Summary: Construction companies face rising cyber threats. Learn key risks, best practices, and how NordLayer helps protect projects, data, and infrastructure.
Cybersecurity risks affect every economic sector, and the construction industry is no exception.
Digital technology is embedded in how we build. From home building to delivering complex infrastructure, constructors rely on connectivity and data storage to manage material flows, coordinate projects, and communicate with clients.
Cyber-attacks can disrupt these critical functions, raising costs and, potentially, creating physical security risks.
This blog will look at cybersecurity for construction companies. We will discuss general cybersecurity risks that all companies must mitigate, alongside construction-specific risks that require targeted security solutions.
The construction industry consistently attracts cyber criminals for several reasons. Most importantly, construction firms have embraced digitalization. Companies store valuable financial and client information, the type of data that data thieves love to discover.
Construction companies also store infrastructure plans and project schematics. These data types appeal to threat actors linked to hostile states or terrorist collectives. Cyber-attacks on corporate archives could enable and amplify devastating strategic attacks.
Digital transformation has introduced IoT sensors, drone footage, Building Information Modeling (BIM) systems, environmental modeling, and many radical new technologies. Innovation boosts productivity but also creates new targets for cyber criminals.
Competitors are another source of cyber-attacks in the construction industry. Construction is a competitive world where businesses compete for contracts based on reputation and track record. Sabotage or data theft can ruin a firm's chances of successful tenders.
Data security studies back up these concerns. PwC's 2024 Cyber Threats report finds that 76% of cyber-attacks against construction companies are motivated by financial gain. But 12% are linked to espionage, and 9% are connected to sabotage.
Attacks are also becoming more frequent. The security consultancy Kroll reports that phishing attacks on construction companies doubled from 2023-24. With criminals introducing sophisticated new techniques, the threat landscape is becoming more complex and hazardous. Threat mitigation strategies are essential.
Every economic sector faces slightly different adversaries. Cybersecurity measures should avoid generic solutions and rely on knowledge about relevant threats. With that in mind, critical cybersecurity threats in the construction industry include:
Ransomware is the most common attack type against construction industry targets. In these attacks, criminals deploy malware to encrypt victims' devices. Malware then denies access to encrypted data until attackers receive ransom payments, typically in cryptocurrencies.
Ransomware attacks are more than a financial headache. They disrupt project timelines, putting completion at risk. Attackers may also extract data even if victims agree to pay.
Modern construction companies rely on data flows to monitor projects, maintain quality control, protect the environment, and ensure employee safety. Companies handle vast streams of financial and client data as well. All of this sensitive data can be useful for cyber attackers.
Criminals understand how to compromise construction industry targets with social engineering attacks and malware. Data breaches are inevitable without strong information security measures and employee training processes.
Construction companies depend on complex networks of suppliers to provide material inputs, personnel, and digital services. But criminals can compromise vendors and launch cascading attacks against downstream clients.
This is why construction firms must integrate third parties into their cyber risk assessments. Partner companies represent vulnerable entry points for malicious actors, making robust access control systems essential.
IoT devices track equipment locations, monitor temperatures and pressure levels, track fleet performance, and provide early safety warnings against vibrations or toxins. These functions cut costs and improve productivity. However, IoT also introduces network security cyber risks.
Direct access to Internet-of-Things devices enables surveillance and data collection. Attackers can also combine IoT devices in botnets to launch denial-of-service attacks and damage network assets.
Moreover, IoT devices often lack native security measures. Companies struggle to update firmware and keep pace with emerging threat vectors. They may even rely on default passwords, opening the door to opportunistic attacks.
The construction sector is particularly prone to physical security risks. Members of the public may gain unauthorized access to work sites, putting their safety at risk. Expensive on-site equipment requires security from theft or damage.
Even worse, hybrid cyber-physical attacks can compromise devices that protect work sites. For instance, attackers may use malware to damage air conditioning or dust extraction systems. Insider threats can also introduce malware via USB devices, giving outsiders access to IT systems.
A single ransomware attack could lead to missed deadlines, contractual fees, loss of personal information and crippling reputational damage. Given these risks, cybersecurity should be a top priority for all construction companies and third-party suppliers.
However, many constructors are poorly prepared for cyber threats. According to insurance firm Travelers, over half of construction companies lack endpoint security controls or post-breach response plans. The best practices below will help you fill those gaps and secure construction industry assets:
Phishing emails are the most common way for attackers to access construction industry networks. Clicking on malicious attachments or following fake links allows criminals to implant surveillance tools and launch ransomware attacks.
One of the most effective solutions to phishing risks is comprehensive employee training. Teach staff how to recognize dangerous emails and avoid unsolicited files or documents. Train employees to raise security concerns and follow password security best practices. And use phishing simulations to war-game real-world threats.
If you use IoT devices, training should cover updating firmware and ensuring security. Regularly reiterate the need to avoid default passwords and check devices.
Network security measures detect, assess, and neutralize cyber threats before they cause harm. Construction companies need robust firewalls, intrusion detection systems (IDS), and endpoint monitoring tools.
Uncontrolled access is another critical cybersecurity vulnerability. Use multi-factor authentication to request additional credentials for every login. Manage user permissions according to the principle of least privilege, allowing access to essential resources while blocking everything else.
Security teams must also update operational technology and network assets to minimize exploit risks. Attackers will leverage outdated firmware or operating systems. It's essential to implement software updates and avoid using obsolete legacy systems.
Construction sector supply chains often become vectors for cyber attacks. This makes vendor and supply chain management a critical challenge.
Third-party risk assessment is critical. Assess vendors based on their cybersecurity controls and compliance records. Build cybersecurity into vendor contracts to encourage secure practices and prompt notification of security incidents.
Manage vendor access carefully according to Zero Trust security models. Assign sufficient privileges to carry out core tasks, without granting third parties extensive network access.
Construction companies should assume that security incidents will occur. Security teams need a prepared incident response playbook to organize responses and safeguard sensitive information, such as client data or intellectual property.
Response plans should detect breaches, identify attack vectors, and determine the correct response. Depending on the nature of the threat, responses could entail system downtime, quarantine processes, or ongoing monitoring.
Response plans should also include data backup procedures. Regular backups of critical data allow construction companies to restore operations, even during ongoing ransomware attacks.
Ensure response plans meet regulatory compliance requirements (for example, notifying customers or regulators). Use response outcomes to improve security measures and cut future cybersecurity risks.
Secure Internet of Things devices with secure zones guarded by firewalls and access controls. Network segmentation allows authorized access and contains DDoS attacks or malware infections, effectively confining IoT attacks.
Extend IDS monitoring to IoT devices, and encrypt data transfers (such as monitoring data or video feeds).
The construction industry does not fight cyber threats alone. For example, the National Institute of Standards and Technology (NIST) provides a Cybersecurity Framework to guide construction firms. Employ the framework as a checklist to source essential tools and implement security measures.
Digital transformation in the construction industry brings many benefits, but also comes with a price tag: increasing exposure to cybersecurity risks. NordLayer can help you manage those risks and enjoy the benefits of technological innovation.
NordLayer provides a comprehensive cybersecurity solution for manufacturing companies of all sizes, from single-building sites to nationwide construction enterprises.
Here is what NordLayer offers:
Cybersecurity should not compromise project delivery or data security. Contact NordLayer's team to explore flexible and effective cybersecurity solutions for the construction industry.
Joanna Krysińska
Senior Copywriter
A writer, tech enthusiast, dog walker, and amateur pastry chef, Joanna grew up in a family of engineers and mathematicians, so a techy mind is in her genes. She loves making complex tech topics less complex and digestible. She also has a keen interest in the mechanics of cybercrime.
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