How the Plastics Industry Can Strengthen Cybersecurity in Smart Packaging

Plastics manufacturers and shippers the world over have access to more efficient packaging and logistics than ever before thanks to smart new technologies. Specifically, smart packaging is helping to improve the shipping, tracking, and end recipient experience.

By using smart codes and QR and RFID technologies, for example, it’s easier than ever to track product journeys, to monitor package conditions, and to verify that a parcel is legitimate. 

The global market for smart packaging is set to reach $46.9 billion by 2033, at a CAGR of 6.20%. However, alongside increased adoption, plastics manufacturers and smart packaging adopters need to be vigilant about growing cyberthreat numbers and sophistication, too.

Understanding the Risks of IoT-Enabled Smart Packaging

Smart packaging within the plastics industry, for example, that which relies on RFID tagging, revolves around the Internet of Things, or IoT. IoT refers to devices, sensors, and tags that communicate with each other, collecting data, and sharing data on request.

IoT has helped businesses and end recipients gain greater visibility of packages on route, and it’s continuing to boost efficiency across broad supply chains. However, there are major cybersecurity risks involved with IoT which, unfortunately, show no sign of slowing down.

According to data obtained by Jumpcloud from sources such as IBM and Verizon, IoT devices are not only responsible for a third of all data breaches, period, it’s also thought that over half of them have critical vulnerabilities hackers can easily exploit.

Weaknesses in IoT-enabled smart packaging and the processes they support can include:

• Unseen vulnerabilities in outdated firmware or weak code in IoT applications
• Cloning and counterfeiting of smart packaging labels
• Outdated or legacy systems still used in the communication chain
• Vulnerabilities transferred through third parties elsewhere in the supply chain
• Physical tampering of labels or technology through insider threats

Unfortunately, it also stands to reason that the more you digitalize your processes, the broader your potential attack surface will grow.

If any company in plastics provision or elsewhere is to adopt smart packaging end-to-end, it must take proactive steps to ensure the technology in place can be trusted, and that vulnerabilities are regularly addressed.

When it comes to internal weaknesses that may affect smart packaging controls, for example, many companies rely on regular penetration testing to ensure there are no endpoints in their operations where hackers can exploit them.

Implementing Robust Cybersecurity Measures in Smart Packaging

Beyond vulnerability scanning and penetration testing, there are various ways plastics brands can take better care of their smart packaging cybersecurity. For example, they might ensure:

• All IoT devices and software are kept up to date with the latest security patches
• Team members are meticulously trained on data security measures
• Hardware is cycled out when it reaches end-of-life
• All data processed is encrypted and stored securely 
• All third parties they partner with on the supply chain are carefully vetted and pre-approved
• No one unnecessarily adds devices and endpoints to reduce attack surfaces
• Networks are segmented so that smart packaging attacks are restricted to one specific data zone
• Artificial intelligence is deployed to learn how to spot threats and lock down processes

Ultimately, any company relying on IoT and deploying smart technology should be proactive and vigilant, and adopt a zero-tolerance approach to threats. In fact, around nine in ten companies globally use a zero-trust architecture approach.

Compliance and Regulatory Considerations for Smart Packaging

Compliance and regulatory considerations for smart packaging may vary depending on the industry involved. However, plastics firms involved in shipping in the food industry, for example, will need to consider whether or not their labels will come into contact with anything comestible.

However, that doesn’t relate to the data involved in smart packaging. When using smart packaging services, companies need to consider carefully how consumer data (i.e., their packages and any financial information) is stored and processed. Failure to establish any kind of process and to divulge details to customers may result in compliance breaches.

For example, one of the biggest compliance regulations all companies must follow when operating within the European Union is the General Data Protection Regulation, or GDPR. Within GDPR expectations, any data captured that belongs to a customer must be safeguarded, and customers must be informed about how their information is stored and used, and when it will be disposed of.

Otherwise, companies breaching this regulation may be required to pay fines that may reach millions of dollars.

Breaching regulatory compliance is not purely a financial risk, of course, but also one that affects reputations – for small and larger businesses alike. Therefore, all plastics experts must have clear, documented data collection and protection systems in place so they are always in line with compliance requirements.

Future Trends in Smart Packaging and Cybersecurity

Technology, thankfully, is helping to make securing smart packaging data more efficient and manageable. For example, IoT devices can now use machine learning to spot anomalies in real-time data and to communicate with other devices to take immediate protective action.

Blockchain, too, is helping to make smart packaging more transparent and easier to track. Immutable contracts created on blockchain establish the creator and recipient of certain data, for example, thus protecting individuals against threats of counterfeiting.

Ultimately, cyber threats against IoT and companies using smart packaging will continue to grow in sophistication. That means hackers, too, will use AI and machine learning to advance their exploitation techniques.

As such, companies that use smart packaging tools and services must be proactive and open-minded regarding unseen threats. With advanced efficiency and enhanced user experiences arrive potentially hazardous data loss – there is no longer an excuse to make cybersecurity anything less than a priority.

Author Bio:

Vice President of Product Management: Platform, Mobile, Risk, and AI at VikingCloud

Thomas Patterson is a highly experienced and passionate product leader in the cybersecurity and technology industry. With a strong background in product management, security, and data privacy, he has a proven track record of driving innovation, growth, and successful product launches. Currently serving as the Vice President of Product Management: Platform, Mobile, and AI at VikingCloud. Thomas is responsible for overseeing the VikingCloud Platforms, Mobile Applications, and Artificial Intelligence. He is skilled in building core services, shared infrastructure, and centralized experiences for a seamless platform experience.