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Cybercrime and its impacts on supply chain and global economy

Digitization and IoT revolutionized supply chain management, increasing efficiency in all processes. But digitization of the processes can be both an opportunity and a threat: it can make companies more efficient, but also more vulnerable to cybercrime and data theft. In fact, as innovations such as IoT and RFID monitoring become more common within supply chains, so do hacking, spoofing and digital theft. The report “Economic Impact of Cybercrime No Slowing Down” expects further growth in cybercrime as hackers take advantage of poorly protected IoT devices. This devices, themselves not particularly valuable, provide new, easy approaches to steal personal information or gain access to valuable data or networks.

Cyber criminal

According to a research carried out by Cybersecurity Ventures, the global cost of computer crime will exceed 6 trillion dollars by 2021, thus doubling it from 2015. This is why companies should adopt a more rigorous and continuous assessment system and adjust suppliers’ capabilities more closely. As already shown in the past, it is possible to get out of a cyber-attack without any fatal damage, but some cyber-vigilance can do a lot and prevent damage.

Cybercrime costs include damage and destruction of data, stolen money, lost productivity, theft of intellectual property, theft of personal and financial data, embezzlement, fraud, post-attack disruption to the normal course of business, forensic investigation, restoration and deletion of hacked data and systems, and reputational harm.

Monetization of stolen data, which has always been a problem for cybercriminals, seems to have become less difficult because of improvements in cybercrime black markets and the use of digital currencies.

Cyber security

The way to recover suitable resources combines active commitment and new technologies.

Talking about the logistic sector, operators must be able to engage their workforce in order to attract and retain employees and take a more active role in supervising education, especially by involving the younger generation, predisposed to develop useful systems.

Attracting the next generation of professionals is often a challenge. The Generation Y has, in fact, different career expectations than their predecessors Baby Boomers, as they seek not only career opportunities but also the recognition of their work and capabilities, looking for opportunities in line with their real expectations. Companies should therefore be committed to offer clear career paths for their employees. Furthermore, to attract new talents, the logistic industry and the new market scenario must make an effort to change its perception as an employer. According to many operators in the sector, to be more attractive, companies should incentivize their employees and at the same time take advantage of their skills in the management of the technology system. An approach for involving young professionals could be to implement gamification in the workplace. This means adopting a system that incorporates the different processes of human resource management, starting from setting goals, giving premium targets, providing real-time feedback and instant gratification to which these young people are accustomed, while encouraging productivity.

From the technological point of view, there is need for the development of models that will allow corporations to study the effects of cybercrime on an online general confidence and to counter through leveraging the benefits associated with the latest developments in cybersecurity, to assure that consumers will continue to use the Internet to satisfy their shopping needs.

The most common countermeasures involve software to be designed from the ground up to be secure (so-called “Security by design”), as well as IT security architectures. Some organizations are turning to big data platforms, to extend data accessibility and machine learning to detect advanced persistent threats. The primary obstacle to effective eradication of cybercrime, however, relies in the trust on firewalls and other automated “detection” systems.

A computer security incident response plan is an organized approach to addressing and managing the aftermath of a computer security incident or compromise with the goal of preventing a breach or a cyberattack. In parallel with Business Continuity Plan, which deals with operational running, it is gaining importance, since it helps to restore services and processes and minimize impact and losses.

 

 

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