Articles & Alerts
Cybersecurity in Consumer Products Businesses: Prevention, Monitoring, and Response to Breaches
Recent cyber breaches have made it clear that even leading consumer product companies are vulnerable to sophisticated cyberattacks, underscoring the need for companies to stop viewing cybersecurity solely as a back-office concern. The fallout from an attack can be severe, resulting in disrupted operations, shaken customer confidence, and costly financial and reputational damage. As digital platforms become the backbone of supply chains, e-commerce, and customer engagement, strong cybersecurity isn’t optional; it’s a fundamental requirement for consumer product companies to compete effectively in today’s environment.
Confidence in an organization’s cybersecurity efforts is essential and requires regular review to remain effective. The following practical strategies can help companies properly assess their current cybersecurity protocols and continue strengthening their defenses, monitoring emerging threats, and responding decisively when incidents occur. Acting now and continuously could be the difference between a minor disruption and a major crisis.
- Strengthen Identity and Access Controls
Start by securing the front door to the company’s systems. Implement multifactor authentication across all critical platforms to make it harder for attackers to compromise accounts. Apply the principle of least privilege, granting employees only the access they need and reviewing permissions regularly. Finally, enforce strong password policies to reduce the risk of credential theft.
- Protect Data Through Layered Security
An organization’s data is one of its most valuable assets, so protect it at every stage. Encrypt sensitive information to prevent interception. Classify data so that high-risk information receives the strongest safeguards, and limit where client and operational data is stored to reduce exposure.
- Maintain a Modern Endpoint Security Stack
Endpoints, which are any device that connects to a network, including laptops, phones, and printers, are often the first target for attackers. Deploy endpoint detection and response tools on all workstations and servers to spot suspicious activity quickly. Keep operating systems and applications up to date with the latest patches and remove unused or unauthorized software to minimize vulnerabilities.
- Monitor Networks and Cloud Environments Continuously
Visibility is key to stopping threats before they escalate. Leverage the company’s security information and event management systems to collect and analyze logs across its environment. Set alerts for anomalies like impossible travel, large file transfers, or repeated login failures, and regularly check cloud configurations for misconfigurations or exposed assets.
- Train Employees to Recognize and Report Threats
An organization’s workforce can be its strongest defense or its weakest link. Run ongoing phishing simulations and security awareness training to keep employees alert.
Teach them how to identify suspicious emails, unexpected requests for sensitive information, or unusual changes to financial details. Social engineering tactics are becoming increasingly creative, making it essential to remind staff that cybersecurity risks can originate from personal devices, including cellphones, and emphasize the importance of careful behavior across both work and personal technology.
- Validate the Security Posture of Third-Party Vendors
A company’s security is only as strong as its partners’. Review vendor SOC 2 reports and security questionnaires to confirm their practices. Include contractual requirements for breach notification, and data handling and monitor vendor access to internal systems, disabling it when it’s no longer needed.
Many of the cybersecurity issues identified this year were detected through proactive communication with customers and vendors, particularly when attackers attempted to initiate fraudulent changes to banking information. To help prevent these incidents, businesses should implement additional verification steps whenever a vendor requests updates to payment or banking details. Routine review of receivable balances is also critical. In one case, a consumer product company learned that an old outstanding receivable had actually been paid to a fraudulent bank account. While their customer believed they had paid the outstanding balance, the funds were diverted by a hacker, and the company was unaware of the fraudulent activity or that the payment had been made. Strengthening verification procedures and maintaining consistent financial oversight can significantly reduce exposure to these types of attacks.
- Create and Rehearse an Incident Response Plan
When a breach happens, speed and clarity matter. Define clear roles and communication paths for executives, IT, legal, and PR teams.
- Back Up Critical Systems and Test Recovery
Backups are a business’s safety net; make sure they work. Maintain offline and immutable backups that attackers can’t alter. Test disaster recovery procedures regularly to confirm recovery time objectives can be met and monitor backup integrity to avoid surprises during a crisis.
- Conduct Regular Security Assessments
Don’t wait for attackers to find weaknesses; find them first. Perform penetration tests to validate your defenses and use vulnerability scanning to uncover misconfigurations or outdated software. Prioritize fixes based on business impact, not just severity scores.
The consumer products industry faces unique challenges: complex supply chains, heavy reliance on third-party vendors, and growing e-commerce channels. If an incident happens, act fast and communicate clearly. Contain affected systems immediately to prevent further spread. Collect logs and evidence before wiping or reimaging machines. Notify clients and regulators as required by law and provide honest updates along with steps taken to prevent future incidents. Just as important as having strong systems and security in place is having reliable partners and trusted advisors you can turn to, whether that’s a dedicated firm or an existing advisor who can bring in specialized expertise when needed. By implementing these strategies, businesses can reduce risk, maintain compliance, and build trust with customers and vendors.
If you have any questions on how to implement these strategies or how to further protect your business from cyber-attacks, please contact MARC FEDERBUSH, Partner and Leader of Anchin’s Consumer Products Group, Robert Bondura, Manager, or your Anchin Relationship Partner.
