Mid-sized law firms are under increasing pressure to strengthen cybersecurity practices as client expectations, cyber insurance requirements and regulatory scrutiny continue to rise. At the same time, firms are managing growing volumes of sensitive data across hybrid work environments, cloud platforms and distributed teams, often without dedicated internal security resources.
That combination has made law firms increasingly attractive targets for ransomware, business email compromise (BEC), credential theft and other forms of social engineering.
According to the FBI’s Internet Crime Complaint Center (IC3), cybercrime losses exceeded $16 billion in 2024, with business email compromise remaining one of the most financially damaging attack types. IBM’s 2025 Cost of a Data Breach Report found that the global average cost of a data breach reached $4.44 million, while organizations in the United States faced significantly higher costs.
For law firms, a cybersecurity incident can quickly become a client trust issue, a business continuity issue and, in some cases, a regulatory or ethical issue.
Why Law Firms Continue to Face Elevated Risk
Increasingly, attackers are targeting business processes rather than technology vulnerabilities, using impersonation and social engineering to exploit trust, urgency and routine decision-making. For law firms, the risk is not simply the exposure of sensitive data, but the downstream impact a compromised account or fraudulent transaction can have across clients, matters and business operations.
At the same time, clients, cyber insurance carriers and outside counsel guidelines are placing greater scrutiny on how firms manage cybersecurity risk, incident response and operational resilience. Security questionnaires and vendor assessments that were once primarily associated with large enterprises are now becoming more common across the mid-market legal space.
The American Bar Association has continued to emphasize technology competence and cybersecurity awareness through its ethics guidance and legal technology resources, reinforcing the expectation that attorneys understand the risks associated with the systems and platforms they use every day.
Business Email Compromise Remains One of the Most Significant Threats
One of the most financially damaging risks facing law firms today is business email compromise, or BEC. Unlike traditional phishing attacks, BEC schemes typically rely on impersonation and social engineering rather than malware. Attackers pose as attorneys, firm leadership, vendors or clients to convince employees to transfer funds, change payment information or share sensitive data, often without using malicious links or attachments at all.
The FBI continues to identify BEC as one of the costliest cybercrime categories globally. Law firms are particularly vulnerable because they frequently handle:
- Wire transfers
- Trust and IOLTA accounts
- Real estate transactions
- Settlement payments
- Time-sensitive financial activity
Unlike ransomware attacks, which often create immediate operational disruption, BEC attacks can succeed quietly and result in direct financial loss before a firm realizes anything is wrong.
Strong wire verification procedures remain one of the simplest and most effective ways firms can reduce financial fraud risk.
Ransomware Has Become More Personal
Ransomware attacks against law firms increasingly involve “double extortion” tactics, where attackers not only encrypt systems and disrupt operations, but also steal sensitive data and threaten to release it publicly if ransom demands are not met.
For law firms, the exposure often extends beyond downtime. Confidential client communications, litigation documents and privileged information can quickly become part of a much larger legal, regulatory and reputational issue.
Several high-profile law firm breaches and settlements have reinforced how quickly cybersecurity incidents can escalate into broader business and client trust issues.
Weak Identity Security Continues to Create Exposure
Many successful attacks begin with compromised credentials. Weak passwords, inconsistent multi-factor authentication enforcement and shared accounts continue to create unnecessary risk for firms of all sizes.
Rather than targeting perimeter defenses alone, attackers increasingly focus on user identities, approval workflows and trusted communication channels to gain access to systems and financial processes.
Common gaps still seen across law firms include:
- Inconsistent MFA usage
- Shared administrative accounts
- Legacy remote access configurations
- Poor password hygiene
- Excessive user access permissions
Cybercriminals are also becoming more aggressive in bypassing MFA itself. Some threat groups impersonate internal IT personnel or repeatedly trigger MFA prompts in hopes that distracted employees will eventually approve them.
Why Technology Alone Is Not Enough
One of the biggest misconceptions around cybersecurity is that the right software alone will solve the problem. In reality, effective cybersecurity depends just as much on operational discipline, user awareness and clear internal processes as it does on security tools themselves. Security tools are important, but they are far more effective when paired with:
- Ongoing employee awareness training
- Clear policies and workflows
- Leadership support
- Incident response planning
- Accountability across the organization
Human error continues to play a major role in cybersecurity incidents across industries. Verizon’s 2025 Data Breach Investigations Report found the human element remains involved in the majority of breaches.
In legal environments where urgency and multitasking are constant, even well-intentioned employees can make costly mistakes. Firms that treat security awareness as an ongoing operational discipline, rather than an annual compliance exercise, are generally better positioned to identify and respond to threats quickly.
Why Many Law Firms Are Still Unprepared to Respond
Prevention is important, but response readiness matters just as much. Many firms still lack a well-defined incident response plan, which can create costly delays during a cybersecurity event. Without clear processes in place, firms are often forced to make operational, legal and client communication decisions in real time while the incident is still unfolding. The earlier an incident is identified and escalated, the more options a firm typically has to contain damage and recover effectively.
A strong incident response plan should address:
- Internal roles and responsibilities
- Communication procedures
- Legal and compliance considerations
- Forensic response coordination
- Backup and recovery planning
- Business continuity procedures
Preparedness often determines whether an incident becomes a manageable disruption or a long-term crisis.
Practical Steps Law Firms Can Take Now
Law firms do not need massive internal security teams to strengthen cybersecurity posture. In many cases, consistent operational improvements can significantly reduce risk. Some of the most effective steps firms can take include:
- Enforcing multi-factor authentication across email, cloud applications, remote access systems and financial platforms
- Implementing strong wire verification procedures for payment requests, banking changes and financial approvals
- Reducing credential-related risk through password managers and the elimination of shared accounts
- Conducting ongoing security awareness training and phishing simulations
- Developing and regularly reviewing incident response and business continuity plans
- Encouraging employees to report suspicious activity immediately, even if they are unsure whether an incident has occurred
Cybersecurity Is Now Part of Client Trust
For law firms, cybersecurity has become far more than a technology issue. Clients, insurers and business partners increasingly expect firms to demonstrate operational maturity, clear security practices and the ability to respond effectively when incidents occur.
At the same time, many of today’s most damaging attacks are exploiting routine business processes, trusted communication channels and moments of urgency rather than sophisticated technical vulnerabilities alone.
The firms that manage this risk most effectively are often not the firms with the most technology, but the firms with clear processes, informed users and leadership teams that view cybersecurity as part of client service and business continuity.
As cybersecurity expectations continue to evolve across the legal industry, preparedness, communication and operational discipline are becoming just as important as the technology itself.
Frank Mariello is VP of Legal Services at Afinety, where he leads cybersecurity, cloud and technology strategy for law firms. With more than 25 years of IT experience, including more than two decades focused on the legal industry, he brings a practical, law firm-centered approach to technology and security. Read more about Frank.