Constructor - September/October 2016 - 15

BY DEBRA WOOD CONTRACTORS INCREASINGLY TURN TO electronic solutions for communicating, accessing plans and managing projects, but that puts them at risk for cyberattacks. Can't happen to you? A mechanical contractor's cybersecurity weaknesses led to the 2013 Target holiday season breach, one of the largest in history. If you use the internet or email - and who doesn't - your company is at risk. "Everybody today is online," says K. Stefan Chin, an attorney with Peckar & Abramson, a member of multiple AGC chapters, in Miami. "While technology has great benefits, it also comes with risks." Nearly 98 percent of contractors use smartphones; 69.4 percent, tablets; and 85.6 percent, laptops, all up from 2014, according to the JBKnowledge's 2015 Construction Technology Report. That means all but 2 percent of contractors are at risk. "Construction companies own a lot of good data that hackers would be interested in stealing," says C. Fara Francis, PMP, chief information officer, AGC of America. Although Tom Brown, president of Sierra Pacific West in Encinitas, California, a member of AGC's San Diego Chapter, thought his company had firewalls, it recently survived a cyberattack. The breach occurred during the off hours. His IT department discovered the malware came as an attachment to a recognized email. Contractors are using more technology, creating more of an "attack surface," and at the same time, cybercrime has become more prevalent and more organized, reported Lucas Morris, a senior manager in cybersecurity services at Crowe Horwath, a Chicago-based accounting consulting and technology firm and member of multiple AGC chapters. Cybercrime has become an organized crime, and tactics and tools keep evolving, says Chad Graves, a partner and leader of the technology services team at Bennett Thrasher, an accounting and consulting firm in Atlanta. Yet some contractors are not prepared. "The majority of construction companies I speak to don't have security policies," says James Benham, CEO and cofounder of JBKnowledge in Bryan-College Station, Texas. "If they do, they do not take them seriously nor seriously enforce them." CYBERCRIME TACTICS "There are hundreds of ways to gain access to a company's network," Graves says. When a phishing email arrived at Fazio Mechanical Services in Sharpsburg, Pennsylvania and an employee clicked on the link, it started the cascade of security failures that led to the Target debacle. Such breaches are one of many ways data can be compromised. Another is wire-transfer requests that appear to come from the boss, which have led to accounting departments sending money to the bad guys, thinking they were following the boss's orders. "The email lures are really good," says Christopher Budd, global threat communications manager at Trend Micro, a security software company in Irving, Texas. Malware and ransomware present another method of criminals scamming money from businesses. After someone clicks on a link in a nefarious email, the malware locks critical files on the company's computer. The criminal demands money, typically through bitcoin, for not destroying the files. "You can imagine how crippling it would be for a company," Chin says. Brown learned that first hand. He would not pay the ransom. "It started gobbling up the most recent activity in the files, all our payroll, job costing," Brown says. "It got about two years of our information and completely destroyed it." Kaspersky Lab of Woburn, Massachusetts called ransomware an epidemic, reporting that 718,536 internet users experienced a ransomware attack from April 2015 to March 2016, up from 131,111 in the prior year. Budd adds that ransomware has moved from individuals to businesses. The ransom has increased to thousands of dollars in some cases. THE RISKS In addition to the direct costs of restoring data, those who experience a breach also may run afoul of federal and state regulations and face contract liability, Chin explains. Owner contracts may contain specific provisions regarding data security and indemnifying the owner, leaving WWW.ISTOCKPHOTO.COM | © PIXELLIEBE @Constr uctor Ma g S E P T E MB E R / O C T O B E R 2 0 1 6 | www.constructormagazine.com 15 http://WWW.ISTOCKPHOTO.COM http://www.constructormagazine.com/

Table of Contents for the Digital Edition of Constructor - September/October 2016

Editor’s Note
President’s Message
CEO’s Letter
Cybercrime: Why You’re Almost Certainly at Risk
Building the Economy: The True Value of Measuring Economic Impact
All Eyes on November
Constructing an Experience: New Demands in Retail Design
Simonson Says
Knocking Green Standards Out of the Park
Managing the Risks of Green Building
Construction Leadership Council: A Launch Pad for Careers and Industry Leadership
AGC in Action
Member and Chapter News
Legislative and Regulatory News
Technology Toolbox
2016 Professional Services Guide
Products & Services Marketplace
Index to Advertisers
Final Inspection
Constructor - September/October 2016 - cover1
Constructor - September/October 2016 - cover2
Constructor - September/October 2016 - 3
Constructor - September/October 2016 - 4
Constructor - September/October 2016 - 5
Constructor - September/October 2016 - 6
Constructor - September/October 2016 - 7
Constructor - September/October 2016 - 8
Constructor - September/October 2016 - Editor’s Note
Constructor - September/October 2016 - 10
Constructor - September/October 2016 - President’s Message
Constructor - September/October 2016 - 12
Constructor - September/October 2016 - CEO’s Letter
Constructor - September/October 2016 - Cybercrime: Why You’re Almost Certainly at Risk
Constructor - September/October 2016 - 15
Constructor - September/October 2016 - 16
Constructor - September/October 2016 - 17
Constructor - September/October 2016 - 18
Constructor - September/October 2016 - Building the Economy: The True Value of Measuring Economic Impact
Constructor - September/October 2016 - All Eyes on November
Constructor - September/October 2016 - 21
Constructor - September/October 2016 - 22
Constructor - September/October 2016 - 23
Constructor - September/October 2016 - 24
Constructor - September/October 2016 - 25
Constructor - September/October 2016 - Constructing an Experience: New Demands in Retail Design
Constructor - September/October 2016 - 27
Constructor - September/October 2016 - 28
Constructor - September/October 2016 - 29
Constructor - September/October 2016 - 30
Constructor - September/October 2016 - 31
Constructor - September/October 2016 - 32
Constructor - September/October 2016 - 33
Constructor - September/October 2016 - 34
Constructor - September/October 2016 - Simonson Says
Constructor - September/October 2016 - Knocking Green Standards Out of the Park
Constructor - September/October 2016 - 37
Constructor - September/October 2016 - Managing the Risks of Green Building
Constructor - September/October 2016 - 39
Constructor - September/October 2016 - 40
Constructor - September/October 2016 - 41
Constructor - September/October 2016 - Construction Leadership Council: A Launch Pad for Careers and Industry Leadership
Constructor - September/October 2016 - 43
Constructor - September/October 2016 - 44
Constructor - September/October 2016 - 45
Constructor - September/October 2016 - 46
Constructor - September/October 2016 - AGC in Action
Constructor - September/October 2016 - 48
Constructor - September/October 2016 - 49
Constructor - September/October 2016 - 50
Constructor - September/October 2016 - Member and Chapter News
Constructor - September/October 2016 - 52
Constructor - September/October 2016 - 53
Constructor - September/October 2016 - 54
Constructor - September/October 2016 - 55
Constructor - September/October 2016 - 56
Constructor - September/October 2016 - Legislative and Regulatory News
Constructor - September/October 2016 - 58
Constructor - September/October 2016 - Technology Toolbox
Constructor - September/October 2016 - 60
Constructor - September/October 2016 - 2016 Professional Services Guide
Constructor - September/October 2016 - 62
Constructor - September/October 2016 - 63
Constructor - September/October 2016 - 64
Constructor - September/October 2016 - 65
Constructor - September/October 2016 - 66
Constructor - September/October 2016 - 67
Constructor - September/October 2016 - 68
Constructor - September/October 2016 - 69
Constructor - September/October 2016 - 70
Constructor - September/October 2016 - Products & Services Marketplace
Constructor - September/October 2016 - 72
Constructor - September/October 2016 - 73
Constructor - September/October 2016 - Index to Advertisers
Constructor - September/October 2016 - 75
Constructor - September/October 2016 - 76
Constructor - September/October 2016 - 77
Constructor - September/October 2016 - Final Inspection
Constructor - September/October 2016 - cover3
Constructor - September/October 2016 - cover4
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