Protecting Your Construction Firm from Ransomware (and How to Bounce Back)
Protecting Your Construction Firm from Ransomware (and How to Bounce Back)
April 01, 2023

Ransomware attacks aren’t new, but construction firms of all sizes could get caught in the middle of one – even with protection. Data shows the construction industry is among the most targeted for ransomware and other types of digital schemes. Luckily, there are steps firms can take to make themselves less attractive to hackers or bounce back quickly if they ever come under attack.

Protect your construction firm from ransomware attacks.

Small firms tend to believe they will fly under the radar because of their size, but hackers are equal-opportunity criminals. On average, firms spend $9 million per data breach, so ensuring your business operates with the right security mindset and measures is critical to its overall health. Updating and maintaining your cybersecurity plan is a serious investment, but it doesn’t need to be difficult. Here are some protections to consider:

  • Cloud back-ups – Set up your systems for daily back-ups and make sure your cloud vendor regularly updates their cybersecurity protections.
  • Cybersecurity insurance – Investing in cybersecurity insurance will help you cover costs associated with attacks.
  • Multi-factor authentication – A two-pronged log-in process will provide additional protection for your systems.
  • Cloud-based systems – On-site systems and software require regular updates and maintenance. Cloud-based systems are managed by the company that owns the software and receive regular patches to exposed weaknesses.
  • Disaster recovery plan – A written disaster recovery plan will help you act quickly and surely. Identify a lawyer and incident response team that you can quickly call if you’re the victim of an attack and review this plan every year.
  • Employee training – One of the most important facets of your cybersecurity protection plan is training. Your employees should know how to properly create passwords and recognize phishing attacks or suspicious behavior.
  • Regular assessments and simulations – As technology evolves, so will your risk. Put security maintenance on a schedule and conduct regular stress tests to identify security gaps.

Risks of being unprepared

Sixty-eight percent of firms currently have minimal or no security measures in place – yet half of construction executives think they will be victims of an attack in the future. The demanded ransom is the most obvious expense of a ransomware attack. However, other costs that may not be as glaring include the time and money spent on manual processes when systems are inaccessible, insurance and betterment fees, and the costs associated with rebuilding IT and accounting data. When a successful cyberattack hits a business, unpreparedness manifests as lost revenue, impaired client relationships, a damaged reputation, and stalled operations.

When you suspect an attack

Cybersecurity is a group effort, and recognizing potential signs of an attack is an essential skill. Watch for warning signs like disabled antivirus software disabled, lost files access, and missing cloud backups. If you find your construction firm has been a victim of an attack, there are steps you should take immediately. Call the FBI, contact your incident response team, and hire an attorney quickly to get moving on your recovery plan.

With the appropriate cybersecurity measures and support team, you can increase your chances of avoiding a catastrophic ransomware situation. If you need guidance on how you to protect your business against the financial impact of a ransomware attack or a plan to bounce back from one, call the professionals in our office today.

Treasury Circular 230 Disclosure

Unless expressly stated otherwise, any federal tax advice contained in this communication is not intended or written to be used, and cannot be used or relied upon, for the purpose of avoiding penalties under the Internal Revenue Code, or for promoting, marketing, or recommending any transaction or matter addressed herein.

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