The growing cybercrisis for law firms

Alastair Murray explains how cybercrime is a growing threat to law firms, with rising attacks, financial losses, and reputational risks
Cybercrime is a relentless and growing threat, and law firms are increasingly in the crosshairs. In 2019, global cybercrime losses were estimated at £340bn. By 2021, the World Economic Forum raised that estimate to £3 trillion. In 2024, projected losses stood at a staggering £8 trillion. The rapid rise of cybercrime is a clear indication that no industry is safe, and the legal profession must take this threat seriously.
Why law firms are prime targets
Law firms are particularly attractive to cybercriminals due to the vast amounts of confidential client data they handle, including sensitive financial transactions, mergers and acquisitions, and litigation strategies. Some firms operate under the false assumption that only large corporations are at risk, but this is a dangerous misconception. Hackers do not discriminate; both large and small firms are at risk, and in many cases, smaller firms are more vulnerable due to limited cybersecurity resources.
Solicitors, barristers, brokers, and independent financial advisers (IFAs) are all being targeted alongside financial services, accountants, estate agents, and even construction firms. Smaller and local legal firms may often lack the resources to maintain robust cybersecurity defences, making them easier prey for cybercriminals.
How cybercriminals are attacking law firms
One of the most common tactics used to breach law firms is social engineering, where attackers manipulate employees into revealing sensitive information. Phishing emails, business email compromise (BEC), and ransomware attacks are particularly prevalent in the legal sector.
Phishing Attacks: Deceptive emails trick employees into clicking malicious links or providing login credentials.
Business Email Compromise (BEC): Criminals impersonate a trusted contact, such as a senior partner or client, to fraudulently authorise payments or gain access to sensitive data.
Ransomware: Hackers encrypt files and demand a ransom for their release, disrupting operations and jeopardising confidential information.
Human error remains the leading cause of cybersecurity breaches, making it critical for firms to train their staff in recognising and mitigating these threats.
Financial and reputational cost of cybercrime
The consequences of a cyber-attack on a law firm can be devastating. In the UK, over four million cybercrime incidents were reported across multiple sectors last year, with an alarming rise in financial fraud targeting senior management. That represents a 77 percent increase in successful cyber-attacks in the same period.
This alarming rise is due to the sensitive nature of legal data, which is valuable for criminals engaging in fraud, extortion, and espionage. Recent statistics show that between Q3 2023 and Q2 2024, data breaches at UK law firms rose by 39 percent, affecting approximately 7.9 million individuals. Half of these breaches resulted from external cyber-attacks, while the other half were caused by internal human errors.
Cybercriminals are exploiting weaknesses in firms’ security, and businesses often do not realise they have been breached until months later, exacerbating the damage.
Each cyber-attack costs businesses between £100,000 and £400,000 on average. These costs include:
- Forensic investigations
- Post-breach audits
- Data restoration
- Communications with clients, suppliers, and regulatory authorities
- Rebuilding client trust and business reputation
Many clients are wary of businesses that have been hacked, with UK consumers stating they would avoid firms that have suffered a data breach. For law firms, reputation is everything—and a single security lapse could mean the loss of clients and even legal liability.
Defensive strategies: what firms must do now
To combat cyber threats, law firms need a proactive cybersecurity strategy. This includes:
1. Cybersecurity Frameworks and Accreditation
Becoming Cyber Essentials Accredited is one of the most effective ways to demonstrate a firm’s commitment to cybersecurity. Over 100,000 UK businesses are now accredited, and the number is growing. Firms should visit IASME to apply for certification, ensuring they meet the essential cybersecurity requirements.
2. Cyber Insurance
An increasing number of law firms are subscribing to cyber insurance policies to protect against financial losses and liability in the event of an attack. Cyber insurance provides:
Coverage for financial losses due to cyber incidents
Legal support for data breaches and compliance violations
Access to expert cybersecurity teams for incident response
3. Incident Response Plans
Every firm should have an Incident Response Plan in place, which outlines how to react in the event of a cyber attack. This plan should include:
- A 24/7 emergency contact service
- A tiered response approach (Bronze, Silver, Gold, or Platinum)
- Clear steps for isolating, mitigating, and recovering from an attack
4. Business Interruption and Disaster Recovery Plans
Cyber attacks can disrupt operations, leading to financial and reputational damage. A Business Interruption Policy ensures that legal firms can continue operating in the event of a breach. A Disaster Recovery Plan (DRaaS) provides backup and contingency measures, allowing firms to resume operations quickly.
5. Penetration Testing and Regular Security Audits
Law firms should conduct penetration testing to identify vulnerabilities in their systems. Many firms hire external cybersecurity experts to test their networks, while others conduct in-house audits. These tests help firms understand their weaknesses and strengthen their defences.
6. Employee Training and Awareness
Human error is the leading cause of cybersecurity breaches. Law firms must invest in regular training for all staff members, educating them on:
- How to identify phishing emails
- The importance of strong password management
- Multi-factor authentication (MFA) to secure accounts
Conclusion
Cybercriminals are relentless, but law firms do not have to be easy targets. By implementing strong cybersecurity measures, obtaining Cyber Essentials accreditation, investing in cyber insurance, and establishing incident response and recovery plans, solicitors can protect their clients, their reputations, and their businesses.
Cybersecurity is no longer optional for law firms. The legal profession must act decisively to stay ahead of evolving cyber threats. The firms that take cybersecurity seriously today will be the ones that remain robust in the digital age.