The digitalization of the logistics industry is a reliable way to increase efficiency and remain competitive in the market in the face of fierce competition for customers. The most effective solutions are offered by artificial intelligence algorithms. On the one hand, AI technologies help automate, reduce costs and strengthen the transportation industry, and on the other hand, they can be used to strengthen cyberattacks on logistics companies.

The digital environment has its own vulnerabilities, so this transformation requires proper data protection and compliance with cybersecurity measures. According to ENISA, 30% of last year's cyberattacks on the transportation sector were related to credentials. That's why data protection and compliance with strict security rules are crucial in today's digital environment. These are no longer just regulatory requirements, but also the cornerstone of building customer loyalty. 

What does this lead to

The high value of cargo information and confidential data stored by logistics organizations makes them a prime target for cybercriminals seeking financial gain. 

The consequences of cyberattacks include financial losses due to downtime, fines for breach of customer contracts, loss of revenue, compensation payments, or direct costs of restoring systems and data. Business processes of logistics companies and coordination between different departments are disrupted, delivery schedules are disrupted, and the exact location of goods becomes unknown. All of this can make customers so dissatisfied that they want to stop cooperation. Such reputational risks are more significant than financial ones, as trust is crucial in the transportation industry. Having tarnished your reputation, you will have to overcome difficulties in attracting new partners and investors. 

Security challenges: what can happen? 

The logistics sector faces a large number of cyber threats. Among them, the most dangerous are: 

• Industrial espionage - theft of information about routes and customers, unauthorized access to development and innovation plans, and the use of insiders to obtain trade secrets

• Phishing - fake emails from “partners” or “customers”

• Ransomware, which blocks access to control systems, encrypts critical data on routes and cargo, and then demands money to unlock it. 

• Attacks on supply chains through weaknesses in supplier software. 

Realizing the importance of data security, developers anticipate cybersecurity challenges. Information is often transmitted through different touch points in the supply chain, making it vulnerable to interception. In addition, the use of IoT devices, GPS trackers, and cloud-based systems has created multiple entry points for cyber threats. The most vulnerable places in logistics systems:

1. Data exchange systems with partners and customers - unprotected APIs for integration with customer systems, vulnerabilities in web portals for cargo tracking, insufficiently secure data transmission channels between transportation participants

2. Transportation systems and GPS trackers - vulnerable truck navigation systems, the possibility of spoofing GPS signals to change the route, unprotected on-board computers of vehicles

3. Outdated warehouse management software, weak user authentication, lack of encryption when transferring data between warehouse terminals. 

How to protect yourself? 

1. Reliable data encryption is the basis for protecting confidential information. Modern encryption algorithms provide reliable protection against data interception. 

2. Multi-factor authentication is the foundation of security in digital access and operations. 

3. Tiered access - when all employees have different levels of access that reflect their roles in the company. All authorized employees, partners, or customers have unique system access credentials. 

4. Data backup - backups of the most important data stored in the cloud or on secure servers. In the event of a cyberattack, this will allow you to quickly restore information and get back to work. 

5. Employee training is the foundation of cybersecurity that should not be ignored. Regardless of the digitalization path you choose, it is important to educate employees about potential risks, how to identify them, and what they can do to protect their employer and their jobs. 

6. Systematic monitoring and control will allow you to respond to unplanned incidents in a timely manner. Proactive monitoring of vulnerabilities gives attackers less chance to interfere with the logistics business. 

A reliable partnership will help protect your business. When choosing a partner for the digital transformation of logistics, you should pay attention to the cybersecurity measures they take, their reputation, and feedback. It should be understood that in the era of digital transformation, the security of your own and customer data should be a strategic goal that requires a comprehensive approach and investment. 

More than 135 countries have adopted data protection and privacy legislation to regulate the collection, use, and storage of data. In total, there are about 200 local and international documents that define data security standards, including the European regulations ePrivacy Directive, General Data Protection Regulation, NIS Directive and DORA (Digital Operational Resilience Act) and international standards ISO/IEC 27002, ISO27001, CIS Critical Security Controls and NIST Cybersecurity Framework. 

What does CONSOLID offer?

CONSOLID algorithms are designed to ensure maximum confidentiality of data of logistics ecosystem participants. How does it work?

1. Data encryption.  We use advanced encryption methods to protect information from unauthorized access.

2. Security algorithms. We implement modern algorithms to detect and prevent potential threats.

3. Multi-level authentication. We provide reliable access control to the system for all participants.

4. Restricted access. The information published in the system is available only to our artificial intelligence module and is not public.

An additional measure is to conduct regular security audits of systems and networks to help identify vulnerabilities. Equally important is training employees in the best cybersecurity practices. Human error is a common cause of data breaches, and educating staff about potential threats can significantly reduce the risk. That's why specialists pay special attention to data security issues during client onboarding. 

We are constantly improving our security measures to meet the growing requirements of our clients and the current legislation.