Cybersecurity in construction has become a growing concern as construction companies are increasingly attractive targets for cybercriminals. Historically, the construction industry has lagged behind other industries in cybersecurity investment and IT modernization, creating vulnerabilities that bad actors are actively exploiting.

The consequences of a cyberattack in construction can extend far beyond IT disruption. A ransomware attack or data breach can affect payroll processing, accounting operations, job-costing visibility, scheduling, vendor payments, project timelines, and overall business continuity. Even after systems are restored, recovery efforts can take weeks or months, depending on the severity of the incident.

Cybersecurity by the Numbers: Construction Industry Risk Indicators

As the industry continues expanding its use of cloud platforms and operational technology, cybersecurity risk in construction has become a critical business issue. Recent industry research highlights the growing risks facing construction organizations:

  • Construction was ranked the #1 most targeted industry for ransomware attacks in a recent NordLocker report. – Corvus Insurance, 2024.
  • Ransomware attacks on construction firms increased 48% from 2022 to 2023. – Corvus Threat Intel, 2024.
  • 59% of construction firms experienced a cybersecurity threat within the previous two years. – Dodge Construction Network & Egnyte, 2023.
  • Credential exposure incidents account for 75% of all construction cybersecurity alerts, representing an 83% increase from the previous year. – Construction Dive, 2024.

These statistics reflect the reality that construction companies face as they adopt new technologies and become increasingly vulnerable to cyberattacks. Construction businesses are frequent targets because they manage sensitive financial and operational data across multiple job sites, work with numerous vendors and subcontractors, and often cannot afford extended operational downtime.

Why Cybersecurity Risk is Growing in Construction

Criminal hackers look for industries where security vulnerabilities exist and the consequences of lost production time are significant. Unfortunately, construction companies often meet both of these.

Security Gaps in Software
Companies rely on a variety of software applications, cloud platforms, and technology partners to manage business operations. When these systems lack strong security controls, regular updates, or ongoing investment in cybersecurity, they can create opportunities for attackers to exploit. It is important to understand how technology vendors approach security, monitoring, and maintenance when developing a strategy to reduce exposure to cyber threats.

Limited Cybersecurity Awareness and Training
Employees are usually the first line of defense against cyber threats, but they can also pose the greatest risk if not trained properly. Construction teams are juggling many moving parts, including schedules, vendors, field operations, billing and more. This makes it easier for phishing emails, fraudulent payment requests, and other methods to be successful. Without training, employees may unknowingly click links, disclose sensitive information, or grant attackers access.

Historically Behind Other Industries in Cybersecurity Investment
Compared to industries like finance, healthcare, and technology, construction has historically invested less in cybersecurity and IT infrastructure. Many organizations are working to modernize systems and implement stronger security controls, but they still lag behind others in this area. Attackers are aware of these gaps, making construction companies an easy target.

High Cost of Operational Downtime
When a contractor loses access to payroll systems, accounting platforms, project schedules, or purchasing data, projects are delayed, and productivity comes to a standstill. Every hour of downtime impacts profitability, and the impact can be especially painful in construction, where many companies operate on tight margins and strict project deadlines. Cybercriminals understand these pressures and assume construction companies may be more likely to pay a ransom quickly to restore access and get their projects back on track.

Common Cybersecurity Threats in Construction

Construction companies face a variety of cyber threats. Understanding the most common methods of attack can help organizations take proactive steps to mitigate their risk.

Phishing Attacks

Deceptive emails designed to trick employees into:

  • Clicking on malicious links
  • Sharing usernames and passwords
  • Approving fraudulent payments

Common examples include:

  • Fake invoices
  • Vendor impersonation scams
  • Payroll-related requests
  • Executive impersonation emails

Malware and Viruses

Harmful software designed to infiltrate systems and compromise data, devices, or networks. Unlike ransomware, this software often operates undetected for a while, allowing attackers time to gather information and gain access to systems. It may be used to:

  • Corrupt data
  • Steal sensitive information
  • Spy on users and systems
  • Spread through company networks
  • Create backdoor access for attackers

Ransomware

Malware that locks access to systems and data until a ransom is paid. Systems that can be impacted:

  • Payroll
  • Accounting
  • Project management
  • Procurement
  • Scheduling systems

Business Email Compromise

Attackers impersonate executives, vendors, or subcontractors via email correspondence. These emails are often requests to:

  • Redirect payments
  • Request fraudulent wire transfers
  • Obtain sensitive business information
  • Gain unauthorized access to company systems

The Real Impact of a Cyberattack

The impact of a cyberattack extends far beyond IT disruption. When systems become unavailable and sensitive information is compromised, the effect can ripple throughout the entire organization. Potential consequences of a security breach include:

  • Delayed payment to vendors and employees
  • Locked out access to schedules, blueprints, and procurement systems
  • Financial loss due to delays, ransom payments, and recovery efforts
  • Exposure of sensitive information like employee data, contacts, and client information
  • Damage to customer and vendor relationships due to service disruptions and security concerns

As cyber threats targeting construction companies continue to rise, contractors must take proactive steps to strengthen security, protect operational systems, and reduce business risk.

In Part 2 of this series, we’ll explore cybersecurity best practices, security technologies, and practical steps construction companies can implement to strengthen defenses, reduce risk, and protect critical business systems from ransomware, phishing attacks, and other emerging threats.