Why does cybersecurity matter to construction companies?
Today’s construction companies rely on technology for every aspect of their operations: from accounting, payroll, and project management, to estimating and document management, as well as communications, banking, and collaboration with owners, subcontractors and suppliers. Cybersecurity for construction is a hot topic today. The data and systems that power construction operations are among the company’s most valuable assets. This makes construction companies vulnerable to cyberattacks.
In this blog we’ll define cybersecurity and discuss some of the most common types of cybersecurity breaches and outline how cyberattacks can damage construction companies.
What is cybersecurity?
Cybersecurity is the practice of protecting people, data, and networks from cyberattacks by employing processes, policies, and technologies. Cybersecurity is part of an overall risk management strategy to guard against common cyberattacks. Construction companies should have a plan in place to deal with potential cyberattacks.
Cybersecurity is the ongoing practice of managing three elements that are essential for every organization.
- Confidentiality: Who should have access to your data? Who should not have access?
- Integrity: Can an organization and its customers and suppliers trust that its data has not been altered, corrupted, nor manipulated?
- Availability: Can employees access systems and information they need in a timely fashion?
In construction, data availability is as important as confidentiality. When your team is unable to access accounting systems, payroll, project documents, contracts, schedules, and other critical information, your business can’t operate normally. Cybersecurity for construction companies is protection against business interruptions.
What is a cyberattack?
A cyberattack is a deliberate attempt to gain access to a computer or computer network. Its goal is to steal, alter, release, or destroy data, applications, or other assets stored on computers.
Common Cyberattacks
| What is Data Theft? | The intentional and unauthorized transfer of data from a device or network. This type of cybercrime can be accomplished manually or automated using malware, which is short for malicious software.
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| What is Phishing? | Phishing deploys fake emails, text messages, websites, or phone calls to trick people into sharing private or sensitive data or downloading malware. Phishing is a significant threat because it uses people’s vulnerabilities to provide access to their target.
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| What is ransomware? | A ransomware attack is when some type of malware holds a person or a company’s sensitive data hostage, unless the victim pays a ransom to the attacker. The consequences for the victim can include blocked access to their data, destruction of their data, or release of sensitive data.
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Cyberattacks can come from multiple actors. Preventing unauthorized access, disruption, theft, damage, or misuse of your systems, networks, and data is a key responsibility for construction companies. But cybersecurity is more than just installing software, creating a strict password and authentication regime, or adding an IT department.
What are the costs of cyberattacks?
Cyberattacks are costly. IBM estimates the global average cost of a data breach is $4.99 million. This cost includes detection, response, downtime, lost revenues, and brand damage.
According to its annual Internet Crime report, in 2025 the FBI’s Internet Crime Complaint Center (IC3) received more than 3600 ransomware complaints, which amounted to more than $32 million in reported losses. But those figures are incomplete, as reported losses don’t typically include the costs of lost business, downtime, lost wages, equipment replacement, and third-party data recovery services.
Given construction’s increasing reliance on digital technology, cloud-based applications, and electronic data, contractors are more vulnerable than ever to cyber criminals.
In fact, an Associated Builders and Contractors (ABC) and Egnyte report found that construction was the third most targeted industry sector for ransomware attacks between April 2023 and March 2024. 59% of Architecture, Engineering and Construction firms surveyed in the report reported experiencing a cybersecurity threat within the previous two years.
How can construction companies reduce their risk of cyberattacks?
Whether or not they consider themselves technology companies, construction companies must be vigilant to guard against risk of cyberattacks. There is no single product, tool, or security solution that will eliminate cyberattacks, but construction companies can become more secure and better prepared to handle cybersecurity by engaging their people, investing in technology, and improving policies and overall awareness.
In summary
Cybersecurity in construction is a critical priority because the industry has adapted technological tools at a rate that’s outpacing its security preparedness. In Part 2 of our cybersecurity series, we’ll examine four defenses every organization should consider: phishing awareness, multi-factor authentication, backups, and employee cybersecurity training.
We’ll also examine how the role of leadership helps keep companies prepared, how to protect and utilize your company’s valuable data, and why construction companies should view cybersecurity as an investment in business continuity, data protection, customer trust, and operational resilience.