How to Secure IoT Networks in Smart Warehousing

Summary

Warehousing is a critical but often inefficient process. Consequently, many facilities in this sector are embracing Industry 4.0 technologies to boost visibility, efficiency and resilience. While this shift has many positive implications, smart warehousing also creates unique cyber risks.
 
Smart warehousing involves extensive Internet of Things (IoT) connectivity. These devices range from inventory tracking solutions to automated guided vehicles to warehouse management systems (WMS), making many once-offline machines vulnerable to cyberattacks. Thankfully, implementing this technology safely is possible. Here are seven steps to secure these IoT networks.

1. Choose IoT devices carefully

IoT security in warehousing begins with selecting the right equipment. Smart devices are notorious for featuring minimal built-in protections, so warehouses must look for options with stronger defaults. These include multi-factor authentication (MFA), data encryption and secure update protocols.
 
The FCC is developing a cybersecurity labeling program that will make it easier to identify safe IoT devices in the future. Device manufacturers must meet certain standards to attain these labels, so organizations should look for this certification once this program takes effect.
 

2. Segment networks

Next, smart warehouses should segment their networks to keep IoT devices separate from other endpoints and data. Doing so stops lateral movement, where an attacker could access a network through an easily hackable IoT device before moving to more sensitive systems. While it doesn’t stop attacks altogether, it limits their damage.
 

3. Encrypt all IoT data

Data encryption is another crucial step in warehouse IoT security. A staggering 98% of IoT traffic is unencrypted, leaving it vulnerable to attackers who can access these devices or their transmissions between endpoints.
 
Encryption renders information unreadable, even if it leaks. It’s also not always on by default, so smart warehouses must enable it across all IoT devices. Encryption should apply to both at-rest and in-transit data if options allow it.
 

4. Train employees

Many cybersecurity risks also stem from human error. Industries like warehousing are even more likely to experience these mistakes, as they’re less accustomed to dealing with cyber threats.
 
Automation can help. It makes fewer mistakes and works faster—some users have seen 60% jumps in efficiency—but it doesn’t apply everywhere, so employee training is still necessary. All warehouse personnel should undergo basic security training, teaching them things like the importance of strong password management and spotting phishing attempts.
 

5. Use tighter access controls

Warehouses must also ensure unauthorized users can’t easily access their IoT devices. Default passwords on these endpoints tend to be easily hackable, so businesses should change them to something stronger and unique.
 
Requiring MFA to access IoT devices is also crucial. As simple as an extra login step may seem, it stops up to 99.99% of attacks, as it means even a breached password isn’t enough to get into a device. This measure is particularly important for mobile robots and WMS, as attackers can do more damage if they access these.
 

6. Keep devices updated

Regular updates are another simple but crucial step in smart warehouse security. Cybersecurity is a constantly evolving field, so developers must frequently patch device firmware to protect it from newly discovered vulnerabilities. Warehouses can stay on top of these new protections by enabling automatic updates on all IoT devices.
 

7. Monitor IoT networks

There were over 112 million IoT attacks in 2022 alone. Given how massive this problem is, it’s unlikely that a warehouse can stop 100% of IoT instructions, so they must also be able to respond quickly. Continuous network monitoring is the solution.
 
Continuous monitoring systems analyze network traffic with AI to spot suspicious behavior, contain it and alert IT staff. That way, smart warehouses can stop attacks before they disrupt operations too dramatically or steal much data. These solutions may require more IT spending than warehouses are used to, but they’re necessary, given the industry’s vulnerability.
 

Smart warehouses need robust security

When a warehouse experiences a disruption, the consequences ripple throughout the supply chain. Minimizing these disruptions today means addressing cyber risks, which are increasingly prevalent as the smart warehouse movement leads to higher IoT adoption.
 
The IoT’s vulnerabilities don’t mean that smart warehouses are more dangerous than they’re worth. Rather, organizations should embrace these cybersecurity best practices so they can experience the advantages of this technology while minimizing its downsides.