Law Firms Paralyzed by Cyber-Attack on IT Provider
Law firms have long been warned about the dangers of cyber-attacks, but a recent incident has highlighted a new vulnerability in the war against hackers. CTS, an IT provider to dozens of law firms, was targeted in an attack last week that caused a crisis for conveyancing practices. As a result, completions were left uncertain.
CTS initially reported a service outage due to a “cyber incident.” After almost a week of silence, the IT provider announced that it had been working tirelessly with third-party experts to resolve the matter. While client services are now up and running, the restoration of client environments is taking longer.
Affected members of the public are advised to contact their legal firm for assistance. Many worried clients took to social media to express their frustration, with completion dates looming and no word on whether transactions would be completed. One client shared her limbo situation, with movers and time off work scheduled but no date for picking up the keys.
Even O’Neill Patient Solicitors, one of the country’s largest conveyancers, was impacted by the CTS outage and resorted to manual methods to complete deals. Chief executive Nick Hale expressed sympathy for those affected and assured that his team is doing everything possible to help.
While law firms face limited control in such situations, it doesn’t mean they can’t take steps to protect themselves. Peter Wright, from Digital Law, emphasized the importance of due diligence when selecting IT suppliers, comparing it to the level of scrutiny advised for serious transactions.
Cybersecurity expert Chester Wisniewski highlighted how cybercriminals target managed service providers like CTS, gaining a force multiplier effect in their extortion and ransom attempts. Wright further noted that many IT suppliers to law firms lack adequate security measures, as law firms often neglect due diligence when entering contracts. He suggested looking out for red flags such as missing website features or poor feedback ratings on review sites.
The Council for Licensed Conveyancers advises firms to protect themselves from cyber-attacks and have robust plans in place for dealing with the aftermath. Cyber insurance can provide the necessary specialist support during recovery.
The recent incident serves as a reminder that law firms of all sizes can fall victim to hackers. Even top-tier firm Allen & Overy experienced a system breach last month. Protecting against attacks on third-party providers adds another layer of complexity, but it is crucial to explore all avenues to mitigate risks and prevent clients from facing uncertain sales.