We have all been there: Looking at an email, debating whether or not it’s legitimate. No one wants to be the source of a company-wide cyber attack outbreak or data breach, but unfortunately, cyber criminals are becoming more sophisticated and incognito every day. Although human error accounts for a large portion of security breaches, there are many other ways businesses like yours are targeted.

In my recent podcast interview with Epicor’s John Carrico, I was surprised to learn that small-to-mid-sized distributors (and other small businesses) are among some of the top targets of cybersecurity attacks. This prompted me to dig a bit deeper into why this is and look into some ways that distributors can mitigate their risk.

Wholesaler-distributors are targeted for cyber attacks because they sit at the intersection of manufacturers, suppliers, and customers, handling vast amounts of sensitive data and critical supply chain operations.

Cyber criminals often target distributors because they manage large B2B transactions, house valuable financial information, and sometimes use ERPs that are not up to date with modern security protection. Additionally, as infuriating as this is, cyber criminals know that distributors are essential to the supply chain, and are more likely to pay ransom in order to resume business operations quickly.

Business email compromise (BEC) is a commonly used tactic; Cybercriminals impersonate suppliers, executives, or customers to manipulate employees into transferring funds or sharing login credentials. Microsoft advises watching specifically for attacks targeting your leadership team, as scammers know that impersonating executives gives them the best shot at a big payday. It takes a combination of street smarts and security software to protect your business against BEC.

Cyber criminals know that distributors are essential to the supply chain, and are more likely to pay ransom in order to resume business operations quickly.

In our rapidly changing digital world, adopting new technologies is part of the job. It’s important to stay extra vigilant while doing so. While innovations like cloud computing, AI, IoT, and automation improve efficiency, they can also create new vulnerabilities. Moving ERP, CRM and inventory management systems to the cloud increases exposure if misconfigured, so experts recommend using strong authentication procedures like multi-factor authentication (MFA).

Many distributors today are implementing IoT-powered devices in the warehouse like smart forklifts, RFID scanners and automated picking systems. While the devices are the future of smart warehousing, they expand the attack surface of your operations. To mitigate this risk, experts say to ensure strong password use and keep your firmware up-to-date.

AI-powered analytics tools are also popular – and extremely useful – today. If these are compromised, your decision-making systems could be manipulated. Be sure to use strong encryption and monitor these systems diligently for anomalies.

The world of cybersecurity protection is never-ending and will only continue to grow as technology becomes more involved in our daily lives. Stay informed, train your team, and turn to trusted experts to protect your business.