Crown Equipment confirms cyberattack, disrupting manufacturing for several weeks

Crown Equipment Corporation, one of the largest forklift manufacturers in the world, employing 19,600 people and having 24 manufacturing plants in 14 locations worldwide, recently confirmed a significant cyberattack that disrupted its operations for weeks.

The Attack and Immediate Response

On June 9th, Crown Equipment’s network was breached by an international cybercriminal organization. The company’s IT systems were subsequently shut down on June 10th to prevent further damage, leading to a complete halt in manufacturing operations at multiple plants​.  The attack was reportedly initiated by a social engineering tactic, where an employee unwittingly provided unauthorized access to the cybercriminals​​. This breach underscores the importance of employee training and awareness in cybersecurity.

Impact on Operations and Employees

The cyberattack affected not only the manufacturing processes but also the company’s communication channels, including email, phone lines, and its website. Employees were initially left without clear guidance and were told to either file for unemployment or use their paid time off (PTO) to compensate for the downtime​. However, this decision was later reversed, and employees received their regular pay as an advance, with an option to make up for the lost hours​.

The prolonged downtime and lack of transparency from the company led to frustration among employees. They were advised not to accept multi-factor authentication (MFA) requests and to be cautious against phishing emails, highlighting the ongoing cybersecurity challenges within the organization​.

Collaborative Efforts and Recovery

Crown Equipment collaborated with federal law enforcement and some of the world’s leading cybersecurity experts to investigate the breach and develop a recovery plan. Despite the efforts to contain the attack, the company’s manufacturing plants remained shut down until June 24th, which was longer than initially anticipated​.  The company’s proactive measures, including existing security protocols, helped limit the extent of data compromise. Crown has stated that there were no signs that employee information was targeted, although the full scale of the data breach remains unclear​.

Preventative Measures and Future Safeguards

This cyberattack could have been avoided with more stringent cybersecurity measures. Firstly, comprehensive employee training programs focusing on recognizing phishing attempts and other social engineering tactics are essential. Employees should be educated about the latest cybersecurity threats and how to respond to suspicious activities.

Implementing advanced cybersecurity technologies, such as AI-driven threat detection and response systems, can significantly enhance an organization’s ability to detect and mitigate threats in real-time. Regular cybersecurity risk assessments and penetration testing conducted by cybersecurity consultants can help identify vulnerabilities before attackers exploit them.

Moreover, establishing a robust incident response plan is crucial. This plan should outline the steps to be taken in the event of a cyberattack, ensuring a quick and coordinated response. This includes clear communication protocols to keep employees informed and reduce confusion during a crisis.

Adopting a zero-trust security model, which assumes that threats can come from both outside and inside the network, can further enhance security. This model requires strict verification for anyone attempting to access resources within the network, reducing the risk of unauthorized access.

Regularly updating and patching software and systems to address known vulnerabilities is another critical step in preventing cyberattacks. Keeping backups of critical data and ensuring these backups are secure can help in quick recovery without succumbing to ransom demands.

Conclusion

The Crown Equipment cyberattack underscores the critical importance of cybersecurity in today’s digital landscape. Companies must adopt a proactive approach to cybersecurity, leveraging the skills of cybersecurity advisors and consultants to protect their assets, maintain operations, and safeguard their reputation. By implementing comprehensive training programs, advanced security technologies, and solid incident response plans, businesses can better protect themselves against future cyber threats and minimize the impact of potential breaches.