New Cyber Attacks Target Construction Companies
A recent article by AXA highlights a new trend regarding cyberattacks on construction sites. The article details a recent study from IBM that found that companies in every industry share a 27.9 percent chance of experiencing a material data breach of 10,000+ records.
Cyberattacks have been limited in the construction industry, but when they do occur, the financial impact is often significant. As the construction industry continues to adopt more digital tools, such as drones and 3D printers, they are becoming increasingly vulnerable to cyber threats. Hackers are able to leverage these tools to gain access to the systems of the firm. Other common cyber threats faced by construction companies are ransomware attacks and email scams.
The success of a construction firm is reliant on their ability to meet project deadlines and contract specifications. A cyber incident could have devastating impacts on a firm’s ability to accomplish these goals and as a result, financial losses may stem from delay damages, business interruption, cash flow issues and more.
To begin combatting this risk, all employees of a construction firm should be educated on cyber risks. They should know to read and report any suspicious emails and even request changes to payments. Other ways for construction companies to protect their systems is through a payment change verification process, training employees to be aware of cyber thieves, requiring password changes, reviewing third-party vendor contracts and security measures, updating software, and most importantly, reviewing your insurance policy to ensure that you are covered for any cyber incidents.
If you’d like to discuss your cyber liability coverage or schedule a cyber risk management training session for your employees, please contact me.