If your manufacturing risks are seeing an increase in their cyber premiums across the board, growing ransomware incidents could be why. According to a new report by industrial cybersecurity firm Dragos, out of 905 ransomware incidents Dragos tracked, 638, or 70%, affected the manufacturing sector. But what could be of more value than the knowledge of increased premium expectations is the reason why this sector is seeing so many ransomware attacks. If manufacturers are not willing to plug the holes in the dike, then they should prepare themselves for attack, as attackers will always pursue the most vulnerable risks.

According to the Dragos report, the company saw about a 50% increase in ransomware attacks on industrial organizations from 2022, with manufacturing taking the lead.

Lax defenses and the significant costs incurred by any impact to operations of industrial risks make them vulnerable to digital extortion. In looking at the manufacturing sector, the industry was quick to move into digital transformation and internet connectivity, but did not invest in IoT security at the same time. Ransomware attacks not only impact operational efficiency but also lead to financial and reputational costs, and further still have trickle-down effects on downstream businesses and outputs.