The High Cost to Firms of a Data Breach

The High Cost to Firms of a Data Breach

Counsel has heard it before, but it’s absolutely worth repeating it again: The cost of a data breach to a firm is high, and it can include the loss of clients’ trust.

A recent Inside Indiana Business report on “How Legal Technology Helps Firms Protect Client Data” succinctly lists the consequences of not using legal technology and adequately securing client data. In addition to the potential halting of daily firm activity, there’s crisis management, forensic investigations and much more to pay for as a result of an avoidable breach.

The report also acknowledges that legal technology and security protocols may seem overwhelming for firms, but the damage incurred after a breach is much greater.

The Indiana Business Report identifies four ways that legal technology can both help secure data and create trust with clients:

  • Knowing and understanding client data is protected with approved certified methods
  • Educating staff on risks and preventative measures
  • Assuring clients that their data is protected
  • Controlling who has access to information

There are many legal technology choices available in the market for firms. When narrowing down potential candidates, counsel should confirm that the third-party provider meets specific standards, such as storing information in centers that are ISO 27001 and SSAE Type II certified, plus ones that comply with U.S.-EU and U.S.-Swiss Safe Harbor Frameworks and its replacement framework, the EU-US Privacy Shield.

By implementing legal technology, training and education of staff on vulnerable practices to avoid can occur, such as storing client data in email.

Instilling confidence in clients by ensuring them that the firm’s data security measures in place meet the highest industry standards and certifications is priceless.

Finally, a firm can increase data security by setting specific roles and permissions. This also instills confidence in clients.

Securing and protecting client data should be a top priority in a firm. The cost of not doing so is far too high to a firm’s finances and reputation.

For a deeper dive into cybersecurity in the legal industry, download our latest white paper, “Best Practices for Counsel Serious About Cybersecurity.”

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