Lawyers & cyber risk: beware the tech-shy (and the tech-savvy)
Most law firms now tell us that cyber security is one of the highest risks on their agenda, says Travelers' Jim Jack
August 19, 2015 at 10:13 AM
3 minute read
The definition of 'cyber' is not the same for everyone, but what's clear is that businesses large and small are now targeted by a number of protagonists; from organised criminals to determined 'hacktivists' and even state-sponsored agents.
The risk of fraud is not new to law firms, but it is one that continually evolves. The manner of execution has changed and so must the way we think about protecting against it. Our experience shows that while fraud has always accounted for a small number of professional indemnity claims, it has resulted in a disproportionally high level of losses. Increasingly, we are confronted by fraud where the technology we rely upon is turned against us.
Best practice needs to change
In many ways, the fraudsters are simply responding to the way that law firms are now operating. Clients' expectations have changed to receive faster, cheaper, and electronic professional services requiring the guidelines for best practices to be retested, rewritten, and recirculated. Unfortunately, experience shows us that the less aware lawyers are to technology risks, the more vulnerable they can be to fraudsters.
The new, over connected lawyer?
But does this mean that an online generation is less likely to succumb to cyber criminals or technology fraud? Perhaps not. A new workforce of lawyers has emerged who are much more inclined to send a tweet than send a fax. They would also prefer to 'ping an email' on the way home rather than dictate a letter. The expectation of round-the-clock connectivity means our working week is longer and more remote than it used to be. As a consequence, the boundary between personal and professional time is blurred.
Does the sheer speed, ease, and familiarity of social media use amongst some make them less alert to the dangers of cyber-crime, hacking and social engineering?
In a world where a mistake can be ruthlessly exploited in an instant – and information, money, or intellectual property moved, stolen, or deleted just as quickly – it pays to be sure that awareness is just as high among those born into the internet generation as those who are adjusting to it.
Certainly the rise of cyber fraud affecting law firms suggests it needs to be.
Jim Jack is head of professional indemnity at Travelers.
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