Law firms are increasingly targeted by cyberattacks. In a recent survey, 39% of respondents reported that their law firm had experienced a security breach in the last year. And, among the survey respondents who had a security breach, 56% had lost confidential client data.
Cybercriminals target law firms because they hold large amounts of valuable data, from intellectual property to highly sensitive data on legal strategies and clients’ intellectual property, finances, health, and more. Correct or not, the perception is that the legal industry isn’t current on technology or especially strong on cybersecurity—especially smaller firms. Worse, most malpractice insurance policies offer little to no coverage for losses and liabilities related to leaked client data from cyberattacks. And no firm wants to risk the reputational damage or regulatory fines associated with data breaches.
Especially for small and midsize businesses (SMBs), hiring and managing IT staff may be out of reach financially. Even if it’s not, staying secure in the face of evolving cyberthreats requires finding full-time IT pros who can handle both organizational IT needs, like network configuration and user support, and provide expertise on the latest in cybersecurity and compliance. It frequently makes more sense for Phoenix legal firms to hire a managed services provider (MSP) to help. Engaging a managed IT services company gives law firms access to a team of specialized IT pros on a per-project or per-service basis instead.
The Legal Industry's Data Security Challenges
Law firms not only have to store sensitive data, but they must also discuss and exchange this data with clients and the legal system. This requires secure communication channels. When it comes to cybersecurity, common challenges include:
- Securing digital networks where data is stored.
- Encrypting stored data and data in transit.
- Keeping staff trained on industry compliance, data handling, security, and cyberthreats (such as phishing).
Yet the American Bar Association (ABA) estimates that 77% of attorneys have inadequate safety measures for securing client data.
Compliance is an ongoing challenge, as industry regulations and standards are updated often. The industry regulations that apply depend on the types of cases a firm takes on, but security compliance frameworks and considerations that could apply include:
- Arizona data privacy laws on data breach notifications, biometrics privacy, and more.
- ABA guidelines for client data privacy, like Rule 1.6.
- General Data Protection Regulation (GDPR) on consumer data.
- International Organization for Standardization (ISO) standards.
- Health Insurance Portability and Accountability Act (HIPAA) on patient data security.
- Center for Internet Security (CIS) controls and benchmarks.
- Sarbanes-Oxley Act (SOX) for accurate financial reporting by public companies.
- NIST Special Publication 800-171 guidelines on Controlled Unclassified Information for the defense industry.
Many firms use software solutions to address these challenges. Keep in mind that your firm should vet any third-party legal-practice management solutions to make sure they meet your organizational and client compliance requirements. After deploying a solution, it’s a good idea to review your requirements and your software’s capabilities regularly, so you’ll know if you outgrow your tools.
Common threats faced by law firms include data breaches, ransomware attacks, and phishing. Any of these could reward cybercriminals with valuable data. Successful attacks bring law firm operations to a halt until the threat can be neutralized. Even a few hours of downtime could mean the difference between winning or losing a case or a new client.
Why Phoenix Law Firms Are Uniquely at Risk
The growth of industries like semiconductor manufacturing and healthcare is creating high-value targets in the Phoenix area. The semiconductor intellectual property (SIP) market was estimated to be worth $6 billion in 2022 and is projected to grow at a compound annual growth rate of 6.2% to reach $7.5 billion by 2026. An Arizona Commerce Authority National Semiconductor Economic Roadmap white paper underscores that industry’s importance by saying, “… losing comparative advantage in the semiconductor industry is a national economic and security risk.” Advantage in the market is closely tied to keeping proprietary data safe. Cybercriminals know all this, which makes any organization that stores semiconductor-related data a target.
How MSPs Enhance Data Security for Law Firms
Many Phoenix law firms are engaging managed services providers to help. These MSPs can assist in a variety of ways.
Proactive security measures. MSPs can provide firms with:
- 24/7 monitoring with unified threat management solutions, like endpoint detection and response (EDR). EDR systems use real-time data analysis and behavioral analytics to monitor and detect suspicious activity on endpoints early in an attack—sometimes before any data is compromised.
- Regular security audits and vulnerability assessments to keep law firms from falling behind on patches, updates, and changes in their IT environments that could cause security gaps.
- A team of experts with the latest cybersecurity and data-protection knowledge, without the cost and management overhead of hiring internal IT employees.
Compliance support and risk assessments. MSPs can help firms with legal industry standards like GDPR, HIPAA, and so on. They perform audits, and identify vulnerabilities in legal technology solutions and/or employee compliance with a risk assessment is for you.
Evaluate and address security. After analyzing your IT infrastructure, a good MSP can walk you through eliminating vulnerabilities like outdated software and a lack of data encryption. Your firm will know it has the right security practices in place, like secure file-sharing practices. MSPs can also help you apply for and stay compliant with cybersecurity insurance policies to protect your business.
Rapid incident response and disaster recovery (DR). MSPs quickly identify, isolate, and remediate breaches. They can also create DR and business continuity plans, to prepare firms to restore their data in the event of a cyberattack, natural disaster, or similar event. That preparation could include helping firms set aside budget for DR, apply for cyberinsurance policies, and implement data backup plans. A managed IT services partner can contain cyberattacks to get firms up and running again with minimal downtime.
Develop a long-term security strategy. The benefits of working with an MSP include periodic reviews, employee training, and technology updates. MSPs will build a roadmap that aligns your technology investments with your business goals, ensuring that your solutions actively support and enhance your operations, for scalability and cost savings.
Benefits of Partnering with a Local MSP in Phoenix
Phoenix law firms should look for MSPs who:
- Have experience with Arizona legal and cybersecurity challenges, including the risks that the semiconductor manufacturing and healthcare industries here face every day.
- Understand the extreme value of the data that law firms are entrusted with and the various technologies, standards, and practices that can keep it safe: legal software, compliance regulations, and data security.
- Have a well-established history of serving the Phoenix area. Local managed IT services companies are familiar with local IT challenges, such as how extreme heat can affect IT infrastructure, and dealing with weather-related power failures.
- Are located nearby, for faster on-site support. Phoenix-based MSPs already have a local network of partners. This support system is crucial for reliable 24/7 monitoring, proactive maintenance, and rapid response to critical issues—as well as scalability when your firm grows.
- Provide clear pricing and a detailed breakdown of their services, including service-level agreements (SLAs) that lay out the scope of their services. These SLAs might include response times, uptime guarantees, and support procedures.
- Can manage other vendors to provide your firm with a single point of contact for all your IT needs. This centralized communication is especially valuable during DR and incident response.
What BlackPoint IT Services Can Do to Help
At BlackPoint IT Services, we help small and midsize law firms with expertise and resources to stay ahead of cyberthreats. Let our IT security experts guide you toward a future-proof IT infrastructure. Schedule a consultation today to start on your healthcare security improvement journey.
