Ten most common cyber security threats for construction companies

The construction industry is undergoing rapid digital transformation, with cloud-based project management systems, IoT-enabled machinery and mobile technology becoming essential for operational efficiency. However, as construction firms embrace digital tools to streamline processes, they also expose themselves to increasing cyber security threats.

Unlike industries with well-established cyber security frameworks, construction companies often prioritise physical security and project timelines over digital protection, making them attractive targets for cyber criminals. From ransomware attacks that halt projects to email scams that lead to financial fraud, cyber threats can cause severe disruptions, financial losses and reputational damage.

Ten common cyber security threats for construction companies

The construction industry faces several key cyber security risks, each with potential impacts on specific operational functions. Here, we outline the ten most common risks and how attackers exploit these vulnerabilities.

1. Phishing attacks

Cyber criminals send deceptive emails impersonating trusted individuals, such as project managers, clients or suppliers. These emails may contain malicious links or attachments that install malware or prompt employees to enter login credentials on fake websites. The operational impacts:

• Stolen credentials leading to unauthorised access to company systems.
• Fraudulent payments if attackers impersonate suppliers.
• Exposure of sensitive project files, financial data and contracts.

2. Business email compromise (BEC) scams

Hackers infiltrate or spoof company email accounts, often impersonating senior executives or suppliers, and trick employees into transferring funds, sharing confidential information or altering payment instructions. The operational impacts:

• Large-scale financial fraud due to unauthorised payments.
• Delays in procurement and payroll if funds are misdirected.
• Loss of trust and potential legal repercussions if client data is leaked.

3. Weak passwords and poor authentication practices

Attackers use ‘brute force’ attacks (trying many password combinations) or stolen credentials from other breaches to gain access to poorly protected accounts. Without multi-factor authentication (MFA), a single compromised password can lead to a full system breach. The operational impacts:

• Hackers gain unauthorised access to project management tools and financial systems.
• Data breaches affecting client details, blueprints and contracts.
• Increased risk of ransomware or further phishing attacks.

4. Poorly secured cloud storage and file sharing

Hackers exploit misconfigured cloud storage systems (e.g. weak access controls, lack of encryption) to access sensitive project files, client information and contracts stored on platforms like Google Drive or Microsoft OneDrive. The operational impact:

• Theft of confidential blueprints, contracts and financial records.
• Cyber criminals modify or delete project files, disrupting construction timelines.
• Legal and financial penalties due to non-compliance with data protection regulations like GDPR.

5. Ransomware attacks

Cyber criminals distribute ransomware via phishing emails, malicious downloads or compromised software updates. Once inside the system, the ransomware encrypts critical files and demands a ransom payment for decryption. The operational impact:

• Site shutdowns and project delays if digital project plans and schedules become inaccessible.
• Costly ransom payments or extended recovery times if back-ups are insufficient.
• Reputational damage and potential legal consequences if client or employee data is leaked.

6. Third-party supplier vulnerabilities

Hackers target suppliers or subcontractors with weaker cyber security, using them as a gateway to construction companies. This is often done via phishing, malware or compromised credentials. The operational impact:

• Cyber criminals gain access to connected construction networks, leading to data breaches or ransomware attacks.
• Disruption of supply chains, delaying material deliveries and project schedules.
• Financial losses due to fraudulent supplier invoices or altered payment details.

7. Data theft from lost or stolen devices

If on-site mobile devices (laptops, smartphones or tablets) are lost or stolen and lack encryption or strong passwords, hackers can easily access the data stored on them. The operational impact:

• Exposure of confidential project plans, financial data and client information.
• Increased risk of unauthorised changes to project management systems.
• Potential breaches of GDPR if sensitive personal data is compromised.

8. Insider threats

Insider threats can come from disgruntled employees, subcontractors or even careless staff. Attackers may bribe insiders to leak sensitive data, or insiders may inadvertently expose the system through poor security practices, such as sharing login credentials. The operational impact:

• Theft of project bids or intellectual property, leading to lost contracts.
• Sabotage of project plans or delays due to unauthorised data manipulation.
• Financial fraud or data breaches caused by misuse of internal systems.

9. Lack of regular software updates (patching)

Hackers exploit known vulnerabilities in outdated software to infiltrate systems. These vulnerabilities could be used to install malware, steal data or disrupt operations. The operational impact:

• Increased risk of malware infections and data breaches.
• Potential system failures or slowdowns, affecting productivity on-site and in offices.
• Integration issues with updated subcontractor software, leading to inefficiencies.

10. Unsecured internet of things (IoT) devices

Hackers target poorly secured IoT devices on construction sites, such as drones, GPS trackers or connected machinery, which may lack strong authentication or encryption. The operational impact:

• Cyber criminals take control of critical equipment, leading to safety hazards.
• Theft of IoT-enabled machinery due to manipulated tracking data.
• Data breaches from compromised site surveillance systems or sensor data.

Conclusion

As cyber threats continue to evolve, construction companies must take proactive steps to safeguard their operations, finances and sensitive project data. The risks outlined in this article highlight the urgent need for stronger cyber security measures, from employee training and secure cloud storage to robust password policies and supplier risk management.

In future articles, we will explore specific threats, with real-world case studies, best practice for mitigation and actionable steps that construction firms can take to protect themselves.

How can Moore Kingston Smith help?

We help client organisations worldwide achieve data privacy compliance and cyber secure environments. Our services include data privacy, cyber security, business continuity and information security.

Our highly experienced people have the strategic insight, drive and dedication to deliver results. Please reach out to our team if you would like further help with protecting your construction company against cyber security threats.