It Only Takes One Email: The Severity of Phishing Scams in the Construction Industry

Email has become crucial in construction, and for good reason: most projects rely heavily on coordinating with suppliers and subcontractors over email at multiple steps of the process! 

However, this convenience also brings a significant threat: phishing attacks. Construction firms face many phishing incidents where bad actors send emails to deceive recipients into believing they are legitimate. This kind of fraud easily leads to financial losses and damage to the company's reputation, making it much more than a nuisance…

A single deceptive email has the potential to trigger dire consequences for your firm, so let’s begin by discussing the most common ways you could be targeted by phishing attacks!

Understanding the Threat: Phishing in the Construction Industry

Construction firms are especially susceptible to phishing scams. In contrast to other sectors, construction frequently entails substantial financial outlays and delicate project details. Phishing scammers know this, and create emails that look like real bid requests or project updates from reliable suppliers to take advantage!

According to a 2022 study by Verizon, 82% of data breaches involved human error, including phishing attacks that target unsuspecting employees. 

The High Cost of Falling for Phishing Scams

If a phishing attack succeeds, your company becomes a victim. For instance, scammers might unlawfully take funds by rerouting payments to accounts. They could access vital project information, resulting in project delays and higher expenses. Your reputation as a firm is on the line as well: a successful phishing attack has the potential to make it much more challenging to attract and maintain clients!

Some recent statistics highlight the cost of these attacks:

● According to IBM's Cost of a Data Breach Report, $4.88 million is the average data breach cost in 2024.

● The Cybersecurity and Infrastructure Security Agency reported that targeted recipients open 30% of phishing emails.

● Over 90% of successful cyberattacks start with a phishing email, making it clear that these scams are the preferred method for cybercriminals to breach systems.

More Specific Reasons That Construction Companies Are Targeted

As we mentioned earlier, construction businesses face unique challenges that make them particularly vulnerable to phishing scams. Here are some specific reasons!

1. Frequent Supplier Communication: Scammers commonly pretend to be reputable suppliers or partners in the construction industry. As construction companies often share invoices, project information, and contracts with these entities, a phishing attempt disguised as one of these communications will likely succeed. 

2. Mobile Workforce: Many construction employees are often out in the field and rely heavily upon devices to check and respond to emails regularly; however, these devices are more vulnerable to phishing attempts due to less robust email security features! What’s more, the chances of being distracted are much higher on a mobile device…

3. High Turnover: Employee turnover rates in the construction sector tend to be significant; consequently, new hires may not have the knowledge to identify phishing scams effectively. You can guess the rest!

Best Practices for Phishing Prevention

Properly safeguarding your construction business against phishing scams involves a strategy that combines technology safeguards and company-wide training! Here are a few practical tactics you can use to fortify your defenses:

1. Invest in Email Security Tools with Phishing Protection

Protecting your email is crucial in guarding against phishing attacks. Software such as Microsoft Defender, Proofpoint, Sophos, and IRONSCALES utilize artificial intelligence to identify and stop phishing efforts before they can reach the recipients' email accounts. They also analyze your emails for links, attachments, and sender information to prevent deceptive messages from entering your inbox. 

Establishing these safeguards with a qualified IT Provider can simplify the setup process substantially!

2. Regular Employee Training and Phishing Simulations

It's essential to train employees to identify phishing emails by organizing frequent workshops and training sessions to teach them how to spot suspicious emails, as well as notice common red flags! Here’s an example of telltale signs of a typical phishindg attempt:

    https://www.next-works.com/resources/heist.php

Using simulations can also be impactful as a security measure in the workplace. These simulations include sending emails to staff members and monitoring those who interact with them. Employees who are tricked by these simulated attacks are then given training sessions to prevent it from happening again (with expensive stakes). 

3. Verify Financial Transactions and Invoices

One prevalent type of phishing scheme revolves around invoices and payment redirect requests. To avoid falling victim to this scam, it's essential to establish a verification procedure for every financial transaction your company conducts.

 For instance, requiring a phone call confirmation from a contact before authorizing substantial unusual payments can safeguard your business against significant economic setbacks. The extra effort is worth the peace of mind!

Moving Forward with a Proactive Approach

We hope this blog has helped you start thinking about how to safeguard your construction company against phishing scams effectively! Being proactive here is a must, and fostering a culture of alertness will significantly minimize your chances of succumbing to phishing attempts in the future. 

Of course, phishing is just one piece of the puzzle…

    https://www.next-works.com/msp.php#cybersecurity

What is the difference between anti-virus software and endpoint protection?

 

Anti-Virus Software

Primary Function: Designed to detect, block, and remove malicious software (malware) from individual devices.

Scope: Focuses on identifying known threats using signature-based detection methods.

Features: Typically includes real-time scanning, scheduled scans, and quarantine of infected files.

Limitations: Primarily reactive, meaning it relies on known malware signatures and may struggle with new, unknown threats1.

Endpoint Protection

Primary Function: Provides comprehensive security for all endpoints (devices) within a network, including desktops, laptops, mobile devices, and servers.

Scope: Protects the entire network by integrating multiple security measures such as firewalls, intrusion detection, encryption, and behavior monitoring.

Features: Includes advanced threat detection methods like behavioral analysis, machine learning, and sandboxing. It also offers centralized management, data loss prevention, and automated patch management.

Advantages: More proactive and adaptable to emerging threats, offering a broader range of protections beyond just malware.

In summary, while anti-virus software focuses on protecting individual devices from known threats, endpoint protection software offers a more holistic approach, safeguarding the entire network with advanced, proactive security measures.

Nextworks can deliver a comprehensive cybersecurity platform for your organization.

Helpful AI Tips

Start your journey with AI. We put together this cheat sheet to help guide you through interacting with AI as an everyday productivity tool.

Download the PDF version.

AI Is Taking Over (The Microsoft 365 Suite)!

Let's talk about artificial intelligence. No, it’s not taking over the world, but it is definitely changing how we handle our daily grind at work! Microsoft Copilot is one of the newest tools in the Microsoft 365 toolbox that is a great representation of how AI can transform your workflow: it's like having a hyper-efficient assistant who is already an expert on all the M365 apps you currently use.

 

Seamless Integration with Microsoft 365

Here’s what we mean when we say that Microsoft Copilot works effortlessly within the Microsoft 365 environment, enhancing the functionality of the applications you use daily:

• Outlook: Copilot can prioritize your emails, draft responses, and schedule meetings based on your preferences. Have a ton of emails that look like a chore to get through? Copilot can summarize them conciselyin seconds!
• Word: Copilot makes writing easy by suggesting edits and updates and helping you format text to meet your requirements.
• Excel: Data-driven decision making has never been easier! Copilot analyzes the data you enter, then generates reports and creates visualizations based on it.
• Teams: Copilot helps you prepare for your scheduled meetings and keeps them on track by summarizingdiscussions and tracking action items: all you have to do is show up!
• PowerPoint: Copilot designs visually appealing slides, incorporates relevant data, and refines your presentations in the click of a mouse.

 

The Benefits of Integration

As you can see, Copilot gives your M365 applications a boost and helps you use them more efficiently! Here are a few other tangible benefits of integrating Copilot into your daily work routine: 

• Enhanced Productivity: By automating routine tasks, Copilot boosts your overall productivity and helps you accomplish more in less time.
• Consistency and Accuracy: Copilot ensures that tasks are performed consistently and accurately, reducing the risk of errors.
• Ease of Use: Since Copilot is integrated directly into Microsoft 365, there is no steep learning curve: it works within the familiar interface of the applications you already use!
• Scalability: Copilot scales to meet your needs whether your team is small or large, enhancing efficiency across the board.

 

Get Started with Copilot Today!

Ready to work smarter and not harder within the Microsoft 365 suite?

Reach out to our team and start a conversation about how to best integrate Copilot into your business: we’ll schedule a free consultation and help you take the next steps to unlocking a new level of efficiency at work!

Let Nextworks help you get started with AI.

Why Get Cybersecurity Insurance

Cybersecurity insurance is increasingly essential for all companies as the risk of cyberattacks grows. Here’s why your business should consider it:

Coverage Types

If you handle customer data or store business information online, cybersecurity insurance helps protect against financial losses caused by incidents like data breaches, system hacking, and ransomware extortion payments.

Coverage Details

First-party coverage includes:

• Investigation of incidents.
• Risk assessment for future cyber incidents.
• Lost revenue due to business interruption.
• Ransomware attack payments (up to coverage limits).
• Notifying customers about cyber incidents and providing anti-fraud services.

Third-party or cyber liability coverage protects your business if a third party sues you for damages resulting from a cybersecurity incident. It covers attorney fees, court judgments, and regulatory fines.

Mandatory Notification

Cyber insurance helps companies notify customers about data breaches (mandatory in most states) and provides legal defense. Without it, these costs can quickly add up.

Other Steps to Take

The best insurance policy is one that you never use. Here are some steps you can take:

Prioritize Cyber Decisions: Treat cybersecurity decisions as important business choices. Consider risks and exposure when making decisions related to technology and security.

Educate Employees: Educate all employees about cyber threats and how their actions can impact data security. Awareness helps prevent vulnerabilities.

Comprehensive Approach: Develop a comprehensive data security strategy. Gain visibility into sensitive data, identify risks, and integrate your tech stack for efficient remediation.

Deploy Security Tools: Utilize services that offer real-time monitoring, anomaly detection, and threat prevention.

Conduct Periodic Reviews: Regularly review security measures and update them as needed.

Accurate Asset and Risk Classification: Classify assets and assess risks accurately to prioritize protection efforts.

Consider adding cybersecurity insurance to your risk management strategy to safeguard your business against cyber threats and their financial impact.

Holding Up a 'Help' Sign in the World of Giant IT Mergers

Did your local MSP get swallowed up by a big tech giant recently, leaving you waving a "Help" sign, hoping someone notices? It’s all too common in the world of IT. Big, faceless IT corporations might promise the moon, but for small businesses, they can leave you feeling out in the cold. Let's dive into the real drawbacks of working with these massive entities and see why a local IT provider could be a much better fit for your business.

The 'One Size Fits All' Trap

Ever get the feeling that big IT companies see you as just another number? They often push a one-size-fits-all solution that sounds great on paper but misses the mark for your specific needs. Local IT providers, on the other hand, thrive on crafting services that are just right for your business. They know that your IT needs are as unique as your fingerprint, and they're ready to tailor their services to fit just right.

Slower Response Times, Slower Resolutions

When an IT emergency arises, every second matters. With large IT corporations often operating centralized support centers, they simply can’t offer the quick on-site response that local providers can. We understand how frustrating this is, especially when you are told to "Please hold" every time an issue arises. This often results in extended downtimes and substantial losses, which are particularly detrimental for operations that depend on real-time data and systems. With a local IT provider, however, the experience is entirely different. Local providers prioritize immediate action, ensuring a technician can quickly be on-site to address your problems directly. This level of rapid, personalized service minimizes downtime and keeps your operations running smoothly, proving indispensable in time-sensitive situations.

The Impersonal Touch and Community Disconnect

With large IT corporations, the personal connection and community involvement are often missing. You’re a file number, not a face, which can make you feel disconnected and undervalued, especially when you need support the most. In contrast, local IT firms are deeply integrated into your community. They're not just familiar with the local business environment; they're an active part of it. They invest in the local economy, support local charities, and their success is directly tied to yours. This means they genuinely care about every interaction and relationship, striving to make a positive impact both in business and in the broader community. This level of commitment helps strengthen the local economy, creating a win-win situation for everyone involved.

Choosing the right IT partner is more important than ever, and while giant corporations might seem like the safe bet, they come with challenges that can hold your business back. Local IT providers offer the personalized service, rapid response times, and community focus that really align with and support your business goals.

Tired of being just another ticket in a massive queue? Let’s make IT personal again! Reach out to us today to discover how our local, tailored IT services can help your business not just survive but thrive.

Using Password Managers for Your Business

In today's digital age we rely heavily on online accounts and sensitive information. The need for strong, unique passwords has become increasingly important. However, remembering multiple complex passwords can be challenging and prone to human error. This is where password managers come into play, providing a secure and convenient solution for both businesses and individuals.

For Business

Password managers offer numerous benefits for organizations of all sizes. Here are some key advantages for businesses:

• Enhanced Security: Password managers ensure robust security by generating and storing strong, unique passwords for each account. This eliminates the risk of weak or reused passwords that are susceptible to hacking.


• Centralized Management: Businesses can centrally manage and control passwords across their teams. Administrators can grant and revoke access, enforce password policies, and monitor password usage, bolstering overall security and reducing the burden on IT departments.


• Improved Productivity: With password managers, employees no longer need to waste time memorizing or resetting passwords. They can easily access their accounts with a single master password or other authentication methods, streamlining workflow and productivity.


• Secure Sharing: Password managers enable secure password sharing within teams or departments without revealing the actual passwords. This allows collaboration while maintaining data confidentiality.


• Auditing and Compliance: Many password managers provide auditing and reporting features that help businesses comply with industry regulations and internal security policies. Detailed logs and reports can be generated to track password usage and identify potential security breaches.

Here are three companies offering password managers with cost around $3-$6/mo. per user:

• Lastpass
• Dashlane
• 1Password

For Individuals

Password managers are equally beneficial for individual users. Here are some advantages for personal use:

• Simplified Password Management: With a password manager, individuals can securely store all their passwords in one place. This eliminates the need to remember multiple passwords or resort to writing them down, which can be risky.


• Enhanced Security: Password managers generate strong, unique passwords and often offer additional security features like two-factor authentication (2FA) or biometric authentication. This ensures that individual accounts remain protected from unauthorized access.


• Convenient Access: Individuals can access their passwords from various devices, including computers, smartphones, and tablets. This convenience allows seamless login across platforms and devices.


• Timesaving: Password managers save time by automatically filling in login credentials for websites and apps, eliminating the hassle of typing passwords manually.


• Password Strength Analysis: Many password managers provide tools that analyze the strength of existing passwords and offer suggestions for improving them. This helps individuals maintain strong, secure passwords across all their accounts.

The three companies mentioned above are also offering some free individual plans. For individual use Nextworks recommends free the open-source platform, Keepass.