Smart Labels, Smart Risks: Cybersecurity Tips for Connected Packaging

Connected packaging is changing the way that people interact with the packages they send and receive – and, for the most part, this digitisation runs smoothly and efficiently, offering customers extended insight into tracking and logistics.

However, introducing new technologies can put packaging firms and their customers at risk of new threats. In this guide, we’ll explore the threats that connected packaging technology could put people at risk from, and how you can better secure your own packaging and labelling operations.

What Is Connected Packaging?

Connected packaging helps to digitise traditional parcels by offering real-time insights on what’s inside, typically through a scannable QR code or RFID tag.

Parcel owners can, for example, scan a connected package to learn more about where it’s travelled, verify sender legitimacy, and interact with brands. Smart packaging technology also helps senders to manage supply chain points more efficiently, and to provide additional insights to recipients.

Connected packaging often uses sensors and systems that communicate with each other seamlessly, as part of what’s known as the Internet of Things or IoT.

Despite a relatively slow adoption rate, connected packaging is proving increasingly popular with companies that are taking advantage. Almost nine out of ten companies are confident in the technology’s benefits, according to Appetite Creative.

That, however, means more and more companies are at risk from cybercrime that targets this niche.

Where Cyber Threats Can Enter

The more technology is connected in a chain, the greater the attack surface is for hackers to find opportunities to exploit. For example, the sensors and IoT technology behind connected packages are easy to breach if they are not regularly updated and assessed.

Cyber threats can enter a packaging operation from inside and outside its main infrastructure, for example, through public-facing online forms, phishing emails, or via employees acting maliciously from within.

Poor access controls within an infrastructure, for instance, can lead bad actors to spread malware or even producing malicious QR codes that put package users at risk.

Ultimately, cyber threats can enter via any public or private endpoint if it is not protected by robust access controls and security updates. However, it is not always easy for packaging companies to take stock of these risks, unless they set up regular penetration tests to find out where they are at their weakest.

There’s also the matter of supply chain risks – even with the most protective, proactive packaging operation in the chain, a firm is only as secure as its partners. For example, an attacker may abuse an outdated IoT device used for connected packaging data and use it as a launchpad to spread malware or steal sensitive data.

Real Risks for Packaging Operations

Packaging operations that fail to secure their IoT devices and networking are likely to fall prey to:

Regulatory and compliance fines
Reputational damage through data loss
Potential legal action from customers and businesses
Supply chain disruptions and downtime (leading to loss of business)
Direct theft of sensitive data, financial records, and money

The broader manufacturing industry is a prime target for cybercrime – and yet, Statista reports only four in ten supply chain firms use risk management tools to help offset the chances of getting attacked.

However, the market size for cybersecurity in packaging remains enormous – according to Thematic Research, it’s an industry worth more than $125 billion.

Given that companies can face losing millions in compliance penalties if they don’t safeguard user data enough, it’s little wonder why so many packaging firms are waking up to how serious cyberattacks can be.

Tips to Secure Smart Packaging

Alarming figures aside, there are several ways that packaging companies can take action now to ensure their operations are airtight against cyber threats.

Some tips packaging companies can put to work right away include:

Applying rigid access controls such as multi-factor authentication to all scannable assets (e.g., requiring users to register and log in to view details)
Encrypting all data transfers shared between users and endpoints
Securing digital paperwork: Use encrypted document management to protect contracts and compliance records.
Requiring third parties in the supply chain to adhere to security checks (for example, building regular audits and checks as part of contract obligations)
Updating IoT device firmware regularly to avoid hackers exploiting outdated code
Following cybersecurity frameworks such as NIST to guide the setting up and maintaining IoT devices based on recommended measures
Regularly training and refreshing employee knowledge on security risks to mitigate phishing attacks
Avoid setting up unnecessary endpoints and technologies unless absolutely required

There is a further argument that to avoid cyber risks that arise from connected packaging, firms could simply avoid the technology altogether. However, according to Scantrust, over 80% of US consumers (as a sample) believe QR codes to be safe – and further research suggests the demand for real-time data through scannable assets is growing.

Therefore, this is a market demand packaging providers can’t afford to miss out on – it simply means they need to be more proactive when it comes to protecting data accessible via the technology.

Future Trends and Risks

According to reports from Packaging Gateway, it appears that cybersecurity concerns in the packaging industry are increasing parallel to digitalisation – particularly, as the report suggests, due to many businesses within the manufacturing industry moving towards new technologies to boost productivity and efficiency.

Therefore, it’s easy to assume that, as new technologies emerge within the packaging industry, the cybersecurity threat landscape will continue to expand. In which case, it’s all the more vital for packaging firms to develop reactive security plans that both protect their networks and offer plenty of remediation support.

The threat landscape is only going to grow more sophisticated and malicious with the rise of generative AI attacks, too – meaning now is certainly the time for firms to start investing in security for the better.

About: Tyler - Vice President of Product Management for Cybersecurity Solutions at VikingCloud

Tyler serves as the Sr. Director of Product Management for Managed Security Services at VikingCloud . His extensive experience encompasses the entire lifecycle of Information Security infrastructure projects, from pre-sales and planning through to implementation, daily maintenance, and management. Tyler's expertise includes overseeing people, processes, policies, budgets, and resources, ensuring comprehensive security measures that protect and enhance IT infrastructures.

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