Protecting Yourself From Cybercrime Dangers: Be Careful About Putting Your Firm Data in the Cloud

Cybercrime dangers are many, complex and ever-changing. Hardly a day goes by without another news report of a data breach or other cyber-related scam or theft. Cyber criminals have considerable resources and expertise, and can cause significant damage to their targets. Cyber criminals specifically target law firms as law firms regularly have funds in their trust accounts and client data that is often very valuable. This article, from the December 2013 issue of LAWPRO Magazine, reviews the specific cybercrime dangers law firms need to be concerned about, and how they can mitigate their risks.

Almost everyone has data in the cloud, although many people may not realize it. If you are using Gmail or another free email service, iTunes, Facebook, LinkedIn or other social media tools, Dropbox, or doing online banking, your data is in the cloud. The “cloud” is the very large number of computers that are all connected and sharing information with each other across the Internet. If you create or post information that ends up outside your office, you are most likely in the cloud.

Cloud computing offers many benefits to lawyers. There is a vast selection of services, software and applications that can assist with just about every task in a modern law office, in many cases allowing those tasks to be accomplished more efficiently and quickly. Many of these services permit remote access, thereby allowing lawyers and staff to work from anywhere with full access to all documents and information for a matter. Using these services is usually economical as they can significantly reduce hardware and software maintenance costs and capital outlays. Storing data with suitable cloud service providers will likely mean that it is more secure and better backed
up than it might be in a typical law office.

However, placing your client or firm data in the hands of third parties raises issues of security, privacy, regulatory compliance, and risk management, among others. Firms should have a process in place to ensure due diligence is performed and all risks and benefits are considered before any firm data is moved to the cloud. The evolving standard from U.S. ethics rules and opinions seems to be that lawyers must make reasonable efforts to ensure any data they place in the cloud is reasonably secure. Contracts with any third party that is in possession of confidential client information should deal with relevant security and ethical issues, including having specific provisions that require all information is properly stored and secured to prevent inappropriate access.

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