60 FINANCE & INSURANCE
are also digital, making them highly susceptible to cyber-attack. Typically, cybercriminals will use social engineering techniques to trick employees into authorising fraudulent EFTs. This can involve impersonating a trusted contact or creating fake email addresses that appear legitimate.
As soon as a fraudulent EFT is completed, the funds are quickly moved to offshore accounts, making it diffi cult to recover them. This can result in substantial fi nancial losses for construction fi rms and disrupt their fi nancial operations, by
delaying payments to suppliers and subcontractors, which can, in turn, delay project timelines.
The fallout from transacting fraudulent
EFTs can be highly detrimental, leading to reputational damage among clients and partners. Furthermore, construction fi rms may face legal and compliance challenges if they fail to protect sensitive fi nancial information, potentially resulting in fi nes and regulatory scrutiny.
REBUILDING AFTER A CYBER ATTACK Preventing a cyber event isn’t always possible, but being prepared can make all the difference. For construction companies, specialised cyber insurance policies are invaluable. They cover
26% OF CONSTRUCTION COMPANIES DO NOT HAVE ADEQUATE SOFTWARE SECURITY UPDATE POLICIES OR ‘PATCH MANAGEMENT’
various cyber risks such as data breaches, ransomware attacks, and fraudulent EFTs. A cyber insurance policy can also cover
fi nancial losses from cyber incidents, including investigation costs, legal fees, and potential fi nes for violating data protection regulations like GDPR, as well as the costs of notifying affected individuals and providing credit monitoring services. These policies can also provide access to specialised incident response teams that can manage and mitigate the effects of a cyber attack by identifying the breach source, containing the damage, and restoring systems. Moreover, cyber insurance helps protect a fi rm’s reputation by covering public relations efforts to manage the repercussions of a cyber incident, such as communicating with clients, suppliers, and other stakeholders to
reassure them that the fi rm is taking appropriate measures.
IT’S TIME TO HEED THE WARNINGS It’s no secret that the UK’s construction industry is facing a multitude of challenges. Labour shortages, rising costs, economic uncertainty, and the push for sustainability – including the ambitious goal of net-zero carbon emissions by 2050 – are all headwinds the sector must weather. So, tackling the threat of cybercriminals who view the industry as an easy mark might not be a top priority. However, cybercriminals are opportunists who, frankly, don’t care about the industry’s woes. They are simply on the lookout for vulnerabilities like outdated software, lack of employee training, and insuffi cient data protection that they can exploit. onstruction fi rms, therefore, really need to take these threats seriously and beef up their cyber defences. This includes getting comprehensive cyber insurance and treating the current digital environment with the urgency it deserves. Otherwise, one day a ransomware attack could cripple their operations, leaving them struggling to recover and rebuild, without support.
Colin Donnellon is development director at Clear
WWW.HBDONLINE.CO.UK
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