Law Firms: Attractive Targets
Law firms hold exactly what cyber criminals want: sensitive client data, financial information, and transaction details. According to the Solicitors Regulation Authority (SRA), cyber attacks on law firms have increased by approximately 77% in recent years.
The SRA's own data shows that millions of pounds in client money are lost to cyber crime annually. And small and mid-size firms are often easier targets than large firms with dedicated security teams.
Why Small Firms Are Vulnerable
Limited Security Resources
Unlike large firms with information security officers and dedicated IT teams, smaller practices typically have:
- No in-house security expertise
- Basic IT support (often outsourced)
- Limited security tooling
- Security as "someone else's problem"
High-Value Data
Even small firms handle sensitive information:
- Property transactions and funds
- Commercial agreements and negotiations
- Personal client details
- Financial information
- Privileged communications
Client Funds
Conveyancing and transactional work involves moving money. Criminals know this and target firms accordingly:
- Email interception to change payment details
- Invoice fraud
- Ransomware holding files and demanding payment
The SRA has taken action against firms for inadequate cybersecurity following breaches. Security isn't just risk management—it's a regulatory requirement.
SRA Cyber Security Requirements
The SRA expects firms to have appropriate security measures. Key expectations include:
Principle 2: Maintaining Trust
You must act in a way that maintains public trust in the profession. Security failures damage trust.
Principle 7: Complying with Legal Requirements
Data protection law requires appropriate security for personal data. Breaches can result in ICO enforcement.
SRA Warning Notices
The SRA has issued specific warnings about:
- Email modification fraud
- Invoice manipulation
- Ransomware attacks
- Business email compromise
Firms are expected to be aware of these threats and have protections in place.
AI-Powered Security for Smaller Budgets
Traditional enterprise security is expensive and complex. AI-powered tools are making sophisticated protection accessible to smaller firms.
Email Security
Email is the primary attack vector for law firms. AI email security:
What It Does:
- Analyses email content for phishing indicators
- Detects impersonation attempts
- Identifies unusual patterns
- Checks links and attachments
- Learns normal communication patterns
Why AI Helps: Traditional email filters use rules. Attackers adapt. AI learns patterns and spots anomalies that rules miss, including:
- Subtle variations in sender addresses
- Writing style changes suggesting compromise
- Unusual requests from known contacts
- Fake invoice characteristics
Tools for Small Firms:
- Barracuda Email Security (SME pricing)
- Proofpoint Essentials
- Microsoft Defender for Office 365
- IRONSCALES
Cost: £2-8 per user per month typically
Endpoint Protection
Your computers and devices need protection beyond basic antivirus:
What AI Adds:
- Behavioural analysis (spots malware by what it does, not what it looks like)
- Ransomware prevention (detects encryption behaviour)
- Automatic response (isolates threats without waiting for human review)
- Threat hunting (actively looks for compromise indicators)
Tools for Small Firms:
- SentinelOne
- Microsoft Defender for Business
- Crowdstrike Falcon Go
- Sophos Intercept X
Cost: £3-10 per device per month typically
Security Monitoring
Small firms can't afford 24/7 security operations centres. AI fills the gap:
What It Does:
- Monitors for suspicious activity
- Correlates events across systems
- Alerts on significant threats
- Reduces false positive noise
Options:
- Built-in monitoring in endpoint tools
- Microsoft Sentinel (cloud SIEM)
- Managed Detection and Response (MDR) services
MDR services combine AI tools with human analysts. You get enterprise security capabilities without building internal capability. Often surprisingly affordable for small firms.
Building a Security Stack
For small and mid-size law firms, here's a pragmatic approach:
Essential Layer (Implement Immediately)
| Control | Purpose | Typical Cost |
|---|---|---|
| MFA everywhere | Prevent credential theft | Free-£5/user |
| AI email security | Block email attacks | £2-8/user |
| Modern endpoint protection | Detect and stop malware | £3-10/device |
| Security awareness training | Reduce human error | £2-5/user |
Monthly total for 10-person firm: £100-300
Enhanced Layer (Add Within 6 Months)
| Control | Purpose | Typical Cost |
|---|---|---|
| Password manager | Strong unique passwords | £2-5/user |
| Backup verification | Ransomware recovery | £5-20/user |
| Dark web monitoring | Early breach detection | £2-5/user |
| Vulnerability scanning | Find weaknesses | £50-200/month |
Advanced Layer (As Budget Allows)
| Control | Purpose | Typical Cost |
|---|---|---|
| MDR service | Expert monitoring | £10-30/user |
| SIEM/logging | Event correlation | Variable |
| Penetration testing | Verify defences | £2,000-5,000/year |
Practical Security Steps
This Week
- Enable MFA everywhere - Microsoft 365, practice management, client portals
- Review email settings - Check forwarding rules, external access
- Update systems - Patch Windows, Office, browsers
- Verify backups - Can you actually restore files?
This Month
- Implement AI email security - Choose and deploy a solution
- Upgrade endpoint protection - Replace basic antivirus
- Staff awareness - Brief team on current threats
- Payment verification - Establish callback procedures for all payments
This Quarter
- Security assessment - Identify gaps
- Incident response plan - Know what to do when attacked
- Client communication - Warn clients about fraud risks
- Insurance review - Check cyber cover is adequate
Client Money Protection
Special attention is needed for firms handling client funds:
Payment Verification Procedures
Every payment should:
- Be verified against original instructions (not email)
- Use phone callback to confirmed numbers
- Have maker-checker separation
- Be documented
Client Communication
Proactively tell clients:
- You will never change bank details by email
- They should call you to verify if they receive change requests
- What your legitimate communication looks like
System Security
Extra protection for:
- Accounts with payment authority
- Systems connected to bank platforms
- Accounting and case management integration
Most law firm cyber losses involve payment diversion. The best technical security is worthless if a staff member sends money to a criminal's account because an email looked legitimate.
Responding to Incidents
Despite best efforts, incidents happen. Be prepared:
Have a Plan
Know in advance:
- Who to contact (IT support, insurers, SRA, ICO)
- How to contain (isolate systems, preserve evidence)
- What to communicate (clients, regulators)
- How to recover (backup restoration process)
Report Appropriately
Requirements may include:
- ICO notification (within 72 hours for personal data breaches)
- SRA notification (material events)
- Client notification (if their data affected)
- Insurer notification (per policy terms)
Learn and Improve
After any incident:
- Root cause analysis
- Control improvements
- Training updates
- Documentation for regulators
The Regulatory Context
The SRA is increasingly focused on cybersecurity:
- Warning notices on specific threats
- Enforcement for inadequate controls
- Thematic reviews of firm security
- Guidance updates
Being able to demonstrate appropriate security measures is now essential for regulatory compliance, not just risk management.
Need help securing your law firm? We help small and mid-size legal practices implement practical, affordable security that meets regulatory expectations.
Book a consultation to discuss your specific security challenges.
