Innovator Insights: Construction & Cyber Risks

It’s a common misconception that construction companies are not desirable targets for cybercriminals. However, the reality is that no industry, including construction, is immune to cyber threats.

Construction firms of all sizes handle valuable data that cybercriminals can exploit for personal gain. This data includes proprietary information crucial to maintaining a competitive edge. A single data breach can significantly harm a construction company’s market standing.

Understanding the prevalent cyber risks in the construction sector is vital for safeguarding your business and client information.

RISKS OF DATA AND PERSONAL INFORMATION LOSS 

Most construction companies store various types of personal information to streamline their operations. This data is often a prime target for cyber attackers.

Typically, a construction firm handles sensitive data like employee records, customer databases, bidding details, and financial information. This information is ripe for identity theft, credit card fraud, and other malicious activities. Hackers can also hold this data ransom, denying access and demanding large sums for its release.

Additionally, contractors often have access to external systems. If these credentials are compromised or misused, it could place liability on your firm.

THREAT TO PROPRIETARY DATA 

Proprietary corporate data, including privileged contracts, architectural designs, and intellectual property, is a significant asset for construction firms. Loss of this data to cybercriminals can occur without a direct breach, often through social engineering and phishing attacks, tricking employees into unauthorized fund or asset transfers. 

VULNERABILITIES IN SMART INFRASTRUCTURE 

The integration of smart technologies in buildings, automating systems like HVAC, lighting, and security, offers efficiency and cost benefits. However, these advancements also introduce new cyber vulnerabilities. Hackers gaining control of a smart building could access IP addresses, security codes, and even surveillance footage.

Construction firms providing smart technology solutions might face liability for damages caused by cybercriminals, even long after project completion. Installation of technology that compromises customer privacy and security could lead to severe reputational damage.

PROACTIVE MEASURES FOR CYBER RISK REDUCTION 

Besides the specific risks to construction firms, they are also susceptible to general cyber threats like financial loss, business interruption, and third-party liability post a data breach. Being prepared is crucial.

The most effective protection for construction firms against cyber threats is obtaining tailored cyber liability insurance. Jones DesLauriers Insurance Management Inc. offers guidance on cyber risks and the appropriate insurance solutions to mitigate them. Contact them to learn more and secure the right protection for your firm.

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