Fraud Challenge in Industry 4.0

industry 4.0

Fraud Challenge in Industry 4.0

Industrial Revolution 4.0 or Industry 4.0 is not just an empty marketing buzzword that has been around since 2011. Our predecessor started the industry 1.0 around 200 years ago, which was marked by the transition of manual working (by hand) to machines powered by a water wheel or steam engine. Now, the unprecedented cutting edge technology brings us to Industry 4.0, following in the footsteps of Industry 3.0 (computer and internet) and Industry 2.0 (mass production and electricity).

The keyword of Industry 4.0 is automation that was created by the pairing of artificial intelligence (machine learning and deep learning) and the interconnected devices (IoT), leading to the vast amount of data transaction (big data).

In other words, Industry 4.0 is marked by the rise of automated, robot-based, modern manufactures that require little input from the human being. The automation is not limited to the manufacturing network, but also include the supply chain network. As a result, it generates the holistic and efficient manufacturing ecosystem that we call ‘smart manufactures’.


The higher level of security issue

As the world arrives at Industry 4.0, the interconnectivity becomes paramount and the data become currency for manufacturers. The machine learning and analytics process and analyze the data into a real-time or near real-time information which is a benefit for decision making. This sensitive information is not limited to related-manufacturing process, but also may include intellectual property of the manufacturer or company, customers’ and other confidential information.

While ‘smart manufactures’ offer remarkable benefits, the nature of its interconnectivity brings the security risk of these data to the higher level. The attackers, both from internal and external sides, are fully aware of how more vulnerable the system ever than before to be exploited because of the interconnected devices. The increased vulnerability opens more chance to the attackers carry out some methods of cybercrime such as hacking, malware, social engineering, privilege misuse, and physical intrusion with more extensive impact on the aftermath.

One of the ugly cyber fraud scenarios is when the attackers sabotage the production line, system related to manufacturing or even the IT infrastructure of the manufacturer by sending a command from internet connected-control component. The sudden halt of the manufacturing process could be the worst possible outcome.


The best practice

As the Industry 4.0 is still evolving, other risks and the new form of threats keep breaking out. There is no one-for-all fix to address the cybersecurity issue in the industry. Yet, companies are encouraged to implement the secure, vigilant, and resilient approach in order to protect the connected environment and to avoid as well as minimize the cost whenever the attack hits the home base.

Here are some, but not limited to, general steps the companies can implement:

  1. To build commitment and awareness of cyber fraud’s prevention starts with the tone from the top.
  2. The company should have a ‘privacy officer’ in the structure, one who has sufficient knowledge in IT and law with the right work program.
  3. To socialize the importance of main data confidentiality to all employees.
  4. To classify data.
  5. To recruit the right talent.
  6. To conduct real-time monitoring in constant and to deploy the latest technology to detect data leak.
  7. To have a responsive approach over the red-flags.
  8. To keep an eye on the evolving cybercrime.






Share this post:



Jl. RS. Fatmawati Raya No. 57-B, Cilandak Barat, Jakarta 12430, Indonesia







Get the latest updates and industry insights

    Copyright – INTEGRITY – All Rights Reserved © 2024 – Privacy Notice | Terms of Services | Content Protection by