Ransomware has emerged as one of the most disruptive cyber threats currently facing the manufacturing sector. Unlike most other industries, manufacturers rely heavily on continuous operations, tightly coordinated supply chains and just-in-time production. A ransomware attack that locks critical systems or halts production lines can cause financial losses, damage to customer relationships and even long-term reputational harm.

Fact: According to cybersecurity firm Dragos, ransomware-related cyberattacks on manufacturers accounted for 65% of all incidents recorded by industrial entities worldwide in the second quarter of 2025. Let's take a closer look at seven steps that can better protect your manufacturing company against ransomware attacks.

Defining ransomware

Ransomware is a type of malware that, when introduced into your computer system, encrypts your company's data, rendering any files — and the systems that rely on them — unusable. The cybercriminals then demand a ransom payment in exchange for the decryption key needed to unlock your files.

Each year ransomware techniques are becoming more sophisticated. In past years, cybercriminals would simply lock you out of your system and stop there. Today, however, it's increasingly common for them to engage in a form of "double extortion." That is, in addition to encrypting your data, they also steal sensitive information (such as intellectual property or customer information) and threaten to release it if you fail to pay the ransom.

There's even a threat of "triple extortion," and manufacturers are especially susceptible. This third layer of extortion targets a company's operational technology, such as smart manufacturing equipment that's connected to the internet and controlled by computers or handheld devices. Cybercriminals may threaten to launch a distributed denial of service attack. This could potentially shut down your operations if you refuse to pay the ransom.

Manufacturers can be especially vulnerable

Cybercriminals target manufacturers for several reasons. For example, manufacturers are notoriously intolerant of downtime. So they may be highly incentivized to pay the ransom, given the steep cost of unplanned interruptions. Also, when it comes to cybersecurity, the manufacturing industry generally isn't subject to the same level of regulation as banking, financial services and health care.

In addition, manufacturers are increasingly using internet-connected equipment and devices, providing more potential points of entry for attacks. And they tend to rely on (often unsupported) legacy systems. These older systems may not have received the latest updates and security patches, rendering them more vulnerable to attacks.

7 action steps

To help protect your manufacturing company against ransomware and other cyberattacks, consider the following seven best practices:

1. Conduct a thorough cybersecurity assessment. Take inventory of your company's hardware, software, data and internet connections to identify any vulnerabilities. Look for potential entry points that cyberattackers can exploit to penetrate your system.

2. Review your data backup policies and procedures. Having a recent backup of your files and systems will ensure that you can resume operations as quickly as possible if your data is locked or destroyed by cybercriminals. Backups should be encrypted, stored off-site and segregated from the systems being backed up. Segregating backups is critical because it will help prevent a single breach from compromising both your active data and the backups you rely on to recover from an attack.

3. Install updates. Keep all your computers and mobile devices current with the latest updates and security patches.

4. Educate workers. Be sure your employees and contractors know the dangers of ransomware and how to recognize phishing emails and other threats. Require all personnel to use strong passwords, multifactor authentication and other techniques to prevent unauthorized access. In addition, prohibit the use of workers' personal devices on your network.

5. Use software tools that monitor for and prevent intrusions. Many email filtering programs can spot malicious messages and prevent them from reaching their targets.

6. Evaluate potential third-party risks. If any vendors or suppliers have access to your systems, conduct due diligence to ensure they've implemented effective controls to prevent unauthorized access.

7. Administer periodic vulnerability assessments and penetration tests. Scan for security flaws and weaknesses. Also gauge the effectiveness of your company's cybersecurity systems, policies and practices.


A threat not to be taken lightly

In today's environment, ransomware isn't just an IT problem — it's a business continuity and supply chain risk that manufacturers can't afford to ignore. The financial, operational and reputational fallout from even a single incident can be devastating, especially in an industry where uptime is critical.

By proactively investing in cybersecurity measures, strengthening employee awareness and building robust recovery plans, manufacturers can better safeguard their operations and reassure customers that they're prepared for evolving cyberthreats. We can help you evaluate the financial impact of potential disruptions and provide strategies to protect your bottom line.