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Articles From Lumsden McCormick

10 Strategies to Protect Your Manufacturing Company from Ransomware

Ransomware has become one of the most disruptive cyber threats facing manufacturers. Unlike many sectors, manufacturing depends on continuous operations, tightly coordinated supply chains, and just‑in‑time production. A single attack that locks critical systems or halts a line can trigger severe financial losses, missed customer commitments, and long‑term reputational damage.

According to cybersecurity firm Dragos, ransomware-related cyberattacks on manufacturers accounted for 65% of all incidents recorded by industrial entities worldwide in Q2 2025.

What Is Ransomware?

Ransomware is malware that encrypts your data and systems, rendering them unusable until a payment is made in exchange for a decryption key. Techniques have evolved:

  • Double extortion: Attackers not only encrypt systems but also exfiltrate sensitive data (e.g., IP or customer records) and threaten to publish it unless you pay.
  • Triple extortion: Especially relevant for manufacturers. Threat actors may also target operational technology (OT) connected machinery, PLCs, and IoT devices or launch DDoS attacks that disrupt production and logistics.

Why Manufacturers Are Targeted

  • Intolerance for downtime: High cost of interruptions increases the likelihood of ransom payment.
  • Regulatory gap: Compared with finance or healthcare, manufacturing often faces fewer mandated controls.
  • Expanded attack surface: Proliferation of internet‑connected equipment and legacy systems—often unpatched or no longer supported—creates more entry points.

10 Actionable Ways to Reduce Ransomware Risk

1) Conduct a comprehensive cyber risk & asset assessment (IT + OT)

Inventory hardware, software, data repositories, user accounts, and external connections across both IT and OT. Map critical processes, identify single points of failure, and document where crown‑jewel data and systems reside. Use the output to prioritize risk remediation and investment.

2) Strengthen backup & recovery the right way

Adopt the 3‑2‑1 rule (3 copies, 2 media types, 1 offsite) and incorporate immutable or air‑gapped backups. Encrypt backups, segregate them from production domains, and routinely test restores to validate RTO/RPO targets. A backup you cannot restore is not a control.

3) Keep systems current with disciplined patch & vulnerability management

Apply security patches and firmware updates promptly across servers, endpoints, and OT where feasible. For legacy or hard‑to‑patch assets, use virtual patching via compensating controls (e.g., strict allow‑lists, micro‑segmentation, and hardened gateways). Track vulnerabilities and remediate based on exploitability and business impact.

4) Build a security‑aware workforce

Human error remains a top attack vector. Provide role‑based training, regular phishing simulations, and clear policies for password hygiene, secure file sharing, and BYOD restrictions. Reinforce expectations for multifactor authentication (MFA) and reporting suspicious activity.

5) Deploy layered defenses and continuous monitoring

Go beyond email filtering. Implement EDR/XDR for behavioral detection, DNS and web filtering, application allow‑listing, and next‑gen email security. Centralize telemetry in a SIEM or managed detection service for 24/7 alerting, threat hunting, and rapid containment.

6) Manage third‑party and supply chain exposure

Vet vendors and integrators—especially those with remote access to OT or maintenance networks. Require security questionnaires, attestations (e.g., SOC 2/ISO 27001 where appropriate), access least‑privilege, MFA, and network isolation. Contractually clarify incident notification and cooperation obligations.

7) Perform regular vulnerability scanning and penetration testing

Conduct internal and external scans, plus periodic pen tests that reflect realistic attack paths from IT to OT. Prioritize exploitable pathways to critical assets. Close the loop by tracking remediation to completion and validating fixes.

8) Segment networks and apply Zero‑Trust for IT/OT convergence

Separate IT from OT and production from corporate networks. Use micro‑segmentation, strictly controlled remote access, and least‑privilege rules. Enforce MFA for remote and admin sessions, monitor east‑west traffic, and restrict protocols between zones to only what is explicitly required.

9) Prepare, practice, and refine incident response & business continuity

Develop IR runbooks for ransomware, including decision trees for isolation, forensics, legal/compliance, customer communications, and recovery. Align BC/DR plans with operational realities (alternative workflows, suppliers, and logistics). Conduct tabletop exercises and post‑mortems to continuously improve.

10) Protect privileged access and sensitive data

Implement Privileged Access Management (PAM), just‑in‑time (JIT) elevation, and session recording for admin activities. Reduce the attack blast radius with least privilege on endpoints and servers. Strengthen data security with encryption at rest/in transit, key management, and data loss prevention (DLP) for intellectual property and regulated data.

A Threat Not to Be Taken Lightly

Ransomware is no longer just an IT issue; it’s a business continuity and supply chain risk. The financial, operational, and reputational fallout from a single incident can be severe, particularly in up-to-date environments.

By investing in preventative controls, elevating employee awareness, and building robust recovery capabilities, manufacturers can materially reduce risk and demonstrate resilience to customers and partners. If you’d like support quantifying potential disruption costs, pressure‑testing your controls, or prioritizing a roadmap tailored to your operation, our team can help you evaluate the financial impact and implement strategies that protect your business.

10 Strategies to Protect Your Manufacturing Company from Ransomware

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Jon leads audits, reviews, compilations, tax, and consulting services for manufacturers, contractors, and other commercial business entities. He serves as the audit practice leader for the Firm's manufacturing and construction niches and manages the Firm’s pre-qualification to perform third-party reviews of tax credit applications for the Film Industry according to agreed-upon procedures established and published by Empire State Development (ESD). In addition, Jon serves a variety of exempt organizations. 

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