Protecting Law Firm Client Confidentiality With an MSP
Nearly 90% of small law firms lack dedicated IT staff despite the sensitive client data they manage.
Managed service providers can fill in that void and protect law firm client confidentiality through security tools such as encryption and MFA while also helping satisfy regulatory compliance requirements.
Because in the legal industry, confidentiality is everything.
In this post, we’re breaking down the major threats law firms face in keeping client data secure, and how an MSP can help keep that data between just them and their clients.
Key Takeaways
- Law firms handle massive amounts of sensitive client data, making them an attractive target for cybercriminals.
- Phishing, business email compromise, and ransomware can all put confidential client information at risk.
- Unmanaged AI use can create another avenue for sensitive data to accidentally leave the firm.
- An MSP can help protect client data through access controls, encryption, MFA, 24/7 monitoring, and more.
- MSPs can also help law firms meet their cybersecurity and compliance requirements.
Client Confidentiality Is Key
Law firms hold an immense amount of sensitive information. Personally identifiable information (PII), emails, phone logs, financial reports, meeting notes, and much more form the backbone of how a legal firm does business. It’s also why the legal industry is such a highly regulated industry – to enforce proper protections so sensitive data doesn’t fall into the wrong hands.
Because if that data gets out, either through internal negligence or a cyberattack, it’s the law firm that will have to pay the price.
Cybercrime Targets Your Data
According to the American Bar Association’s latest tech report, nearly 30% of law firms have reported a data breach, and smaller firms with 10-49 employees are more likely than larger firms to be hit.
That’s a statistic you do not want to be a part of.
Here are the most common forms of cyberattacks that target law firms.
Phishing
Accounting for roughly 30% of cybersecurity incidents, phishing is a serious issue for law firms of all sizes. Smaller law firms – the ones without dedicated cybersecurity staff – typically face more challenges when it comes to defending against these attacks.
Without a dedicated team to implement proper email filtration and authentication, phishing emails have a much higher chance of slipping into employee inboxes. And there’s a good chance many of these employees lack the cyber awareness training needed to help them spot these malicious emails.
Business email compromise (BEC)
This is when a bad actor uses a compromised email to trick others inside a business into sending sensitive information, including client and financial information.
Without defenses like multi-factor authentication, these attacks become far more likely.
For example, an employee may get an email from someone who appears to be their boss asking them to send over information regarding a client’s case, when in actuality, it’s a bad actor attempting to steal that data.
Ransomware
Ransomware has consistently remained a threat for nearly every industry out there, and it’s no different for law firms.
Ransomware can lock down critical client data until companies fork over exorbitant fees, with ransom demands ranging from $30,000 to as high as $21 million.
In the case of a small law firm, this type of payment can be devastating, and the resulting reputational damage can be equally so.
Compliance Regulations Bring Repercussions
Data privacy and security requirements can vary depending on where a law firm operates and what information it handles. Laws include the California Consumer Privacy Act (CCPA) and New York’s SHIELD Act.
Then there are additional requirements based on the type of data handled. For example, a firm handling protected health information must adhere to HIPAA obligations, while attorneys are obligated to prevent unauthorized access to client information under ABA Model Rule 1.6.
Compliance regulations are designed to keep client data safe and secure. The thing is, if a law firm is unable to uphold those regulations, they risk facing legal, financial, and reputational repercussions.
For example, violating the CCPA can cost businesses up to $2,663 for each unintentional violation as of 2025. And violations of professional conduct rules can lead to suspension or disbarment depending on the jurisdiction and circumstances.
Unmonitored AI Use Can Accidentally Expose Data
According to a survey conducted by the Federal Bar Association, 31% of individual legal professionals use generative AI at work.
While AI is an incredibly powerful tool, without guidelines, it can accidentally lead to the exposure of your data. That’s because many employees don’t recognize the risks when putting sensitive data into open-source AI tools such as ChatGPT or Claude. When sensitive data is entered into an AI tool, that data can be stored without your firm’s knowledge, exposing data and leading to potential confidentiality problems.
How an MSP Helps Protect Client Confidentiality
When your law firm partners with an MSP, you get far more than just IT support. You also get a team of dedicated security experts who constantly monitor your systems for risks to your business and clients.
Here are just some of the ways your firm can benefit from an MSP partnership.
They Help Secure AI Use
Controlling AI use is critical for mitigating accidental data exposure, and an MSP can help in two major ways: creating a proper AI policy and cleaning your data for AI use.
An AI policy helps outline exactly the kinds of AI tools that are okay to use in your company, what is allowed to be entered into those tools, and who is allowed to use them. An AI policy offers much-needed guardrails on what can otherwise be an AI free-for-all, limiting the chances that your sensitive client data gets leaked into the wild because an employee didn’t recognize the data as sensitive.
An MSP can also help establish proper data governance practices that dictate what data AI tools can access, so it doesn’t accidentally share information it shouldn’t have.
They Provide Better Access Controls
One of the best ways an MSP can help properly safeguard your data is through strict access controls and role-based permissions.
By setting exactly who has access to what, you limit someone accidentally opening or gaining access to a file they really shouldn’t.
There are even security policies such as Zero Trust security, which further add strict access controls by treating everything as potentially suspicious until proven otherwise – whether that’s an internal employee or an outside bad actor.
That way, everything stays nice and organized and, more importantly, safe.
They Encrypt Your Data
Encryption works by sealing your data with a secret code that only those with the proper decryption key can access – people you specifically designate in your business.
That way, your emails and documents stay protected without the risk of a bad actor gaining access or seeing the systems.
They Provide Better Cybersecurity Tools and Training
A pillar of securing your technical environment is strong antivirus software and identity verification tools like MFA.
MFA alone can stop 99.9% of account compromise attacks, significantly cutting down the risk of attacks that rely on stolen login information.
A good MSP can also provide your employees with regular cybersecurity awareness training so they can better learn how to spot potential cyber threats, keeping your data secure.
Keep Your Data Between You and Your Clients
The only people who should have access to your data are you, your clients, and the security experts you trust to keep that data under lock and key.
Experts like The 20 MSP.
The 20 MSP has been helping law firms stay cybersecure for years, implementing everything from MFA to encryption and AI governance. And that’s all for a flat-rate, predictable monthly fee, because the bill should never be a source of stress either.
If you’re a small law firm looking for a bit of help securing your data, let’s talk. We’d love to see how we can help.
FAQ
What Cybersecurity Threats Do Law Firms Face?
Law firms can face a variety of cybersecurity threats, including phishing, business email compromise, ransomware, and accidental data exposure through AI tools. Because law firms handle large amounts of sensitive client information, a successful attack can put both the firm and its clients at risk.
How Can an MSP Help Protect Law Firm Client Data?
An MSP can help law firms protect client data through security measures such as multi-factor authentication, encryption, role-based access controls, cybersecurity software, and 24/7 monitoring. They can also help establish security policies and data governance practices that reduce the risk of unauthorized access.
How Is AI Use Dangerous for Law Firms?
AI can create a data security risk when employees enter sensitive client information into AI tools without understanding how that data may be handled. A clear AI policy and proper data governance can help law firms establish guardrails around what employees can enter into AI tools and what information those tools can access.
Do Law Firms Need an MSP for Cybersecurity?
Not necessarily, but an MSP can provide law firms with access to dedicated IT and cybersecurity expertise without requiring them to build an entire internal team. This can be particularly useful for smaller firms that may not have the resources to manage their cybersecurity needs on their own.
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About The 20 MSP
As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, including single and multi-location organizations, delivering white-glove service, secure and streamlined IT infrastructure, and 24/7/365 support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth.
