The transportation and freight brokerage industry has experienced a swift digital transformation within the past decade. Load-matching platforms, electronic logging devices (ELDs), automated dispatch, and cloud-based transportation management systems (TMS) have become integral parts of daily operations. While these tools allow both brokers and carriers to move freight more quickly and effectively, they are creating new cybersecurity weaknesses that many organizations are still not equipped to sanitize.

Freight brokerage IT systems are located within an intricate, multi-party ecosystem. Brokers are managing communications and transactions all with shippers, carriers, warehouse partners, and independent contractors, all of which rely on networked software platforms. Each of these systems and organizations are exchanging sensitive details, such as driver identification, freight documents, payment information, and Social Security numbers. Once one party in the entire network has insufficient security, the entire network is compromised.

Recently with the S&H Transport Data Breach, we see how a single point of weakness is exploited to access personal identifiable information. Although this incident impacted one organization, it depicts a larger and growing issue in the overall transportation industry.

Reasons Why Freight Brokerage Systems Make Appealing Targets

1. Centralized Data Flows (again)

Brokerage systems are centralized data stores with large amounts of driver and load data. Centralization has internal efficiencies, but it also creates vulnerabilities.  A breach to the source code of a brokerage company could easily expose many other business entities and partner networks as opposed to a breached data source that only stores specific client manifest data.

2. Legacy Software and Patching

Many transportation companies continue to run legacy systems that date back to when FMCSA or ICC had rule-making authority decades ago. While the system continues to receive upgrades, often part of the technology stack will have outdated components or unpatched vulnerabilities buried in their system.

3. Third Party Integrations With Low Scrutiny

Freight brokers often use API’s to integrate warehouse partners, carrier networks and dispatch apps, or accounting applications into their brokerage processes. While those integrations may help speed up the workflow, and integration creates blind spots in the set of the systems. A single vendor's compromise may open up a new vulnerability to the brokerage.

4. Low Cybersecurity Budgets for Small and Mid-Sized Brokers

Large carriers may invest significantly to shore up their organizations against active threats, but many small and mid-sized brokers cannot come close to investing the same type of resources. Thus, these types of organizations are appealing to attackers, because they are simple targets. There is less deployment of cybersecurity resources, even the lowest-level committed resources are prone to compromise or misconfigured.

5. Constant Operational Pressure

Transportation functions in a perpetual state of movement 24/7. Even if it is slow to load, it is still on the move. Brokers run their operations with a primary focus on speed, uptime, and coordination with divers on moving processes. Companies temporarily delay applying security updates because they fear interrupting an uninterrupted flow of loads.

Steps the Industry Can Take to Improve Security

• Conduct routine security assessments of all third-party interfaces as well as internal systems
• Network segmentation of dispatcher, accounting, and customer portals
• Enforce mandatory multi-factor authentication for staff, drivers, and partners
• Encrypt all documents that are inbound, outbound, or stored
• Monitor in real-time for unusual access patterns
• Regularly patch and modernize unserviced previous-generation infrastructure

Conclusion

As freight brokerage systems continue to grow and connect into more digital tools, they will be increasing the attack surface against cybercriminals. The industry is heavily reliant on interconnected platforms combined with legacy systems and high amounts of data; as a result, small differences in vulnerabilities can result in significant consequences. Events such as the one at S&H Transport are indicative that cybersecurity is logistics is not optional. Improving digital defensibility should be an operational priority for every transportation company that moves freight connected in a network.