American law firms hold on to such valuable information that they are attractive targets, and hackers constantly probe internal weaknesses to obtain the information they want.
HIPAA sets and imposes data protection regulations, but shockingly, when surveyed, only 76% of law firms believe they are compliant.
Perhaps the severity of the situation isn’t clear enough, so let’s discuss the threats and pinpoint why that is so.
Law firms are increasingly becoming the target of such attacks and measures that must be put into place for prevention.
Cyber Threats in Lawfirm Landscapes
Cyber threats are always evolving, hackers are stealthy and the methods used are becoming harder to detect. The cyber risks faced by the legal sector grow by the day because of the valuable data they hold and attacks are becoming more frequent.
Sophistication
Cybercriminal tactics get more sophisticated as the protective and preventative measures improve. They are constantly finding new loopholes and ways around system security. Be it convincing phishing schemes, invasive ransomware, or specific internal intrusions.
Valuable Data
The data that law firms manage is like gold dust; firms hold patents, financial assets, and sensitive personal data which are all attractive to those seeking to use it. Law firm data can be used for everything from fraud to espionage so guarding it shouldn’t be taken lightly.
Frequency of Cyber Attacks in the Legal Sector
There has been a sharp rise in the number of attacks despite previous data breaches in the legal sector prompting security policy overhauls.
Back in 2022, Tuckers Solicitors published multiple sensitive court bundles following a ransomware attack. The fine was almost $100,000, and it appears the U.S.A. is no safer with BCLP, Loeb & Loeb, Gibson Dunn, and Orrick all falling victim.
Across Maine, California, Indiana, and Massachusetts, there were 28 data breaches registered by law firms in 2023, and the number is only rising.
Internal Security Flaws
The security threats don’t just come from external sources. Many attacks begin with access allowed by internal weaknesses. This highlights the importance of cybersecurity training and maintaining adequate cyber-security measures.
Infrastructure Inadequacies
To deal with the increased threats to their assets, law firms require solid cybersecurity infrastructure with the latest software and encryption running. These need to be maintained by an IT team that understands the value of the tools and the importance of keeping them patched and up to date.
Unfortunately, smaller firms don’t always have the resources or funds to invest and to keep on top making them an easy target.
Insufficient Training
Many attack methods rely on errors in human judgment, tricking people into inadvertently giving away information, such as phishing attempts. If employees are not well-trained in up-to-date cyberattack methods, then they will fail to recognize and respond correctly.
Incident Response Issues
Even with the best software in place, many firms fall short when it comes to their incident response.
Time is of the essence should you find your firm compromised. Without a well-coordinated plan in place with steps outlined in detail, it is tricky to take swift enough actions to lessen the severity of the aftermath.
Compliance Considerations
It is compulsory for Law firms to comply with cyber-security and data protection regulations as any business does. However, these regulations, much like the cyber-threat landscape, are evolving.
Regulatory Landscape
As breaches become commonplace, new requirements are introduced to the regulatory landscape all the time. As the consequences become more dire, the regulations are becoming increasingly stringent.
To ensure compliance, law firms need to stay informed and adapt their practices, redirecting the resources available as they go.
Data Protection Laws
The General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) state the law on how personal data should be handled and kept confidential. Your firm’s internal protocols need to align with it to the letter to avoid huge fines.
Third-Party Vendor Advice
If you work with third-party vendors, then you also need to know that their cyber-security infrastructure and protocols are of a high standard before you share sensitive information.
Vetting third-party vendors is a difficult task and can cause trouble as hackers often pose as third-party vendors.
Cyber Attack Consequences
With the loss accrued during downtime and the costs of data recovery, or ransom fees, as well as legal fees for breaking compliance and compensation, cyberattacks can financially ruin a smaller firm.
In addition to the obvious financial losses on the table, there are other long-term effects to consider that can be all the more devastating.
Reputation Loss
Breaches break trust, a law firm functions around client confidentiality, assuring its clients. While cyber-attacks are not an example of the firm directly breaking that confidentiality many clients will feel let down and look elsewhere.
New clients often do their research when choosing a firm to represent them, often opting for those with a good reputation. Data breaches are damning to a reputation, and once destroyed it is extremely difficult to rebuild.
Measures for Law Firms to Implement
To stay compliant and maintain a credible reputation, there are a number of measures that can be taken. Here are some of the best software and practices:
Necessary Software
-
- Firewalls and Intrusion Detection Systems (IDS) to block and encounter suspicious activity.
- Encryption to make sure data is unreadable in transit.
- Multi-factor authentication requires extra verification and thwarts 99% of attempted hacks.
- Protect data transmission by making sure that all remote access is conducted through a VPN. Find out more about Surfshark services and how they can keep your data out of malicious hands.
Practices
- Security audits should be performed regularly to detect weaknesses and ensure you are allocating resources efficiently. Remember specialized cybersecurity firms can help with audits and assessments providing expert insights.
- Regular software updates and patches are the only way to stay protected.
- Cybersecurity training should be regarded as important in helping eliminate human error aspects of data breaches.
- Staying vigilant and reporting suspicious activity. Managed security service providers (MSSPs) can streamline the task by monitoring your security for you.
- Having a thorough incidence response plan with an outline of the steps, protocols, and recovery procedures is paramount.
- Practicing drill response scenarios with staff to run smoothly if the worst happens.
Conclusion
Given the treasure trove of data and assets dealt with and the combination of external and internal risks, American law firms are easy pickings without the correct cyber-security infrastructure and safe online practices.
Cyber-security defenses require increased complexity as the methods that hackers use get craftier. Inadequate security measures, improper training, and planning are all responsible for putting law firms in the line of fire.
Firms must understand the risks and adapt to regulatory challenges to make sure that they are well-protected. Without the right measures, the consequences can be devastating.
Investing in the latest software and using cybersecurity services can raise their internal defense against external threats.
