FINANCE & INSURANCE 59 DON’T BE A CYBER VICTIM
Colin Donnellon of Clear warns construction fi rms that it’s time they woke up to the real threats posed by cyber attacks, as they are more vulnerable than ever due to growing reliance on digital tools and electronic transfers; and wonders why only 21% of board members oversee cybersecurity issues.
D
espite the growing number of cyber attacks, UK-based construction companies still aren’t getting the message: They are just as vulnerable to attacks as any other sector, and cybercriminals see them as lucrative, soft targets. igh-profi le incidents, such as the cyber attacks on Bam Construct and Interserve, have highlighted the sector’s susceptibility. Yet, many construction fi rms continue to underestimate the threat they face. A Government study has revealed that construction companies are among the most likely to fall victim to cyber fraud.
It’s time therefore that the construction industry woke up to the reality of cyber threats. The stakes are high, and the consequences of just carrying on as normal could be devastating.
FALLING BEHIND
The 2023 survey commissioned by the Government on cyber security breaches has revealed a concerning trend: construction businesses are falling behind in online protection, resulting in higher rates of fraud. Defi ned in the study as fraud involving deception for fi nancial gain,” these attacks often employ methods such as ransomware, viruses, spyware,
malware, hacking, or phishing. The survey found that 5% of building
fi rms reported falling victim to cyber fraud in the past year. Alarmingly, only 21% of construction companies have board members responsible for cybersecurity, which is lower than almost every other sector. The report goes on to reveal that 26% of construction companies do not have adequate software security update policies or ‘patch management,’ representing a higher proportion than most other industries. Other protective measures
recommended by the Government include the use of Ns, fi rewalls, up-to-date malware protection, separate guest and staff Wi-Fi networks, and data backups. For construction fi rms, the risks associated with cyber attacks are manifold – operational, reputational, and legal. Construction companies rely heavily on their supply chains, and any disruption, including those caused by cyber-attacks, can signifi cantly impact project delivery, leading to lengthy delays and increased costs.
From a reputational standpoint, a cyber-attack can have far-reaching consequences too. If malware spreads beyond the company or if confi dential data is leaked, it can impact suppliers
and clients, further damaging the company’s reputation.
A data breach can also put a fi rm in hot water with the General Data Protection Regulation (GDPR), which requires businesses to keep data secure and confi dential. This includes sensitive information about other businesses, employees, and clients.
f a data breach happens, the fi rm responsible could face fi nes and penalties for violating GDPR, even if the breach was due to a cyber attack. Additionally, the fi rm may have to notify individuals whose data has been compromised, a process that can be both costly and time-consuming, especially in large-scale breaches.
THREAT OF FRAUDULENT EFTS Electronic fund transfers (EFTs) are a lifeline for construction fi rms. They offer a fast and secure way to move large sums of money, which is crucial for paying suppliers, subcontractors, and other stakeholders. They also simplify international transactions, enabling construction companies to source materials and services from around the world. While the speed and reliability of EFTs help maintain cash ow and keep construction projects on schedule – they
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