Cybercrime has increased significantly in recent years, intensifying during the 2020-21 Pandemic, causing incalculable damage to businesses and services. Cyber-security breaches cost billions of pounds each year and account for half of all crime committed in the UK.
Cybercriminals’ attacks are becoming increasingly sophisticated with threats emerging domestically and by international criminal organisations; motivated by personal profit.
There is significant unaddressed cyber risk associated with hundreds of top UK law firms, suggesting that approximately 80% of law firms have been exposed to at least one notable vulnerability.
Worse still, being forced to make the digital leap in the wake of the Pandemic at incredible speeds has amplified the lack of information security and potential cyber-attacks because as organisations become digital, crime follows.
Cybercriminals aggressively exploit the vulnerabilities present in both humans and digital systems. Even a temporary disruption to technological services or a partial data loss can have a collective impact on, for example, how much legal professionals can bill their clients. Importantly, data loss in any measure can instigate regulatory penalties resulting in financial loss, loss of client confidence, falling share prices and the potential for untold legal costs if litigation is pursued by affected parties.
Law firms can use multiple detection techniques to enhance cyber-security. Fraud detection technology can be utilised as a first line of defence to automatically identify phishing, flag up concerning emails and ensure that legal professionals have the tools to be able to make rapid, well informed decisions in order to avoid data breaches.
Rationalising modern IT applications and re-engineering business systems can fundamentally improve cyber-security and by actually reducing firms’ reliance on cloud-based systems in favour of simplistic and efficient digital solutions, law firms can cut costs and effectively secure operations.
The cybercrime economy was estimated to be worth $1.5 trillion in 2018, with cybercrime predicted to cost the world $10.5 trillion annually by 2025. This prediction would be the first in history where cybercrime becomes more profitable than the global trade of all illegal drugs combined.
Cybersecurity is a vital business issue for every market, and the legal industry is no exception. The extreme financial impact suggests that cybercrime will soon rank as the second most alarming global commerce risk in the next decade.
With regards the UK legal sector, there has been a 40% increase in reported incidents of cyber attack in the last five years with 60% of law firms reporting at least one information security incident.
The legal sector is indisputably particularly vulnerable to cyber-attacks as legal profesisonals frequently handle large volumes of highly confidential information. Law firms specialising in corporate or property law are particularly exposed due to the potential for financial gain whilst smaller law firms are also viewed as easy targets due to lower cyber security budgets.
The Solicitors Regulation Authority reviewed cybercrime in the UK legal market in 2020 sampling 40 firms and reported that 23 of those firms saw more than £4m stolen between them.
The digital landscape is rapidly changing and is a challenge for law firms to keep pace with the evolution of emerging cyber threats in their sector. Achieving sustainable progress in protecting the legal sector is not easy, already multiple organisations have incurred substantial financial and reputational damage in recent years.
However as the legal industry inevitably digitises further, law firms must take cybersecurity issues more seriously.
The legal sector must not delay in acknowledging and addressing the risks associated with cybercrime. Put in the context of the profession’s recent pandemic-induced accelerated transition to the digital era, a much more comprehensive approach must be taken to ensure that potential threats are recognised and dealt with effectively.
A positive and pre-emptive attitude towards tackling cybersecurity can help legal professionals avoid the devastating repercussions of becoming the victims of cybercrime. It is crucial that the legal sector as a whole enhances understanding of the varying types attacks, as by recognising the potential risks that firms can face, legal professionals can minimise security threats, limit the damage and put in place measures to restore systems quickly.
Protecting your Firm
Keeping information safe matters; your own data and all that your customers trust you with. If your company is attacked by a hacker, there is an IT malfunction or you (or someone in your company) unintentionally share something they are not supposed to, repairing it takes time and resources. Putting in place a cyber security scheme keeps your firm safe.
Also known as insurance against cyber liability, or insurance against data security, cyber insurance is there to ensure that your organisation is safe from cybercrime, such as fraud, data theft and social engineering, where criminals try to trick you into parting with money, data or both. It also includes data breaches where there is unintended sharing of personal information.
Please contact us on 0800 180 4203 for more information and our expert team will be more than happy to help you create a cyber insurance policy to suit the needs of your business.