Cyber Security for Law Firms: Tips to Help Stay Secure & Compliant
The legal sector is classed as a “high-risk” industry, and therefore, law firms sit squarely in the crosshairs of cyber criminals, known as “Threat Actors” by the National Cyber Security Centre (NCSC); a 2024 study by Chartered Accountants Lubbock Fine shows that successful cyber attacks against UK law Firms rose by 77% from 538 to 954 in just 12 months.
Handling highly sensitive client information, such as financial records, means that even a single data breach can harm trust and trigger fines from the SRA. With crimes such as ransomware and phishing on the rise, staying secure online isn’t optional - it’s critical. Cyber security is a multi-faceted discipline which can loosely be split into two main groups of considerations:
- Technical considerations such as the use of firewalls, anti-virus software, etc.
- Process management and controls. In other words; managing the risk through your team.
This article focuses on the latter and provides law firms with a clear step-by-step guide for a comprehensive cyber security strategy, as well as introducing how we assist legal professionals through bespoke cyber security training. If you’re struggling to improve security compliance, please don’t hesitate to contact us.
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Contents
- The Importance of Cyber Security in Law Firms
- The Consequences of Improper Cyber Security
- Common Cyber Security Threats to Law Firms
- Cyber Attack Case Study
- Common Cyber Security Mistakes Firms Make
- Best Practices for Law Firm Cyber Security
- What to Do if Your Firm Has Been Impacted By a Breach or Attack
The Importance of Cyber Security in Law Firms
Quite simply, law firms are bound by clear legal, regulatory and ethical duties to keep all client data secure, including personal data as well as legally or commercially sensitive information. Failure to do so can result in a range of actions, ranging from fines of 4% of global annual turnover (up to £17.5 million) to civil lawsuits.
Responsibilities typically fall into one of two categories:
- Legal Responsibilities: To comply with various pieces of legislation such as GDPR and the Computer Misuse Act, Law firms are required to implement “appropriate technical and organisational measures” to keep personal data secure, and to notify affected individuals and authorities in the event of a breach.
- Ethical and Regulatory Responsibilities: Legal professionals owe their clients a fiduciary duty of confidentiality and a professional obligation to exercise reasonable care in safeguarding sensitive information.
The Consequences of Ineffective Cyber Security
Insufficient cyber security has several consequences that span the firm, its clients, and wider society. Examples include:
- Exposure of Sensitive Data: Unauthorised access to sensitive client information can lead to identity theft, financial fraud, and emotional distress.
- Regulatory Fines: Fines can be issued by the SRA or the ICO to firms that are involved in serious data breaches.
- Reputational Damage: A data or information breach caused by cyber security negligence can easily and irrevocably damage client trust and drive business away.
- Financial Loss: The costs of incident response, legal fees, and potential ransom payments can financially cripple firms.
Common Cyber Security Threats to Law Firms
Law firms can be hit by various forms of cyber security threats, thus demonstrating the importance of staying vigilant at all times. These threats include:
- Phishing: Deceptive emails or messages tricking staff into revealing sensitive information or clicking malicious links.
- Spear Phishing: A highly targeted cyberattack in which specific individuals are deceived into revealing sensitive information or installing malicious software.
- Whaling: A highly targeted phishing attack that specifically targets high-ranking executives or other influential individuals within a firm. This has been a cause of some of the largest information breaches or losses of client money in recent years.
- Malware and Trojans: Malicious software installed via infected attachments or compromised websites, enabling data theft or remote control.
- Ransomware: Malware that encrypts files and demands payment for decryption keys, potentially locking access to critical case data.
- Insider Threats: Accidental or intentional data exposure by employees or contractors with privileged access.
- Supply-Chain Vulnerabilities: Compromises in third-party software or service providers that enter the firm’s network.
- Denial-of-Service (DoS): Flooding network resources to disrupt access to firm systems and services.
Cyber Attack Case Study
There have been multiple notable cases of cyber attacks and breaches on law firms over the years. For example, back in 2021, a city law firm reported that client data had been lost following a cyber attack. Within an hour of the statement, the firm’s reputation had already been damaged - the market had reacted swiftly, wiping off almost 8% of the firm’s share value. This highlights the immediate social consequences of a breach, since the public reaction was so stark.
Common Cyber Security Mistakes Firms Make
The majority of cyber security mistakes that firms make are avoidable, so being aware of these common errors can greatly improve your chances of cyber safety. Let’s take a look at what these mistakes often involve:
1. Thinking Cyber Security Is an IT Problem
Cyber security is a firm-wide effort, not just something that only the IT team should worry about. Nearly 75% of breaches occur due to employee negligence, deliberate or accidental, including password mismanagement, failing to apply software patches, and clicking on malicious links.
2. Weak Password Policies
Allowing simple, reused or never-changed passwords makes it trivial for attackers to gain unauthorised access to systems and data.
3. Neglecting Regular Staff Training
As highlighted above, with nearly 75% of breaches occurring due to employee negligence, employees remain the firm’s most vulnerable entry point for Threat Actors. This weakness remains, unchecked, in firms that do not have professional, regular training in place for all members of staff, as any team member who is connected to your network potentially offers an entry point.
4. Failing to Patch and Update Software
Outdated applications and operating systems are hotspots for vulnerabilities that attackers exploit.
5. No Formal Incident Response Plan
Lacking a documented process for detecting, reporting and recovering from breaches leads to confusion, delays, and greater damage. Your firm is obliged to account for cyber security within incident response planning, so do not overlook this.
6. Overlooking Mobile and Remote Access Security
Unsecured laptops, smartphones or home networks provide attackers easy backdoors into the firm’s digital environment. This ties back to the neglect of regular staff training, since colleagues may not be aware of their obligations.
7. Poor Vendor Management
Using software designed for legal practice has its benefits, but it can also be a risk if you don’t properly assess third-party providers.
8. Ignoring Regular Security Audits and Assessments
Skipping scheduled reviews leaves blind spots unaddressed, giving a false sense of security.
Best Practices for Law Firm Cyber Security
Once you’ve strengthened your cyber security strategy, risk assessment, and incident response plan, there are some additional activities that can improve your approach to cyber security. These include:
What to Do if Your Firm Has Been Impacted By a Breach or Attack
Cyber-criminals are incredibly well-funded, highly motivated individuals who are both tech-savvy and inventive. As a result, no system, processes or controls can be 100% guaranteed to repel all attacks indefinitely.
This is where having a strong incident response plan comes into play, as whilst every firm hopes to never need it, having one will help you maximise speed of response, whilst also minimising damage, stress, and aid calmer, clear-thinking following a breach or attack so that you don’t risk making matters worse.
Your incident response plan should account for the following:
1. Containment
- Immediately isolate affected systems, such as servers or user accounts, to prevent further spread of malware or unauthorised access.
- Disable compromised credentials and block malicious IPs or domains at the firewall.
- Ask the bank to freeze affected client accounts if money is involved.
2. Reporting to Relevant Bodies
- Know when to report the incident and who to report it to - be that insurers, the SRA, the ICO, the Police, or the National Cyber Security Centre (NCSC).
- If the incident involves personal data, there’s a strict reporting timeframe for certain incidents (within 72 hours).
3. Recovery Protocols
- Switch to clean, recent backups and restore data systematically, starting with critical case-management and financial systems.
- Validate the integrity of restored files and confirm that malware has been eradicated before bringing systems back online.
4. Notifying Affected Individuals
- If necessary, notify affected clients and other affected parties within the required timeframe, providing clear information about what happened, what data may have been compromised, what you’re doing, and next steps for them.
- Coordinate with public relations advisors, whether internal or external, to manage legal risks and brand reputation.
5. Insurance Notification
- Alert your cyber-liability carrier as soon as possible and, as per policy requirements, secure funding for investigation costs and legal fees.
- Provide preliminary incident details and follow up with formal documentation as the situation evolves.
Our Experts Can Help Strengthen Your Firm’s Processes & Controls
At PDA Legal, we understand the severity of cybercrime within the legal sector and appreciate the need for the strongest cyber security processes and controls. With over 25 years of experience in the industry, we’re perfectly equipped to support firms like yours.
We offer several cyber security services, including audits, consulting, and training, all to tackle cyber risks in the most proactive way possible. We offer a FREE, no obligation consultation - simply get in touch with us today to arrange this
