Trucking operations can boost cybersecurity by investigating and strengthening business endpoints, system protection, and employee training, among other options.
It’s a constant battle, but ignore it at your peril. Cybersecurity threats create an avalanche of problems for any modern trucking or logistics businesses. What starts with immediate operational losses may end in a lengthy legal battle or long-term hit to the brand’s reputation.
In an industry that’s constantly moving products, scammers, and identity thieves have a goldmine of opportunities to spin up the misunderstandings and security cracks that let them nab a big payday.
How Cyberattacks Disrupt Your Business
Before we get into the solutions, let’s talk about the real problem: cyber attacks.
Whether cyber threats target a carrier’s cargo or their data, the impact is the same in both cases. Not only will it cause immediate disruption of your normal operations, but you’ll also suffer a long-term setback as you recalibrate to avoid another incident.
Knowing this is half the battle. Here’s a quick look at the worst case scenarios for the impact of a cybersecurity failure.
Short-term: Financial and operational losses
Cyber threats can take many forms. Individual trucks might be hacked, allowing a load to be stolen, or a DOT number can be leaked in a phishing attack and then used to book a fake load.
CFR Classic is just one of thousands of companies in the shipping business to clash with a cyberattacker in this way: The international car shipping company nearly fell for a phishing attempt recently, one that would have lost its sensitive shipment details to the bad actor. If they hadn’t caught it in time, their operation would have been disrupted in an instant, with shipments put on hold and years of slow-built customer trust up in smoke.
Fuel card data can be used to scam hundreds of dollars at a time as well. The number of cards compromised by skimmers (devices that steal a customer’s payment details while at a gas pump) rose over 300% between 2021 and 2022, according to one report. These types of hacks might fly under the radar at a larger company, allowing losses to build up over time.
Larger, operation-wide threats are even worse. A ransomware attack can lock up your operations for days or weeks, forcing your dispatch system to a standstill. Loads will sit around undelivered, and any refrigerated or otherwise sensitive cargo might be wasted entirely. For any medium or larger operation, this will easily translate to millions of dollars lost.
Long-term: Reputational fallout
Carriers have been operating under a new restriction from the Securities and Exchange Commission (SEC) since December 2023: Any public companies that suffer a “material” cyber incident must disclose it within four business days.
In other words, your customers will know about any losses you’ve faced due to successful cyberattacks, and that information will in turn reshape how secure they feel in their partnership with your company. Fail to respond rapidly to contain an attack, and your reputation might sink below other carriers, leaving your truckers high and dry.
In addition, the same SEC disclosure rule requires that public companies disclose their cybersecurity strategy within their Form 10-K, a public form that offers a snapshot of your business dealings for each fiscal year. That’s bad news if you don’t have the right risk management practices in place, but it’s good news for any company that has a great cybersecurity strategy, since it lets them advertise their efforts.
Just How Much Money Could You Lose?
Unfortunately, a major cyberattack is like an avalanche. Just one breach will trigger a cascade of related problems, all of which will deliver a unique financial hit, as plenty of recent examples prove.
First, you’ll face downtime and lost resources from the immediate attack, whether from cargo theft, fuel scams, or ransomware payments. Next, you’ll pay your regulatory fines – the Federal Motor Carrier Safety Administration (FMCSA) in the US and the General Data Protection Regulation (GDPR) in the UK both have compliance standards for data privacy and cargo transportation.
Finally, you’ll likely see a hike in your insurance premiums, along with any legal exposure to litigation from your clients.
In a discussion with Tech.co, Sam Peters, Chief Product Officer at ISMS.online (specialists in information security and data privacy), aptly summed up the variety of ways your bottom line will be materially impacted by an attack.
“Cyberattacks present significant financial risks to the trucking industry, potentially costing companies millions through operational downtime, ransom payments, regulatory fines, and lost business. A ransomware incident alone can demand payments reaching hundreds of thousands to millions of dollars, with additional expenses accruing from halted operations. Each day, trucks aren’t on the road equates directly to revenue lost, delays in shipments, and dissatisfied customers.” -Peters
The exact amount you could lose varies, but the lowest end is still pretty high. As of the latest count, the estimated average value of stolen cargo rose from $187,895 per incident in 2023 to $202,364 per incident in 2024, due in part to rising cyber thefts such as telematics system hacks or the fraudulent redirection of shipments.
Another estimate says that cargo fraud overall may cost each company about $402,000 annually.
Large-scale incidents like ransomware are far worse. On the high end, one study puts the average cost of a data breach across all industries – not just trucking – due to ransomware at $4.54 million, with the average for a destructive attack at $5.12 million.
It’s enough to shock any C-suite executive into extreme action. The dirty secret? Most executives are perfectly willing to fork up for the ransom that hackers often charge to remove their system-disrupting malware. One 2022 study found that nearly 90% of execs said they’d pay in the event of a future incident.
However, it doesn’t have to get that far.
Practical Fixes: How to Stay Secure
There are plenty of quick, straightforward fixes available for bolstering your trucking operation against any cyberthreats. And since any one of these actionable tips can potentially save your operation between $0.4 and $4.5 million a year, they’re all well worth enacting as soon as possible.
Boost endpoint protection
Endpoint protection refers to any measures taken to keep devices protected, from the desktops and laptops that managers use to track vehicles to the mobile devices that truckers use to log their hours. For truckers, this includes the GPS trackers and ELD software mandated by the federal government in the US. Every device is a potential entry point for cyberattacks.
Boost system protection
Once you’ve protected the endpoints, it’s time to think about the mid-point: Your internet connectivity. Treat your software and firewalls like your fleet maintenance schedule and update them all regularly.
Take the advice of Akash Mahajan, cybersecurity expert at Kloudle, who tells Tech.co that the trucking industry is more vulnerable than people realize because “today, everything is connected — GPS systems, electronic logging devices, dispatch software — and that means more ways for hackers to break in.” Mahajan cites the JBS ransomware attack in 2021, which disrupted global supply chains and cost millions, as just one example of the danger that logistics companies face.
Establish employee security training
In 2024, computer viruses were the top reason for data breaches, with phishing attacks in second place. They’re both examples of the biggest cybersecurity flaw, which is the human element. Phishing scammers rely on confused employees to be tricked into clicking on their malware or typing a password into a fake website.
The fix is a regular system of training, which might look like a simple annual quiz or a more involved demonstration.
Audit regulatory compliance
Your operators likely know the ins and outs of FMCSA compliance, but regular audits are a must for ensuring that everyone’s actually remaining in compliance. While you’re at it, comprehensive incident response planning can prepare your team for a rapid compliance response in the event of a future breach.
Look into your insurance options
Most insurers will bundle preventative online security measures into your premiums. If you’re already paying for them, you might as well take advantage. Set aside time to examine all the potential options available to you. These might look like an alert system you can sign up for, or a free one-time risk assessment.
If you’re looking for more security advice, check out our guide to the top 13 cybersecurity measures every small business should use.
Down the Road: Broader Changes That Can Boost Security Further
Systemic change isn’t fun. It’s no wonder that 90% of all companies have cybersecurity concerns. You’ll need to maintain a guiding vision that looks past quarterly growth or career advancement goals. However, it’s the best way to build a trucking operation that’s genuinely resistant to cyber attacks, which means you’ll come out ahead in the long run.
If you’re a public company, ensure that your board is briefed on the most likely security threats and how best to respond. When adding board members (or any employees, for that matter), check for past experience that relates to cybersecurity. Of course, adding a cybersecurity professional to your payroll or keeping a consultant on retainer won’t hurt, either.