BLM partner and head of technology, media and telecoms, Tim Smith has commented on the recent data breach at Panama based Mossack Fonseca.
“The Law Society and other professional bodies have been warning firms of these types of threats and their potential consequences for a long time now. If professional advisers are to reduce the risks of a cyber attack, they need to ensure they need to have a clear understanding of the information they hold, where they hold it and ensure that the most sensitive information is the hardest to access. They also need to have strategies in place in case the worst should happen and it would be wise for them to have an insurance policy which covers them against this type of risk and which will provide the full range of support that they will need following this type of incident.
“Mossack Fonseca faces the prospect of claims from disgruntled customers following this breach, since many of them will have wanted to keep this sort of activity out of the public eye. Claims may include negligence, breach of data protection legislation and breach of confidence, especially if clients were assured that their names would remain confidential.
“All law firms are a target for cyber crime due to the nature and amount of sensitive data they deal with. In this case, Mossack Fonseca may have been even more of a target due to the nature of its work.”