Understanding cyber threat trends in the legal sector 

The legal sector has become an increasingly attractive target for cybercriminals. With sensitive client information and expansive digital operations, law firms are uniquely vulnerable to evolving cyber threats. From personal data breaches to insider threats, the risks are vast and demand proactive measures. Read on to learn about the critical cyber threat trends in the legal sector, the potential consequences, and strategic steps to bolster cybersecurity.

Why law firms are prime targets

Law firms operate as custodians of sensitive and valuable information, including personal identifiable details, financial records, trade secrets, and legal strategies. This, combined with their role in high-value transactions like mergers and acquisitions, makes them lucrative targets for cyber-attacks. But it’s not just the value of the data that attracts malicious actors; the trust and confidentiality that underpin the legal profession make any breach particularly damaging.

Adding to the risk, for smaller firms that outsource IT services, this can create vulnerabilities within the broader supply chain. Attackers often exploit these weaker links to target the otherwise secure operations of larger legal firms.

The biggest cyber threats in the legal sector

1. Phishing attacks. Phishing remains the most prevalent cyber threat to law firms. These attacks exploit busy email users, using deceptive messages to trick recipients into revealing sensitive information or transferring funds. For instance, attackers often impersonate new joiners or high-ranking employees to manipulate internal payroll or client invoices.

2. Internal threats. Around 50% of reported data breaches in the UK legal sector stem from internal incidents. These threats can be either malicious, such as disgruntled employees leaking data, or accidental, often caused by human error. Common mistakes include sending emails to the wrong recipients, failing to redact sensitive information, or clicking on phishing links.

3. Ransomware attacks. Ransomware attacks, where hackers encrypt critical data and demand a ransom for its release, are a growing issue. The downtime caused by such attacks can result in lost bill-able hours, disrupted operations, and reputational damage that is difficult to recover from.

4. Business Email Compromise (BEC). BEC attacks involve sophisticated impersonation techniques to trick firms into transferring money or sharing sensitive information. For example, attackers may manipulate email exchanges to alter payment details, redirecting funds to their accounts.

5. Supply chain attacks. Legal firms often depend on third-party IT providers or software, which can become unintentional gateways for hackers. These attacks exploit vulnerabilities in a vendor's security system to infiltrate the law firm's operations.

6. Insider-driven AI risks. The use of AI tools, such as ChatGPT, has introduced a new risk layer. These tools require robust usage policies to prevent inappropriate handling of client data and ensure compliance. DeepSeek, a fast-growing Chinese startup, has rapidly gained attention with its AI assistant. DeepSeek GenAI is 20-50x cheaper to run and top-rated on platforms like Apple’s App Store. That said, its use presents a threat to the confidentiality of sensitive corporate data.

The impact of cyber breaches

The fallout from a cyberattack on a law firm is multifaceted. Data breaches jeopardize the confidentiality clients expect from their legal representatives, damaging trust and professional reputation. Ransom payments, regulatory fines, and the costs of system recovery can also leave a significant dent in finances.

Downtime caused by ransomware or other attacks can adversely affect client services and case handling. Additionally, non-compliance with data protection regulations, such as the GDPR (General Data Protection Regulation), can result in judicial consequences and hefty penalties.

Mitigation: How law firms can bolster cybersecurity

To address these challenges, law firms need to adopt robust cybersecurity measures. The National Cyber Security Centre (NCSC) offers recommendations:

• Enable Multi-Factor Authentication (MFA): Protect email and system access with MFA to add an additional layer of security.
• Encrypt sensitive data: Ensure client data is encrypted in transit and at rest to prevent unauthorized access.
• Regular training programs: Educate employees to recognize phishing scams and adopt best practices to decrease human error-related breaches.
• Proactive monitoring: Use advanced threat detection tools to identify unusual activity patterns and mitigate insider risks.
• Backups and updates: Regularly back up data and implement software updates to address vulnerabilities.
• Develop an incident response plan: Create and regularly update a clear strategy to contain breaches and safeguard client information.
• Audit third-party vendors: Ensure IT providers and other vendors meet required cybersecurity standards.

Mimecast threat research delivers analysis of threat activity, statistics revealing attack trends, and recommendations for small businesses and large enterprises to protect their employees and mitigate the impact of risky users. Visit Mimecast’s Threat Intelligence Hub to learn more.