2023 Law Firm Data Security Guide: How to Keep Your Law Firm Secure

Law firm data security should be a top priority for any practice, and here’s why: Clients trust you with their most confidential information.

Since clients entrust lawyers with so much of their sensitive data, law firms make prime targets for cyber crime. According to the 2022 ABA Cybersecurity Tech Report, 27% of law firms experienced a form of security breach. You don’t want your law firm to become part of that statistic.

So how do you mitigate your firm’s risk of data breaches and keep your clients’ data as secure as possible? As a legal professional, it’s crucial to stay up to date with and understand the latest legal technology. But, with technology constantly evolving, where do you start?

Here, we’ll outline the fundamentals of law firm data security in 2023. Read on for an overview of some best practices for keeping your firm’s data secure, a summary of your ethical and regulatory obligations when it comes to tech, a look at the risks and rewards of cloud-based legal software, and a few resources that can help level-up the data security at your law firm.

Law Firm Data Security 101

Let’s start with the basics. We’ve put together the essential things you need to know about law firm data security in 2023.

What is a law firm’s data security risk?

Failing to keep data secure is more than just a huge risk for you and your firm—it can also have incredibly negative consequences for your clients.

To hackers and criminals, law firms are remarkably interesting. Valuable information—that may include trade secrets, intellectual property, merger and acquisition details, personally identifiable information (PII), and confidential attorney-client-privileged data—will attract the ill-intentioned to your firm.

Despite these risks, law firms are obligated to protect their clients’ information. If criminals penetrate your firm’s security, the consequences can be extensive—ranging from minor embarrassments to serious legal issues, including:

• Compromised communications due to phished or compromised email accounts
• Inability to access firm information due to ransomware (i.e., where hackers encrypt files and demand money to restore access)
• Public leaks of personal or business information (e.g., on social media)
• Loss of public and client trust in your firm
• Malpractice allegations and lawsuits

What are your ethical and regulatory obligations?

Ethically (and professionally), it’s your duty to protect client data and to disclose your error if a breach does occur. According to the American Bar Association (ABA) Rule 1.6: Confidentiality of Information, lawyers should “make reasonable efforts to prevent the inadvertent or unauthorized disclosure of, or unauthorized access to, information relating to the representation of a client”. Additionally, the ABA has also released several Ethics Opinions (such as Securing Communication of Protected Client Information and Lawyers Obligations After an Electronic Data Breach or Cyberattack) which provide guidance for lawyers on how to address cybersecurity. 

To comply with the obligations of the American Bar Association, you must make reasonable efforts to protect your law firm’s data—this could mean implementing a cybersecurity plan, securing your mobile devices, improving communication practices through email, and vetting legal tech providers.

It’s also important to keep these ethical responsibilities and best practices in mind when adding legal technology to your firm’s toolkit. In many cases, legal technology can help you meet your regulatory obligations by better protecting your data, and therefore client data, via streamlined processes (with less room for manual error), enhanced security infrastructure, and encryption.

HIPAA, GDPR, CCPA, SHIELD, and state-specific breach notification laws

Data security laws can vary with location. It’s your firm’s responsibility to understand your legal responsibilities in the event of a breach.

• HIPAA: HIPAA, a federal law, requires health care providers and “business associates” to protect PHI from inadvertent disclosure. Since law firms are considered business associates, they must comply with HIPAA when handling PHI on behalf of their clients. Check out our blog post on understanding HIPAA compliance for more information.
• GDPR: To help address global needs for enhanced data security, in 2018, Europe introduced a unified data protection law, the General Data Protection Regulations (GDPR). GDPR—which strives to unify the regulatory environment for businesses handling personal data—requires enhanced protection of personal data belonging to EU individuals. While GDPR currently applies to firms in Europe, its regulations could affect your firm, so it may be a good idea to learn more about GDPR.
• CCPA: In 2020, the state of California introduced the California Consumer Privacy Act (CCPA), which strives to mirror the GDPR and requires enhanced protection of personal data for California residents. 
• SHIELD: Similarly, New York has introduced the Stop Hacks and Improve Electronic Data Security Act (SHIELD), which introduces a requirement to implement “reasonable” security safeguards for any business in possession of the personal data of New York residents. The SHIELD Act also enhanced New York’s existing data breach notification requirement (already one of the strictest in the United States). 

Learn more about state-specific data breach notification requirements.     

What to do if your law firm is hacked 

Of course, no one wants to believe their law firm could be hacked. Unfortunately, because of the valuable documents lawyers keep on hand, law firms are prime targets. Hackers might have the intent to steal your clients’ data to sell it off to third parties. Or, in rarer cases, they could opt to hold the information hostage until a ransom is paid. 

Your firm should have an incident response plan (IRP) for these situations, though, hopefully you’ll never have to use it. The below is a good starting point when it comes to creating an IRP checklist: 

• Contain the damage and begin any recovery protocol. 
• Connect with a data breach expert.
• Notify your insurance provider (and if you don’t already have cyber security insurance, check out our post on cyber security insurance for law firms). 
• Report the incident to law enforcement.
• Ensure all third parties are notified. 
• Make compliance a top priority. 

It’s important to review and update your IRP plan regularly to avoid making a bad situation worse. You can run your checklist by an IT consultant as they might have additional recommendations.

11 Best practices for protecting your law firm’s data

There’s no one way to lock down your law firm’s data. Instead, consider a defense in depth to data security that employs numerous checks and takes advantage of the latest legal tech. Mac users can start with these security tips; then, for whatever systems you use, consider these best practices for your firm’s security.

1. Create and implement a data security policy at your firm

A surprising majority of security issues begin with simple user error—not tech failures.

• Make a clear, easy-to-follow plan for data security and share it with everyone at your firm.
• Educate employees and enforce procedures such as using two-factor authentication for logins, only using apps vetted by the firm, or a Bring Your Own Device (BYOD) policy for employees using their own devices.

2. Continuously train staff on mitigating data risk

Don’t assume that everyone knows how to spot and avoid a phishing email—open a dialogue and continue to train employees to avoid accidental user errors and promote law firm data security best practices. Require training to be taken upon hire and periodically (usually once a year) thereafter. Resources like data privacy CLEs can also help your firm understand risks and implement solutions to control them. 

3. Use strong passwords

Always. Is your password simple and guessable, like your daughter’s birthday or—please, no—“123456”? Do you use the same password for every login? If so, you could be setting yourself up as an easy target for hackers.

• Create better passwords: For increased password security, go for something complex and long. Use a password management tool to help ensure passwords remain secure and make management simpler (no more having to memorize or write them down—please don’t do this last one).
• Enforce strong password rules: Some legal tech software, like Clio, feature password policy settings that keep your passwords in line by requiring strong passwords.

4. Encrypt, encrypt, encrypt

Never overlook this relatively simple and highly effective measure. Encryption translates your data—whether it’s stored in an email, a local hard drive, an internet browser, or a cloud application—into a secret code, which then requires a key or password to access it.

• Keep an eye out for applications that will take care of encryption for you. For example, Clio applies in-transit and at-rest encryption using industry best practices (such as HTTPS and TLS) to ensure your firm’s data is stored and transmitted securely. Clio’s web interfaces are also verified by DigiCert, a trusted certificate authority. 

5. Secure your communications

One of the primary ways for hackers to intercept your data is in your communications. As part of your firm’s data security plan, review any vulnerabilities across your communication channels and look to mitigate them (for example, encrypt your firm’s emails). You may also want to look into communication apps like Signal, which offer end-to-end encryption across multiple methods of messaging.

6. Consider access control

Everyone on your staff doesn’t need to know everything. Be intentional when considering granting permission to viewing specific matters. Be sure to enforce the Principles of Least Privilege and Need to Know. 

7. Conduct regular reviews

It’s easy to overlook weaknesses in your law firm data security if you don’t take the time to review it. Conduct regular audits (you could build this schedule into your firm’s data security policy) to identify and address risks—things like ensuring former employees no longer have access to legal files or ensuring controls such as anti-virus software and firewalls are operating effectively. 

If you’re wanting to take your security to the next level, consider data privacy certifications. Programs like ISO 27001 certification for law firms can not only assure you have adequate protocols in place but are also enticing to current and prospective clients.

8. Vet vendors carefully

While data security ultimately falls under the ethical responsibility of lawyers, legal technology can definitely help make this easier (or harder). To ensure your provider will do you more good than harm with your data, carefully vet potential vendors. We recommend using Clio’s Cloud Computing Due Diligence Checklist. 

9. Plan for the worst

As much as you hope to avoid (and actively mitigate the risk of) data breaches, you need to know what you’ll do if it does happen—before it happens.

• Create a plan for what to do in the event of a data breach: The plan should detail what needs to be done immediately in terms of communication, changing passwords, and reporting (to impacted individuals or regulatory authorities) if there is unauthorized access to your data. It should also specify your firm’s plan for what to do if a malpractice claim is filed. Also consider including any guidance provided by the ABA with respect to your ethical obligations.
• Test the plan: Data breaches shouldn’t be left up to theoreticals in the event of an issue.

Another scenario you should prepare for is what to do in the event of a disaster to ensure your law firm can continue to operate effectively. 

• Create a disaster recovery/business continuity plan: Your plan should include considerations for items such as defining critical systems and equipment, identifying appropriate tools/procedures (i.e. backups, remote sites, cloud providers, etc.), and developing communication plans. Also consider any guidance provided by the ABA (Ethical Obligations Related to Disasters).
• Test the plan: Find out what works (and what doesn’t)!  

10. Bump up your law firm’s mobile security

With more and more legal work done remotely, there’s increasingly a need for mobile law firm data security. Making use of secure mobile apps takes a lot of the heavy-lifting out of the process (for example, Clio’s mobile app for lawyers allows you to access your firm from anywhere), but your smartphone and laptop, in general, might also need a security makeover. Secure your phone, laptop, and other mobile devices, with steps like:

Enable encryption

While having a lock-screen password on your laptops and mobile devices is a first (essential) security measure, it won’t protect your data if someone gets a hold of your password. Enable encryption on your mobile devices to scramble sensitive data for unauthorized users, and enhance security. Here’s how to encrypt your iPhone or your Android device.

Set up two-factor authentication

No matter how strong your password is, it can still be hacked. Adding two-factor authentication—which requires your password (the first factor) and a temporary code sent to another device (the second factor)—makes it that much more difficult for someone to access your device. In practice, two-factor authentication usually requires the person logging in to verify their identity through the use of their mobile.

Backup firm data to secure servers

Whether you lose your device or you’re the target of a ransomware attack, it’s smart to regularly back up your firm data to a secure, encrypted location so you’ll still be able to access most of your data. One of the benefits of using cloud-based software is that backups are taken care of for you (more on this below) and support any incident response and/or business continuity plans you develop.

Keep professional and private accounts separate

Don’t risk mixing confidential professional communications with your personal ones. By using dedicated apps for your professional work, you can keep these two worlds apart.

Have a plan for lost or stolen mobile devices

If you lose (or someone steals) your smartphone, what’s the first thing you’ll do? From having a way to locate a missing device (like Find My iPhone or Google’s Find My Phone), to knowing how to suspend service or disable your device remotely, it’s important to make an action plan before you need it. Make sure you have full disc encryption on your laptop as well so you can know your data won’t be compromised if your laptop is stolen or lost. 

11. Train your clients

Clients don’t know their actions are not secure. Yet, law firms are the ones bearing the risk for a client exposing details, like banking information, to scam artists. To prevent this risk from blowing up into trust account errors and payment disputes, lawyers need to train their clients, from their initial conversation, on what methods of communication are most secure and how to use them.

A client should, as part of retention, learn the following:

• Whom to expect will be contacting them,
• What methods of communication will be used between lawyer and client,
• What steps clients are expected to take to help preserve confidentiality, and
• How to report anything that deviates from this discussed training.

This means that a law firm should show their client how their client portal functions, and walk them through logging in and creating a password before the end of your first meeting.  Set yourself and your clients up for secure communications from the start.

Tools to make law firm cybersecurity simpler

Even if you know that data security is vitally important to your law firm, there’s still the potential for you to overlook something, especially if you handle a lot of data. After all, the majority of lawyers are working overtime to get everything done—according to the 2022 Legal Trends Report, 86% of lawyers report working outside of regular business hours—which means important issues like data security could potentially slip through the cracks.

Luckily, in an era where some technology can instill fear, you can also use tech to combat risk and make it easier to protect your firm’s data. Here are a few tools to consider:

Signal: For safer communication

Communication is key, but sending unprotected messages can put data at risk. The Signal app—which is available for Android, iPhone, or your desktop computer—lets you send secure, high-quality, end-to-end encrypted communications (including group, text, voice, video, document, and picture messages) anywhere in the world.

For an added element of security, you can also set your messages to disappear after a specified interval of time—eliminating the risk of your messages ever being read without your consent in the future.

Another bonus? Signal is free.

There are plenty of other communication options in the Clio App Directory as well. As a reminder, law firms should always do their own due diligence and choose a tool that is best for their firm’s needs.

Clio: For safer legal software solutions

Clio’s legal software takes protecting your clients’ information (and your firm’s data) seriously, with security measures designed to help you stay safe and compliant.

Clio’s advanced product features and controls work to secure your data, through features like:

• Role-based permissions: Visibility into sensitive case information is restricted to specific users at your firm.
• Password policies: Clio’s password policy settings allow you to enforce strong passwords and regular password resets at your firm.
• Session/Activity tracking: By logging the IP address of every login to your account, Clio helps you keep an eye out for suspicious account activity.
• Two-factor authentication: Enhance login security by verifying user identities via their mobile device.
• Login safeguards: Is someone trying to guess your login? Clio locks your account for some time—automatically—after too many failed login attempts. A secure client portal also keeps communications encrypted and secure.

Learn more about Clio’s industry-leading security.

Is the cloud secure enough for law firms?

With so much prominence placed on data security, cloud-based software can be a powerful way to get your firm in order.

As a Gartner article on cloud security outlined, it was predicted that, through 2020, “public cloud infrastructure as a service (IaaS) workloads will suffer at least 60% fewer security incidents than those in traditional data centers.” In other words, cloud software has become increasingly more secure than the data security provided by traditional servers.

5 Benefits of the cloud

In actuality, by moving to legal cloud computing services, your law firm can likely benefit from the following:

1. Improved security: When used appropriately, reputable cloud-based solutions are secure. Increasingly, using the cloud can improve your firm’s security by taking advantage of built-in security measures. For example, you can take advantage of dedicated security teams, regular security tests, and more that providers invest in.
2. Easier software updates: Instead of wasting time and money manually updating your team’s on-premise software, you can benefit from regular, automatic software updates from cloud providers.
3. VPN redundancy: The cloud lets you work from anywhere, with secure access to your firm’s information—without the need for a VPN.
4. Enhanced compatibility: Cloud-based software companies make it simple to connect with other tools to get the most out of all of your applications. For example, the Clio App Directory features over 125 complementary software services to help you customize and streamline your workflows in Clio.
5. Fewer IT requests and costs: Quality cloud-based software providers offer top-tier support—like phone support, live chat, and a knowledge center—to all users, which means less time and budget spent on resolving basic IT questions from your team. And, with cloud providers reducing the need for on-premise servers and hardware, you’ll save money on storage and hardware maintenance.

Security best practices for legal cloud-based services

To ensure your cloud services are secure, you need to effectively vet providers and prevent user errors.

The cloud offers secure, useful options to help your law firm run more efficiently. However, not all cloud providers are the same. When considering legal cloud-based providers for your firm, it’s important to ask, at minimum, the following questions:

• Do they have a security team? A dedicated, experienced security team indicates that cybersecurity is a priority.
• Are they compliant? Cloud providers should advertise their compliance with requirements like Payment Card Industry (PCI) and laws such GDPR and CCPA.
• Do they conduct automated security scans? For example, Clio is audited and certified daily by McAfee Secure to help ensure Clio products are not affected by malware, vulnerabilities, and other online threats.
• Do they offer an uptime guarantee service level agreement (SLA)? An SLA speaks to the minimum level of service provided by a company to a customer in their contract; cloud providers should provide a percentage guarantee for uptime. This is the amount of time that the cloud service provider is accessible to end users.
• Do they encrypt data both in transit and at rest? Providers should protect sensitive data both while it’s in motion and while it’s stored or archived.
• Are they recommended by bar associations and law societies? Approval and recommendations from legal associations indicate industry recognition for high-security standards.
• What security-focused features do they promote? What other measures does the provider take to help ensure enhanced security with their software? To see an overview of the security measures Clio provides, please refer to our White Paper.

Conclusion

What should take priority when it comes to data security for your law firm? Start analyzing and improving your data security as soon as possible. It’s always better to be proactive. You’ll avoid the negative consequences of a cyber attack or data breach.

Protecting your clients’ and your law firm’s data is more than just a good thing to do. It’s ethically and professionally critical to your role as a lawyer. Understanding your responsibilities and best practices can help mitigate your risk of data breaches. And, some of the latest legal technology can take your security even further while also improving your firm’s overall efficiency.

 

We published this blog post in June 2019. Last updated: February 1, 2023.

Categorized in: Technology