Cybersecurity Claims and Protecting Your Practice

Lawyers face a unique set of cybersecurity challenges because their work involves highly sensitive client information, often protected by privilege and professional ethical rules. Lawyers’ major concerns combine technical vulnerabilities, ethical obligations, regulatory compliance, and the business implications of a breach. Essentially, the stakes are high because client trust, legal ethics, and firm viability are all on the line.

Here's a list of the top 5 most common cyber claims against law firms:

1. Data Breaches / Unauthorized Access

  • Description: Hackers gain access to client files, emails, or case management systems.
  • Example Claims: Theft of sensitive corporate documents, client contracts, or litigation strategy.
  • Impact: Malpractice claims, regulatory fines, and reputational damage.

2. Ransomware Attacks

  • Description: Malware encrypts firm data and demands payment to restore access.
  • Example Claims: Firms unable to access critical client data, leading to missed deadlines or lost evidence.
  • Impact: Business interruption, client lawsuits, and costly remediation.

3. Phishing & Email Fraud

  • Description: Employees are tricked into revealing credentials or wiring funds to attackers.
  • Example Claims: Wire transfer fraud, unauthorized disclosure of privileged information.
  • Impact: Financial loss, client liability, and potential malpractice claims.

4. Insider Threats

  • Description: Employees or contractors intentionally or accidentally expose confidential information.
  • Example Claims: Sharing client data with unauthorized parties, mishandling privileged communications.
  • Impact: Professional liability claims and regulatory penalties.

5. Third-Party / Cloud Vendor Failures

  • Description: Breaches occur in third-party platforms used by the firm (cloud storage, document management systems, AI tools).
  • Example Claims: Data leaks despite firm compliance with security standards; disputes over responsibility for damages.
  • Impact: Coverage disputes with cyber insurers, client lawsuits, and compliance violations.

Accordingly, here are 5 basic steps you can take to secure your practice:

1. Implement Multifactor Authentication

  • Multi-factor authentication is a necessity today. Your typical password isn’t enough to secure your account as attacks have become more advanced. Using a token along with a complex password or “passphrase” should be the standard for businesses moving forward.

2. Complete a Risk Assessment

  • “You don’t know what you don’t know”. Having a risk assessment performed will show you the current gaps in Security controls for your business, and will position you to effectively improve your cybersecurity posture.

3. Utilize the “Principle of Least Privilege”

  • Minimizing the surface area of attack is key – and ensuring that accounts only have the permissions and privileges that they *should* have helps to prevent a compromised account from being leveraged for malicious attacks.

4. Train Employees on Social Engineering

  • You’ve heard it before, the end user is the weakest, or “riskiest” asset to a business. It’s vital that we are making our employees aware of different types of attacks and how they can best protect themselves and your business.

5. Get Cyber Insurance

  • At the end of the day, no security control is 100% foolproof. A Cyberinsurance plan can provide you with crucial assistance whether it’s financial compensation, a forensics team at your disposal, or more in the event of a cyber attack. You wouldn’t drive without insurance – it helps to have it, just in case.