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Risk Challenges and Meeting MTSA Cyber Regulations Compliance

Industry Article Series: Cybersecurity in the Marine Transportation System

In our new series, "Cybersecurity in the Marine Transportation System: Risk Challenges and Meeting MTSA Cyber Regulations Compliance," Michael DeVolld, ABS Consulting's Senior Director of Maritime Cybersecurity, examines key cybersecurity challenges facing U.S. maritime operators today.

Over the next two years, vessel owners, operators and port authorities are expected to act on cybersecurity regulations enforced by the United States Coast Guard (USCG) to mitigate malicious cyber activity in the nation’s maritime transportation system (MTS).

Michael DeVolld - Director, Maritime Cybersecurity

Michael DeVolld
Senior Director,
Maritime Cybersecurity

USCG’s Maritime Cyber Rule elevates cybersecurity to the same level of priority as physical security for MTSA-regulated facilities and vessels, requiring ongoing cybersecurity drills, exercises and technical measures to detect, respond to and recover from cyber incidents that could threaten maritime transportation security.

What is the U.S. Coast Guard’s Maritime Cyber Rule?

As of July 2025, the USCG’s final rule establishes the minimum cybersecurity requirements for U.S.-flagged vessels, Outer Continental Shelf facilities and assets subject to the Maritime Transportation Security Act (MTSA) of 2002.

According to the MTSA cyber regulations, maritime entities including ports, terminals, vessel operators and other critical infrastructure stakeholders will need to prioritize reporting, training and designating a cybersecurity officer (CySO) while they develop and maintain comprehensive cybersecurity plans and conduct annual cybersecurity assessments.

 

First, they must immediately report cyber incidents to the National Response Center.

 

Second and most urgent for planning and readiness, operators will need to prioritize cybersecurity training for personnel with access to information technology (IT) or operational technology (OT) systems and complete this training by January 12, 2026.

 

As a third crucial step, cybersecurity plans will be due to the USCG by July 16, 2027.

While these phases seem straightforward, the regulations themselves may be challenging to navigate depending on a company’s readiness and will need to reflect current and future cyber risks.

Key Challenge 1

From Ransomware to Spear-Phishing, Cyber Threats are Evolving

Digitalization has transformed the maritime sector, and cybercriminals are continually adapting their tactics to exploit MTS vulnerabilities. Go-to strategies include spear phishing, multistage attacks and, increasingly, ransomware.

Ransomware attacks involve taking down an organization’s computer systems, which impacts operational and financial networks, until a ransom is paid. The industry has seen major ransomware disruptions ripple across some of the U.S., Australia, Europe and Japan’s busiest port operations.

For example, in August 2024, a Rhysida ransomware attack targeting the Port of Seattle resulted in a portwide system outage. The team was forced to initiate an incident response that required taking employee systems offline, disrupting operations.

According to the Port of Seattle, while at no point did the cyber incident affect the ability to travel safely to or from Seattle-Tacoma International Airport or safely use its maritime facilities, such a disruption resulted in costly downtime in what must be a 24/7 operating environment.

Meanwhile, criminals are targeting backup systems to make recoveries like this more difficult and increase pressure on decision-makers to pay ransoms.

Spear-phishing campaigns aimed at a specific person or company are another type of threat that has proliferated across the marine environment, with techniques ranging from typo-squatted domains to account/business email compromises.

Many technology companies are working diligently to address evolving threats by certifying that new technology systems are trustworthy and cyber secure by complying with cybersecurity frameworks such as ISO 42001 (International Organization for Standardization) and SOC 2 (Service Organization Control Type 2).

Understanding these evolving threats—and an organization’s unique operational risk—is important to develop a comprehensive and compliant cybersecurity plan.


Key Challenge 2

Always-On Interconnected Technologies Expand Attack Surfaces

Smart technology solutions, particularly the internet of things (IoT), automation and artificial intelligence (AI), are also amplifying MTS vulnerability to cyber threats.

In its “Cyber Trends and Insights in the Marine Environment (CTIME)” report, USCG points out that while the technological advancement in satellite networks enhances efficiency with uninterrupted service and analytics, this constant connection also increases risk like malware spreading quickly from a company’s corporate network to its ships while underway.

At a glance, escalating cyber risk challenges from advancing technologies include:

  • Expanded Attack Surfaces: The proliferation of IoT devices and automated systems in ports and vessels has exponentially increased attack surfaces. Each interconnected device presents a potential entry point into critical maritime networks.
  • Insecure IoT Devices: IoT devices are often designed with a primary focus on functionality, neglecting robust security measures and lacking proper encryption. Unchanged default passwords and infrequent software updates also allow adversaries to easily compromise devices and penetrate broader maritime networks.
  • Lack of Standardization: The maritime sector lacks uniform standards for IoT device security and automation protocols, making it difficult for port authorities and maritime organizations to establish cohesive cybersecurity practices and leaving gaps in defense strategies.
  • Insider Threats Amplification: Automated systems could provide unauthorized insiders with opportunities to cause significant damage. Compromised credentials or insider threats can exploit automation privileges to manipulate port systems or disrupt vessel operations.
  • Cyber-Physical Risks: With automation, cyberattacks can extend beyond virtual networks to affect physical operations such as manipulating cargo-handling machinery.

The Countdown to Compliance – Where to Begin?

Having a strategic plan in place to comply with the USCG cyber requirements will require budget decisions, workforce training and continuous vigilance.

Ultimately, the USCG’s ruling means that time is of the essence to address growing cyber risk as a national security mandate. Organizations must begin identifying the people, processes and technology needed to get started with maritime cybersecurity compliance and risk management.

As a Forbes World’s Best Management Consulting Firm, ABS Consulting is a trusted advisor backed by more than 50 years of safety and risk management expertise in the maritime sector. We’ll help your organization:

  • Develop a plan for the complete cybersecurity journey—from initial assessments through asset management, configuration management, vulnerability management, and detection and response management planning and implementation.
  • Conduct risk assessments, including foundational risk assessments that outline the architecture of the vessel or port facility to identify potential risks.
  • Implement monitoring, detection, asset/configuration management and recovery.

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