Legal Firm Survey: Cybersecurity

By admin - April 5, 2018

Pitcher Partners recently conducted our fourth annual Legal Firm Survey. The survey was designed to gain further industry insight and to help firms make informed decisions during times of rapid change.

Download the full report here.

Law firms appear to be under-prepared for cyber-attack

With cybercrime now the number one economic crime in Australia, organisations of all sizes, across all industries, are falling victim to data breaches. As legal firms hold, or have access to, intellectual property or commercially sensitive information regarding their clients, it is inevitable they will be targets of cyberattacks. Firms must prepare for “cyber threats” and ensure robust preventative measures are in place and kept up to date to keep their data, and their clients’ data, safe and secure.

A number of recent cybersecurity attacks on law firms have forced firms to confront these realities. Despite this, only 13% of our survey respondents said they had a disaster recovery plan in place in the event of a cyberattack. This suggests the legal profession is still playing catch up with other industries when it comes to cybersecurity. Whilst large firms are doing a lot of work to protect themselves, smaller law firms may not have the resources or general awareness to tackle the threat.

As of 22nd of February 2018, organisations with a turnover of $3 million or more fall within the scope of the new Privacy Act measures requiring mandatory notification of cybersecurity breaches. 

Under the new laws, in the event of a breach, firms must demonstrate how they have complied with the relevant legislation and taken reasonable steps to protect the firm’s data and systems. Penalties of up to $1.7 million for companies, and $340,000 for individuals may be payable for non-compliance of new Privacy Act measures. These penalties do not include the cost of reparation for clients impacted by the breach. Firms should therefore evaluate their cybersecurity policies and incident reporting mechanisms to ensure they meet their obligations under the Privacy Amendment (Notifiable Data Breaches) Act 2017.

Download the full report here.


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IN THIS SECTION:


Rob Southwell

Sydney

Managing Partner and Partner – Private Clients Group


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John Brazzale

Melbourne

Partner and National Chairman


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Michael Minter

Newcastle

Managing Partner


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Bryan Hughes

Perth

Chairman


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Tom Verco

Adelaide

Managing Principal - Private Clients


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Ross Walker

Brisbane

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