How Cybercriminals Target Construction Companies—And How to Stop Them

The construction industry has long been a vital part of the global economy, but it’s also increasingly becoming a prime target for cybercriminals. As construction companies adopt more digital tools, use cloud services, and rely on technology to streamline operations, they inadvertently open doors to cyber threats. Understanding cyber attackers’ tactics to target construction companies is crucial to safeguarding your business, whether you’re managing a small contractor firm or a large construction conglomerate.

Here are some of the top ways cyber attackers target construction companies and some practical tips on protecting your business from these growing threats.

1. Ransomware Attacks: Locking Down Your Operations

Ransomware is one of the most notorious cyber threats that construction companies face. Attackers infiltrate your systems, often through phishing emails, and encrypt critical files like project plans, blueprints, financial data, or client information. Once encrypted, your business is effectively paralyzed until you pay a ransom (often in cryptocurrency) to unlock your data.

Construction companies are particularly vulnerable because they handle large amounts of sensitive data, including contracts and project information. Cybercriminals know construction companies rely heavily on their IT systems for project deadlines, making them more likely to pay the ransom to resume operations.

2. Phishing and Social Engineering: The Human Element

Phishing is a cyberattack method where attackers impersonate trusted parties, such as contractors, suppliers, or partners, via email or phone to trick employees into revealing sensitive information like login credentials or financial details. Employees play a vital yet frequently neglected role in cybersecurity. Organizations need to focus on the human aspect of security by implementing training and awareness initiatives to reduce risks such as phishing and social engineering attacks. In construction, attackers often target accounting or project management employees, seeking access to bank accounts, payment details, or contracts. The construction industry is incredibly collaborative and often has multiple stakeholders,  which gives cybercriminals numerous opportunities to exploit weak points in communication and trust. With a phishing attack, an employee may unknowingly provide login credentials that give hackers access to company systems or financial data.

3. Supply Chain Attacks: Targeting Your Partners

Construction projects often involve a network of subcontractors, vendors, and third-party service providers. Cybercriminals can infiltrate your systems through a trusted supplier or contractor. These attacks, known as “supply chain attacks,” typically happen when attackers compromise a vendor’s software or network and use it as a stepping stone to breach your business.

The more partners you work with, the more possible opportunities for a breach. Supply chain attacks are hazardous because they exploit the trust relationships between companies and their suppliers, which are often less guarded than your internal systems.

4. Connected Devices and Smart Equipment Hacks: Exploiting Vulnerabilities in Connected Devices

The construction industry is increasingly adopting connected devices, from smart construction equipment, including excavators, drones, and wearables, to connected sensors on machinery and tools. While efficient, these devices often lack robust security features, making them attractive targets for cybercriminals. Once compromised, these devices can serve as an entry point into the broader network.

Many construction companies don’t prioritize securing their organizations’ network of devices, which may be overlooked in favor of a more traditional IT infrastructure. 

5. Data Breaches: Exposing Sensitive Project Data

In 2024, the average cost of a data breach was $4.88 million. Smaller businesses pay less on average, but they feel the financial impact more due to fewer resources to recover.

Data breaches occur when attackers gain unauthorized access to your company’s sensitive data, such as blueprints, financial records, employee details, or intellectual property, and either steal or leak it. These breaches can happen through various means, including unpatched software vulnerabilities, insider threats, or hacking.

Construction companies often deal with highly valuable, private data that can be sold on the black market or used to disrupt projects. The breach of sensitive data can also damage your company’s brand and reputation, eroding client trust.

6. Man-in-the-Middle (MitM) Attacks: Intercepting Communications

Man-in-the-middle (MitM) attacks involve attackers intercepting communication between two parties, such as a contractor and a supplier, to eavesdrop, alter, or redirect the conversation. These attacks often occur on unsecured networks, such as public Wi-Fi, and can involve the interception of emails, financial transactions, or even construction plans.

Unprotected networks or communication channels are a goldmine for attackers. Construction companies, especially those working in remote locations, often rely on cloud services or mobile devices for communication, which can be targeted through MitM attacks.

Ways to Mitigate Cyber Risks

Construction companies of all sizes can be targets for attack, including the small ones. To protect against threats, construction companies should act immediately to protect their data and the legacy of their companies with robust cybersecurity practices. This starts with developing a program aligned with your company’s size and needs.

Here are some no or low cost ideas to protect your :

Employee Training: Regular training sessions can help employees recognize and avoid phishing attempts and other common cyber threats.

Access controls: Implementing strict access controls helps ensure that only authorized personnel can access sensitive data and systems.

Multifactor Authentication. Instead of just needing your password to log in, add another layer of protection requiring something else to prove it’s you, like a code sent to your phone or a fingerprint scan. This extra step makes it much harder for attackers to hack your account, even if they steal your password.

Regular Updates: Keeping software and systems up to date can prevent attackers from exploiting known vulnerabilities.

Incident Response Plan: A well defined incident response plan can help your company quickly and effectively respond to cyber incidents, minimizing damage.

Protect Your Business Before It’s Too Late

Cyberattacks targeting the construction industry are growing in frequency and sophistication. By understanding how attackers operate and taking proactive steps to secure your systems, you can mitigate risks. 

Keep in mind insurance companies are creating stricter requirements to obtain cyber insurance. Your organization may require that you have good security measures in place first, including training employees regularly to help them spot and avoid cyberattacks.

Invest in cybersecurity training, robust data protection measures, and regular audits to ensure your company is prepared for the ever evolving sophistication of digital threats. By staying vigilant and implementing best practices, you can protect your projects, clients, and bottom line from the potentially devastating impact of cyberattacks.