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Cyber Insurance and Why It’s Important for Lawyers

Cyber Insurance and Why It’s Important for Lawyers

Not having cyber security can be expensive, and without cyber insurance, it can be detrimental. A frightening statistic is that 60% of cyber-attacks are against small to mid-sized companies, and roughly 60% of those companies attacked are then forced to shut down. This can be avoided by going on the offensive and investing in cyber security and insurance.

The financial risk is not worth going on the offensive when it comes to cyber security. The top four cyber risks for lawyers are crypto-jacking malware, business email compromise scams, maze ransomware, and data breach.

Top Cyber Risks for Lawyers

Crypto-jacking is when there is unauthorized use of any cyber device; phone, tablet, laptop, or desktop. This illegal hijack can be used to steal cryptocurrency which the hackers can then use for money, steal information such as credit cards, bank accounts, and take your personal information. Some common ways crypto-jacking occurs is opening emails from unfamiliar senders, using unprotected browsers, and clicking on links that download malware to your device. These tactics are called phishing, an illegal way to steal information from unknowing digital users.

For lawyers, business email compromise scams are extremely common. Expert email scammers can use a similar email address to your colleagues to lure unsuspecting victims into clicking a link. Other times, emails appear from a business offering a discount, reward, or special offer. Email scams can be avoided by properly training cyber security tactics to employees, using software to protect from scams and cyber attacks, and having cyber insurance in case of a breached attack.

Top Cyber Risks for Law Firms

Maze ransomware attacks can seemingly come out of nowhere. The owner is then locked out of their own devices while the attacker encrypts the owner’s data, leaving the owner defenseless. The attacker then encrypts the owner’s details and steals the information. This cyber attack can happen multiple ways, but the two most common ways are email scams and the owner using weak wifi that the attacker can infiltrate. In a recent survey, 60% of Risk Managers feel either “extremely prepared” or “prepared” in case of a ransomware attack due to cyber insurance.

This is similar to the fourth largest risk for lawyers: data breaching, an illegal cyber cream where data is gathered and stolen without the owner’s consent. Instead of impacting more individuals, this tactic is often used against law firms.

How to Prepare for Cyber Attacks

These four types of attacks are increasingly common, especially in this time where the amount of lawyers working from home has surged. Common practices to preemptively protect digital information from cyber attacks is using secure wifi, having strong, unguessable passwords, and prepping yourself and employees of cyber safety.

In the case of a breached attack, cyber insurance for lawyers would mitigate financial loss from cyber incidents and allow the firm to recover quickly from a cyber incident. A staggering 78% of Risk Managers purchase form of cyber insurance, which is a 65% raise from 2011. Cyber insurance is more affordable, reasonable, and necessary than previous years for maintaining and protecting your law firm’s cyber information. Feel free to contact us for more information about cyber insurance.