Earlier this year, Forbes reported growing numbers in both the amount of cyber attacks and their rates of effectiveness. While every demographic is at risk of frauds over the net, law firms and local governments have been frequent targets as of late.
Not only has this interrupted essential services, such as title searches required for real estate transaction, but it has also left confidential and sensitive information in the hands of unauthorized parties.
Cyber attacks pose unique threats to law firms because they are under obligations to protect clients’ and other parties’ confidential information, money, and property.
Failure to take reasonable action to prevent a cyber attack, or to rectify the consequences of one, may constitute professional misconduct. Fiduciaries may also end up on the hook to clients, third parties, or banks for wrongful pay out of moneys they were holding in trust.
The proper steps to take to prevent and react to cyber crime will depend on the nature of a business’s practice and the details and extent of any fraud.
Many firms are wisely purchasing cyber insurance plans and are engaging in cyberliteracy training programs to prevent employees from falling for cyber crimes; however, there are many other steps that can, and often should, be taken.
If you are a law firm or other business and you were the target of a cyber attack, or would like to learn about your obligations to prevent a cyber crime attack, the attorneys at Tesser, Ryan & Rochman, LLP can help. Call today at (212) 754-9000.