Ransomware attacks can have devastating effects on the manufacturing industry, impacting operations, finances, and reputation. These attacks can halt production lines, disrupt supply chains, and cause quality control issues, leading to significant downtime and defective products. Financially, companies may face ransom payments, revenue loss from missed production deadlines, substantial recovery costs, and increased insurance premiums.
Data loss and theft of intellectual property can result in the permanent loss of critical information and industrial espionage. Reputational damage includes erosion of customer trust and long-term harm to the company's brand. Additionally, regulatory and legal consequences can arise from compliance violations and potential litigation. The cost of downtime due to ransomware attacks in manufacturing was estimated to be $22,000 per minute with the average ransom payment in the manufacturing sector was $1.5 million in 2021, higher than the global average across all industries.