Stormy Seas Ahead? Maritime Industry Unprepared for Cyberattacks, Survey Says
Cyberattacks on the maritime industry could expose client data and have far-reaching collateral consequences for an array of U.S. businesses that are involved in importing, exporting or have other ties to the shipping world.
October 25, 2018 at 03:00 AM
4 minute read
The shipping industry needs to take cybersecurity far more seriously, according to a survey that emerged today—like a red sky in the morning—and the warning is not just for the maritime folks, but for any company that has dealings with them.
Cyberattacks on the maritime industry could expose client data and have far-reaching collateral consequences for an array of U.S. businesses that are involved in importing, exporting or otherwise have ties to the shipping world.
While nearly 40 percent of all the survey respondents said their maritime company had been targeted in a cyberattack in the past year, an alarming 64 percent indicated that their companies weren't prepared to deal with the fallout from a data breach.
That's according to Jones Walker, which surveyed 126 executives, chief information and technology officers, managers and other leaders for American port operators, cargo shipping companies and ship owners and operators. The latter group accounted for 60 percent of the survey respondents.
April Danos, information technology director for Louisiana's Port Fourchon, said in a statement that the results of the survey “demonstrate that every maritime industry stakeholder needs to assess its vulnerability to a cyber attack, take preventive action and determine how it will respond.”
Digging deeper into the survey results revealed not just a general lack of preparedness, but also a chasm between small and large maritime companies, the former of which were far less confident about their cybersecurity shields or their ability to respond to an incident.
Only 6 percent of the respondents from small companies and 19 percent of those from midsize companies said they were prepared to prevent a breach.
Meanwhile, 100 percent of the large company reps said they were ready. And that's good, because 80 percent of those same companies reported that they were targeted in cyberattacks over the past year. Maybe that's why 97 percent of the large companies reported that they carry cyber insurance coverage.
By contrast, the vast majority—92 percent—of small companies and 69 percent of the midsizers reported that they had no cyber insurance. The survey suggested they are far less likely to be cyberattack targets, however: 83 percent of small companies and 60 percent of midsize companies said they weren't targeted in the past year.
In 2012 then-FBI Director Robert Mueller famously said there “were only two types of companies: Those that have been hacked and those that will be.” So just because it hasn't happened doesn't mean it won't.
Martin Davies, a professor of admiralty law and director at Tulane University's Maritime Law Center, stated that the survey “provides evidence of a worrying level of complacency among maritime industry operators about cyberattacks.”
He called for industry and political leaders to take action.
Other findings from the survey:
- Large and midsize companies view external attacks, such as malware and ransomware, as the biggest threat, while small companies were more concerned about internal negligence.
- Large companies reported that 31 percent of the cyberattacks they'd experienced in the past year were successful. Five percent of midsize companies reported successful breaches and small companies said they had not been breached.
- A majority of respondents from companies in all three size brackets said they planned to increase their cybersecurity budgets in the coming year.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1Democrats Give Up Circuit Court Picks for Trial Judges in Reported Deal with GOP
- 2Trump Taps Former Fla. Attorney General for AG
- 3Newsom Names Two Judges to Appellate Courts in San Francisco, Orange County
- 4Biden Has Few Ways to Protect His Environmental Legacy, Say Lawyers, Advocates
- 5UN Treaty Enacting Cybercrime Standards Likely to Face Headwinds in US, Other Countries
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250