The legal profession is built on trust and confidentiality. In fact, the American Bar Association Rule 1.6: Confidentiality of Information states that attorneys are ethically and legally bound to prevent unauthorized parties from accessing client data. With more law firms digitizing their efforts, the ABA has issued several memos specifically underlining the importance of observing law firm cybersecurity best practices.

However, many firms remain underprepared and unable to comply with new data security standards. An alarming 27% of law firms in the United States lack the right infrastructure to safeguard sensitive client information. In the United Kingdom, the numbers run up to 65%. And as cyber threats grow more sophisticated by the day, this leaves their gateways wide open and vulnerable to phishing scams, ransomware, and other attacks. 

Poor cybersecurity of law firms not only stops them from complying with their ethical obligations, but also sets them up for repercussions that are far-reaching — some, even indelible.

What Happens if You Have Poor Law Firm Cybersecurity Practices?

Law firms store and manage sensitive, high-value data, making them attractive targets for cybercriminals. When a breach does occur, your law firm may be subject to consequences that extend far beyond immediate damage.

Loss of client trust

As reported in 2024, an unpatched email server acted as the gateway for a law firm data breach in London, which exposed confidential client communications that put ongoing intellectual property litigation at risk. 

When sensitive client data is compromised, especially in this kind of manner, clients may question your firm’s ability to protect their interests, quickly shattering the client trust you may have spent months building up.

Legal, financial, and operational liabilities

Failing to comply with regulations like the General Data Protection Regulation or the Health Insurance Portability and Accountability Act can result in severe penalties, fines, or even legal action. Not to mention, the financial toll of law firm cyber attacks can be immense, compounding over time as firms work to restore operations, pay for damages, and rebuild trust.

Even with backups in place, HWL Ebsworth in Australia fell victim to a ransomware attack in 2023, compromising financial records, the firm’s entire operations, and more alarmingly, the data protection of 65 government agencies and departments.

Reputational damage

A single breach can make headlines and tarnish public perception, discouraging new clients from working with you. 

A high-profile example is one New York-based firm, which faced a ransomware attack and received negative publicity that affected its client base. Retention rates dropped and a sizable amount of prospects were unwilling to onboard. 

10 Law Firm Cybersecurity Best Practices to Consider

It’s clear that law firm cyber threats are fast becoming more advanced, with attackers using technologies like AI to automate password cracking, send out more convincing phishing emails, or create deepfake impersonations.

Law firms must catch up by proactively improving cybersecurity measures on their end. Here are 10 strategies to improve your law firm’s cybersecurity.

1. Implement a firm-wide data security policy

This policy should define protocols for handling sensitive information, mandate the use of strong passwords and two-factor authentication for all employees, and specify secure, encrypted communication channels that the team can use. It’s important to regularly update the policy to adapt to emerging forms of cybercrime.

2. Conduct regular risk assessments

Having routine assessments helps identify any vulnerabilities in your system. Work with information technology vendors who can audit your security controls, perform vulnerability scans and tests, and recommend advanced tools that can monitor your network activity and flag potential law firm cyber attacks.

3. Restrict access to sensitive data

Adopt the “principle of least privilege” and limit employee access to only the data that is necessary for their respective role. First, segregate the confidential information you store, and then implement role-based access controls, regularly monitoring activity to prevent unauthorized access. Don’t forget to revoke permissions for former employees or unused accounts.

4. Encrypt sensitive communications and files

Encrypting your data keeps it secure even when there are attempts to intercept it. The American Bar Association even released a Formal Opinion 477R explaining the importance of encryption for safeguarding client confidentiality.

Make sure to encrypt emails that contain personally identifiable information (PII) or sensitive client data, as well as all backups and stored files. You can also use third-party communication tools that provide encryption, so you don’t have to worry about setting everything up on the backend.

5. Provide security awareness training to your team

Employees are often the weakest link when it comes to cybersecurity, since their individual computer literacy varies. To reduce user errors, conduct regular training focused on educating your team on firm security policies and common law firm cyber threats (such as phishing scams). To actively enforce what was learned from the sessions, sanction employees who fail to adhere to established law firm cybersecurity protocols.

6. Back Up data

Having a reliable backup strategy is crucial, even without the risk of a breach. Even system failures can disrupt a normal working day and cause major downtime — imagine what a ransomware attack could do! Protect your data by performing regular backups and storing them offline. 

7. Enhance your network and endpoint security

Protect your firm’s network and devices by observing key measures such as securing the office Wi-Fi network with strong, unique passwords. All devices must also have firewalls, antivirus software, and endpoint protection tools installed and regularly updated. If you work remotely, ensure that all staff use Virtual Private Networks (VPNs) to keep your data encrypted.

8. Vet third-party vendors

Vendors often handle sensitive data, making them a potential risk. While it’s ideal to simply partner with trustworthy vendors to minimize the possibility of any supply chain issue, it can be hard to pinpoint which vendors you can rely on.

Make sure they meet your security standards by requesting their cybersecurity policies and periodically conducting security audits of their systems to check for latest updates. To prompt them to take the matter just as seriously, consider including specific clauses in your contracts that tackle breach notifications and liability.

9. Establish an incident response plan

Even with preventative measures in place, breaches may still occur. Prepare your company for the worst by creating an Incident Response Plan detailing steps on what to do in the event of an actual breach. Draft a plan on how to contain a breach and promptly remedy it, while ensuring that communication with the team remains clear throughout the incident. 

You should also form an Incident Response Team comprising representatives from different departments. Brief them about their new roles, train them on your IRP, and hold tabletop exercises that will test the team’s preparedness for real scenarios.

10. Strengthen your law firm’s cybersecurity for remote work

Remote work may be a widely preferred setup nowadays, but the high reliance on online networks and tools introduces new vulnerabilities to your overall security. You can reduce the risk of remote work by training employees on safe remote work practices, such as:

• Avoiding public Wi-Fi
• Recognizing phishing emails
• Using two-factor authentication and encryption on all devices
• Using secure software solutions, such as cloud-based platforms

Handling sensitive client data, from legal documents to billing information, requires reliable and secure software solutions. Cloud-based platforms specifically tailored to legal professionals can provide your law firm with the best mix of cybersecurity and convenience. 

Are Your Law Firm Software Solutions Safe and Secure? 

Many modern, cloud-based solutions are designed to streamline workflows, reducing the burden on your internal IT team with automatic updates and advanced encryption. But convenience shouldn’t be the only feature to invest in. 

If you want the best protection for your client data, opt for software that adheres to recognized security standards like SOC 2 compliance. 

SOC 2 (or Service Organization Control 2) is an auditing framework designed to ensure service providers manage customer data securely. This voluntary certification is a mark of trust and transparency that proves a provider has met rigorous standards for data protection.

When considering law firm solutions, CosmoLex is a standout choice, not only for our SOC 2 compliance. We offer an all-in-one solution built specifically for law firms, featuring robust security measures and functionalities that address the unique needs of legal practitioners:

• Secure File Sharing: LexShare, our own document management system, provides encrypted, secure file sharing that law firms will surely appreciate. Legal professionals can send and receive sensitive documents effortlessly while ensuring that the shared data remains confidential and protected.
• Legal Payment Processing: With CosmoLexPay, our end-to-end credit card processing partner, firms can process client payments securely. Unlike other payment processors, CosmoLexPay makes sure funds are handled appropriately, without the compliance risks. 
• Legal Client Relationship Management: Keep client data well-protected while maintaining strong client relationships with CosmoLex’s legal CRM software, designed to help you grow your profits and engage your client base.

Strengthen Your Law Firm’s Cybersecurity with CosmoLex

Cybercrimes are constantly evolving, so make sure your law firm doesn’t get left behind. Your clients trust you to handle their most sensitive matters. Isn’t it time to trust a solution that handles yours?

Choose law firm solutions that protect your clients and position your firm as a trustworthy leader in the industry. With CosmoLex’s cutting-edge features and SOC 2 compliance, you can be empowered to stay a step ahead of law firm cyber threats while streamlining your practice.