How to Develop Ironclad Cybersecurity for Law Firms

by | Apr 16, 2023 | Cybersecurity Tips, Industry News & Info, Payment Technology | 0 comments

As technology has become increasingly pervasive, so too have cyber threats. As a result, law firms need to be aware of the potential risks and dangers posed by these threats and take steps to protect their information and data. Cybersecurity for law firms is essential in order to ensure that confidential client information remains safe and secure from malicious actors. By having comprehensive cybersecurity strategies in place, law firms can be confident that their data is safe and secure. In recent years, cyber threats have become increasingly common and sophisticated. According to the results of penetration tests in 2022 by Positive Technologies, an organization’s network perimeter can be breached by external attackers 93% of the time1. That means that 93 of 100 attempts by hackers to breach a network from outside of the network were successful. The tests revealed that the attackers, once they gained access, could conduct a golden ticket attack, which means an attacker obtains credentials that allow them to gain access to a targeted system and its data. The attacker can then use these credentials to access the system without going through authentication protocols like passwords or two-factor authentication. These attacks are especially dangerous because they bypass all security measures, making it easy for hackers to steal confidential data. Some of the most notable examples of recent cyber attacks against law firms include ransomware attacks, data breaches, and phishing scams. For instance, in 2018 a law firm in Mexico was subject to a ransomware attack that resulted in an extortion attempt for $5 million USD from the attackers. In 2019, a U.S.-based law firm suffered from a data breach that exposed over 645GB of their client’s confidential information; this included personal details such as social security numbers and addresses. Additionally, there were reports of numerous spear phishing attempts targeting lawyers and staff members at several Australian law firms between 2017-2018. All these incidents demonstrate how cyber threats can affect law firms if they are not properly protected with ironclad cybersecurity measures.

Types of Cyber Threats to Law Firms

We will start by discussing the different types of cyber-attacks that present a risk to law firms. Cyber threats come in many forms, some are far more sophisticated than others, while some rely on users to take action that can lead to an attacker gaining access to your network. To build a strong cybersecurity defense to prevent and block attacks, you must first understand the various methods that are used.

Malware

Malware is any program or code that is created with the intent to do harm to a computer, network, or server. Malware can include ransomware, trojans, spyware, viruses, worms, keyloggers, bots, cryptojacking, and more. Malware is like a bad virus that can damage computers and networks. It can also steal confidential data from law firms. It is designed to break into systems without permission, so it’s important for law firms to protect themselves against it.
A person sits at their laptop with their hands on the keyboard as they read a ransomware demand displayed on their laptop screen.

A person sits at their laptop with their hands on the keyboard as they read a ransomware demand displayed on their laptop screen.

Malware spreads by sending links, attachments, or downloads that contain malicious code to people’s computers or phones. When someone clicks on a link, views an attachment, or downloads an infected file the malware can infect their device. Malware can also be used to hijack websites or take them over completely. Attackers use sophisticated tools to inject malicious code into a website, and then use the compromised site to launch attacks against other sites or steal confidential data.

Phishing

Phishing is a type of social engineering attack that involves sending fraudulent emails or other messages that appear to come from a trusted source, such as a bank, a company, or a friend. The goal of phishing is to trick the recipient into clicking on a malicious link, opening an infected attachment, or providing sensitive information. Phishing is a common way that attackers will use to infect someone’s system or network with malware. Phishing campaigns can come in various forms, from simple impersonation emails to more sophisticated spoofed websites. One of the most common phishing campaigns that target law firms are emails purporting to be from an employee’s manager, executive, HR department, IT department, or even a CEO. These messages typically require the recipient to take some action, such as providing confidential information or clicking on a malicious link, which can then lead to malware being installed on the person’s device or network.

Man-in-the-middle (MITM)

MITM is a type of attack that involves intercepting and altering the communication between two parties who believe they are directly communicating with each other. An attacker can use MITM to eavesdrop on, modify, or redirect the data being exchanged. There are different ways an attacker can perform a MITM attack, depending on the type of network and communication involved. Some of the common methods are:
  • ARP spoofing: This method involves sending fake Address Resolution Protocol (ARP) messages to a local area network (LAN) to associate the attacker’s MAC address with the IP address of another device on the network. This way, the attacker can trick other devices into sending their traffic to the attacker instead of the intended destination.
  • DNS spoofing: This method involves sending fake Domain Name System (DNS) responses to a victim’s device to redirect their requests to a malicious website or server controlled by the attacker. This way, the attacker can trick the victim into entering their credentials or personal information on a fake website that looks like a legitimate one.
  • HTTPS spoofing: This method involves creating a fake website that uses a fraudulent SSL certificate to appear as a secure website with HTTPS protocol. The attacker can then lure the victim to visit the fake website using phishing or other techniques and intercept their communication with the real website.
  • SSL stripping: This method involves downgrading a victim’s connection from HTTPS to HTTP by intercepting and modifying the initial HTTPS request. The attacker can then communicate with the real website using HTTPS while communicating with the victim using HTTP. This way, the attacker can access the victim’s unencrypted data without raising any suspicion.
  • Wi-Fi eavesdropping: This method involves setting up a rogue Wi-Fi access point that mimics a legitimate one or hacking into an unsecured or poorly secured Wi-Fi network. The attacker can then monitor and capture the traffic of any device that connects to the rogue or compromised Wi-Fi network.

Denial-of-service (DoS) or distributed denial-of-service (DDoS)

DoS or DDoS is a type of attack that aims to disrupt the normal functioning of a system by overwhelming it with a large amount of traffic or requests. A DoS attack can be carried out by a single source, while a DDoS attack involves multiple sources that are coordinated by a botnet. An attacker using a DoS or DDoS attack can benefit by taking down a system, making it so that it cannot work properly. They can also access data that was not meant to be seen or used by them. Law firms are particularly vulnerable to these attacks, as a successful attack can lead to disruption of operations, financial losses, and reputational damage. One example of a DDoS attack that made headlines was one that targeted Jones Day, a prominent law firm that represented former President Donald Trump. According to a report by The Wall Street Journal2, the attack occurred on February 8, 2022, and caused the website to be inaccessible for several hours. The attack was allegedly carried out by a hacker group known as Clop, which claimed to have stolen some documents from the law firm and leaked them online. The documents included confidential memos and emails related to some of the firm’s clients, such as former President Donald Trump, Walmart, and General Motors. While Jones Day denied that its network was breached, the law firm’s reputation took a hit.

Cross-site scripting (XSS)

XSS is a type of attack that exploits a vulnerability in a web application that allows an attacker to inject malicious code into a web page that is viewed by other users. The code can then execute in the browser of the victim and perform actions on their behalf, such as stealing cookies, session tokens, or personal information. If a law firm gets hit by XSS, confidential information could be stolen and its reputation could be hurt, leading to a potential loss of revenue.

DNS tunneling

DNS tunneling is a type of attack that uses the Domain Name System (DNS) protocol to covertly transmit data over an unauthorized channel. DNS tunneling can be used to bypass firewalls, exfiltrate data or establish remote access to a system. DNS tunneling can be used to harm law firms in a variety of ways. For example, an attacker could use DNS tunneling to gain remote access to a secure area of the firm’s network and exfiltrate sensitive data, such as confidential client information or financial records. The attacker could then sell this data on the dark web or use it for other malicious purposes that could damage a law firm’s reputation and cost them money.

Drive-by download

A drive-by download is a type of attack that involves downloading and executing malicious code on a user’s device without their knowledge or consent. A drive-by download can occur when a user visits a compromised website, clicks on a malicious advertisement, or opens an infected email. A drive-by download is not a type of malware. However, it is used as a method to deliver malware, most commonly a Trojan, to a user. Drive-by downloads can cause various types of damage to the device or network, such as hijacking, spying, destroying data, or rendering a device inoperable.
An image of hands using tweezers to grab the word password hidden within a series of zeros and ones depicts the concept of hackers stealing credentials from an entity.

An image of hands using tweezers to grab the word password hidden within a series of zeros and ones depicts the concept of hackers stealing credentials from an entity.

Identity-based attacks

Identity-based attacks are types of cyber attacks that target the identity and access management (IAM) systems of an organization. These attacks can include credential theft, password cracking, privilege escalation, account takeover, or impersonation. An identity-based attack is when someone tries to get into an organization’s systems without permission. They might try to steal passwords, take control of accounts, or pretend to be someone else.  Identity-based attacks can use various techniques to compromise or impersonate identities, such as phishing, credential stuffing, brute force, golden ticket, kerberoasting, man-in-the-middle, or DCSync.

Code injection attacks

Code injection attacks are types of cyber attacks that involve inserting malicious code into an application or system that executes as part of the normal operation. Code injection attacks can include SQL injection, command injection, script injection, or buffer overflow. For example, a law firm could be hit with a code injection attack when an attacker inserts malicious code into the website’s login page which captures user credentials and sends them to the attacker.

Supply chain attacks

Supply chain attacks are types of cyber attacks that target the software development lifecycle (SDLC) or the distribution channels of software products. These attacks can involve compromising third-party vendors, libraries, repositories, or updates to deliver malicious code to unsuspecting users. A recent example of a supply chain attack was the SolarWinds Orion software supply chain attack3. The attack occurred when malicious code was inserted into an update of the SolarWinds Orion network monitoring and management product. The malicious code was then distributed to customers, including Microsoft, Intel, Cisco, and federal agencies including the Treasury, Justice Department, Energy Department, and the Pentagon. Through automated updates, attackers were able to gain access to networks where the compromised version of the software was installed.

Insider threats

Insider threats are types of cyber attacks that involve employees, contractors, or partners who have legitimate access to an organization’s systems or data and use it for malicious purposes. Insider threats can include data theft, sabotage, fraud, or espionage.

IoT-based attacks

IoT-based attacks are types of cyber attacks that target the Internet of Things (IoT) devices such as smart home appliances, wearables, sensors, or cameras. These devices often have weak security measures and can be easily compromised by hackers to launch DDoS attacks, spy on users, or access other networks. While this is an extensive list of common cyber threats to law firms, there are more threats that exist and bad actors are constantly coming up with new methods to carry out their attacks. One of the biggest challenges to cybersecurity is that as technology evolves there are new vulnerabilities to protect against. It’s a constant battle and cybersecurity professionals must remain diligent to keep up with the cyber attacks that exist.

Tips to Improve Cybersecurity for Law Firms

It’s important to note that despite all the efforts that can be taken to prevent and block cyber attacks, no organization is 100% safe or protected from cyber crimes. According to penetration tests, 100% of networks that are attacked by an insider threat can be breached. So, when you know that you can’t possibly have complete protection, what should you do? The best theory is to avoid being an easy target by improving your cybersecurity as much as possible. Imagine if a burglar was selecting a home to break into, they will look for the least secure, most vulnerable target that they believe will provide the most value to them with the least amount of effort to carry out their burglary. By taking precautionary measures, you are more likely to deter an attack and if an attack occurs having ironclad cybersecurity in place can block or at least minimize the damage from an attack. Now, let’s discuss strategies for improving cybersecurity for law firms:
  • Encrypt your data and create backups. Encryption protects your data from unauthorized access and tampering, while backups ensure you have a copy of your data in case of loss or damage.
  • Conduct regular employee training. Employees are often the weakest link in cybersecurity as they may fall victim to phishing emails, malicious links, or fake antivirus software. Training can help them recognize and avoid these common attacks.
  • Use strong passwords. Passwords should be hard to guess, at least 8 characters long, and contain a mix of numbers, letters, and symbols.
  • Implement multi-factor authentication (MFA). Whenever possible, require users to use MFA to protect access to sensitive data or accounts. This adds an extra layer of security by requiring users to provide additional evidence in order to log in.
  • Establish network access controls. Network access controls limit who can access your network and what they can do on it. They can also help you monitor and audit network activity and detect any anomalies or breaches.
  • Implement firewalls and antivirus software. Firewalls block unwanted traffic from entering or leaving your network, while antivirus software scans and removes any malware from your devices. These tools can help you prevent and contain cyberattacks.
  • Use a Virtual Private Network (VPN). VPNs can help protect your data from interception or tampering by creating an encrypted connection between two devices. VPNs also hide your real IP address which can prevent hackers from targeting your network for remote hacking or carrying out a DDoS attack.
  • A man's hands are on the keyboard of his laptop while a software update is displayed on his laptop screen.

    A man is updating software on his laptop to ensure he has the most recent software version as part of his company’s patch management plan.

  • Create a patch management schedule. Patches are updates that fix bugs or vulnerabilities in your software or hardware. Keeping your systems up to date can reduce the risk of exploitation by hackers.
  • Continuously monitor network traffic. Monitoring network traffic can help you identify any unusual or suspicious patterns or behaviors that may indicate a cyberattack. You can use tools like SecurityScorecard to assess your network security posture and get alerts on any issues.
  • Don’t neglect to protect your website(s). Your website(s), both external and internal facing, are a pathway that can be used by hackers to breach your network, steal data, or plant malware. Make sure to keep your websites secure by…
    • Install SSL Certificates. Secure Socket Layer (SSL) Certificates authenticate a website’s identity and ensure that data is encrypted as it travels between the server and the client.
    • Force all traffic to HTTPS. This step increases your websites security by forcing all website traffic to go through HTTPS which ensures that all communication between the website and the browser is encrypted and authenticated. This prevents hackers from intercepting or altering the data exchanged such as personal information. This also prevents HTTPS downgrade attacks that seek to exploit unsecured pages or requests from your website.
    • Set up a web application firewall (WAF). A WAF is a security solution designed to protect web applications from malicious attacks. It monitors and filters incoming traffic to detect and block any unauthorized requests or malicious code. WAFs can also provide DDoS protection, prevent SQL injections, API security, and XSS attacks. Depending on the WAF you select, the features will vary. It’s important to select a WAF that will provide the most value for your firm’s needs.
    • Regularly backup your website. Having multiple backups and doing so frequently can help your organization recover quickly in the event of a cyber attack. If your website becomes infected with malware, you can simply restore the site to the most recent backup before the infection occurred.
    • Restrict file uploads and access to sensitive directories. Restricting access to sensitive directories and setting certain pages to noindex can prevent unauthorized people from accessing sensitive files and information. Regarding uploads, it’s best practice to limit both the size and types of files that are allowed to help protect against malicious code and attackers. Some examples of file types you may want to restrict from being uploaded include executable files (.exe, .bat, .sh, .php, .py, etc.), script files (.js, .html, .asp, .jsp, etc.), and archive files (.zip, .rar, .7z, .tar, etc.). Large files such as .mp4, .mp3, and .avi can not only use up your server’s resources but can also be used for DoS attacks.
    • Host your website with a secure provider. It’s important to select a reliable, secure hosting solution for your website. A good hosting solution can help prevent cyber attacks by providing features like daily malware scans, DDoS protection, and firewalls.
    • Control access and authentication. When it comes to keeping a website secure, it’s important to limit access to only those who require access. Furthermore, limit the access level to the minimum requirements to allow each user to accomplish their responsibilities. For example, someone writing a blog article does not require administrative access. It’s also important to have secure authentication methods in place such as reCAPTCHA on login pages and MFA for all users or at least administrators of your website and hosting account.
  • Build an incident response plan. An incident response plan is a set of procedures that outlines how to respond to a cyberattack. It can help you minimize the impact, contain the damage, recover your data, and restore normal operations.
  • Invest in cyber insurance. Cyber insurance can help cover the costs associated with a security breach, such as remediation and legal fees. It can also provide protection against lost revenue due to downtime or reputational damage.
  • Be aware of common attack methods. Cyberattacks can take many forms, such as ransomware, spyware, phishing, denial-of-service, rootkits, botnets, corrupted files, etc. By providing training to your employees on the common types of cyber threats, they will know how these attacks work and what signs to look for that can help you prevent or mitigate them.

Maintain Compliance & Meet Obligations

Law firms have several legal and ethical obligations and standards they must adhere to when it comes to cybersecurity. These include confidentiality, privacy, data protection, and other regulations. It’s important to be aware of these obligations and develop a plan that meets their requirements. Each jurisdiction has its own laws to follow and it’s important you know what laws apply to your law firm to ensure you maintain compliance. For example, California has privacy policy laws that are more strict than other states. Florida has the Florida Information Protection Act (FIPA). Let’s take a look at some common obligations law firms must comply with:
  • Confidentiality: Law firms have an ethical duty to protect the confidentiality of information relating to their clients, as well as their own confidential information. This duty applies to both electronic and physical data and requires law firms to employ competent and reasonable measures to safeguard the data from unauthorized access, disclosure, or loss. This duty also requires law firms to communicate with their clients about their cybersecurity practices and obtain informed consent when appropriate.
  • Privacy: Law firms have a legal duty to comply with applicable privacy laws and regulations that govern the collection, use, and disclosure of personal information. These laws and regulations may vary depending on the jurisdiction, industry, or type of data involved. For example, law firms may have to comply with the General Data Protection Regulation (GDPR) in the European Union, the Health Insurance Portability and Accountability Act (HIPAA) in the United States, or the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada.
  • Due Diligence: Law firms have an ethical duty to conduct due diligence on their cybersecurity practices and policies, as well as on their service providers and third parties that handle their data. This duty requires law firms to assess their cybersecurity risks and vulnerabilities, implement appropriate safeguards and controls, monitor and audit their systems and networks, and respond to and report any incidents or breaches. This duty also requires law firms to supervise their staff and contractors and ensure that they comply with the firm’s cybersecurity policies.
  • PCI Compliance: Law firms that handle credit card payments must comply with the Payment Card Industry Data Security Standard (PCI DSS). This standard includes measures to ensure the security of cardholder data, such as encryption, two-factor authentication, secure passwords, and secure network architecture. Law firms also have other specific needs for merchant processing such as the separation of operating and trust accounts. Selecting a merchant processor that specializes in payment processing for law firms, like LexActum, can make it easier to maintain compliance since they know the intricacies that attorneys must comply with as it relates to payment processing.
It’s important to document all of your processes related to cybersecurity. This includes policies and procedures like those mentioned above as well as the results of security assessments and incident response plans. This will not only help to ensure compliance with applicable regulations and standards, but it also serves as a record that can be useful in the event of an attack or other security incident. By documenting your processes, you have something concrete to refer back to that allows you to quickly address any issues that arise.

Utilizing Third-Party Solutions

The adoption of technology solutions and tools to enhance law firms’ cybersecurity can have numerous benefits and involve some challenges. One of the main advantages is that it can help reduce the time it takes for staff to identify and respond to cyber threats, as well as reduce the amount of damage caused by them. As technology solutions are often automated, they can help to quickly and accurately detect any signs of unauthorized access or malicious activities. However, while utilizing third-party solutions can have many benefits, it also involves some risks. For example, if the technology solution provider is not secure enough or suffers a data breach, then your law firm could be at risk. Therefore, it’s important to vet any third-party solution providers thoroughly and ensure that you understand their security policies and procedures. Some examples where it makes sense to utilize a third-party technology solution include for encryption, cloud computing, and artificial intelligence.
Fingers place the final piece of a puzzle that spells out the word 'data' with icons representing cloud computing solutions surrounding the puzzle pieces

Piecing together an ironclad cybersecurity defense requires selecting and putting together a comprehensive plan that consists of many elements that combined can protect an entity from cyber attacks.

Encryption is a common security measure that can be used to protect confidential data from unauthorized access. It scrambles the data so that it cannot be read without a key or password. This provides an additional layer of protection for critical data, such as client information. Encryption is particularly important when storing and transferring sensitive data in an electronic form, such as via email. One example of an encryption service a law firm might utilize is Trustifi. Secure email communication is very important for law firms and Trustifi provides an easy-to-use, feature-rich solution that ensures that emails are protected from the moment an email is sent to the point of receiving4. Cloud computing refers to software or services that can be used over the Internet through a browser or mobile app without the need for local installation on the user’s computer. This can be a cost-effective way to access large amounts of storage capacity or computing power without having to invest in physical infrastructure. Cloud storage also offers enhanced security measures that help protect your data from unauthorized access and malicious activities. In the legal field, cloud usage increased from 60% of practices to 70% with the most popular cloud service being used by legal professionals being Dropbox which was reported to be used by 66% of law firms in 2022. In regards to legal-specific cloud services, Clio and NetDocuments continue to be the most used in the industry.5 With the advancement in artificial intelligence, you may want to consider using AI-based solutions to analyze large amounts of data quickly and accurately in order to identify any potential threats or suspicious activity. This is done by applying machine learning algorithms to the data in order to detect patterns and anomalies that could indicate an attack or misuse of resources. AI-based systems are becoming increasingly popular for cybersecurity due to their ability to quickly identify potential threats. One example that can help with fraud detection, compliance, data protection, risk management, audits, and more, is offered by PwC6. By utilizing their AI-based machine learning platform law firms can improve their cybersecurity. When selecting a third-party solution, it’s important to consider several factors. First, the provider should have an established track record of successful implementations and they should be able to demonstrate their ability to effectively secure data. They should also have strong security protocols in place and the ability to respond quickly and effectively to any potential threats. In addition, they should offer a regular audit and review process to ensure that their security measures are up-to-date and effective. It’s also important to establish policies and procedures for using third-party solutions in order to ensure that all authorized users adhere to the same standards of data protection. This includes creating user accounts with strong passwords and providing adequate training to staff so that they understand the importance of keeping confidential data secure.

Summary & Conclusion

Cybersecurity for law firms is of utmost importance in order to protect the confidential data of clients and the firm itself. By following best practices, utilizing third-party solutions, and developing a comprehensive security strategy, law firms can help ensure that they are prepared for any cyberattacks. Ultimately, having a strong cybersecurity system in place is essential for any law firm that wants to protect its data and maintain its reputation as a trusted and reliable source of legal services. By understanding the types of cyber threats out there, taking preventative measures, and having a solid incident response plan in place, law firms can help protect themselves from becoming victims of cyberattacks. With the right strategy, law firms can ensure that they have ironclad security measures to help protect their confidential data and maintain their reputation as reliable and trustworthy professionals. * This content is for informational purposes only, and should not be taken as legal advice or used in any other way. Please consult a qualified professional for advice on your specific situation. SOURCES: 1Results of penetration tests in 2022 – Positive Technologies (ptsecurity.com) 2Hacker Claims to Have Stolen Files Belonging to Prominent Law Firm Jones Day – Wall Street Journal (wsj.com) 3How Russia Used SolarWinds To Hack Microsoft, Intel, Pentagon, Other Networks – NPR (npr.org) 4Email Protection for Legal Firms – Trustifi (trustifi.com) 52022 Cloud Computing – American Bar Association (americanbar.org) 6Cybersecurity, Risk & Regulatory- PwC (pwc.com)

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