Cyber Security for Law Firms: Best Practices, Policies, and Prevention in 2025

Cybersecurity refers to the practices and technologies designed to protect data and systems from cyber threats. For law firms, cybersecurity is more than a technical issue—it’s a matter of trust and professional integrity. Clients entrust lawyers with highly sensitive, often irreplaceable information: financial statements, trade secrets, intellectual property, and confidential client information. A single data breach can destroy that trust, and with it, a firm’s reputation.

According to the 2023 ABA Cybersecurity TechReport, 29% of law firms reported a security breach [1]. The legal industry’s increasing reliance on digital tools, along with the rise of sophisticated cyber attacks powered by AI, means that now, more than ever, law firms must take cybersecurity seriously.

This guide will explore law firm cybersecurity best practices, regulations, and actionable steps to protect client data. Whether you’re a solo practitioner or managing a large firm, strengthening your law firm’s data security is no longer optional, it's essential.

What Is a Law Firm Cybersecurity Risk?

A law firm cybersecurity risk refers to any potential threat that could compromise the confidentiality, integrity, or availability of a law firm’s digital or physical information systems. These risks include both external and internal threats: from phishing attacks, ransomware, and data breaches to insider threats, misconfigured cloud storage, and lost or stolen mobile devices.

Law firms are prime targets for cybercriminals because they serve as repositories of high-value data. This includes clients’ personally identifiable information (PII), confidential corporate documents, protected health information (PHI), intellectual property, trade secrets, financial statements, and communications protected by attorney-client privilege. For business law firms in particular, data often relates to ongoing transactions, M&A activity, litigation strategy, or regulatory filings, making it even more attractive to threat actors.

A law firm security breach can result in:

• Exposure of confidential client information
• Ransomware attacks demanding payment for access to critical case files
• Public leaks of legal documents or personally identifiable information
• Disruption or delay of active legal matters and contractual deadlines
• Malpractice suits and professional liability claims
• Regulatory investigations and penalties for non-compliance (e.g., GDPR, HIPAA, ABA Model Rules)
• Loss of competitive advantage due to leaked business strategies or IP
• Increased cyber insurance premiums and recovery expenses
• Permanent damage to the firm’s reputation, credibility, and client trust

Cybersecurity and Technology Statistics for Law Firms (2025)

In an industry built on confidentiality and trust, even a single breach can severely undermine a firm's long-term viability. That’s why cybersecurity must be treated not as an IT issue, but as a core pillar of operational and ethical responsibility.

• In 2024, law firms faced an average data breach cost of $5.08 million, marking over a 10% increase from the previous year. [2]
• A significant 37% of legal clients in 2025 expressed willingness to pay a premium for firms that prioritize robust cybersecurity measures. [3]
• As of 2023, 80% of law firms had at least one technology insurance policy, yet only 34% had an incident response plan in place. [4]
• Phishing remains a prevalent threat, with 80% of law firms in 2023 utilizing spam filters as their primary defense mechanism. [4]
• The year 2023 witnessed over 45 ransomware attacks on law firms, compromising more than 1.5 million records. [3]
• In 2024, 42% of data breaches were identified internally by the affected organizations, 34% were discovered by third parties, and 24% were disclosed by the attackers themselves. [3[
• Under the American Bar Association’s Model Rule 1.6(c), lawyers are mandated to make reasonable efforts to prevent unauthorized access to or disclosure of client information. ​
• Less than half (43%) of law firms conduct online backups of their data, posing a risk to data recovery efforts. [4]
• For small law firms and sole practitioners, the average cost of a data breach stands at $36,000, significantly lower than that for larger firms. [4] 
• The most common cyber threats targeting law firms include phishing, ransomware, Distributed Denial of Service (DDoS) attacks, and insider threats. [5]
• A majority of clients (66%) strongly prefer to work with law firms that utilize the latest technology, emphasizing the importance of technological advancement in client retention. [3]
• Approximately 40% of clients are open to paying more for advanced technology that enhances efficiency and service, with an additional 41% favoring firms with modern technology over those without. [3]
• Over 70% of clients expressed concern if their law firm relied heavily on AI tools like ChatGPT, highlighting apprehensions about AI in legal practices. [3][

Popular Cybersecurity Regulations Law Firms Must Know

Cybersecurity and law firms are inextricably linked by ethical, legal, and regulatory responsibilities. Here’s an overview of the most critical frameworks and data security laws law firms must comply with:

ABA Model Rules and Ethics Opinions

The American Bar Association (ABA) Rule 1.6 mandates that lawyers “make reasonable efforts to prevent the inadvertent or unauthorized disclosure of, or unauthorized access to, confidential information relating to the representation of a client.”

ABA opinions such as Formal Opinion 477R (on secure client communications) and Opinion 483 (on responding to data breaches) provide guidance on cybersecurity for lawyers. These documents emphasize the importance of developing a robust cyber security policy for law firms.

HIPAA Compliance (Health Insurance Portability and Accountability Act)

If your law firm handles Protected Health Information (PHI)—for example, in medical malpractice, personal injury, or healthcare regulation cases—you may be considered a business associate under HIPAA. That legally binds your firm to strict privacy and security rules.

You must implement:

• Administrative safeguards: staff training, risk assessments, written security policies.
• Physical safeguards: secure office access, device control, workstation use policies.
• Technical safeguards: encryption, access controls, audit logs, and secure data transmission.

HIPAA also requires a Business Associate Agreement (BAA) with healthcare clients and notification within 60 days of any data breach. Penalties range from $100 to $50,000 per violation, up to $1.5 million per year [6]. Noncompliance can also trigger malpractice data security data risks and ethical violations.

Don’t wait for a breach – proactively secure your PHI handling practices with expert legal cybersecurity support.

To ensure your firm meets HIPAA’s complex security and privacy requirements, explore our HIPAA Compliance Services tailored specifically for law firms.

Need help identifying vulnerabilities in your current processes? Schedule a comprehensive HIPAA Audit to assess your compliance readiness and minimize legal risk.

GDPR (General Data Protection Regulation)

GDPR applies to any U.S.-based law firm that offers legal services to EU citizens or processes their personal confidential data, even if your firm doesn’t operate within the EU. It governs all forms of personal data, including email addresses, case files, communication logs, and more.

Key obligations include:

• Obtaining explicit, informed consent for data collection and use.
• Maintaining a Record of Processing Activities (ROPA).
• Data minimization—only collect what’s necessary for the case.
• Appointing a Data Protection Officer (DPO) in certain cases.
• Providing the right to be forgotten, data access, and correction to clients.
• Reporting data breaches within 72 hours to supervisory authorities.

Noncompliance may lead to fines of up to €20 million or 4% of global annual revenue, whichever is greater. Complying with GDPR not only avoids penalties but signals your firm’s commitment to ethical, international data practices.

Ensure your firm is fully compliant with GDPR requirements. Explore our GDPR Compliance Consulting Services to safeguard your clients' data and uphold your firm's reputation.

NIS2 Directive (Network and Information Security Directive 2)

The NIS2 Directive, effective from January 2023, expands upon the original NIS Directive to enhance cybersecurity across the EU. It imposes stricter security requirements and incident reporting obligations on essential and important entities, including certain legal service providers.

Key requirements include:

• Implementing appropriate technical and organizational measures to manage cybersecurity risks.​
• Reporting significant incidents to relevant authorities within 24 hours.​
• Ensuring supply chain security and accountability of management bodies.​

Noncompliance can result in administrative fines of up to €10 million or 2% of the entity's total worldwide annual turnover, whichever is higher. 

Digital Operational Resilience Act (DORA)

DORA, effective from January 17, 2025, aims to strengthen the IT security of financial entities, including certain law firms providing services to the financial sector. It establishes a comprehensive framework for digital operational resilience, ensuring that firms can withstand and recover from ICT-related disruptions.

Key components include:

• Developing and maintaining a robust ICT risk management framework. 
• Conducting regular digital operational resilience testing.​ 
• Reporting major ICT-related incidents to competent authorities.​
• Managing risks associated with third-party ICT service providers. 

Compliance with DORA is crucial for law firms operating within the EU financial sector to ensure service continuity and protect client data.

CCPA and CPRA (California Consumer Privacy Laws)

The CCPA and its stronger amendment, the CPRA, apply to law firms that collect, process, or share personal data of California residents—regardless of where your firm is located. This includes data from clients, leads, or website users.

Key requirements include:

• Providing clear privacy notices at or before data collection.
• Allowing individuals to access, correct, delete, or opt out of data collection and sale.
• Implementing reasonable data security for law firms measures.
• Responding to consumer requests within 45 days.

The CPRA established the California Privacy Protection Agency (CPPA) and broadened rules for sensitive personal data. Noncompliance can result in fines up to $7,500 per intentional violation.

SHIELD Act (Stop Hacks and Improve Electronic Data Security Act, New York)

The SHIELD Act applies to any law firm that collects private information about New York residents, not just those physically located in the state. It expands data breach notification laws and requires firms to adopt a "reasonable" cybersecurity program.

This includes:

• Administrative safeguards: risk assessments, policies, and employee training.
• Technical safeguards: network security, monitoring, and regular testing.
• Physical safeguards: secure access to data-containing systems and storage.

If a breach occurs, your firm must notify affected individuals "in the most expedient time possible." Failure to comply can result in legal action and steep penalties from the NY Attorney General.

State-Specific Laws

Many states have their own data breach and privacy notification laws. It is essential to review your local law firm security requirements and implement a comprehensive law firm information security policy that aligns with them.

Law Firm Cybersecurity Best Practices

To enhance your law firm's cybersecurity posture and protect sensitive client data, consider implementing the following best practices:

Develop a Comprehensive Data Security Policy

Establish a written, regularly updated cybersecurity policy that defines acceptable use of devices and applications, protocols for storing, sharing, and deleting client files, response plans for unauthorized disclosures or potential data breaches, and minimum standards for access control and encryption.

You may also read: How To Write An Effective Security Policy: A Step-by-step Guide

Train Staff Regularly

Conduct cybersecurity training during onboarding and annually thereafter. Focus on recognizing phishing attempts, secure file sharing, password hygiene, and incident reporting procedures. Utilize Continuing Legal Education (CLE) courses centered on data protection and cybersecurity within the legal industry. 

You may also read: Why is Cyber Security Awareness Training Important for Employees?

Use Strong Passwords and a Password Management Tool

Enforce the use of complex, unique passwords across all software platforms. Implement password management tools, such as 1Password or LastPass, to securely store passwords and reduce reliance on memory or physical notes. 

Implement Encryption Across the Board

Apply encryption to emails, devices, databases, and backups. Utilize full disk encryption for all laptops and secure messaging applications for client communications. Ensure encryption is applied both during data transmission and while stored, preventing unauthorized access to confidential client information. 

Set Access Controls and Principle of Least Privilege

Limit access to sensitive information based on role requirements. Regularly review permissions to ensure compliance with the principle of least privilege, ensuring employees access only the data necessary for their duties. 

Protect Mobile Devices

Secure mobile devices by enabling two-factor authentication (2FA), encrypting devices, using virtual private networks (VPNs) for remote access, separating professional and personal accounts, and implementing remote data wipe capabilities in case of loss or theft. 

Regularly Back Up Your Data

Perform automated, regular backups to encrypted, off-site servers or cloud platforms. Periodically test backups to ensure they can be restored effectively, facilitating recovery from ransomware attacks or data loss incidents. 

Vetting Legal Tech Vendors

Assess the security measures of cloud platforms and case management tools by reviewing vendors' security certifications, such as ISO 27001, and conducting thorough due diligence to ensure compliance with industry standards. 

Maintain an Incident Response Plan

Develop a documented incident response plan detailing procedures for identifying and containing breaches, notifying regulators and affected clients, fulfilling legal obligations, and coordinating with insurance providers. Regularly test and update the plan to address emerging threats. 

Educate Clients on Secure Communication

During client onboarding, instruct clients on secure communication methods, such as using client portals, secure document exchange protocols, and verifying communications to prevent unauthorized disclosures and fraud. 

Perform Routine Security Risk Assessments

Conduct regular risk assessments, including penetration testing and vulnerability scans, to identify and address potential security weaknesses. Monitor networks for unusual activity and ensure antivirus and firewall systems are up-to-date. 

Adopt Multi-Factor Authentication (MFA)

Implement MFA across all systems to add an extra layer of security, requiring users to provide multiple forms of verification before accessing sensitive data. 

Keep Software and Systems Updated

Regularly update all software, operating systems, and applications to patch known vulnerabilities. Enable automatic updates when possible to ensure timely protection against emerging threats. 

Utilize Firewalls and Intrusion Detection Systems

Deploy advanced firewalls and intrusion detection systems to monitor network traffic and identify suspicious activities, helping to prevent unauthorized access. 

Secure Physical Access to Devices

Limit physical access to devices containing sensitive information. Use locked cabinets for storing physical files and ensure that electronic devices are secured when not in use. 

Establish a Data Retention and Disposal Policy

Define data retention periods and implement secure disposal methods, such as shredding physical documents and securely wiping electronic devices, to prevent unauthorized access. 

Engage in Regular Internal Audits

Conduct periodic security audits to identify vulnerabilities and assess the effectiveness of existing security measures. Engage with IT professionals for comprehensive evaluations. 

Stay Informed About Emerging Threats

Keep abreast of the latest cybersecurity threats and trends by subscribing to reputable security bulletins and participating in industry forums. This knowledge enables proactive adjustments to your security strategies. 

Develop a Business Continuity Plan

Create a plan that ensures critical business functions can continue during and after a cyber incident. This includes identifying essential operations, resources required, and strategies for maintaining service delivery. 

Engage in Third-Party Risk Assessments

Evaluate the cyber security practices of third-party vendors and service providers to ensure they adhere to industry standards and regulations for data security.

Final Thoughts: Why Cybersecurity Is a Business Imperative for Law Firms

From ethical obligations to evolving cyber threats to law firms, modern legal practices face a growing number of digital risks. Yet, many firms still fall behind when it comes to data security.

Implementing a robust cybersecurity framework isn’t just about meeting regulatory requirements—it’s about protecting clients’ sensitive information, maintaining trust, and preserving your firm’s reputation.

By adopting these law firm cybersecurity best practices, and staying up to date with legal industry cybersecurity standards, you’ll position your firm as a modern, security-conscious practice clients can rely on.

Partnering with BD Emerson enhances your firm's cybersecurity posture, ensuring the protection of sensitive client data and compliance with industry regulations. Our expert consultants tailor solutions to your firm's unique needs, addressing vulnerabilities and fortifying defenses against evolving cyber threats. 

Contact us today to schedule a consultation and discover how our cybersecurity, technology consulting, and audit services can safeguard your firm's digital assets. ​

References:

1. American Bar Association. Cybersecurity TechReport 2023. https://www.americanbar.org/groups/law_practice/resources/tech-report/2023/2023-cybersecurity-techreport/
2. Clio. (2024, August 29). Data breaches and lawyers: Highlights from IBM’s 2024 report. https://www.clio.com/blog/data-breach-lawyers/
3. Integris. (2024, November 11). The hidden cost of cyber neglect: What clients really think about law firms, cybersecurity, and AI. https://integrisit.com/law-firm-cybersecurity-2025-report/
4. Martin, K. (2024, June 26). Law firm cybersecurity statistics. Tech Advisors. https://tech-adv.com/blog/law-firm-cybersecurity-statistics/
5. Quintana, V. (2024, August 20). Legal industry faces growing ransomware attacks and data breaches. Cyber Security Tribe. https://www.cybersecuritytribe.com/news/legal-industry-faces-growing-ransomware-attacks-and-data-breaches​
6. American Medical Association. (n.d.). HIPAA violations & enforcement. https://www.ama-assn.org/practice-management/hipaa/hipaa-violations-enforcement