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The new cyber threat landscape for construction firms

By Emily Selck - The Baldwin Group (Sr. Director, National Cyber Practice Leader) & Rossana Estrada the Baldwin group (Sr. Content Manager)


The rapid expansion of AI, the growth of megawatt-scale data centers, and the spread of connected technology across daily life have reshaped the cyber landscape. Cybercrime is now more prevalent, more sophisticated, and more disruptive, with attackers quickly adapting to bypass once-reliable safeguards. Combined with increasingly complex regulations, today’s environment is highly unpredictable.
The construction industry is no exception. As contractors integrate Building Information Modeling (BIM), drones, wearables, autonomous equipment, and cloud-based tools, they expand their digital footprint—and their exposure. These technologies improve efficiency but also open new pathways for cybercriminals.

Against this backdrop, contractors need clear guidance about how to manage emerging risks while keeping projects moving. This article explores the evolving threat landscape and the practical steps, tools, and insurance solutions that can help protect their operations, finances, and reputation.


Why the construction industry faces unique risks

Construction’s interconnected operating model heightens cyber exposure. General contractors, subcontractors, vendors, suppliers, engineers, and owners all share access points and data, meaning one compromised party can expose the entire chain. With U.S. construction spending up nearly 47% in five years, today’s project values and payment volumes make the industry a prime target.
The stakes are even higher for major infrastructure projects. Airports, highways, utilities, and energy facilities are costly and critical to regional stability. Any delay, shutdown, or data breach tied to these projects carries outsized operational, financial, and reputational consequences.
Even quickly contained incidents can cause lasting damage. Leaked contracts, exposed PII, and stolen banking details disrupt operations and erode trust. And when systems remain locked for several days, contractors typically experience significant delays, cascading trade impacts, and financial setbacks.


The new wave of cyber threats targeting construction

As construction becomes more digitally connected, attackers evolve just as quickly. Today’s threats are easier to execute, harder to detect, and more disruptive to project delivery. These are the most damaging patterns emerging across the sector.

  • Business Email Compromise (BEC) 2.0
    BEC remains a leading threat, now supercharged by AI. Attackers use MFA-bypass techniques, deepfake audio, and AI-generated emails timed around project cycles. In recent BEC investigations, MFA was in place in up to 90% of cases.

  • Ransomware and data extortion
    Ransomware groups target construction because downtime is costly and visible. By locking project files and exfiltrating data, attackers trigger sequencing delays, repricing disputes, liquidated damages exposure, and reputational fallout.

  • Compromised jobsite technology
    Connected jobsites expand efficiency—and the attack surface. Criminals increasingly compromise cameras, drones, access controls, wearables, sensors, and semi-autonomous equipment, enabling physical theft, unauthorized access, and intelligence gathering.

  • AI-powered attacks
    Generative AI has lowered the barrier to entry. Self-mutating malware, AI-crafted phishing, automated credential stuffing, and voice cloning make attacks faster and harder to detect.

  • Nation-state attacks
    Geopolitical tensions fuel activity from organized cybercriminal groups. Operators like Akira, LockBit, and Play continue to target U.S. businesses, and Qilin has confirmed attacks on 34 U.S. construction firms in 2025 alone.

  • Vendor and subcontractor risks
    Construction’s interconnected ecosystem creates downstream exposure. A single compromised subcontractor, vendor, or shared platform can disrupt multiple projects. The 2024 CrowdStrike outage showed how one vendor failure can halt thousands of operations.

  • Human error and everyday missteps
    Human behavior remains a leading and preventable source of loss. Unsecured devices, shared credentials, unverified banking changes, and clicks on spoofed emails routinely bypass controls.


New attacks require a new approach to cybersecurity

Yesterday’s cyber defense playbook no longer fits today’s threat environment. Contractors are shifting from a prevention-only mindset to operational resilience. By adopting a multifaceted approach that integrates people, processes, and technology, firms can turn everyday actions into lasting protection.

  • Strengthen access controls – Apply zero-trust principles, least-privilege access, biometric gates, vendor credentials, and password managers.

  • Secure jobsite technology – Patch devices, encrypt feeds, deploy AI monitoring, and segment networks.

  • Use AI to enhance security – Detect anomalies, deepfakes, phishing, and accelerate response with human oversight.

  • Modernize workforce awareness – Use phishing tests, device guidelines, banking-change verification, and field-focused training.

  • Improve data governance – Classify sensitive data, restrict access, and ensure compliance with privacy requirements.

  • Manage third-party risk – Require MFA, EDR, patching, and IR capabilities. Update contracts and review access regularly.

  • Prepare incident response – Document escalation steps, run tabletop exercises, and coordinate with IR partners.

  • Test and secure backups – Maintain encrypted, segmented, regularly tested backups.

  • Track and adapt – Measure performance and readiness to drive improvement.

  • Align with insurance expectations – Maintain strong controls and tested plans to support coverage requirements.


Cyber insurance as a resilience multiplier

Cyber insurance is a core component of a contractor’s risk strategy. Modern policies go beyond reimbursing losses by providing specialized partners, response teams, and preventive tools that strengthen security posture.

  • 24/7 incident response support – Immediate triage, containment, forensics, and recovery.

  • Ransom negotiation and cryptocurrency handling – Specialists with expertise in criminal networks and payment pathways.

  • Systems and data restoration – Support for rebuilding servers, cloud environments, BIM models, schedules, and drives.

  • PR and client communication support – Guidance to manage messaging, especially for high-visibility projects.

  • Legal and regulatory resources – Expertise for PII exposure, union data, and privacy obligations.

  • Pre-breach cybersecurity services – Vulnerability scanning, dark-web monitoring, phishing training, vendor-risk assessments, and attack-surface monitoring.

For many contractors, these pre-breach tools alone can exceed the value of the premium. Paired with a mature cyber program, they also help secure broader coverage terms and more favorable pricing.


Strengthening the future of construction

Cyber incidents are no longer IT events—they’re jobsite disruptions, project delays, financial exposures, and reputational risks. Contractors leading the industry embed cybersecurity into daily operations and don’t treat it as an afterthought.

The most resilient firms equip their teams, modernize security controls, manage vendor access, and leverage cyber insurance to strengthen detection and recovery. With the right preparation and a disciplined approach, contractors can stay ahead of emerging threats and continue building with confidence in a rapidly evolving digital environment.