected thousands of companies, underscoring the vulnerabilities in interconnected manufacturing supply chains. 3. Why the Manufacturing Sector is Vulnerable Several factors make manufacturing particularly susceptible to cybercrime: Convergence of IT and OT Systems: The integration of IT systems with OT creates vulnerabilities, as OT systems were not originally designed with cybersecurity in mind. Complex Supply Chains: Manufacturers rely on a web of suppliers, making them vulnerable to third-party risks from compromised partners or software. Aging Infrastructure: Many manufacturers still use legacy systems that are difficult to secure, making them attractive targets for cybercriminals. Industry 4.0 Adoption: As manufacturers move toward digital and automated processes, including the Internet of Things (IoT) and robotics, they introduce additional entry points for attackers.   4. The Indirect Costs of Cybercrime in Manufacturing While direct costs such as ransom payments and repair expenses are substantial, the indirect costs of cybercrime are equally significant: Supply Chain Disruptions: A cyberattack can halt operations for days, leading to delayed shipments and disrupted supply chains. These disruptions create ripple effects, affecting downstream customers and other suppliers. Customer and Partner Trust: Breaches can erode trust with clients and partners who expect secure handling of proprietary information. Increased Insurance Premiums: After a cyberattack, companies may face higher insurance premiums or additional costs for cyber insurance. 5. Mitigating Cyber Risks in Manufacturing Manufacturers can protect themselves from cybercrime by adopting a multi-layered security approach, leveraging advanced technologies, and ensuring ongoing employee training. Here are a few best practices: Do no overlook full System Recovery: Having a regular backup schedule for application data is commonplace for most organizations, but many overlook the steps needed to achieve full system recovery in the event of a disaster or cyberattack. Physical systems are inherently more time consuming to recover following an incident, especially if systems need to be recovered to dissimilar hardware. Cristie Software recovery solutions can overcome these challenges with advanced automation features, reducing recovery times and eliminating user intervention. Invest in Endpoint Protection and Network Monitoring: Protecting endpoint devices and continuously monitoring network traffic can help detect anomalies early, enabling rapid response to potential threats. Adopt a Zero Trust Model: Zero Trust requires all users and devices to be authenticated and authorized continuously, minimizing risks from compromised credentials. Segment IT and OT Networks: By separating IT from OT environments, manufacturers can reduce the chances of a single attack spreading across both systems. Regular Security Audits and Penetration Testing: Conducting routine security assessments can help identify vulnerabilities before attackers exploit them. Employee Training on Phishing and Social Engineering: Employees are often targeted through phishing emails and other tactics; regular training can improve awareness and reduce the chances of successful attacks. Looking Forward: Strengthening Resilience in Manufacturing As cyber threats continue to grow, the manufacturing sector must prioritize cybersecurity alongside other operational needs. With cybercriminals becoming more sophisticated and targeting critical industries, investment in cybersecurity and system recovery is not just a defensive measure but a strategic imperative. By adopting stronger security practices, manufacturers can better protect their operations and maintain resilience in the face of evolving cyber threats. Investing in cybersecurity is essential to safeguarding the future of manufacturing and ensuring the industry can continue to innovate without the shadow of cybercrime undermining its progress. Contact the Cristie Software team