No matter the nature of your business, construction companies in the UK are exposed to various threats from common cyber attacks and niche risks that can affect all sides of the construction industry.
Whether your expertise lies in small or large-scale project delivery, you will still face cybersecurity risks, yet the scale of this cyber threat and the sensitive data at risk will vary.
As technology is integrated into processes, making work more efficient, it introduces new challenges and makes your business more vulnerable.
Essentially, cybersecurity measures are more essential than ever. Here at Wentworth Alexander Insurance Brokers, we will discuss an overview of cyber security in the construction industry in this article.
Cyber Risks in Construction: The Basics
The construction industry has long experienced data breaches and cyber-attacks. Construction firms commonly experience ransomware attacks, theft due to phishing, data breaches and data theft.
Industrial espionage is a common, more modern, method of data theft. This could come in the form of a disgruntled employee trading information, or cyber criminals tricking an employee through social engineering tactics.
How Can Construction Companies Be Affected?
There are several reasons why many construction companies and the construction sector are at risk of cyber incidents and can act as targets. This includes:
Lack of Investment in Cyber Security Infrastructure
If a company lacks cyber infrastructure, it becomes an easy target. Cybercriminals will be driven by the little effort needed to get maximum gain.
Targeting Sensitive Information
The construction industry holds valuable data including customer data, intellectual property and even highly sensitive data surrounding public works. For example, cybercriminals may target construction plans, security information and other intellectual property.
Reliance On Legacy Systems
The construction industry often relies on legacy or end-of-life operating systems that are no longer supported. This creates significant vulnerabilities, as support has ended and software companies turn their focus on to new technologies. When vulnerabilities appear on a legacy operating system, they may not be patched.
Complex Supply Chain
Construction projects involve various stakeholders, including subcontractors, suppliers, architects and more, all of whom are connected in digital ways. A security breach could affect the entire network.
Why Cyber Security is Key In Construction
Cyber security is crucial in the construction industry, given the sector’s reliance on digital technologies and the risks associated with cyber threats.
Protecting Sensitive Data
Construction companies handle sensitive client data, including financial details and project plans. Protecting this data is key to maintaining client trust and complying with data protection regulations.
Designs, blueprints and construction methods are all valuable intellectual property. Keeping this information secure prevents misuse by cyber criminals.
Maintain Business Operations
A cyber incident can bring construction companies to a standstill with large-scale business disruption. Strong cybersecurity measures prevent these incidents and contribute towards a rapid recovery to minimise disruption to business activities.
This will also avoid a significant delay to your project and maintain operational efficiency to preserve revenue and avoid financial impact.
Compliance With Regulations
Construction companies must comply with data protection regulations such as GDPR. Failure to do so can result in large fines and legal consequences.
What’s more, many construction contracts include clauses regarding data security. Meeting these obligations is key to avoiding breaches of contract.
Preserving Reputation
A loss of confidential data due to data breaches can cause considerable reputational damage. Having a strong cyber policy will reassure clients that their data is safe. This is crucial for winning new business and maintaining long-term relationships.
Improving Cyber Security in the Construction Industry
It can be tough for small-to-medium-sized construction businesses to keep up to date with data security and current cyber threats to protect themselves against cyber attacks.
Acting as a helpful insight into cyber security in the construction industry, the National Cyber Security Centre (NCSC) put together a cyber security guide, partnered with the Chartered Institute of Building (CIOB). This has been designed to help business owners spot and identify cyber risks in terms of both internal vulnerabilities and risks within the wider supply chain.
This cannot guarantee full cyber security alone, but implementing these steps can help prevent a cyber attack and, should the worst happen, help you implement an incident response plan.
Common Practices To Avoid A Cyber Attack In The Construction Sector
Cyber Security Measures
Robust cybersecurity is key in the construction industry.
Educate employees to implement secure, strong passwords frequently changed to deter ‘brute force’ attacks, alongside multi-factor authentication, as a simple step forward in strengthening the cybersecurity measure of the business.
Employee training is also important to ensure that up-to-date knowledge of methods used by cybercriminals is prevalent within the team.
Incident Response Plan and Continuity Planning
Robust cybersecurity measures and a continuity plan/incident response plan to minimise the damage, severe disruption and financial impact on your business.
Secure Networks and Systems
Deploy firewalls and intrusion protection systems to monitor network traffic and ensure all software is regularly updated and patched to protect against vulnerabilities.
Supply Chain Security
Assess and manage the risks that impact suppliers, subcontractors and other businesses in the supply chain, and include contractual requirements stipulating what is done in the event of a breach and what standards need to be met.
Cyber Insurance
Purchasing cyber insurance will mitigate the financial losses and impact of cyber attacks, including covering costs of data breaches, business interruption and legal fees.
Getting Yourself Insured With Wentworth Alexander Insurance Brokers
At Wentworth Alexander Insurance Brokers, we understand how important your business is and we will prioritise your long-term success should you fall victim to a malicious attack.
We’ll assess the risk to your company and use our expertise to meet your requirements by finding an insurance solution that works for you.
Explore our offerings, or contact our team today to discuss your insurance needs.