Best Practices for Law Firm Data Security in 2025
A comprehensive guide to protecting client data, implementing encryption, and maintaining compliance with cybersecurity regulations.
By Michael Clendening, Founder of EverIntent | October 30, 2025 | 10 min read
Executive Summary
According to the 2023 ABA Cybersecurity TechReport, 29% of law firms reported a security breach. In 2025, cybersecurity isn't optional—it's a professional responsibility under ABA Rules 1.1 (competence) and 1.6 (confidentiality). This guide covers the five critical security layers every law firm needs: encryption, multi-factor authentication, endpoint protection, employee training, and vendor due diligence.
Why Law Firms Are Prime Targets
Ransomware attacks on law firms increased 77% in 2024. Cybercriminals target law firms because they hold high-value data: client financial statements, trade secrets, intellectual property, protected health information, M&A documents, litigation strategy, and communications protected by attorney-client privilege. The average cost of a data breach is now $4.45 million.
The 5 Critical Security Layers
Layer 1: Encryption for All Client Data
Encryption transforms readable data into unreadable code. Encrypt data at rest (hard drives, cloud storage, backups) and in transit (email, file transfers, VPN). ABA Formal Opinion 477R explicitly mentions encryption as a reasonable safeguard.
Layer 2: Multi-Factor Authentication (MFA)
MFA requires two or more verification factors to access accounts. According to research, 99.9% of account compromise attacks can be blocked by MFA. Enable MFA on email, cloud storage, practice management software, banking, and legal research platforms.
Layer 3: Endpoint Protection Against Ransomware
Endpoint protection software monitors devices for malicious activity, blocks ransomware, and detects suspicious behavior. Essential features include antivirus, ransomware protection, firewall management, and automatic updates.
Layer 4: Security Awareness Training
95% of cybersecurity breaches involve human error. Train staff on phishing recognition, password hygiene, social engineering awareness, and incident reporting. Conduct quarterly phishing simulation tests.
Layer 5: Vendor Due Diligence
Verify that all third-party vendors have SOC 2 certification, data encryption, Business Associate Agreements for HIPAA data, clear data residency policies, breach notification procedures, and annual penetration testing.
Incident Response Planning
If breached, immediately isolate affected systems, preserve evidence, notify IT/security team, contact cyber insurance carrier within 24-48 hours, and notify law enforcement. Client notification is required "promptly" under ABA Model Rule 1.4, with specific timeframes under state data breach laws.