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From the dusty roller decks of the 1980s to the paper files and treasury tags of the 90s, lawyers have loved collecting data on their clients.  It’s a simple premise - if you can show clients that you remember and value them, they are more likely to spend more with you.  The client database is one of the most important legal tech solutions to a modern law firm. 

What are the risks for law firms that hold client data?

Individually, each bit of data is useless.  But when viewed as a whole, the resulting insights can let lawyers better serve, predict and understand a client’s needs.  Yet, as the old adage goes, with great power comes great responsibility.  “When entrusted with personal data,” the ICO writes, “you must look after it”.

An increasing number of companies, big and small, have been hit with enormous fines for failing to do just that.  Take BA and Marriott.  Both were victims of hacking attacks.  Both followed the process and flagged the breaches in good time.  Yet, the ICO came down hard - criticising their ineffective security, a lack of appropriate process and poor historical due diligence.  This is a warning to all businesses - and law firms - following the law is not enough.

Lawyers have long been savvy to the risks of cyber fraud.  Many law firms append email signatures with warnings that "Our bank details will never change!".  On the list of business risks, data breaches are among the most complex and tricky.  They can be huge system-wide hacks, or small user-centric errors - such as losing a laptop or copying an email to the wrong person.  Even the smallest error can have reputational and financial consequences. 

LegalTech can mitigate risks for lawyers as well as their clients

Imagine the scene.  You are celebrating the end of the week with drinks in the pub.  A colleague casually mentions they’ve been hacked.  Of course.  It always happens on a Friday evening.  You know you are supposed to do something.  But what?  A quick google only makes things worse.  Legal specialists, accountants, IT , lost business - the potential costs start racking up. 

Don’t think your clients have it easier, mind you.  The data protection teams slash through huge numbers of notifications, trying to work out the severity of each and resolve them as quickly as possible.  Yet, more often than not, your clients have considered the risks.  They have plans in place and have invested in technology to protect them.  They've invested in you to guide them. 

Do law firms risk being the vulnerable entry point for cyber hackers?  Merely using out of date software offers malicious agents a way in.  Thankfully there are tools and guidance available to law firms so they can practice what they preach. 

������Ƶ are pioneers in creating simple tools that help navigate and automate complex legal processes.  Our leading next-step guidance in LexisPSL has a dedicated Risk and Compliance module. Access documents such as templated Data Protection Impact Assessments and proforma Data breach plans.  Read up on explanatory notes covering diverse topics such as managing legal risk and Dealing with the National Crime Agency or creating Legal Risk Registers.  LexisPSL is a vital tool in ensuring law firms are prepared for cyber risks.

BA and Marriott discovered that doing the right thing after a data breach is insufficient.  The processes and policies need to be up and running long before an incident.