How to Protect Manufacturing from Insider Threats: 7 Key Measures

Manufacturing is the core of the global economy, yet it is the most attacked industry today. And while much of the attention falls on external attackers, an equally dangerous risk comes from within. 

This article explores the unique cybersecurity challenges manufacturing organizations face, shows you real-life examples of manufacturing data breaches caused by insiders, and provides seven key measures to help you build a resilient insider threat program.

Key takeaways:

• Manufacturing has been the most attacked industry for four consecutive years as of 2024.
• Factors such as the shift to the cloud, use of shared workstations and passwords, and Industry 4.0 expand the attack surface.
• Insider threats in manufacturing are as critical as external attacks, as insiders occupy a position of trust and may be even harder to detect.
• Coupled with an effective insider threat management program, cybersecurity solutions like Syteca help organizations significantly reduce internal risks.

Cybersecurity statistics in the manufacturing industry

Manufacturing has been the most attacked industry for four consecutive years, accounting for 26% of all attacks in 2024, according to the IBM Security X-Force 2025 Threat Intelligence Index.

Out of all possible cyber risk scenarios, insider threats require special attention as insiders’ actions are extremely difficult to detect. According to the 2025 Insider Risk Report by Cybersecurity Insiders, 93% of organizations say that insider threats are just as or even more difficult to detect than external cyberattacks. Additionally, insider threat incidents are becoming more frequent, leading to even more data breaches:

Why manufacturing faces growing external and internal threats

The particulars of the manufacturing industry underline the acute need to continually enhance the cybersecurity of your IT infrastructure. So why is the number of threats constantly increasing?

The target area for cybercriminals in the manufacturing industry is extended due to the following factors:

Convergence of IIoT and OT

The industrial internet of things (IIoT) enhances manufacturing with smart technology, while operational technology (OT) simplifies the control of physical equipment. However, security measures and protocols for these technologies are still developing, and the convergence of the IIoT, OT, and IT exposes manufacturing to cyberattacks. According to the State of IoT Summer 2024 report by IoT Analytics, the global number of IoT devices is expected to reach 40 billion by 2030, up from 16.6 billion in 2023, which is why IoT cybersecurity must become a top priority for manufacturers.

Shared workstations

In manufacturing facilities, employees across multiple shifts often rely on shared computers and terminals to manage production lines, monitor systems, and access sensitive data. This creates accountability gaps, as it makes it difficult to distinguish between users or trace specific actions back to individuals. Limited identity controls on shared workstations open the door to insider threats, operational mistakes, and compliance violations.

Shift to the cloud

Gartner predicts that “over 50% of organizations will use industry cloud platforms to accelerate their business initiatives by 2029”. Securing cloud infrastructure is challenging due to the number of attack vectors, the complexity of cloud environments, and the unclear division of security responsibilities between clients and cloud service providers.

Password sharing

Employees often resort to sharing passwords out of convenience. Uncontrolled password sharing significantly expands the attack surface, as credentials written on pieces of paper, sent by messengers, reused across production and IT networks, or casually handed between shifts, create multiple weak entry points for attackers. Each shared password not only undermines access control but also eliminates accountability, making it easier for cybercriminals to move laterally across connected systems. According to Verizon’s 2025 Data Breach Investigations Report, compromised credentials remain a factor in 34% of breaches in manufacturing. 

Hybrid office and the remote workforce

Remote work settings lack visibility and control over employee activity. Remote environments are difficult to secure, as they lie outside an organization’s physical perimeter. Hybrid work environments also expand the area of potential attack. When cybersecurity officers must protect both in-house and remote environments, the possibility of human error increases and, in turn, so does the risk of a data breach.

Supply chain interactions

The supply chain is another source of cyber threats and insider activity. The Global Cybersecurity Outlook 2025 report by the World Economic Forum reveals that 54% of large organizations consider supply chain challenges to be the biggest barrier to achieving cyber resilience. Even if only one partner, vendor, or supplier is compromised, it may affect the security of other supply chain members and cause operational disruptions.

The pandemic accelerated hybrid work and the shift to the cloud, challenging the CISO to secure an increasingly distributed enterprise. The modern CISO needs to focus on an expanding attack surface created by digital transformation initiatives such as cloud adoption, IT/OT-IoT convergence, remote working and third-party infrastructure integration.

Ruggero Contu, Senior Director Analyst at Gartner

To sum it up, the expanded target area in the manufacturing industry results in:

• Lack of visibility. It can be challenging to identify all devices and network connections involved in the production process. This creates a problem when choosing the right cybersecurity controls and threat detection mechanisms.
• More vulnerabilities. Lack of visibility and control leads to more assets being susceptible to cyber threats. Unprotected operational technology, IIoT devices, remote work connections, and numerous supply chain entities can be used as entry points by hackers and malicious insiders.
• Heightened risks. All of the above result in a higher probability of cybersecurity incidents and other unwanted consequences for manufacturers. Consequences are also amplified — a single security event may endanger valuable intellectual property and even human lives.

Main consequences of insider threats in manufacturing

To better understand what’s at stake, let’s take a closer look at the consequences of insider threat activity in manufacturing:

Operational disruptions. Malicious actors may sabotage production, causing major disruptions to the manufacturing process and system breakdown.

Financial losses. Incidents caused by malicious insiders frequently go hand in hand with revenue loss and compliance fines. Interruptions in business operations may also result in additional fines for violating terms of service-level agreements with supply chain partners.

Reputational damage. Data breaches often result in damage to a brand’s image and loss of reputation among partners, customers, and investors.

Harm to human health. Cybersecurity incidents at hazardous production facilities can cause equipment breakdowns that lead to injuries or even fatal casualties. The famous Stuxnet attack on the uranium enrichment plant in Iran, for example, almost led to a nuclear catastrophe.

Critical data loss. Insiders with access to sensitive data may commit fraud, data theft, or damage important information.

What data is at risk in the manufacturing industry?

Manufacturers have an abundance of sensitive data from a variety of internal and external sources, manufacturing and production technologies, and an ecosystem of suppliers, vendors, partners, and customers.

That said, here are the data types that are most at risk in the manufacturing industry:

Financial data. All financial information about a manufacturing company may become a point of interest for the company’s competitors. Financial data can help competitors make better deals with a company’s partners and customers.

Intellectual property (IP). IP theft is one of the biggest cybersecurity threats in the industry, and most data breaches in manufacturing relate to IP. A manufacturing company’s IP has many facets, including information on research and development, engineering, manufacturing operations, and trade secrets.

Customer and employee data. Insiders may help competitors steal business from a manufacturing company by selling them valuable customer profiles and transaction data. Sensitive customer and employee data may also be compromised to undermine a company’s reputation and force the company to pay extensive fines to authorities that regulate data privacy.

Types of insiders threatening the manufacturing industry

We’ve discussed what data must be protected first and foremost in your organization. Now, let’s look at who you need to be protecting this data from. Manufacturing companies should be aware of the following insider threat types:

Negligent insiders

Negligent insiders are employees who cause harm to an organization through unintentional misuse of information, installation of unapproved applications, leaking confidential data to LLMs, and failure to follow recommended cybersecurity measures. This type of insider is involved in 55% of all insider-related incidents, according to the 2025 Cost of Insider Risks Global Report by Ponemon Institute.

Malicious insiders

Malicious insiders are employees who use their authorized access to an organization’s assets to perform malicious activity for personal gain. These insiders are difficult to identify, as they act as regular employees and execute ordinary work tasks alongside carrying out malicious activity.

Inside agents

Inside agents are malicious insiders hired by external parties to perform industrial espionage on a company, exfiltrate data, or damage critical systems and information. Bribery or blackmail may be used to persuade inside agents to cooperate.

Third parties

Third parties are partners, suppliers, vendors, or other supply chain entities with access to corporate IT infrastructure. They may compromise the company’s data or systems by neglecting security measures, misusing data, or intentionally performing malicious actions.

Disgruntled employees

Disgruntled employees are former or departing employees looking to take revenge on their employer by deleting data or causing harm to IT systems or manufacturing equipment.

Cybersecurity regulations for manufacturing companies

Governments and international cybersecurity organizations establish standards, laws, and regulations to protect organizations and their customers from cybersecurity incidents.

To secure sensitive data and avoid extensive fines for non-compliance, companies operating in manufacturing must meet local and industry-specific cybersecurity compliance requirements. The most common are the following:

While it’s important to meet the requirements of these standards, laws, and regulations, mere compliance is not enough. Ensuring reliable cybersecurity requires managing all security risks and employing the corresponding cybersecurity solutions for manufacturers.

Let’s now review a few examples of insider threats in manufacturing that illustrate how these incidents typically play out.

3 real-life manufacturing data breaches caused by insider threats

Below, we provide three real-life data breach examples that clearly illustrate the increasing danger of insider threats in the manufacturing industry:

Taiwan Semiconductor Manufacturing Company (TSMC)

In July 2025, TSMC, the world’s leading semiconductor manufacturer, dismissed two engineers. The employees had allegedly accessed the company’s sensitive data without authorization, which involved the production of 2-nanometer chips. TSMS’s internal monitoring systems flagged the incident, prompting the company to fire the employees and report the case to the Taiwan High Prosecutors Office.

Taiwan authorities arrested two employees, marking the first-ever trade secrets case under Taiwan’s National Security Act. This case underscores the importance of leveraging monitoring systems to fight industrial and state espionage cases.

Medcedes-Benz

In January 2024, researchers from RedHunt Labs uncovered a critical security oversight at Mercedes-Benz: someone had mistakenly posted an internal GitHub token online. This token granted unlimited access to sensitive company resources, including source code, cloud credentials, SSO passwords, and infrastructure designs.

Mercedes later confirmed that the internal source code had indeed been uploaded to a public repository. This incident was caused by human error, underscoring how even a small misstep can expose highly sensitive assets.

Rippling vs. Deel

In March 2025, Rippling, a software company, filed a lawsuit against its competitor Deel in the U.S. District Court for California’s Northern District. Rippling claimed that Deel cultivated an insider to steal trade secrets from them. The employee, hired by Rippling in 2023, allegedly searched for and accessed sensitive data unrelated to his job responsibilities.

According to Rippling, the employee accessed Slack channels beyond their scope, repeatedly searched for “Deel”, and downloaded sensitive materials, including sales pipelines and customer strategies. Rippling created a trap Slack channel to confirm the employee’s suspicious behavior, which the insider promptly accessed. Whether or not Rippling’s investigation uncovered the full truth, both companies have now suffered reputational damage from this incident.

With state-sponsored cybercrime organizations inciting chaos at a global level, we may see additional attempts to infiltrate businesses. Consequently, it’s vital to perform background checks on recruits and ascertain an ample degree of internal security.

Read on to receive more cybersecurity advice on how to secure your manufacturing organization.

7 key measures of an insider threat program for the manufacturing sector

Strong security starts with a strong insider threat program. An effective insider threat protection program for manufacturing should contain the following features:

1. Identification of key assets

A key pillar of an insider threat program is identifying assets that the organization considers sensitive. This will help you take the appropriate measures to protect your assets based on their criticality.

Assets can be both physical and virtual. Sensitive virtual assets may include financial data, customer and employee information, and intellectual property such as technology secrets, prototypes, and production processes.

Key assets are unique to each manufacturing company. The following questions can help you determine which are critical to your organization:

2. Risk assessment

An insider threat risk assessment can help you detect possible risks your assets are exposed to and understand the true state of your organization’s cybersecurity posture.

The risk assessment process generally consists of the following steps:

After assessing risks, promptly communicate the results to your organization’s cybersecurity team and management. It’s also advised to share the results with all department heads, as this will help them minimize the number of unintentional insider incidents and increase employees’ risk awareness.

Reassess risks regularly, as cyber threats evolve over time and cybersecurity requires constant development.

3. User access management

After the assessment stage, define your system’s weak points and the access permissions that bad actors could use to compromise sensitive information.

The next step is then adopting proactive access control solutions to prevent risky and malicious insider activity and data breaches when working with employees and contractors.

Here are the measures you can follow to lower the risk of insider threat incidents:

• Manage and limit access to critical assets by applying the principle of least privilege
• Implement a zero trust approach within your IT system
• Verify user identities with multi-factor authentication
• Revoke access for former employees and contractors after your collaboration ends
• Detect unmanaged privileged accounts to eliminate blind spots

Zero trust is a security paradigm that explicitly identifies users and devices and grants them just the right amount of access so the business can operate with minimal friction while risks are reduced.

Gartner

When providing your partners and subcontractors with access to your infrastructure, use one-time passwords and password checkout to limit the time third parties can spend accessing your system. Dedicated privileged access management and password management solutions can help you with this.

4. Implementation of insider threat detection software

The most effective way to detect and prevent insider attacks is to monitor employees and log all data regarding users’ access and activity. Most insider threat protection solutions have user activity monitoring capabilities that allow you to detect early signs of insider threats.

In the event of a security incident, an insider threat detection system can inform your organization about who accessed critical assets and what they did.

To ensure reliable cybersecurity for your manufacturing company, an insider threat detection solution should provide you with the following capabilities:

• Monitoring and logging
• Authentication and authorization capabilities
• Incident detection and response mechanisms
• Reporting and forensic investigation tools

5. Incident response planning

Ask your cybersecurity team to brainstorm common insider attack scenarios and identify prompt actions to take in case of a cyber threat. Develop an incident response plan (IRP) for each scenario. Create a plan that is practical, realistic, and easy to implement.

Include the following components in your IRP:

NIST has developed a Security Incident Handling Guide [PDF] which you can use as the foundation of an incident response program for your organization.

6. Incident investigation measures

Planning your company’s procedures for investigating cybersecurity incidents is an important part of insider threat management.

Incident investigation typically consists of the following actions:

• Collecting evidence and facts about the incident
• Evaluating the harm the incident caused
• Exporting digital evidence in a secure format for forensic activities
• Reporting the incident to superior officers and regulatory authorities

You should be able to identify the scope of the incident and its consequences once the investigation concludes. With the help of this data, you can then create a thorough remediation plan and make any necessary adjustments to your cybersecurity and insider threat program.

7. Insider threat awareness training for employees

Regularly conduct insider threat awareness training to increase your personnel’s knowledge of cybersecurity risks and alertness to insider threats. The contents of these training sessions will depend on the current security risks, tools, and approaches of your particular manufacturing organization.

Efficient insider threat awareness training includes:

The final important step of insider threat awareness training is determining its effectiveness via interviews, tests, or insider attack simulations to observe how your employees respond.

How Syteca helps manufacturers prevent insider threats

Syteca is a comprehensive cybersecurity platform that helps manufacturers protect internal IT infrastructures against human-related risks.

Syteca’s extensive feature set can help your manufacturing company secure its sensitive data and IT systems against insider threats. With Syteca’s privileged access management (PAM) and user activity monitoring (UAM) capabilities, you can:

• Increase visibility and accountability by tracking and recording users’ interactions with sensitive assets. 
• Receive alerts about suspicious user behavior and respond to threats in real time.
• Prevent unauthorized access to your IT systems by verifying the user identities of employees and contractors. 
• Enforce the principle of least privilege by granularly managing access to your critical endpoints. 
• Provide access on a just-in-time basis with one-time passwords, manual access approval, and time-bound user sessions.
• Securely store, rotate, and share user credentials between teams with the workforce password manager.
• Eliminate blind spots by detecting and onboarding unmanaged privileged accounts across your IT infrastructure.
• Support audits and security investigations with informative reports on user activity.

In addition to preventing insider threats, Syteca can help your organization meet the requirements of many cybersecurity standards, laws, and regulations, including the GDPR, NIS2, DORA, NIST 800-53, SOX, PCI DSS, and ISO/IEC 27001.

Turning insider risk into insider resilience

The manufacturing industry remains the most attacked industry, and manufacturing businesses worldwide are calling for efficient cybersecurity protection. Expanded attack surfaces result in poor visibility, vulnerabilities, and increased risks, leading to insider data breaches in the manufacturing industry.

To secure your intellectual property and prevent the undesirable financial and reputational consequences of insider threats, include the measures from this blog post in your company’s insider threat protection program. Implementing Syteca can help you streamline inside perimeter protection and execute your insider threat program effectively.