Authored article by Mr. Edwin L, CEO at Boxigo.in
India’s rapidly growing digital ecosystem has been a major catalyst in the economy’s growth and it is estimated to contribute over 20% to the country’s GDP by 2026. However, with the advantages, this digital evolution has also made India as one of the the most targeted countries in terms of cyberattacks accounting for 13.7% of all attacks worldwide.
Indian government agencies witnessed 95% increase in cyberattacks in 2022, as compared to the previous year. Various industries including the logistics sector have emerged as the most vulnerable when it comes to cyber threats. (SOURCE – https://www.dsci.in/files/content/knowledge-centre/2023/India-Cyber-Threat-Report-2023_0.pdf)
The logistics industry ranks second in the list of ‘sectors most affected by cybercrime worldwide’. As per an Infosys survey, 38% of logistics companies have unresolved queries around data privacy and security. (Source – https://www.idfy.com/blog/top-5-cyber-fraud-to-watch-out-in-2022-in-the-logistics-industry/)
Read more:- Xiaomi India Launches Redmi Buds 5 with Hybrid ANC for Enhanced Immersion in Audio
1. Escalating Cyber Threats:
The digital transformation in the transport and logistics sector has brought advantages, but it’s also a hotspot for cybercrime. The growing reliance on digital tech and automation, especially with cloud-based supply chain elements, raises the threat of cyber attacks. Merging conventional IT with separate OT systems and expanding IoT-connected points widens the security risks for both consumers and businesses. The logistics industry, with its numerous stakeholders and third-party contributors, is notably susceptible. Unfortunately, many companies struggle to grasp how to effectively handle the risks associated with the digital advancements they’ve adopted. The rising frequency and sophistication of these attacks underscore the vulnerability of logistics operations to data breaches, emphasising the need for robust cybersecurity measures.
2. Customer Trust and Reputation:
In an era where consumers are increasingly conscious of privacy issues, trust is paramount. The logistics sector relies heavily on customer trust, and any compromise in data security can have severe consequences. A survey conducted by Deloitte found that 87% of consumers in India are concerned about the privacy and security of their personal information when using logistics services. Ensuring the confidentiality and integrity of customer data is imperative for building and maintaining trust in the industry.
As Data is gold today, protecting this crucial asset that powers the supply chain is imperative. Securing data in the logistics sector is vital to avoid vulnerabilities. Forbes’ research reveals hackers targeting transportation and logistics, with major breaches in 2017. In the logistics realm, safeguarding customer data is pivotal for smooth operations among stakeholders. Ensuring data security is paramount for maintaining data confidentiality, integrity, and availability. It also upholds compliance with legal and ethical standards. Overall, the focus is on fortifying this invaluable asset against potential threats, acknowledging the industry’s susceptibility and the pivotal role data security plays in sustaining a secure and efficient logistics ecosystem.
3. Operational continuity:
Data and information breaches can interrupt operations, leading to financial loss and operational downtime. The logistics sector eagerly embraces modern technologies, aiming for progress. As per the World Economic Forum, the adoption of digitisation and automation could unlock around $1.5 trillion in business prospects for logistics by 2025. This substantial growth is fuelled by the industry’s proactive approach to incorporating innovative technologies for optimal use. While these advancements bring multiple benefits like efficiency, productivity, accuracy, speed, safety, and sustainability, a noteworthy challenge looms—ensuring data security. Amidst the advantages, the industry grapples with safeguarding sensitive information, acknowledging the crucial balance between technological advancement and maintaining secure data practices.
The financial repercussions of data breaches are substantial, with the logistics sector bearing a considerable burden. A study conducted by PwC India revealed that the average cost of a data breach in the country’s logistics industry is estimated to be INR 12.5 million. This includes expenses related to incident response, legal fees, regulatory fines, and the inevitable reputational damage suffered by affected companies.
India has witnessed a paradigm shift in data protection regulations with the introduction of the Personal Data Protection Bill (PDPB). Once enacted, companies in the logistics sector will be obligated to adhere to stringent data protection standards. Failure to comply could result in severe penalties, further highlighting the urgency for logistics companies to prioritise data security and privacy.
Read more:- Valentine’s Day Gifting ideas for your loved ones
The logistics sector in India is undergoing a transformative shift towards Industry 4.0, characterised by the integration of digital technologies. While this evolution brings unprecedented efficiencies, it also exposes the industry to new vulnerabilities. As per a study by the Federation of Indian Chambers of Commerce & Industry (FICCI), 63% of logistics companies in India identified cybersecurity as a major challenge in adopting Industry 4.0 technologies. Safeguarding the data generated and exchanged in this new ecosystem is paramount for sustainable growth.
The logistics sector in India stands at a critical juncture where embracing data security and privacy measures is not just a necessity but a strategic imperative. By investing in robust cybersecurity frameworks, adhering to emerging data protection regulations, and fostering a culture of awareness, logistics companies can fortify their defences and navigate the evolving landscape with confidence. Failure to do so may not only compromise the integrity of operations but also jeopardise the trust and confidence of stakeholders in the industry’s ability to safeguard their most sensitive information.
