5 Ways to Reduce Your Law Firm’s Risk of Data Breaches and Cyberattacks
Cyberattacks and data breaches are rising, and your law firm could be next.
After all, your computers contain a wealth of valuable data about your team and multiple clients, all in one place. Financial accounts, Social Security numbers, payment card credentials — that’s just a fraction of the sensitive information that could be exposed if your network’s security can be cracked.
The attackers also like to target law firms because, traditionally, their cybersecurity isn’t as strong as what’s found at other businesses.
Fortunately, it’s possible to radically reduce your risk profile with expert help. Taking a few crucial steps can provide greater security to your team and your clients while safeguarding your firm’s reputation.
How common are cyberattacks and data breaches at law firms?
As part of its 2023 Legal Technology Survey Report, the ABA surveyed law firms to see how many had ever experienced a security breach. 29% of respondents answered in the affirmative. The response is a slight increase over the 27% from last year. But a security breach can include anything from a lost computer to a full-fledged cyberattack. It doesn’t mean a bad actor necessarily accessed sensitive information.
Additionally, a 2023 study found that the legal industry faced an average of 1,055 attacks per week, marking a 13% increase from the previous year. tech-adv.com These statistics underscore the heightened vulnerability of law firms to cyber threats, emphasizing the critical need for robust cybersecurity measures across firms of all sizes.
Key items to consider:
- While 39% of survey respondents said their firm experienced a security breach, the number might be higher in actuality because a firm may not have known it was under attack, the report said.
- The security breach findings come as ransomware incidents increased by 46% in the first half of 2023 compared to the same period in 2022, according to data collected by Arctic Wolf.
- As for those survey respondents whose law firms experienced a security breach, 56% said they experienced a loss of confidential client data.
- Another 44% said their firm saw the loss of their cybersecurity coverage or their insurance premiums rise and 42% experienced brand or reputational damage.
- Nearly six in 10 survey respondents said their law firms had at least one employee dedicated to full-time information security. However, 10% said they had no personnel monitoring cybersecurity and 27% said they had no specialized employees.
What are the potential costs of a data breach?
In 2024, the global average cost of a data breach reached $4.88 million, marking a 10% increase from the previous year and the highest total ever recorded.
IBM This figure reflects the growing financial impact of cybersecurity incidents on organizations worldwide.
How can law firms lower their risk for cyberattacks?
ConvergentDS recommends the following steps:
Employee Training and Awareness:
- Conduct regular cybersecurity training for all employees.
- Educate staff on recognizing phishing attempts and suspicious links.
Strong Password Policies:
- Implement strong password requirements, including complexity and length.
- Encourage or mandate the use of password managers.
Multi-Factor Authentication (MFA):
- Require MFA for all access to sensitive systems and data.
Regular Software Updates:
- Keep all software, including operating systems and applications, up to date with the latest security patches.
Data Encryption:
- Encrypt sensitive data both at rest and in transit to protect it from unauthorized access.
Access Controls:
- Implement role-based access controls to limit data access based on job responsibilities.
Incident Response Plan:
- Develop and regularly update an incident response plan to quickly address any breaches.
Network Security Measures:
- Use firewalls, intrusion detection systems, and antivirus software.
- Regularly monitor network traffic for unusual activity.
Regular Security Audits:
- Conduct regular audits and vulnerability assessments to identify and address potential weaknesses.
Secure Remote Work Practices:
- Ensure secure connections for remote work, such as using VPNs.
- Provide secure devices for employees working offsite.
Third-Party Risk Management:
- Assess the cybersecurity practices of third-party vendors and partners.
Data Backup and Recovery:
- Regularly back up important data and ensure that recovery processes are in place.
Invest in Cyber Insurance
- Obtain cyber liability insurance to mitigate financial losses from breaches.
- Ensure policies cover ransomware, client data exposure, and business interruption.