Why IT Risk Matters for Law Firms: Protecting Confidential Client Data

Cyber threats have evolved and so have the consequences. Outside of banks, insurance companies and government agencies, there are not many businesses where the data that moves through everyday workflows is as sensitive as that of a law firm. For them, client confidentiality is the cornerstone of reputation and trust. And these days, cybercriminals specifically target legal and professional services, exploiting the wealth of sensitive data they hold.

The risks go far beyond financial damage. Data breaches can jeopardise ongoing litigation, compromise privilege, and erode client trust instantly. A single phishing attack or compromised third-party platform can expose case files, contracts, or health and financial records.

According to the 2018 Cost of Data Breach Study: Global Overview the total cost of a data breach averages out at $3.86 million, with the average cost per lost or stolen record being $148. Imagine the impact that would have on a firm.

Losing the trust of valued clients is not something that any law firm wants to experience, so how do you mitigate risk and keep your data safe?

What are the risks and how can I avoid them?

Reputational damage

If a cyber-attack occurs or confidential data is lost through human error, the Notifiable Data Breaches (NDB) scheme requires businesses to notify the Office of the Australian Information Commissioner (OAIC) as well as the affected individual(s). Given the potential for this disclosure to become public knowledge, there is a significant risk of reputational damage to a business in this scenario.

While cyber-attacks and human error are a given in any business over time, appearing to be careless with the risks can be a quick way to end business relationships. When a business is built based on relationships, word of mouth and reputation, it is vital that you take all necessary steps to ensure you present your firm in the best possible light.

Employing the services of a specialist cyber security business like The Missing Link allows you to delegate the task of keeping up to date with the ever-changing world of security and IT. You can trust that our team of security experts will work with you to provide the best solutions for your individual needs.

Monetary penalties

It’s almost a year since the NDB came into effect and according to Lawyers Weekly the legal, accounting and management services sector provided the OAIC with the third highest number of data breach notifications in the reporting period of July to September 2018.

Civil penalties of up to $1.7m may apply if a breach occurs (as well as potential compensation for damages), so it is imperative that law firms, large and small, take all necessary steps to ensure the risk of breach is minimised in order to protect the bottom line.

Loss of data

How long could your firm operate if you lost your data? Many businesses would stop dead in their tracks and not being able to operate begins to create a customer and financial impact very quickly that could take months, if not years, to recover from.

Having a robust backup and recovery solution can protect your business from such disruptions and given our ability to match the best solutions for your needs, and then only applying the level of support required, you’ll pay for what your business actually needs and nothing more. Remember, back up is NOT recovery, there are many cases where back-up will not help e.g in the case of many cyber attacks, the back up is compromised too, only a disaster recovery solution would protect you in this case.

Why Now Is the Time to Act

Law firms are now firmly in the crosshairs of cybercriminals. From ransomware to phishing, the threats are targeted, sophisticated, and relentless. But the true cost of a breach isn’t just financial, it’s the erosion of trust, the disruption to legal proceedings, and the long tail of reputational damage.

With the Cyber Security Act now enforcing stricter compliance obligations, firms can no longer afford to take a passive approach. Regulatory penalties, mandatory breach disclosure, and client expectations mean your security posture needs to be more than compliant, it must be resilient.

Whether you’re worried about data loss, human error, or falling behind on fast-moving cyber trends, the answer isn’t doing everything yourself. The answer is partnering with a team that lives and breathes cyber security.

At The Missing Link, we help legal practices of all sizes protect client confidentiality, reduce risk exposure, and stay a step ahead of compliance. From backup and recovery to cyber strategy, we tailor our support to your needs — so you can get back to focusing on your clients, not your firewalls.

Let’s talk. Because protecting your practice starts with one smart decision.

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