TLDR: Cyber-attacks are increasing across all sectors, but law firms represent, and incredibly juicy target based on their broad access to sensitive personal and company data. Law firms must step up their cyber readiness and engage true cyber professionals to help guide them to better risk reduction.
Law firms are a juicy target for cyberattacks. They have access to mounds of proprietary, sensitive, and vital information that, when exposed, could destroy people and businesses. These recent attacks show that these firms’ cybersecurity risk posture was in question.
Impactful Case Studies Highlighting the Need for Robust Cybersecurity:
- Mossack Fonseca (2016): The infamous Panama Papers breach due to a WordPress vulnerability led to a catastrophic leak, severely damaging the firm’s reputation and leading to its closure within two years (Dashlane).
- Vierra Magen Marcus Law Firm (2020): Hit by REvil ransomware, resulting in the theft and auction of 1.2 terabytes of critical data on the dark web, emphasizing the need for stringent malware defenses and proactive dark web monitoring (Dashlane).
- Covington & Burling LLP (2020): was involved in a significant cyber breach as part of the Hafnium cyberattack that occurred in 2020. Hundreds of corporations had their data exposed. The focus seemed to be on companies dealing with China-Related policies. (American Bar Association).
- Orrick, Herrington & Sutcliffe (2023): A significant breach affected over 637,000 individuals, exposing sensitive personal and health data. The result of this cyber breach led to several lawsuits of which some were settled out of court. (SecurityWeek) (TechCrunch) (HealthITSecurity) (HIPAA Journal).
Increasing Rate and Complexity of Attacks: In Q1 of 2023 alone saw a seven (7%) percent increase in cyberattacks. Law firms are progressively more (Above the Law).
Common Reasons for Inadequate Security in Law Firms:
- Economic Challenges: The high costs associated with advanced cybersecurity measures can be a significant barrier, especially for smaller practices.
- Operational Disruption: Implementing reliable and measurable security practices requires changes to established procedures, which can disrupt operations.
- Underestimation of Risk: The belief that one’s firm is not a cyber target is based on a failure to properly estimate the value of the data that the firm has responsibility to safeguard.
- Employee Security Fatigue: Employees overwhelmed by constant vigilance may neglect proper security practices, undermining even the most sophisticated defenses (Above the Law).
Effects of Security Breaches:
- Reputational Damage: Breaches can severely damage trust between a firm and its clients, potentially leading to loss of business and legal challenges.
- Financial Losses: Direct costs related to managing a breach and potential legal liabilities can be substantial.
- Operational Disruptions: Significant downtime and efficiency losses are common in the wake of cyberattacks.
Conclusion and Call to Action: Given the evidence, there lies an issue between what Law Firms believe their cybersecurity posture is and what is not. As the pace and sophistication of cyber threats increase, law firms need to act on their cyber risk posture, especially about their client data. Information security should not be complex, but integrating correctly may take time and effort. Listen to professionals, evaluate technologies, and integrate them into corporate procedures. The call to action for Law Firms is to do your cyber due diligence.