Originally published in the ACBA Lawyers Journal on March 7, 2025.
Protecting your firm’s and your clients’ information is always at the forefront of your mind, especially as communications and file storage have moved to digital and cloud-based solutions. When the ABA 2023 Cybersecurity TechReport asked, “Has your firm ever experienced a security breach (e.g., lost/stolen computer or smartphone, hacker, break-in, website exploit)?” 29% of firms answered yes.
An ever-evolving landscape of legal tech laws and regulations has emerged to combat these threats. This means that keeping your firm’s data secure is not just a good business practice. It is the law. Non-compliance can lead to hefty financial penalties, ethical dilemmas, reputational harm, and legal exposure. Although keeping up with compliance requirements can be challenging, implementing some cybersecurity recommendations and practical strategies can make it one of your firm’s strong suits.
Stakes of Non-Compliance
Failing to meet IT compliance standards in the legal sector can have severe consequences. As in any aspect of legal work, failure to maintain client confidentiality can result in ethical breaches, severely damaging your firm’s reputation and client trust. On top of that damage, failing to comply with data protection laws can lead to substantial regulatory fines.
Data Protection Regulations
Legal firms must comply with various data protection regulations to ensure the security and privacy of client information. Key regulations include:
- General Data Protection Regulation (GDPR) This European Union regulation applies to all businesses processing the personal data of EU residents. GDPR mandates data protection measures, including explicit user consent, data breach notification, and the right for individuals to access or delete their personal data.
- California Consumer Privacy Act (CCPA): This US law grants California residents the right to know what data is collected on them, request deletion of the data, and opt out of its sale. It also requires businesses in California to provide clear data policies and privacy disclosures and respond to consumer data requests.
- Health Insurance Portability and Accountability Act (HIPAA): This federal law governs the security of sensitive patient health information, establishes safeguards to prevent access, and requires reporting of any breaches.
- Fair Credit Reporting Act (FCRA): This federal law regulates how consumer credit information is collected, used, and shared and protects consumers against unfair credit practices. It allows consumers to access their credit reports, dispute any errors, and limit who can view their credit information.
- SHIELD Act This New York state law mandates data protection programs, employee training, and incident response measures for all businesses that handle the personal information of state residents.
- State Data Breach Notification Laws: Each U.S. state has its own data breach notification regulations, which require businesses to notify affected individuals in case of a data breach.
- 73 Pa. Stat. § 2301 et seq. Pennsylvania’s data breach notification law outlines businesses’ obligations to notify commonwealth residents if their personal information has been compromised.
Cybersecurity Standards
To protect against cyber threats, legal organizations must also adhere to established cybersecurity standards such as:
- ISO 27001: An international standard for managing information security, initially published in 2005 and revised in 2022. It provides a framework for securing digital assets, mitigating risks, and establishing ongoing security improvements.
- NIST Cybersecurity Framework: These guidelines from the National Institute of Standards and Technology (NIST) help users identify, protect, detect, respond to, and recover from cybersecurity threats. While this framework is used across many industries, it is particularly beneficial for legal organizations.
Ensuring Compliance
Understanding the laws and regulations is only the first step. Next, it is critical to implement policies, review your current IT infrastructure, train staff, and partners, and conduct regular audits.
Develop a Data Protection Policy
Creating and enforcing a comprehensive data protection policy ensures that a legal firm adheres to necessary compliance standards. This includes data handling procedures, clear document storage, archival, and disposal policies. It is also critical to outline security controls and protocols to follow in response to a data breach. All of these policies and protocols should be reviewed and updated regularly as legal requirements and technology evolve.
Leverage Technology
Technology plays a crucial role in IT compliance. Implementing secure document management systems, encrypted communication channels, and access control mechanisms enhances data security. Additionally, using compliance management software can streamline regulatory adherence by automating audits, monitoring compliance status, and alerting firms to potential risks. As you purchase and implement new technology solutions, it is important also to vet service providers and choose those that implement strong data storage and transmission security measures.
Training and Awareness
Employee training is essential to prevent security breaches caused by human error. Compliance training programs educate staff on cybersecurity risks, IT policies, and best practices, reducing the likelihood of violations. Many insurance providers require compliance training as part of coverage.
Regular workshops, simulations, and updates on new threats help maintain a high level of awareness among employees. For instance, KnowBe4 is a phishing and security awareness training program whose Compliance Plus product can train your team in regulatory compliance. It provides engaging and consistently updated content on legislative and data privacy requirements. What’s more, you can also incorporate policies and procedures unique to your firm or clients.
Conduct Regular Security Audits
Routine security audits help firms identify vulnerabilities and address compliance gaps. These audits should be internal to your firm and include conducting security audits on IT vendors and software providers to ensure they comply with data protection regulations. They assess network security, data encryption standards, and compliance with industry regulations. Regular penetration testing and vulnerability assessments ensure systems remain resilient against cyber threats.
IT compliance is integral to maintaining trust, protecting sensitive information, and mitigating legal risks. By adhering to regulatory requirements and implementing strong security measures, your firms can enhance their cybersecurity posture, safeguard client confidentiality, and uphold professional and ethical standards.
A strong IT consulting firm, like FSA Consulting, can help you assess your needs, develop and implement a custom compliance plan, and provide ongoing support and training.