Law Firms 'Doing Terribly' At Protecting Client Data
Tech-services group Logicforce gave law firms a collective 42 percent grade on industry cybersecurity health in a recent report.
October 26, 2017 at 09:29 AM
7 minute read
Any law firm that has filled out an RFP in recent years knows clients are increasingly asking about the firms' information technology security and how client data is being protected. But firms and clients alike say outside counsel aren't doing nearly enough to meet basic cybersecurity expectations.
Law firm technology services group LogicForce recently released their quarterly report card on law firm cybersecurity, giving the legal industry a score of only 42 percent on their cybersecurity health.
The most recent scorecard aggregated data from client surveys at more than 300 law firms of various sizes. Scores were generated based on the number of firms who reported implementing 12 different factors set forth by LogicForce: information security executives, cybersecurity policies, multifactor authentication, cyber training, cyber insurance, penetration, vulnerability testing, third-party risk assessments, records management policies, cyber investment, full disk encryption, data loss prevention services, and third-party penetration testing. Each factor was weighted differently.
The scorecard's most heavily weighted factor was the presence of an information security executive, a position filled at only 38 percent of surveyed law firms.
John Sweeney, president of LogicForce, came down hard on law firms, advising them to step up their investment in many of the areas identified by the report.
“One of the things I hope more than anything is that law firms realize that this 42 percent score we have simply means that law firms are doing terribly. That number should be 100 percent. Every law firm should be able to check off the box and say 'we are doing 100 percent of those standards,'” Sweeney said.
Sweeney said he has yet to see even one law firm who could meet all the standards set forth in the company's scorecard.
The report also noted that corporate law firm clients are beginning to crack down harder on their outside counsel for their failure to meet cybersecurity standards. The report found that 48 percent of law firms surveyed had their data security practices subjected to an audit by a corporate client in the last year.
“It became very apparent to us that law firms recognize the importance of it, but are not attacking it with the vigilance that their corporate clients expect them to,” Sweeney said, adding that while cybersecurity has historically been a concern for heavily regulated industries, corporations across industries are now beginning to push for outside counsel to implement cybersecurity standards.
Sweeney said that corporate audits of law firm technology are on the upswing. “We're seeing this dramatic increase over the last six months. We are actually being called by corporations to audit law firms for them,” Sweeney said.
To be fair, law firms have shown a fair amount of growth in just this year alone. LogicForce's scorecard for the first quarter of the year gave law firms only a 30 percent score on their industry compliance with cybersecurity best practices. According to the two reports, penetration and vulnerability testing spiked from 18 to 42 percent, full disk encryption bumped from 25 to 38 percent, and training went up from 22 to 32 percent over the course of the year.
Ultimately, Sweeney said that firms will have to consider the financial risks of failing to invest more heavily in their cybersecurity infrastructure. “This is a business decision that they have to realize. Law firms are in the data management business,” he said.
“What we found online in the standards for law firms, if they did those things in the long run, that would make the best financial sense for them, and quite frankly for their clients as well,” Sweeney added.
Any law firm that has filled out an RFP in recent years knows clients are increasingly asking about the firms' information technology security and how client data is being protected. But firms and clients alike say outside counsel aren't doing nearly enough to meet basic cybersecurity expectations.
Law firm technology services group LogicForce recently released their quarterly report card on law firm cybersecurity, giving the legal industry a score of only 42 percent on their cybersecurity health.
The most recent scorecard aggregated data from client surveys at more than 300 law firms of various sizes. Scores were generated based on the number of firms who reported implementing 12 different factors set forth by LogicForce: information security executives, cybersecurity policies, multifactor authentication, cyber training, cyber insurance, penetration, vulnerability testing, third-party risk assessments, records management policies, cyber investment, full disk encryption, data loss prevention services, and third-party penetration testing. Each factor was weighted differently.
The scorecard's most heavily weighted factor was the presence of an information security executive, a position filled at only 38 percent of surveyed law firms.
John Sweeney, president of LogicForce, came down hard on law firms, advising them to step up their investment in many of the areas identified by the report.
“One of the things I hope more than anything is that law firms realize that this 42 percent score we have simply means that law firms are doing terribly. That number should be 100 percent. Every law firm should be able to check off the box and say 'we are doing 100 percent of those standards,'” Sweeney said.
Sweeney said he has yet to see even one law firm who could meet all the standards set forth in the company's scorecard.
The report also noted that corporate law firm clients are beginning to crack down harder on their outside counsel for their failure to meet cybersecurity standards. The report found that 48 percent of law firms surveyed had their data security practices subjected to an audit by a corporate client in the last year.
“It became very apparent to us that law firms recognize the importance of it, but are not attacking it with the vigilance that their corporate clients expect them to,” Sweeney said, adding that while cybersecurity has historically been a concern for heavily regulated industries, corporations across industries are now beginning to push for outside counsel to implement cybersecurity standards.
Sweeney said that corporate audits of law firm technology are on the upswing. “We're seeing this dramatic increase over the last six months. We are actually being called by corporations to audit law firms for them,” Sweeney said.
To be fair, law firms have shown a fair amount of growth in just this year alone. LogicForce's scorecard for the first quarter of the year gave law firms only a 30 percent score on their industry compliance with cybersecurity best practices. According to the two reports, penetration and vulnerability testing spiked from 18 to 42 percent, full disk encryption bumped from 25 to 38 percent, and training went up from 22 to 32 percent over the course of the year.
Ultimately, Sweeney said that firms will have to consider the financial risks of failing to invest more heavily in their cybersecurity infrastructure. “This is a business decision that they have to realize. Law firms are in the data management business,” he said.
“What we found online in the standards for law firms, if they did those things in the long run, that would make the best financial sense for them, and quite frankly for their clients as well,” Sweeney added.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllMintz Hires Manatt's Data Privacy Leader, 2 Colleagues in Boston Expansion
DLA Piper Adds AI, Data Analytics Practice with Ex-Faegre Drinker Team
Gibson Dunn Adds Apple Chief Privacy Officer as Big Tech Faces 'Novel, Unprecedented' Data Use Restrictions
Akerman Debuts Data Center and Digital Infrastructure Practice With Bryan Cave Leighton Paisner Laterals
Trending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250