Cyberthreats Are Rising in Construction. Is Your Business Ready?

It often starts with something routine.

An accounts payable employee receives what looks like a legitimate invoice from a known subcontractor. The formatting checks out. The timing aligns with the project. The amount isn’t unusual. With multiple jobs moving at once and dozens of invoices coming in, the payment is processed without a second thought.

Only later does the business realize the email was fraudulent and the funds are gone.

For construction companies operating on tight timelines and high volumes of transactions, this type of attack is becoming increasingly common.

And as cyberthreats grow more targeted, the consequences can extend far beyond a single payment — disrupting operations, delaying projects and damaging relationships with clients and partners.

Cyberrisks Are Building Alongside Construction’s Digital Shift

Cyberrisk in construction is evolving quickly. What were once considered occasional or opportunistic threats are now more targeted, more sophisticated and more disruptive.

Across the building sector, we’re seeing an increase in:

• Phishing attempts designed to mimic vendors, partners or internal employees
• Ransomware attacks that can shut down systems and halt operations
• Business email compromise schemes tied to active projects and payment cycles
• Attacks targeting shared data across subcontractors and third-party vendors

At the same time, construction businesses are becoming more connected. Firms rely heavily on third-party partners creating a web of interconnected systems and data. If one link in that chain is compromised, it can quickly impact others.

In this environment, cyberrisk has become a significant operational issue, capable of affecting timelines, budgets and company reputations.

Understanding the Most Common Cyberthreats in Construction

To effectively manage risk, construction leaders need a working understanding of the most common cyberattack types impacting the industry today.

• Ransomware — Attackers lock critical systems and data, disrupting projects and operations.
• Phishing and credential theft — Fake emails trick employees into revealing login credentials or opening malicious links.
• Business email compromise — Scammers impersonate trusted contacts to redirect payments or banking details.
• Supply chain and third-party vulnerabilities — Weak vendor or subcontractor security can expose company systems and data.
• Unsecured Internet of Things and field devices — Connected jobsite equipment, sensors and mobile devices can create cybersecurity risk. 
   

The Operational Fallout of a Cyberincident

The financial impact of a cyberattack can be significant, but the operational consequences are often just as damaging.

In one recent example, a Chicago-based general contractor experienced a ransomware attack that shut down its systems and exposed sensitive personal information tied to more than 1,000 employees. According to a recent report from Honeywell, these events are becoming more frequent, as ransomware attacks against the industrial sector specifically jumped by nearly 50% from Q4 2024 to Q1 2025.

For construction businesses, even a short disruption can have cascading effects:

• Project delays that impact contractual obligations
• Loss of access to critical plans, documents or financial systems
• Interrupted communication between field and office teams
• Reputational damage with clients, partners and employees

As projects become more complex and timelines more compressed, the margin for disruption continues to shrink.

Practical Safeguards to Implement Today

Managing cyberrisk doesn’t require overhauling your entire operation. Many effective safeguards are practical, repeatable and aligned with how construction businesses already operate.

Here are key actions to prioritize:

1. Strengthen email & payment verification processes.

• Require verbal or secondary confirmation for any changes to payment details.
• Train employees to recognize phishing red flags, such as urgent requests or slight changes in email domains.

2. Improve password & access security.

• Use strong, unique passwords across systems.
• Enable multifactor authentication wherever possible.

3. Secure your vendors & digital supply chain.

• Vet third-party vendors for basic cybersecurity practices.
• Clearly define who has access to shared systems and data.

4. Protect devices on & off the jobsite.

• Ensure company devices are updated with the latest security patches.
• Secure home and remote work networks used by employees.

5. Educate employees on social engineering tactics.

• Provide training on phishing, smishing (text-based scams) and vishing (voice scams).
• Encourage employees to report suspicious activity.

6. Prepare for potential incidents.

• Back up critical data regularly and store it securely.
• Develop a cyberincident response plan outlining roles and next steps.
• These steps don’t eliminate risk entirely, but they can significantly reduce the likelihood and impact of an attack.

Why Cyberinsurance Deserves a Closer Look

Many construction businesses assume their existing commercial insurance policies will respond to cyber-related incidents. That coverage is often limited or nonexistent.

Cyberinsurance is designed specifically to address digital risks, helping cover costs related to data breaches, ransomware events, business interruption and recovery efforts. Beyond financial protection, many policies also provide access to specialized resources, such as incident response teams, legal support, public relations counsel and forensic experts.

As cyberthreats continue to evolve, reviewing your coverage — and understanding what is and isn’t included — has become an important part of overall risk management.

Talk to Your Insurance Partners About Cybersecurity

Next time you talk to your insurance agent or broker, ask them about your business’s potential cyberexposure and coverage options to protect against it.

Some important questions include:

• Do we have a standalone cyberinsurance policy, or are we relying on limited coverage within other policies?
• What types of cyberincidents are covered, including ransomware and business email compromise?
• Does our policy include business interruption coverage related to a cyberincident?
• How are third-party and vendor-related risks addressed in our coverage?

These discussions can help ensure your coverage aligns with how your business operates today and where your digital exposures may be growing.

Turning Awareness Into Action

In an industry where time is money and delays can ripple across an entire project, staying ahead of cyberrisk is quickly becoming just as important as managing safety on the jobsite.

By strengthening internal processes, improving awareness across teams and taking a proactive approach to both cybersecurity and insurance, construction businesses can better protect their operations and keep projects moving forward.