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Three cornerstones for effective Maritime cyber security

Maritime’s fragmented approach to digitalisation carries risk, especially when it comes to cyber security.

Speaking recently at Lloyd’s Register Asia Shipowners’ Forum, Wallem Group chief executive Frank Coles highlighted how operators can fail to update critical processes when embracing new onboard technologies. By overlooking the human elements of cyber security, he said, operators can undermine the potential benefits of acquiring a new technology – introducing risk instead capitalising on the rewards it can offer.

While cyber security risks posed to the shipping sector are real and pressing, they can be quantified and managed, if the right approach is taken.

Safeguarding critical assets in a fragmented digitalisation process and ensuring profitability in the years to come depends on three cornerstones:

Cornerstone 1: threat-intelligence assessment 

Maritime cyber security .

The cyber security landscape is rapidly changing and the insights gained as little as five years ago are of less and less value as threat actors adjust their approaches in response to advances made by security professionals and technical defenders. Regular threat intelligence and assessment activities allow an owner to view their organisation through the eyes of a potential attacker, to perceive their attack surface in detail, and to assess the real-world threats to their business.

Cornerstone 2: Crisis-management cyber attack simulation

With knowledge of the attack surface and adversaries already in hand, owners can take steps to safely, effectively and efficiently ensure they are prepared to respond to a cyber attack by using a simulated cyber attack known as a ‘red team’ exercise. Such exercises allow a company to define and simulate real-world attack scenarios using the same tactics, techniques, and procedures as a genuine threat actor. They also help determine the level of assurance and ability needed to effectively detect and respond to a genuine cyber attack and educate defence teams about effective responses within a controlled and forgiving environment.

Cornerstone 3: Define a cyber security strategy

An effective cyber security strategy completes the foundation of a secure technological and organisational infrastructure. Designing a cyber security strategy is a complex task for most firms as the strategy must be robust and responsive enough to address a dynamic operational environment. Security professionals can work to create a cyber security strategy to create operational efficiencies, maximum return on technology investments, and assured data and asset protection into the future.

Given the cost and reputational risks associated with a cyber attack – estimated at £11.7M (US$15.4M) per company according to a World Economic Forum 2017 study – there is no doubting the importance of taking a strategic approach to cyber security.

Ultimately, a truly cyber resilient shipping organisation is one that gains intelligence on evolving cyber threats to inform decisions and plans, going beyond the minimums needed to achieve compliance.

SOURCE https://www.marinemec.com


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Korean Register (KR) has granted its first cyber security type-approval certificate to a new smart shipping integrated communication system.

The cyber security type-approval certificate has been awarded to Hyundai Electrics for its Hyundai Integrated Smart Communication System (Hyundai-ISCS), aimed at providing comprehensive cyber security protection for next-generation vessels.

KR’s cyber security type-approval is based on international standards such as IEC 62443 4-2 and IEC 61162-460. Under the certification, technical, security and audit functions are inspected and assessed for confidentiality, integrity and availability, while backup and recovery functions are also inspected and analysed to assess their response strength in the wake of a cyber incident.

 

KR executive vice president Hyung-chul Lee said “This is the very first cyber security type-approval certificate to be issued anywhere in the world, but it reflects the speed of development in this sector and rising level of risk to on board systems from cyber attack.”

Hyundai-ISCS was developed jointly by Hyundai Electric and Hyundai Heavy Industries. It provides a range of information on vessels and acts as an interface between more than 20 types of equipment including safety systems and sensors, combining to enhance a vessel’s smart abilities.

The certificate was formally presented to Hyundai by KR in a ceremony at Nor-Shipping 2019 in Oslo, Norway, on 5 June.

It was also announced on 5 June that Hyundai Global Service (HGS) and Inmarsat have signed a business co-operation agreement aimed at facilitating digitalisation for owners and managers of vessels. The agreement will enable co-operation including using Inmarsat’s Fleex Xpress dedicated bandwidth services to support HGS’ digital services for shipowners.

The agreement was announced following trials on three vessels over a three-month period, testing sensor-driven applications measuring voyage and equipment operating data including fuel consumption and vibration monitoring, plus HGS analytics and reporting services.

 

SOURCE


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CMA CGM and MSC to Join Maersk’s Maritime Blockchain Platform

CMA CGM and MSC Mediterranean Shipping Company (MSC) have announced they will join TradeLens, a blockchain-enabled digital shipping platform, jointly developed by A.P. Moller – Maersk and IBM.

TradeLens enables participants to connect, share information and collaborate across the shipping supply chain. The attributes of blockchain technology are ideally suited to large networks of disparate partners, says Maersk. Blockchain establishes a shared, immutable record of all the transactions that take place within a network and enables permissioned parties access to trusted data in real time.

The platform now has over 100 participants. The addition of CMA CGM and MSC will result in data for nearly half of the world’s ocean container cargo being available on TradeLens. The companies will promote TradeLens and create complementary services on top of the platform for their customers and partners.

TradeLens is already processing over 10 million discrete shipping events and thousands of documents each week for shippers, carriers, freight forwarders, customs officials, port authorities, inland transportation providers and others.

CMA CGM and MSC will operate a blockchain node, participate in consensus to validate transactions, host data, and assume the critical role of acting as Trust Anchors, or validators, for the network. The companies will be on the TradeLens Advisory Board which will include members across the supply chain to advise on standards for neutrality and openness.

“Digitization is a cornerstone of the CMA CGM Group’s strategy to provide an end-to-end offer tailored to our customers’ needs. We believe that TradeLens, with its commitment to open standards and open governance, is a key platform to help usher in this digital transformation,” said Rajesh Krishnamurthy, Executive Vice President, IT & Transformations, CMA CGM Group. “TradeLens’ network is already showing that participants from across the supply chain ecosystem can derive significant value.”

The TradeLens platform has enormous potential to spur the industry to digitize the supply chain and build collaboration around common standards, said André Simha, Chief Digital & Information Officer, MSC. “We think that the TradeLens Advisory Board, as well as standards bodies such as the Digital Container Shipping Association, will help accelerate that effort.”


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Cyber Adversaries Targeting Commercial Vessels

This bulletin is to inform the maritime industry of recent email phishing and malware intrusion attempts that targeted commercial vessels. Cyber adversaries are attempting to gain sensitive information including the content of an official Notice of Arrival (NOA) using email addresses that pose as an official Port State Control (PSC) authority such as: port @ pscgov.org. Additionally, the Coast Guard has received reports of malicious software designed to disrupt shipboard computer systems. Vessel masters have diligently reported suspicious activity to the Coast Guard National Response Center (NRC) in accordance with Title 33 Code of Federal Regulations (CFR) §101.305 – Reporting, enabling the Coast Guard and other federal agencies to counter cyber threats across the global maritime network.

As a reminder, suspicious activity and breaches of security must be reported to the NRC at (800) 424-8802. For cyber attempts/attacks that do not impact the operating condition of the vessel or result in a pollution incident, owners or operators may alternatively report to the 24/7 National Cybersecurity and Communications Integration Center (NCCIC) at (888) 282-0870 in accordance with CG-5P Policy Letter 08-16, “Reporting Suspicious Activity and Breaches of Security.” When reporting to the NCCIC, it is imperative that the reporting party notify the NCCIC that the vessel is a Coast Guard regulated entity in order to satisfy 33 CFR §101.305 reporting requirements. The NCCIC will in turn forward the report to the NRC that will then notify the cognizant Coast Guard Captain of the Port (COTP).

The Coast Guards urges maritime stakeholders to verify the validity of the email sender prior to responding to unsolicited email messages. If there is uncertainty regarding the legitimacy of the email request, vessel representatives should try contacting the PSC authority directly by using verified contact information. Additionally, vessel owners and operators should continue to evaluate their cyber defense meaures to reduce the effect of a cyber-attack. For more information on the NCCIC’s services, cyber-related information, best practices, and other resources, please visit: https://www.dhs.gov/CISA.

The Coast Guard applauds companies and their vessels for remaining vigilant in the identification and prompt reporting of suspicious cyber-related activities. Questions pertaining to this bulletin may be directed to the Coast Guard Office of Commercial Vessel Compliance’s Port State Control Division (CG-CVC-2) at PortStateControl@uscg.mil.

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Specialist insurer Beazley has created an innovative marine cyber insurance product to meet the rapidly developing needs of vessel owners and operators.

Should a cyber incident impact a vessel’s operational capabilities, Beazley Cyber Defence for Marine provides insurance for physical damage and loss of hire.

At the heart of the product are risk management services designed to reduce the likelihood of a cyber incident occurring and demonstrate compliance with forthcoming International Maritime Organization (IMO) guidelines. By 1st January 2021, vessel owners and operators must have incorporated measures to manage cyber risk into their existing risk management processes, which have traditionally focused on the physical risks to safe shipping operations.

There are three elements to the risk management services included within Beazley’s product: a self-assessment questionnaire; a cyber security workshop; and an on-board cyber survey.

The product has been launched at a time when operational technology has become more digitalised. New challenges have also arisen out of greater interconnectivity between shore-based and on-board systems, including those responsible for navigation, propulsion and power control. A breach of an operating system on board a vessel could, for example, lead to a grounding or collision.

The cover, which focuses on the operational technology of vessels, complements Beazley’s other marine products and existing cyber cover for information technology systems. It can be bought on a standalone basis or as part of a package.

Richard Young, Beazley’s head of hull and war, said: “Ship owners and operators are dealing with the increased threat of cyber-attack as well as the impact of human error and increasingly interlinked vessel operating technology and IT systems. Our preparation services reduce the risk of an incident occurring and the indemnity provides owners with clear cover and limits. Should the worst happen and a cyber incident impacts the smooth running of vessels, clients can be confident they are protected with affirmative cyber cover.”


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Overview

BIMCO’s Documentary Committee has agreed a new standard Cyber Security Clause that requires the parties to implement cyber security procedures and systems, to help reduce the risk of an incident and mitigate the consequences should a security breach occur.

In the wake of recent costly cyber security incidents involving large shipping companies, cyber security has become a major focus in the maritime industry.

BIMCO has taken a lead position on cyber security issues through its active role at the International Maritime Organization and by co-authoring the “Industry Guidelines on cyber security onboard ships”. The development of the BIMCO Cyber Security Clause has been an important part of this initiative.

The clause has been written by a small drafting team, led by Inga Frøysa of Klaveness, with representatives from shipowners, P&I clubs and a law firm, and will be published towards the end of May.

“I am very pleased to see BIMCO as the first mover on this important topic. Recent years have shown that there is a clear need for a clause addressing the contractual issues that can arise from a cyber security incident,” says Inga Frøysa.

Sharing relevant information

The clause is drafted in broad and generic language which allows for it to be used in a wide range of contracts and in a string of contracts for easy back-to-back application. It is hoped that the clause will assist parties in obtaining affordable insurance for their cyber security exposure, as the clause introduces a cap on the liability for breaches.

“It was very important to the subcommittee to impose an obligation on the parties to keep each other informed if a cyber security incident should occur, and to share any relevant information, which could assist the other party in mitigating and resolving an incident as quickly as possible,” Frøysa says.

This is done through a two-fold notification process. Firstly, through an immediate notification from the party who becomes aware of an incident to the other party. Secondly, through a more detailed notification once the affected party has had the chance to investigate the incident.

The clause also requires the parties to always share subsequent information, which could assist the other party in mitigating or preventing any effects from the incident.

The level of required cyber security will depend on many elements such as the size of the company, its geographical location and nature of business.

The clause takes this into account by stipulating that the parties must implement “appropriate” cyber security. The clause also requires each party to use reasonable endeavors to ensure that any third-party providing services on its behalf in connection with the contract, has appropriate cyber security.

SOURCE BIMCO


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Maritime cyber risk management: boiling the ocean or storm in a tea cup?

 

Is the shipping industry’s most valuable commodity also its biggest risk?

As one of the world’s oldest industries, the shipping industry has capitalised on its capability to move assets around the world for thousands of years. Whether for trade, military or tourism, there are more than 50,000 ships world-wide that currently navigate our waters and facilitate both thriving economies and promote nation state security.

Know your risks and implement security measures

Our recent maritime report has explored the cyber security challenges that the maritime industry is facing now and will likely face in the future. With the increasing trend of attackers turning their attention to ships and shipping operations, more needs to be done to identify cyber risks at sea and mitigate them – a method to begin this process is to perform a risk assessment. Traditionally, a business might perform a risk-assessment periodically, say on a yearly basis, to identify what security risks need addressing, and follow this with implementing the right measures to protect against these risks occurring.

But what happens when your risk profile is constantly changing? All variables such as a ship’s cargo, employees and geography can change drastically within 24 hours as a ship makes its journey across the world and participates in trading. The main inputs to assessing risk are therefore constantly changing, significantly more than your standard business who needs to implement cyber security measures – so how is it feasible to have confidence that ships are implementing the right security in such a unique situation?

What are the key changing risk factors?

We have identified the main factors impacting cyber security that are associated with the constant movement of trade ships as follows:

  • Route: A ship relies on multiple navigation technologies to get it safely from point A to point B without damaging it, its cargo or risking life onboard. But what if malware could ever so slightly change measurements over time, à la Stuxnet. This would have little impact in the Pacific; but in the Panama Strait it would be catastrophic and the perfect attack for criminals to launch in order to then loot a ship.
  • Cargo: A ship will be carrying multiple cargos of different market value during its route and over time. These cargos may also have different value to different territories and groups.  Cargo systems can be compromised providing intelligence to criminals who can subsequently target specific cargo ships and resell on the black market. For example, pharmaceuticals would be an attractive target due their high value on the black market.
  • Piracy: There are certain areas of the world which may be at higher risk of attack from piracy, such as the seas that border Eastern Africa. Not only could the cargo training systems be tracked to identify when ships are carrying precious cargo like gold; we understand that pirates could also manipulate systems and spoof the position of ships in distress. This would result in a longer period of time for them to carry out their physical attacks.
  • Ports and business operations: Shipping staff may engage with multiple ports and succumb to various operational processes each time, notably payment and administration regarding docking. Threat groups have been known to track ships and spoof emails to shipping companies to request payment for their upcoming or previous docking. This has resulted in ships losing money as they have been unable to distinguish what is the legitimate process for these payments – made harder when a ship uses many ports over a short period of time.

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As the maritime sector is being targeted by highly motivated cyber criminals, the shipping industry should be on the highest alert for a cyber attack, Itai Sela, CEO of cyber security specialist Naval Dome, said. 

Speaking today at the Singapore Maritime Technology Conference (SMTC) 2019, organized by the Maritime and Port Authority of Singapore (MPA), Sela warned:

“Somebody, somewhere is targeting the maritime sector. The shipping industry should be on Red Alert.”

Sela’s warning follows widespread concern that the maritime industry remains vulnerable and is not doing enough to protect itself.

During a round table discussion in which several companies informed the Greek shipping community of the importance of cyber security, one analyst said that while the industry is “concerned about the cyber risk it struggles to understand where and how best to manage it”.

As stressed by Naval Dome CEO, the industry is not prepared for cyber attacks. Taking into account that shipping is a USD 4 trillion global industry transporting 80% of the world’s energy, commodities and goods, any activity that disrupts global trade would have far-reaching consequences.

“It is easy to understand why shipping is now in the cross-hair of the cyber-criminal or activist. But the maritime industry still believes it is enough to have a Level 1 solution to protect against a Level 4 threat,” Sela commented.

Referring to the global certification standard IEC 62443, which has been adopted by several certification bodies, Sela explained the four levels of security used for safeguarding against a cyber-attack.

“A Level 4 attack is extremely sophisticated and intended to cause the most amount of disruption for either political, social or financial gain. It is the Level 4 type attack criminals are using to penetrate the shipping industry,” Sela said, recalling an incident in which the navigational equipment aboard a fleet of 15 tankers was simultaneously hacked.

 

As explained, the easiest way for hackers to penetrate ship systems is to attack systems at the ship manager or original equipment manufacturer’s (OEM) head office.

“All a hacker has to do is infiltrate these systems and wait until some someone sends an infected email to someone onboard ship – the attack is delivered. It spreads. It’s autonomous.”

The current regulations consider improving interactions between the operator and machine as the optimum way of combating maritime cyber crime. However, Naval Dome believes the best solution is based on technology that removes the human element altogether.

In his presentation to the Singapore maritime community, Sela suggested that a ship can be used as a very effective weapon to “create chaos and destruction” at the port.

“A ship whose systems are under the control of the cyber-criminal could result in pollution, cause collisions or groundings, or be used as an incendiary device. The result could be catastrophic if a vessel is not secured to the highest level.”

Sela also said that a country like Singapore must have the ability to monitor all the ships that enter its waters in order to verify whether it’s infected or cyber clean.

“I strongly recommend that all port authorities have the ability to control the cyber threat that each and every vessel entering their waters brings with them. This will protect assets and avoid potential disaster,” he concluded.

 

SOURCE


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Maritime blockchain solutions have the potential to greatly improve efficiencies in shipping and bring this industry into the 21st century


Shipping is the engine of the global economy, making up some 90% of world trade. That’s not easy to express in monetary terms, although experts estimate it at over $10 trillion a year. Maritime blockchain could transform this industry and bring multiple benefits to importers, exporters, transporters, ship owners, and even governments.

Blockchain at sea: How technology is transforming the maritime industry !

Blockchain technology has the potential to revolutionise the maritime industry and bring it into the 21st century. This complex ecosystem could greatly benefit from a robust digital platform to exchange data in real time.  

In fact, the industry has been testing maritime blockchain applications since 2017. Some of the most important shipping companies, such as Maersk, Hyundai Merchant Marine, and Maritime Silk Road Platform, have teamed up with tech giants to create blockchain shipping systems to streamline maritime logistics.

Maritime blockchain speeds up document flows

One of the main benefits of introducing blockchain to the maritime industry is cutting down bureaucracy. For international shipments, companies and customs officials are forced to fill out over 20 different types of documents (most of them paper-based) to move goods from exporter to importer.

Most of these documents fail to provide real-time visibility and data quality, which often causes setbacks in financial settlements. These types of delays and inefficiencies are hard to accept in a data-driven, digital world.

An international consortium of shipping companies and European customs has tested a blockchain solution that eliminates printed shipping documents from the process. Not only did blockchain speed up operations, but this pilot proved how organisations in the maritime industry can save hundreds of millions of dollars annually.

Blockchain not only makes cargo checks faster, it also minimises the risk of penalties for customs compliance that are levied on customers.

The maritime industry can also benefit from predictive analytics

Big data is having a huge impact on the industry, thanks to its potential to optimise operations, improve cybersecurity, and increase the overall efficiency of the supply chain.  

However, data alone can’t change the way the maritime industry works. Companies, ports, and governments need to analyse the information to reap real benefits from the findings. This industry generates about 100-120 million data points every day. It was impossible for existing technologies to gather and analyse this amount of data efficiently.

Blockchain can help by placing the crucial data in one place and creating a unique platform for solution providers, ports, and agents that operate along the supply chain.

By tracking cargo in real time using blockchain technology, shipping companies and ports can plan land procedures ahead of time, speeding up terminal works and cutting down costs. They can also use data to make educated predictions that enhance their operations and increase efficiency.

Maritime blockchain increases trading safety and transparency

The maritime industry includes multiple parties. Most of these communicate through lengthy paper chains, making it impossible to track shipments currently. This, combined with high transaction volumes, leads to little or no transparency in most processes.

Blockchains can secure the integrity of any record, reducing the risk of damaged or missing shipments. By replacing the old paper system, all parties involved have access to information, making it easier to plan operations efficiently and save on costs.

The information stored in the blockchains is impossible to delete or edit without leaving traces, so this transparency also increases security.

It reduces data entry errors and can improve fraud detection. Maersk’s collaboration with IBM, for example, also stipulates the development of means to streamline customs and security inspections, as well as tracking shipping containers for commercial purposes.

Maritime blockchain and cost efficiency

The blockchain-based Bill of Lading created by Maersk and IBM showed in early tests that administrative costs could be reduced by as much as 15% of the value of shipped goods, thanks to tracking shipping containers and eliminating paper documents.

It may seem like a small percentage, but that could create savings of $1.5 trillion globally.

Besides costs related to documentation, companies can also significantly reduce expenses caused by data entry errors, procedural delays, and discrepancies.

Blockchain technology is transforming the maritime industry

The maritime industry is still struggling with high costs and a high level of pollution. Blockchain technology can help with both issues, by cutting down administrative costs and providing environment-friendly solutions. All while protecting the industry against cybercrime and piracy, and ensuring a fairer deal for all parties involved.

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BIMCO : The Guidelines on Cyber Security Onboard Ships

Cyber threats are constantly evolving which requires a regular review of all cyber related processes on board ships to allow for successful protection against cyber attacks. We are pleased to announce that today various maritime industry organisations published a revised third version of the “Guidelines on Cyber Security onboard Ships”. The document provides guidance to shipowners and operators on how to assess their operations and develop procedures to strengthen cyber resilience on board their ships. The Guidelines will continue to be updated regularly to mirror the evolution of cyber security threats and to outline new measures to mitigate against dynamic cyber risks.

Key updates in Version 3.0 include:

  • the requirement to incorporate cyber risks in the ship’s safety management system (SMS);
  • more detailed information related to the risk assessments of operational technology (OT);
  • increased guidance for dealing with the risks in the ship’s supply chain;
  • cases studies of verified cyber incidents onboard ships to highlight and illustrate potential problems.

Version 3.0 of the Guidelines can be downloaded HERE