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
