Growing threats in maritime industry drive more cybersecurity investments

The maritime industry pays an average ransom payment of US$3.2 million to cybercriminals.

The maritime industry is facing a surge in cyberattacks, prompting an increase in cybersecurity investments amidst the growing threat.

Toby Stephens, Partner at HFW, said that the industry's awareness and response to cyber threats is growing, however, investment in cybersecurity remains insufficient.

"There have been a number of classification societies and industry bodies that have recognized the growing threat. And they brought in guidelines with minimum approved standards, particularly with regard to ships, equipment, and systems,” he said.

Stephens pointed out that only just over a third of industry professionals report adequate coverage for cyber threats, and more than half of ship operators spend less than $100,000 a year on cybersecurity.

“More than half of ship operators spend less than $100,000 a year on their cybersecurity, which is still quite low, considering the threats,” he remarked.

The increasing trend of cyberattacks has had a direct impact on insurance premiums and policies within the maritime sector. “Most marine policies still exclude cyber risks. However, there is a growing number of bespoke insurers writing marine-specific cyber policies,” Stephens explained. 

He anticipates that as the understanding of these risks improves, so will the quality and pricing of these policies. “Minimum standards will likely be imposed into policies, raising the standards throughout the industry,” he added.

“There is currently a lack of knowledge and training within the industry. More than a quarter of seafarers are unaware of how to protect themselves and their systems, and almost a third have no formal cybersecurity training,” he revealed. 

Furthermore, Stephens pointed out a disconnect between ship and shore, with certain systems not replicated at sea, and a general lack of investment in cybersecurity.