SRA Raises Concerns Over Cyber Crimes Against Solicitors
“Cybercrime remains a major risk for all law firms – it’s the fastest-growing crime in the country. Law firms handle large amounts of client money and sensitive information, and that makes them an attractive target”.
SRA chief executive Paul Philip: 13 April 2021
The Solicitors Regulation Authority (SRA) have raised the subject of the high potential for cyber-crime attacks on law firms in a recent missive on adequate insurance cover for legal practices.
It cannot be denied that the use of IT technology and the reliance on electronic data within the professional business environment has expanded exponentially in recent years. The legal profession has not been immune to this, with more electronic communication exchange, including document and client funds transfers. It is estimated that cybercrime caused £2.5m of reported losses to law firms in the first half of 2020 alone.
The SRA are seeking clarification from the insurance market on the issue of loss of client monies through cyber related losses but have also highlighted the wider range of exposures that solicitors face – and the insurance covers they should consider.
Your Professional Indemnity insurance (“PII”) policy may provide protection for negligent acts including client losses caused by a cyber-attack – but there remains a much broader scope of cyber related incidents that your PII will not cover.
Cyber liabilities describe the risk exposures to a legal firm which arise from the use of their computer network, the internet, data storage and any electronic data exchange (email).
Cyber insurance is designed to help an organisation manage and control the impact of a cyber-attack or from a data breach and is designed to get it back to business as quickly as possible.
If you have any concerns about your possible vulnerability to a cyber-attack, please contact Cox Mahon to discuss how Cyber Insurance can offer peace of mind and support.