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Construction firms are facing a surge of cyberattacks, making robust cybersecurity measures and insurance essential for protecting sensitive data and project timelines.
- Cybercriminals target construction firms due to large financial assets and digitized operations.
- Ransomware and data breaches can halt projects, causing significant financial and reputational damage.
- Prioritizing cyber hygiene, employee training, and cyber insurance are crucial for risk mitigation.
NEW YORK, 2025-06-17 14:42:00 – Cyberattacks are becoming increasingly common in the construction industry, driven by the sector’s financial assets and the digitization of operations. Construction companies must prioritize cybersecurity and acquire cyber insurance to defend against potential threats. Recent attacks on firms like Bouygues Construction in France, where 200 gigabytes of data were locked in January 2020, and Bird Construction in Canada the prior month, which had 60 gigabytes frozen, highlight the urgency.
The High Stakes of Cyberattacks
The 2021 Infrastructure Investment and Jobs Act has intensified these risks, as companies digitize more processes, creating new vulnerabilities. Cybercriminals use tactics like phishing through email, voice, and SMS messages, exploiting weak passwords, a lack of multifactor authentication, and careless data sharing. These attacks can lead to severe consequences, including project delays and financial losses.
Why Construction is a Prime Target
Construction is especially vulnerable due to several factors, including the industry’s embrace of technology. Innovations like Building Information Modeling (BIM) and cloud-based project management platforms store vast amounts of sensitive data. This data includes banking information, bid details, employee information, and proprietary designs, increasing the appeal for cybercriminals. General contractors increasingly require subcontractors to upload payment requisitions, including subcontractors’ financial details to online software platforms.
Cost Jason
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This digital transformation exposes companies to new risks. Cyberattacks are costly, with potential for civil penalties, consumer restitution, and severe reputational harm. A ransomware attack can halt a company’s operations, disrupt ongoing projects, and lead to long-term brand damage.
Shielding Against Digital Threats
How can construction companies protect themselves from cyberattacks? Construction companies can take proactive steps to bolster their defenses. Essential steps include developing a skilled digital team, educating employees about digital risks, and implementing robust cyber policies. Regular training on evolving threats, consulting with cybersecurity experts, and establishing clear incident response protocols are also crucial.
Building a Strong Defense
Additional steps include reviewing and reinforcing contractual relationships to ensure adequate safeguards for all participants and meeting with contractors and vendors to address risk. Adding cyber risk to safety meeting agendas and staying updated on the latest developments in cybersecurity are also advised.
The Importance of Cyber Insurance
Cyber insurance is essential, given that even the most robust defenses can be breached. Companies should seek insurance policies providing crisis management services and carefully review them to ensure they cover their most significant risks. As cyberattacks become more frequent, construction companies must take immediate steps to mitigate risks and regularly review their cyber practices and training. Attorneys can help assess contracts and insurance coverage to ensure adequate protection.
