For North Carolina construction companies, cybersecurity is no longer optional. With ransomware attacks on construction firms increasing by 41% in the past year and the construction industry ranking as the third most targeted sector, protecting your business data, financial accounts, and project information is critical to survival. A single cyberattack can cost your construction company millions in losses, project delays, and damaged reputation.
Key takeaway: The FBI's 2024 Internet Crime Report documented $16.6 billion in cybercrime losses, with construction firms experiencing an average breach cost of $5.56 million. North Carolina ranks in the top 15 states for cybercrime complaints, making local construction companies prime targets.
If you own or manage a construction company in Charlotte, Raleigh, High Point, or anywhere in North Carolina, understanding and implementing cybersecurity essentials is now a business imperative - not just an IT concern.
Ready to protect your construction business? Preferred Data offers free cybersecurity assessments for North Carolina contractors. Call (336) 886-3282 or schedule your consultation today.
Why Construction Companies Are Prime Cybersecurity Targets
Construction firms hold valuable data that cybercriminals actively seek: project blueprints, bid information, financial records, client data, subcontractor agreements, and intellectual property. Between April 2023 and March 2024, the construction industry saw 228 reported ransomware victims, making it the third most targeted sector nationwide according to FBI data.
The Perfect Storm of Vulnerabilities
North Carolina construction companies face unique cybersecurity challenges:
- Distributed workforce: Office staff, field crews, and remote workers access systems from multiple locations and devices
- Complex supply chains: Multiple subcontractors and vendors create numerous entry points for attackers
- Legacy technology: Many construction firms still rely on outdated software and hardware that lack modern security features
- Mobile device risks: Project managers and superintendents access sensitive data on smartphones and tablets, often over unsecured networks
- Limited IT resources: Unlike large corporations, most construction companies lack dedicated cybersecurity staff
According to industry research, 76% of cyberattacks against construction companies are financially motivated, with attackers targeting wire transfer systems, ransomware extortion, and bid information theft.
The Real Cost of Cybersecurity Incidents
The 2024 statistics reveal alarming trends for construction:
- Average ransom payments increased 500% from 2023 to 2024, rising from $400,000 to $2 million
- Unplanned downtime costs up to $125,000 per hour for construction operations
- Data breaches in construction increased by 800% from 2019 to 2020
- The average ransomware insurance claim reached $353,000, up 68% year-over-year
North Carolina specific example: In 2017, Wallace Construction Group fell victim to a Business Email Compromise (BEC) scam where attackers spoofed the CEO's email address and stole $122,850 through a fraudulent wire transfer to the company accountant.
Common Cyber Threats Targeting NC Construction Firms
Understanding the threats your construction company faces is the first step toward protection.
Ransomware Attacks
Ransomware remains the single biggest threat to construction companies. The financially motivated group "Play" and other threat actors like Akira, LockBit, and RansomHub specifically target construction firms because they cannot afford extended downtime.
When ransomware encrypts your files, construction projects stop. You cannot access:
- Project schedules and timelines
- Financial records and payroll systems
- Design files and blueprints
- Client contact information
- Subcontractor agreements and purchase orders
Notable incident: French construction giant Bouygues faced a ransom demand of $10 million after attackers stole 200GB of company data.
Business Email Compromise (BEC) and Wire Fraud
Construction companies regularly transfer large sums for materials, subcontractor payments, and project expenses. Cybercriminals exploit this by:
- Impersonating executives or vendors via email
- Modifying legitimate invoices with fraudulent bank account details
- Intercepting email communications to redirect payments
- Creating urgent scenarios to pressure quick wire transfers
BEC attacks accounted for significant losses in the construction sector, with individual incidents ranging from tens of thousands to millions of dollars.
Project Data and Intellectual Property Theft
Your bid information, project plans, and proprietary methodologies have real value to competitors and cybercriminals. Attacks targeting this information aim to:
- Steal competitive bidding strategies and pricing models
- Access architectural designs and engineering specifications
- Obtain client lists and project portfolios
- Compromise trade secrets and construction methodologies
If your construction company stores bid information digitally, unauthorized access to those files could eliminate your competitive advantage on future projects.
Subcontractor and Supply Chain Attacks
The construction industry operates through complex networks of general contractors, trades contractors, material suppliers, and third-party service providers. This creates vulnerability:
- Once a subcontractor's system is breached, attackers use that access as a gateway into your network
- Multiple vendors make cybersecurity oversight challenging
- Less-secure partners become the weakest link in your security chain
- Compromised software or hardware from suppliers can introduce malicious code
According to industry analysis, many construction cyber incidents result from vulnerabilities in subcontractor and vendor services - an Achilles' heel for larger construction organizations.
Preferred Data Perspective: As a managed IT provider serving North Carolina construction companies since 1987, we see firsthand how subcontractor access creates risk. Implementing vendor security requirements and network segmentation significantly reduces this exposure.
Mid-content resource: Download our Construction Cybersecurity Checklist - a comprehensive guide for protecting your NC construction firm from cyber threats.
Federal Cybersecurity Requirements for Construction Contractors
If your North Carolina construction company works on federal projects or contracts with Department of Defense agencies, you face mandatory cybersecurity compliance requirements.
CMMC 2.0 (Cybersecurity Maturity Model Certification)
The Department of Defense initiated CMMC to establish a unified cybersecurity standard for all defense contractors, subcontractors, and supply chain entities. The final rule took effect November 10, 2025, with three certification levels.
Impact for NC defense contractors: North Carolina hosts significant military installations (Fort Liberty, Marine Corps Base Camp Lejeune, Seymour Johnson Air Force Base), creating substantial construction opportunities for contractors who meet CMMC requirements. CMMC will be a "go/no go" requirement in all DoD solicitations.
For construction firms near Fayetteville, Jacksonville, or Goldsboro working on defense projects, CMMC compliance is now mandatory for bid eligibility.
NIST SP 800-171
Since 2016, federal contractors must comply with NIST SP 800-171 standards for protecting Controlled Unclassified Information (CUI). This applies to construction companies handling:
- Facility designs and layouts for government buildings
- Security specifications and requirements
- Project timelines and schedules
- Any information marked as CUI in contracts
The Federal Contractor Cybersecurity Vulnerability Reduction Act of 2025 (H.R. 872), passed by the U.S. House of Representatives, further mandates formal Vulnerability Disclosure Policies (VDPs) for federal contractors, including those in construction and infrastructure sectors.
The bottom line: Construction companies' ability to bid on federal projects increasingly requires demonstrated cyber maturity as a condition of doing business.
Preferred Data provides CMMC compliance assessment and implementation services specifically for North Carolina defense contractors. Learn more about our CMMC services.
Cybersecurity Insurance Requirements and Considerations
Cyber insurance has become essential for North Carolina construction companies, but obtaining and maintaining coverage requires meeting specific security requirements.
Current Insurance Landscape
Construction businesses pay an average of $145 per month for cyber insurance. However, insurance carriers now mandate specific cybersecurity controls before providing coverage:
- Multi-factor authentication (MFA) for all remote access, webmail, and administrative accounts
- Endpoint detection and response (EDR) tools
- Regular data backups with offline or immutable copies
- Employee security awareness training with phishing simulations
- Documented incident response plans
Why it matters: Insurance underwriters recognize that construction cyber incidents frequently involve fraudulent payment diversions or contractor impersonation schemes. Cyber insurance and criminal fraud coverage often work together to address the industry's unique risk profile.
Essential Coverage Types for Construction
Construction companies need specialized coverage that addresses industry-specific risks:
- Business Interruption: Covers income lost during cyber-induced project delays
- Dependent Business Interruption: Protects against disruptions from vendor-related cyber incidents
- Extra Expense Coverage: Funds expedited materials or specialist services to meet contractual deadlines after an attack
- Ransomware & Extortion Payments: Provides financial support to negotiate or recover encrypted data
Coverage needs vary significantly based on company size, technology dependence, and project types. Work with insurance advisors to ensure your policy matches your construction operations.
Contract Obligations
Many construction contracts now include cybersecurity clauses requiring:
- Proof of cyber insurance with specific coverage limits
- Notification requirements if a data breach occurs
- Liability allocation among project participants
- Adherence to specific security standards (NIST, CMMC, etc.)
Review your general contractor agreements and subcontracts carefully - cybersecurity obligations are increasingly standard in construction contracts across North Carolina and nationwide.
Essential Cybersecurity Measures for NC Construction Companies
Protecting your construction business requires layered security controls that address both technology and human factors.
Foundational Security Controls
Multi-Factor Authentication (MFA)
Require MFA for all systems, especially:
- Email accounts (Office 365, Gmail)
- Accounting and financial software (QuickBooks, Sage, Foundation)
- Project management platforms (Procore, Buildertrend, CoConstruct)
- Cloud storage (Dropbox, OneDrive, Box)
- Remote access VPN connections
MFA blocks over 99% of automated credential attacks, according to Microsoft security research.
Email Security and Anti-Phishing
Since phishing is the top initial access technique for construction sector attacks, implement:
- Advanced email filtering and malware scanning
- Link protection and attachment sandboxing
- DMARC, SPF, and DKIM authentication to prevent email spoofing
- Clear procedures for verifying payment change requests by phone (never by email alone)
- Regular phishing simulation training for all employees
Endpoint Protection
Deploy endpoint detection and response (EDR) solutions on:
- Office workstations and laptops
- Mobile devices accessing company data
- Tablets used by field staff and project managers
EDR provides visibility into suspicious activity and automated response to threats.
Data Backup and Recovery
Implement the 3-2-1 backup rule:
- 3 copies of your data
- 2 different media types
- 1 copy stored off-site or in the cloud
Critical construction data to protect:
- Project files and CAD drawings
- Financial records and accounting data
- Contracts and legal documents
- Employee and payroll information
- Customer and vendor databases
Test your backup recovery process quarterly - a backup that cannot be restored is worthless during a ransomware incident.
Network Security and Segmentation
Separate Networks
Create distinct network segments for:
- Corporate/office systems
- Guest Wi-Fi for clients and visitors
- Internet of Things (IoT) devices (security cameras, HVAC controls)
- Temporary project trailers and field offices
Network segmentation prevents attackers from moving laterally through your systems if one segment is compromised.
Virtual Private Network (VPN)
Require VPN connections for:
- Remote workers accessing company resources
- Field staff connecting from job sites
- Third-party vendors needing system access
Preferred Data's network infrastructure services help North Carolina construction firms design and implement secure, scalable network architectures. Explore our network solutions.
Access Control and Vendor Management
Least Privilege Access
Grant employees and contractors only the minimum access needed for their roles:
- Project managers: access to their assigned projects only
- Bookkeepers: financial systems but not operational systems
- Field supervisors: read-only access to schedules and plans
- Subcontractors: limited, time-bound access to specific project folders
Vendor Security Requirements
Evaluate the cybersecurity practices of subcontractors and suppliers before engagement:
- Request proof of cyber insurance
- Include cybersecurity requirements in contracts
- Limit vendor network access through VPN or secure portals
- Regularly audit vendor access and remove when projects complete
Using contract language that clearly outlines expectations around cybersecurity practices can mitigate risks when working with subcontractors and suppliers.
Incident Response Planning for Construction Companies
Despite best efforts, assume a cyber incident will eventually occur. Preparation significantly reduces impact and recovery time.
Essential Components of an Incident Response Plan
Detection and Reporting
- Define what constitutes a cybersecurity incident
- Establish clear reporting procedures (who to contact, how quickly)
- Monitor systems for unusual activity (large file transfers, after-hours access, failed login attempts)
Containment Steps
- Isolate affected systems immediately
- Disable compromised user accounts
- Block suspicious IP addresses or domains
- Preserve evidence for forensic analysis
Communication Protocols
Designate roles for:
- Internal communications (employees, management)
- External notifications (clients, partners, subcontractors)
- Legal counsel and law enforcement contacts
- Insurance carrier notification
- Media relations (if needed)
Recovery Procedures
- Documented steps for restoring systems from clean backups
- Malware removal and system reimaging processes
- Verification that threats are eliminated before reconnection
- Post-incident security improvements
Legal and Regulatory Considerations
North Carolina construction companies must understand notification requirements:
- Identity Theft Protection Act (NCGS § 75-61): Requires notification to NC Attorney General and affected individuals after data breaches
- Federal breach notification laws (if handling certain data types)
- Contractual obligations to notify clients or partners
- Insurance policy notification requirements
Consult with legal counsel familiar with North Carolina data breach laws to ensure compliance.
Post-incident support: Preferred Data provides incident response services and cybersecurity forensic analysis for North Carolina businesses. If you experience a cyberattack, call (336) 886-3282 immediately for emergency assistance.
Building a Cybersecurity Culture in Your Construction Company
Technology alone cannot protect your business - your employees are both your greatest vulnerability and strongest defense.
Security Awareness Training
Implement ongoing training that covers:
- Recognizing phishing emails and social engineering attempts
- Creating strong, unique passwords
- Identifying suspicious links and attachments
- Proper handling of sensitive information
- Mobile device security best practices
- Reporting procedures for potential incidents
Training should occur quarterly with frequent reinforcement through simulated phishing campaigns and brief security reminders.
Policy Development
Document clear policies for:
- Acceptable use of company technology
- Password requirements and management
- Bring-your-own-device (BYOD) guidelines
- Data classification and handling
- Social media usage
- Incident reporting requirements
Make policies accessible and ensure employees acknowledge receipt and understanding.
Leadership Commitment
Cybersecurity must be a priority from the top down:
- Executives and owners set the tone by following security policies
- Allocate budget for security tools, training, and professional services
- Include cybersecurity in risk management discussions
- Make security part of company culture, not just an IT issue
Construction companies that treat cybersecurity as a business priority - not merely a technical checklist - significantly reduce their risk profile and demonstrate that commitment to clients, insurers, and business partners.
How Preferred Data Supports North Carolina Construction Companies
Since 1987, Preferred Data has provided technology solutions for North Carolina businesses, including construction firms in High Point, Charlotte, Raleigh, Greensboro, and throughout the Piedmont Triad region.
Comprehensive Cybersecurity Services
Managed IT Services for Construction
Our managed services provide construction companies with:
- 24/7 network monitoring and threat detection
- Proactive security patch management
- Help desk support for office and field staff
- Strategic technology planning and vCIO services
- On-site support within 200 miles of High Point, NC
Learn more about managed IT for construction.
Cybersecurity & CMMC Compliance
- Comprehensive security risk assessments
- CMMC compliance roadmap and implementation
- NIST 800-171 compliance assistance
- Penetration testing and vulnerability scanning
- Security awareness training programs
PDC's cybersecurity expertise helps North Carolina defense contractors win federal projects by achieving required certifications. Explore our CMMC services.
Cloud Solutions and Data Protection
- Secure cloud migration strategies
- Microsoft 365 deployment and security configuration
- Hybrid cloud architectures for construction environments
- Backup and disaster recovery solutions
- Business continuity planning
Network Infrastructure
- Secure network design for offices and project trailers
- VPN and remote access implementation
- Wi-Fi security for construction sites
- Network segmentation and access controls
What sets PDC apart: Unlike national IT providers with distant support centers, Preferred Data is locally based in High Point with 37+ years serving North Carolina businesses. We understand the unique needs of construction companies operating across the state and provide same-day on-site support when needed.
Frequently Asked Questions
How much does cybersecurity cost for a construction company?
Cybersecurity costs vary based on company size, number of employees, and systems complexity. Small construction firms (10-25 employees) typically invest $2,000-$5,000 monthly for comprehensive managed security services including monitoring, endpoint protection, email security, and training. Mid-size firms (50-100 employees) average $5,000-$12,000 monthly. This investment is substantially less than the average construction industry breach cost of $5.56 million. Preferred Data offers customized pricing for North Carolina construction companies. Request a quote.
Do I need CMMC compliance if I only work on state or local projects?
Currently, CMMC requirements apply only to Department of Defense contractors and subcontractors. However, state and local agencies increasingly reference NIST standards in contracts. The Federal Contractor Cybersecurity Act may extend similar requirements to other federal agencies in the future. Even without mandates, implementing CMMC-aligned security practices protects your construction business and demonstrates maturity to clients, insurers, and partners.
What should I do if my construction company receives a ransomware demand?
Do not pay the ransom immediately. Contact Preferred Data's emergency response team at (336) 886-3282, notify your cyber insurance carrier, contact law enforcement (FBI IC3 or local authorities), and isolate affected systems. Our team will assess the situation, contain the threat, and help you evaluate recovery options - often involving backup restoration rather than ransom payment. Having an incident response plan and tested backups significantly improves outcomes.
How do I vet subcontractors' cybersecurity practices?
Include cybersecurity requirements in subcontractor agreements: require proof of cyber insurance with minimum coverage amounts, request documentation of security policies and procedures, verify that they implement MFA and encryption, and include contract language about data protection obligations and breach notification requirements. For critical vendors with extensive system access, consider requiring security audits or questionnaires (such as SIG Lite) to validate their practices.
Can a small construction company afford proper cybersecurity?
Yes. Many effective security measures cost little or nothing to implement: MFA, employee training, strong password policies, and regular software updates. For managed services and tools, Preferred Data offers scalable solutions for small North Carolina construction firms starting around $150-$200 per employee monthly for comprehensive protection. Consider the alternative: the average construction industry breach costs $5.56 million - proper cybersecurity is far more affordable than incident response and recovery.
Does cybersecurity insurance replace the need for security measures?
No. Cyber insurance is essential but is not a substitute for security controls. Insurance carriers now require specific measures (MFA, EDR, backups, training) before providing coverage. Insurance addresses financial impact after an incident but cannot prevent attacks or recover lost project time. Think of it as complementary: security measures reduce risk, while insurance mitigates financial consequences if an incident occurs despite protections.
Protect Your NC Construction Business Today
Cybersecurity threats to North Carolina construction companies will continue escalating in 2025 and beyond. Ransomware groups specifically target the construction industry because of valuable data, distributed operations, and historically weak security postures. The statistics are clear: construction firms face a 41% increase in ransomware attacks, average breach costs of $5.56 million, and ransom demands reaching $2 million.
Your construction company cannot afford to wait until after an attack to address cybersecurity. Every day without proper protections increases your risk of financial loss, project delays, damaged reputation, and lost competitive advantages.
Take action now:
- Implement multi-factor authentication across all systems
- Deploy endpoint protection and email security
- Establish verified processes for payment requests
- Create and test backup and recovery procedures
- Train employees to recognize and report threats
- Vet subcontractor and vendor security practices
- Develop an incident response plan
- Ensure compliance with contract and regulatory requirements
Preferred Data has protected North Carolina businesses since 1987. Our team understands the unique cybersecurity challenges construction companies face and provides practical, effective solutions tailored to your operations, budget, and risk profile.
Get started with a free cybersecurity assessment:
Preferred Data will evaluate your current security posture, identify vulnerabilities, and provide a clear roadmap for protecting your construction business - at no cost and with no obligation.
Contact Preferred Data today:
- Phone: (336) 886-3282
- Email: Contact us online
- Address: 1208 Eastchester Drive, Suite 131, High Point, NC 27265
On-site support available throughout North Carolina: High Point, Charlotte, Raleigh, Greensboro, Durham, Winston-Salem, Fayetteville, and within 200 miles of our High Point headquarters.
Don't let cybercriminals threaten your construction projects, financial stability, or business reputation. Partner with Preferred Data - your local North Carolina technology advisor - and build a secure foundation for your construction company's future.
Sources:
- FBI Internet Crime Complaint Center (IC3) 2024 Annual Report
- Industrial Cyber: "FBI's Internet Crime Report 2024 records $16.6 billion in cybercrime losses"
- ReliaQuest: "Report Shows Ransomware Has Grown 41% for Construction Industry"
- Associated General Contractors of America (AGC): Cybersecurity & Federal Contractors
- Marsh McLennan: "Cyber Risk and the Construction Supply Chain"
- NIST Cybersecurity Framework
- U.S. House of Representatives: Federal Contractor Cybersecurity Vulnerability Reduction Act of 2025 (H.R. 872)