How to guard against cyber security fraud

How to guard against cyber security fraud

The events of the last month, involving the Information Commissioner’s Office (ICO)’s plans to fine British Airways and Marriott International a collective £280m for breaches of customer data, have invariably brought the GDPR compliance issue into a sharper perspective for large corporates.

The new GDPR regulations 2018 regulations brought a new age to the personal data debate and meant that many companies duly overhauled their customer data policies in line with requirements, with much of the regulation surrounding how data is stored, managed, processed and deleted. However, the data issue is further complicated by a recent considerable rise in cyber security, with law firms, in particular, a key target in this area. 

 

Cyber security: on the rise 

 

According to the Annual Law Firms’ Survey 2018 by PWC UK, cyber security is a key concern for 82% of the top 100 firms. 60% of the firms were also reported to have suffered a security incident in 2018 resulting in cyber security being a major concern for many law firms.

 

In Banking, new data released from banking trade body, UK Finance, revealed that incidents of online payment scams reached nearly 85,000 in 2018, with total losses of £354.3m. It was also revealed that in the second half of 2018, £209m was lost in bank transfer fraud, compared to the £145m lost in the first half of the year. Cyber attackers are able to use personal and financial data to defraud customers, and reroute transactions, by sophistically posing as government agencies like HMRC, or DVLA, or impersonating a banking site - all with access to their personal data to further validate their claims.

The amount of sensitive data handled by law firms makes them a prime target of cyber-attacks. Poor data management could lead to firms becoming vulnerable to threats such as bank transfer fraud, phishing scams, ransomware or data breaches, which allow for additional compliance risks. Furthermore, data collected through fraudulent means can be used many years after the event has taken place, and can be used to facilitate deception scams against companies and consumers, making them highly convincing and far more difficult to guard against.

As digital transformation continues to proliferate, law firms would be wise to look to key

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About the author:

Amy leads the thought leadership and content strategy for LexisNexis UK. Her work appears in marketing campaigns, in industry press and in legal trade magazines. She is an established creative writer and researcher, with her articles appearing in national publications, such as City A.M. and Financial IT. She is also one of the writers and digital editors of LexisNexis' insights blogs including the Future of Law, and the In-house blog.