Cybersecurity is a growing concern for the construction industry

Cyberattacks are a growing threat for construction companies as technology becomes essential to keeping projects and business moving forward. From email, accounting and file-sharing systems to niche design, estimating and bidding platforms, construction companies depend on a wide range of digital tools every day, making them vulnerable to cyberattacks. 

Nationwide’s 2026 Cybersecurity Survey Report shows most business owners (68% of small business and 81% of mid-market businesses) are concerned about a potential cyberattack.¹ For many, that concern has already become a reality: 62% of mid-market businesses say their company has experienced a cyberattack, up 6 percentage points since 2024.² 

The construction industry’s exposure to cyber risk is only growing as businesses integrate more technology into project management, financial systems, communications and other critical business functions.  

Common cybersecurity risks in construction

Three common threats can create particularly serious financial, operational and reputational consequences: 

1. Data loss
   Increased reliance on technology to collect, store and analyze data means more potential for data loss –– and it doesn’t always take a major breach to cause it. Simple missteps like improperly secured storage or misdirected files can expose sensitive information. When financial documents, personal employee records and intellectual property aren’t handled with care, they’re at risk of being stolen or exploited by cybercriminals. 

2. Phishing attacks
   Phishing attacks use deceptive emails or messages to manipulate employees into sharing confidential information or downloading harmful software that can compromise the construction company. The survey found more than a quarter of businesses have been targeted by a generative-AI scam or fraud attempt within the past year, most commonly through email impersonation or phishing –– a reflection of how sophisticated technologies are making these scams increasingly convincing and difficult to detect.³

3. Ransomware attacks
   Ransomware attacks prevent construction companies from accessing critical data and systems by locking or encrypting them until a demanded payment is received. These attacks have surged over the past decade, and successful attacks can bring a construction firm’s daily operations to a standstill. They are among the costliest types of cyber threats, with expenses ranging from the ransom itself to business interruption and recovery. 

AI security concerns

More than 70% of business owners are highly concerned about AI advancing the speed, scale and sophistication of cyberattacks.¹ However, the survey findings suggest many businesses don’t fully understand how their employees’ own use of the technology could be creating new exposure. More than half of businesses report employees using public AI tools such as ChatGPT for work-related tasks, yet only about a third have a written policy or formal training in place to guide that use.¹ 

This gap can put construction companies’ sensitive information at risk. Without clear guardrails, employees may inadvertently enter confidential project details, client information or proprietary business data into public AI tools. Once shared, that information doesn’t necessarily stay private. It could reach the hands of bad actors or be retained and used in ways businesses never intended. In either case, construction companies can find themselves facing client backlash or legal liability for failing to protect the information they were entrusted with.  

The importance of cybersecurity in the construction industry

Apart from significant financial loss, a cyberattack can leave construction companies facing regulatory penalties, project delays and reputational harm –– all of which can continue to affect a business long after the initial incident is resolved.  

Ransomware attacks can be especially severe. Inaccessible systems can leave construction companies with idle job sites that stall major projects and strain client relationships. In some cases, the disruption is significant enough that a company misses out on pursuing or winning new work.  

Strong cybersecurity practices can help construction companies avoid these outcomes.  

Cybersecurity tips for clients in the construction industry

Insurance agents estimate that just 24% of their commercial clients have an incident response plan in place, and only 30% keep their cyber coverage current with the evolving threat landscape. Meanwhile, the vast majority of companies (88% of small business owners and 75% of mid-market business owners) say they want more information and resources to help protect their business from AI-enabled cyberattacks.  

Here are several ways construction firms can help safeguard their business from cyber threats and strengthen their overall risk management strategy:  

• Ensure clients are aware of resources available to them, such as breach coaches, legal counsel and IT forensics specialists that are often included as part of their cybersecurity coverage.  

• Recommend ongoing employee training to help teams identify and report potential phishing attacks and stay current on emerging cybersecurity threats that impact employee functions.  

• Encourage use of cyber security tools, such as email filtering software, that can intercept potentially harmful phishing messages before they reach their intended recipients. 

• Provide guidance on establishing clear, written policies for how sensitive company and client data is collected, stored, accessed and shared. Educate clients on how to strengthen access security with tools like multifactor authentication and strictly limiting system permissions to those who need them. 

• Emphasize the importance of making cybersecurity part of company culture by establishing a cyber risk safety team and incorporating cyber risk into employee discussions during job-site safety meetings.  

• Conduct routine reviews of cyber coverage to ensure it keeps pace with current threats. Limits or coverage adjustments should be made based on how exposures change over time.  

• Prepare for an incident through the development of a comprehensive incident response plan that identifies who is responsible, who to contact and what steps to take if an attack occurs.  

• Stay informed on emerging cyber threats, new attack techniques and regulatory changes to stay informed and prepare as risks evolve.  

• Address third-party risk by reviewing contracts and cybersecurity requirements with project stakeholders and other third parties to ensure appropriate safeguards are in place across the entire project network.  

As construction companies increase their use of technology for day-to-day operations, their cyber exposure grows. From phishing and ransomware to data privacy concerns and the emerging risks associated with AI, cyber threats can disrupt projects, cause financial losses and damage hard-earned reputations.  

Desire for cyberattack protection products is overwhelming among business owners, with 92% of small business owners and 84% of mid-market business owners interested in business and computer system interruption protection, among other coverage.¹ Recognizing threats and reducing risk is critical: only about half of businesses currently prepared to identify and respond to AI-powered cyber threats.¹ 

Find additional ways to help protect your clients from cyberthreats

Nationwide can help business owners take steps to recognize cyberattacks and plan ahead with the following resources:  

• Cyber resource center – Information about cybersecurity threats and how to help establish effective prevention practices. 

• Business Continuity Program – Help businesses plan for disruptions and support operations.