Why Cyber Risks Are a Serious Threat to Law Firms
Solicitors are among the most targeted professions for cybercrime because they:
- Hold large sums of client money in trust and conveyancing accounts
- Exchange sensitive personal and financial data daily
- Operate with high email volumes during property transactions and litigation
- Often use legacy or decentralised IT systems
Every practice — from sole traders to large partnerships — must take cyber risk seriously to:
- Protect client trust and funds
- Meet SRA information security obligations
- Maintain Professional Indemnity and Cyber Insurance protection
The Most Common Cyber Threats Facing Solicitors
Friday Afternoon Fraud (Payment Redirection Scams)
Criminals intercept or spoof conveyancing emails, sending clients fake bank details that look genuine.
Average loss: £50,000–£150,000 per incident.
Email Account Compromise
Attackers infiltrate inboxes (often assistants or fee-earners) and monitor communications for weeks before redirecting payments.
Ransomware Attacks
Malware encrypts files, demanding payment for access.
Causes operational paralysis, data loss, and reputational damage.
Phishing & Credential Theft
Impersonation emails from “clients” or “banks” trick staff into sharing passwords or approving fake transfers.
Insider Threats & Misdelivery
Data leaked through human error or malicious staff behaviour — still one of the top causes of ICO-reported breaches.
Best Practices for Cyber Risk Management
1. Use Strong Passwords & 2FA
- Enforce multi-factor authentication (MFA) on Outlook, case management, and cloud platforms.
- Ban shared logins.
2. Always Verify Bank Details
- Never rely on emailed instructions alone.
- Confirm by telephone using known numbers from your client file.
3. Train Staff Regularly
- Conduct mandatory cyber-awareness training twice a year.
- Run mock phishing exercises to test responses.
4. Back Up Data Daily
- Store backups offline or in a secure cloud.
- Test data recovery quarterly.
5. Keep Software Updated
- Patch Windows, browsers, and legal practice management systems immediately.
6. Encrypt Documents & Use Secure Portals
- Avoid emailing unencrypted client data.
- Use secure upload portals for sensitive files.
7. Manage Access Controls
- Remove ex-employees’ credentials promptly.
- Apply role-based permissions to restrict access.
Your Law Firm Cyber-Incident Response Plan Should Include
- Appointed response lead (COFA or practice manager)
- Immediate isolation of affected systems
- Notification of insurer, IT specialist, and the ICO
- Clear client-communication process
- Secure data recovery and post-incident review
Having this in place is essential for both SRA compliance and insurance validation.
Insurance & Underwriting Perspective
Cyber insurers and PII underwriters now require evidence of:
- Documented payment-verification procedures
- Training records and IT audit logs
- Use of secure portals for bank details or personal data
Firms with visible risk controls enjoy:
- Lower premiums
- Fewer policy exclusions
- Broader market access
Even though SRA minimum terms cover theft of client funds (including by staff), weak security or non-disclosure can still affect payout or renewal terms.
Warning Signs of Cyber Vulnerability
- Clients frequently email asking for payment details
- Staff use personal devices or webmail for work
- No recent cyber training or penetration testing
- No simulated phishing test in the last year
If any apply, your firm is exposed.
How SRS Insurance Helps Law Firms
At SRS Insurance, we support:
- New law-firm start-ups
- High-volume conveyancing and PI specialists
- Practices handling sensitive immigration or litigation data
We help you:
- Build a practical cyber-risk management framework
- Review your IT and payment security controls
- Prepare underwriter-ready documentation for Cyber and PII cover
- Respond effectively in the event of a breach