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The digital transformation of Canadian mining: Navigating heightened cyber risks

Explore the critical need for robust cybersecurity in the Canadian mining industry as digital transformation accelerates. Stay informed on the latest trends in cybersecurity and discover best practices for mitigating supply chain vulnerabilities in mining.

The Canadian mining industry is undergoing significant digital transformation, with the integration of advanced technologies like automation and artificial intelligence (AI) driving efficiency, enhancing safety, and informing strategic decision-making. 

However, this rapid evolution has also introduced a heightened susceptibility to cyberattacks, posing a significant threat to sensitive data, daily operations, and potentially causing catastrophic financial and reputational damage. The stakes are particularly high when cyber events can impact worker health and safety or critical supply chain infrastructure.

According to the Canadian Security Intelligence Service (CSIS), malicious cyber activity targeting Canada continued to increase in scale and complexity. With industrial targets facing a growing number of cyber incidents, it is imperative for mining leaders in Canada to adopt more robust and adaptable cybersecurity strategies.

Understanding your cyber risk exposures in mining

As mining operations become increasingly digitized, Canadian companies face new cyber threats that may not have been previously considered. Cyberattacks generally fall into two categories:

  • Targeted attacks, where malicious actors intentionally exploit vulnerabilities to steal or threaten assets.
  • Untargeted or wide-area attacks, where cybercriminals indiscriminately target numerous devices, services, or organizations.

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Such cyberattacks can be to both information technology (IT) and operational technology (OT) systems, impacting employee safety, finances, and reputation.

Canadian mining companies heavily rely on IT systems for various crucial functions, including data management, asset tracking, safety and risk monitoring, and financial reporting. The high volume of sensitive information stored within these systems means a successful cyberattack or data breach can significantly disrupt daily operations.

On the other hand, OT systems like industrial control systems (ICS), sensors, and automation tools manage and control the physical operations of a mine. These systems can be particularly vulnerable due to a lack of proper security controls and monitoring. For example, OT devices often lack regular security updates and robust authentication practices. While OT enhances efficiency, it also introduces unique cyber risk exposures.

Below are common cyber threats to Canadian mining companies, including risks to both their IT and OT systems:

Unauthorized access or disclosure of sensitive or critical information like geological surveys, financial and engineering data, or employee records, potentially leading to financial loss, reputational damage, or regulatory non-compliance.

Encryption of critical systems and data with a demand for ransom, causing significant operational disruptions, compromised data security and loss, and financial strain. Ransomware is recognized as a major cyber threat facing Canadian organizations.

Manipulation tactics used to trick individuals into divulging confidential or critical information or performing actions that compromise security. Common forms include phishing, impersonating, and baiting.

Interception and alteration of communication between two parties, potentially granting unauthorized access to sensitive data or critical information.

Risks arising from individuals within the company with authorized access who misuse their privileges, causing harm to cybersecurity and operations.

Overwhelming a network or website with traffic from multiple compromised devices, rendering it inaccessible.

Cybercriminals targeting less secure vendors and suppliers to infiltrate a company's systems or indirectly affecting an organization through an attack on a supplier, leading to business interruption and loss of profit.

Bad actors gaining entry to OT networks connected to the IT environment, potentially leading to manipulation of the OT network if connections are not limited and data flow is not carefully monitored.

Compromised safety mechanisms designed to protect workers and equipment, potentially leading to unsafe working conditions by disabling or manipulating sensors, alarms, or emergency shutdown systems.

Unauthorized access allowing attackers to manipulate control parameters like equipment speed, pressure, or temperature, potentially causing malfunctions, overloads, catastrophic failures, physical damage, and production shutdowns.

Understanding these cyber risk exposures is crucial for Canadian mining companies of all sizes to develop effective cyber risk management programs aligned with their specific risk profiles and appetite. Establishing a cyber-aware culture is the first step towards implementing meaningful security controls. 

To learn more about building cyber resilience for your modern mining operations, download Unearthing cyber risk and opportunity: The modern miner’s guide to buying cyber insurance coverage, a guide designed specifically for Canadian miners seeking to safeguard their businesses against the growing threat of cyberattacks.

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