US Legal Services Market Trends

Security Breach means the unauthorized access to clients' data by an unauthorized person that compromises the security, confidentiality, or integrity of client data. Ransomware attackers have made legal service companies increasingly appealing targets because of the nature of their operations. A lot of confidential company information and sensitive data including tax returns are collected by law firms and in-house legal teams as part of their corporate legal and M&A work, litigation, and other legal services. If the information collected is hacked, they risk losing their reputation and money, especially if data is leaked. Because they handle enormous amounts of sensitive client information, data, and money, law firms have been attractive targets for hackers in recent years. According to an American Bar Association survey, the number of law firms that experienced a cybersecurity breach in 2020 marked an uptick from the year prior. In fact, 29% of survey respondents suffered the fate compared to 26% in 2019. For example, the law firm Campbell Conroy & O'Neil P.C. was subject to a data breach on February 27, 2021. The firm became aware of unusual activity, then conducted an investigation and discovered it had unwittingly been a ransomware victim.

In May 2020, Grubman Shire Meiselas & Sacks, which offers legal services to the entertainment and media industries, acknowledged having experienced a ransomware attack. To exert pressure, the hackers leaked information involving Lady Gaga, who is a client of the law firm. They also threatened to release information involving other celebrities. The attackers asked for a ransom payment of USD 42 million to prevent the release of the documents to the public. The perpetrators originally asked for USD 21 million, then doubled their payment demand.