Lawyers handle sensitive data all the time, and as technology has advanced, leveraging it in day-to-day operations has become essential. 

However, along with these technological advances, cyber threats have also grown, posing significant risks to law firms. Here’s what you need to know about cybersecurity to protect your practice.

A Rise in Cyber Threats

Law firms are attractive marks for cybercriminals, who have increasingly targeted the legal industry with phishing, ransomware, and other attacks. 

According to the 2023 ABA Cybersecurity Tech Report, at least 29% of law firms have experienced some form of a security breach. This is up 2% from the previous year.

Security and data breaches can be very costly, with the average price tag rising to $4.45 million in 2023, according to IBM’s annual Cost of a Data Breach Report. This is especially concerning since there has been a 15% increase in frequency of attacks over just 3 years.

The Importance of Cybersecurity for Law Firms

Law firms handle a wealth of sensitive information making them prime targets for cyberattacks. Understanding the importance of cybersecurity is essential for protecting client data, maintaining trust, and ensuring compliance with ethical and legal obligations.

Financial Impact

First, there are the expenses associated with responding to the incident, such as:

• Hiring cybersecurity experts
• Conducting forensic investigations
• Notifying affected clients

Firms may also face regulatory fines and penalties if they are found to have neglected their data protection obligations. Additionally, there are potential legal costs associated with defending against lawsuits filed by clients whose data was compromised.

Ethical & Legal Responsibility

Lawyers not only have a legal responsibility to secure their clients’ data but also an ethical one.

American Bar Association (ABA)

The American Bar Association's Rule 1.6 outlines lawyers' ethical responsibilities to maintain client confidentiality. This includes ensuring digital information is protected against unauthorized access. Law firms must use encryption, access controls, and regular security audits to uphold their ethical duties and avoid disciplinary action.

Health Insurance Portability and Accountability Act (HIPPA)

Compliance with HIPAA is mandatory for law firms handling health-related information. HIPAA requires law firms to implement safeguards to protect health information. Non-compliance can result in substantial fines and legal penalties.

Reputation

Trust is the foundation of the attorney-client relationship and a cybersecurity breach can erode this trust. Clients expect their information to be handled securely and a breach signals your firm's inability to protect their data. Negative publicity can deter prospective clients and cause existing clients to seek representation elsewhere.

5 Things Law Firms Need to Know About Cybersecurity 

The ethical and legal responsibility to protect clients’ private information creates added risk for law firms, which must take a multi-faceted approach to protect their IT systems and data. 

Here are five things every law firm needs to know about cybersecurity.

1. Up-to-Date Systems and Software

The threat landscape is constantly evolving, and the use of antiquated hardware and software creates vulnerabilities in your system that can open the door to criminals. While current systems and software receive regular updates from the manufacturer, older products do not, leaving gaps in your firm’s security. 

A law firm must have protocols to ensure all software is updated and that security patches are installed as soon as they become available. When you work with cloud-based technologies such as Desktop as a Service (DaaS), the cloud service provider will handle updates, ensuring you are always working on the most up-to-date version.

2. 24/7/365 Monitoring

While up-to-date anti-virus and anti-malware software and firewalls are critical to security, they will not stop every threat. These protections must be supplemented with 24/7/365 monitoring of your entire system to identify unusual activity that could indicate an attack has occurred or is underway. Round-the-clock monitoring must be accompanied by a breach response plan to ensure rapid response to thwart potential attacks and limit any damage.

3. Strong Passwords and Multi-Factor Authentication (MFA)

It may sound simplistic, but the use of strong passwords and multi-factor authentication (MFA) can go a long way in preventing attacks. 

If your firm hasn’t already done so, it’s high time to implement and enforce a strict password policy that:

• Requires strong, complex passwords
• Prompts users to update their passwords on a regular basis
• Enforces MFA for access

MFA requires users to enter a code or another form of authentication in addition to a password. For an extra layer of security, individual users’ access should be limited to those systems and data that they need to perform their role.

4. Attorney and Staff Training 

Human error contributes to 95% of successful cyberattacks, according to IBM and the Cyber Security Intelligence Index. This statistic underscores the important role that employee training plays in a law firm’s cybersecurity defenses. 

Every member of the firm needs to be regularly trained in how to recognize current and emergent threats and the immediate actions they should take in response to these threats.

All employees should be given frequent reminders about the dangers of engaging in unsafe practices, such as clicking on links from unknown sources and visiting unsecured websites. As threats continue to evolve, training should be required and updated periodically.

5. Vetting IT Partners

Because of the complexity of IT, many law firms choose to partner with a managed service provider for some or all of their IT functions. When working with third-party providers, it’s important to vet their security practices. Your IT partner should take a multi-faceted approach to cybersecurity, emphasizing defensive measures to provide state-of-the-art protection for your systems and data.

Ensure their cloud operates from multiple data centers that are enterprise N+1 level facilities. Their cloud should be equipped with multiple layers of security, including biometric access controls and military-grade encryption. Also, check that these facilities are third-party audited and that they meet all compliance standards required by the legal industry as well as your clients’ industries.

Planning For The Worst 

While implementing robust cybersecurity measures can significantly reduce the risk of breaches, having a comprehensive plan is still crucial. Here are some tips for how you can plan for and respond to cyber incidents effectively.

Create A Cyber Breach Response Plan for Immediate Action

Create a cyber breach response plan detailing what actions your team should take to ensure swift action.

First, they need to contain the breach and immediately change passwords to prevent further unauthorized access.

Then, prepare for potential malpractice claims from affected clients by:

• Reviewing cyber insurance coverage
• Consulting legal to address liabilities
• Communicating transparently with clients

Having a clear roadmap for every possible scenario will prepare your business for anything that comes your way.

Create A Business Continuity Plan For Long Term Security 

A business continuity plan (BCP) ensures operations continue during and after a cyber incident. Develop procedures for restoring critical functions and a communication plan to establish protocols for crisis communication. Integrating cybersecurity into your BCP allows your firm to identify potential cyber threats to your company and develop solutions. Outline ABA ethical obligations so your team can make informed decisions that align with your firm’s duties. 

Protect Your Law Firm With Cybersecurity 

Cybersecurity is a critical concern for law firms, impacting their financial stability and reputation. By prioritizing cybersecurity and implementing comprehensive protective measures, law firms can safeguard their clients' information, maintain trust, and ensure compliance with legal and ethical standards. 

Investing in cybersecurity is not just a technological necessity but a fundamental aspect of responsible legal practice in the digital age. To learn more about how our state-of-the-art IT solutions and cybersecurity services can make your firm’s operations more efficient and secure, contact us.