The organized, allegedly state-sponsored hacking of confidential data by the Chinese army has been much in the news in recent days. Included in the list of targets described in the latest stories (albeit not for the first time), are law firms. According to the 2012 ABA technology survey, approximately 10 percent of all law firms have experienced a data security breach of some type. Well understood in this context is the fact that law firms’ own data is likely not very interesting to the intrudersbut their clients’ data certainly is.
Numerous ethics opinions in New York and elsewhere emphasize lawyers’ duties in connection with their use of technology. The opinions explain that the duty of competent representation includes a requirement that lawyers have an understanding of the technologies that they use, and emphasize the duty to take reasonable care in the selection and use of technology. The most important element of that duty is the responsibility for adequately and appropriately protecting client confidential information in accordance with the obligations set out at Rule of Professional Conduct 1.6. This article addresses the subject of technology in law practice from two very different perspectives: What are some of the consequences if confidential client data is lost, whether through hacking or otherwise (a "data breach"); and what help can lawyers expect from their insurance carriers when these events occur.
Potential Risks
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