Digital tech drives cyber risks in law and contracts

TLDR:

• The construction industry has become more reliant on digital technology, leading to increased cyber security risks.
• Cyber attacks such as ransomware and fraudulent wire transfers are on the rise in the construction sector.

In recent years, the construction industry has embraced digital technology solutions like automated construction equipment, 3D printing, building information modelling (BIM) systems, and artificial intelligence. However, these advancements have also brought about a surge in cybersecurity risks within the industry. With high-value payments and critical national infrastructure projects at stake, cyber criminals see construction businesses as prime targets. As the industry collects and shares more data electronically, the consequences of cyber attacks – from financial losses to compliance and safety risks – have become more severe. Additionally, data breaches can harm a company’s reputation, leading to lost customer trust and brand loyalty.

One common type of cyber attack on construction firms is ransomware, where computer systems are held hostage until a ransom is paid. Recent examples in the UK construction industry include hackers exploiting vulnerabilities in company websites to carry out attacks and compromise sensitive data. Fraudulent wire transfers are also increasingly prevalent, with cyber criminals manipulating individuals into divulging sensitive information. Legislation in the European Union like the NIS2 Directive and the Cyber Resilience Act aims to protect critical organisations and infrastructure by tightening cybersecurity regulations and obligations.

To combat cyber risks, construction companies should assess their vulnerabilities and implement robust cybersecurity measures. The UK’s National Cyber Security Centre (NCSC) and the Chartered Institute of Building (CIOB) have partnered to provide practical guidance for construction businesses, including advice on collaborating with suppliers and partners to protect sensitive information. Businesses are also urged to pay attention to how artificial intelligence interacts with cybersecurity, as AI adoption increases. By staying vigilant and continuously improving cybersecurity measures, construction firms can navigate the digital landscape with greater security.