Construction businesses are an attractive target for ransomware attacks. In fact, according to a recent study by NordLocker, a developer of encryption software, the construction industry was targeted more often than any other industry from January 2022 to January 2023. For this reason, every construction company, no matter how small, needs to invest wisely in cybersecurity.

Why us?

There are many plausible explanations for cybercriminals’ interest in the industry. Many construction businesses, especially smaller ones, have been slow to adopt robust cybersecurity systems and practices. In addition, construction companies tend to have widely dispersed workforces, so they often rely on cloud-based systems, many different mobile devices, and internet-connected vehicles and equipment — all of which are vulnerable to cyberattacks.

And then there’s the data. Construction companies typically have access to a plethora of valuable information, such as customer bank account or credit card numbers, documents disclosing business expansions, bid records, and designs and specifications.

There’s even the possibility of a ransomware attack creating safety hazards by disrupting building systems or tampering with vehicles or equipment. By creating such high stakes, hackers may believe construction businesses will be highly motivated to pay ransoms.

What is it again?

Just to review the concept, ransomware is a type of malicious software (commonly known as “malware”) that typically infiltrates a company’s computer network through:

• Phishing emails or texts (phony messages that fool employees),
• Downloads from fake websites,
• Compromised login credentials, or
• Removable devices (such as flash drives).

The malware encrypts the target’s data, and the cyberattackers demand a ransom payment in exchange for the decryption key. Sometimes the scheme goes a step further and the hackers threaten to publicly release or destroy sensitive data if the ransom isn’t paid.

What can we do?

To help prevent ransomware attacks or minimize their damage, consider the following best practices:

Conduct periodic cybersecurity assessments. Hackers are constantly changing their approaches, so contractors need to regularly reassess their exposure to ransomware risks and eliminate vulnerabilities. Maintain an inventory of your hardware, software, internet connections and data to identify potential entry points that could be exploited.

Implement strong backup practices. Secure backups can enable you to resume operations quickly if a ransomware attack captures or destroys your data. Your backup system should be encrypted and physically or digitally segregated from the systems being backed up.

Educate employees. Among the most important cybersecurity measures is to train employees to spot and avoid phishing emails and other threats. Also, require staff to use strong passwords, multifactor authentication and other techniques to prevent unauthorized access. If possible, restrict the use of employees’ personal devices on your network.

Implement protective software. Various tools allow construction companies to monitor for and prevent intrusions. These include email filtering programs that flag malicious messages and prevent them from reaching their targets. In addition, ensure every computer and mobile device used for business purposes has the latest updates and security patches.

Manage third-party risks, too. For example, do any vendors or collaborators — such as architects, engineers or subcontractors — have access to your systems? If so, be sure that they’ve implemented strong controls as well.

Do we need cyberinsurance?

Even with a comprehensive cybersecurity strategy, there are no guarantees ransomware won’t break through your defenses. For added peace of mind, consider investing in cyberinsurance to minimize the financial impact of an attack.

The right coverage can help pay for data recovery and system restoration, legal expenses, and even business interruption losses. Many insurers also provide resources to help companies better defend themselves against ransomware and other threats. These policies tend to be expensive, however, so you’ll need to shop carefully.

Where do we go from here?

Cyberattacks such as ransomware schemes are becoming commonplace occurrences. So, construction businesses will likely need to allocate a larger percentage of their operating budgets to cybersecurity going forward. On the bright side, you may be able to better control these costs with a well-planned, comprehensive cybersecurity strategy.

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