The High Cost of Data Breaches for Law Firms 

The High Cost of Data Breaches for Law Firms 

The threat of cyber incidents has evolved rapidly — and law firms are increasingly in the crosshairs. With the volume of sensitive personal and corporate data they hold, even a minor lapse in security can have major consequences. 

From regulatory fines to reputational damage, the cost of a data breach can be catastrophic, both financially and operationally. 

Law firms have become key targets for cybercriminals. A recent report on ICO data, analysed by data breach law firm, Hayes Connor, revealed that the legal sector was one of the worst performing sectors in relation to data breaches. 

The research revealed that nearly 90% of incidents in the legal sector involved breaches of personal identifiable information, as well as some cases involving sensitive economic and financial data. 

What is a Data Breach? 

A data breach is a security incident in which authorised individuals gain access to sensitive or confidential information, such as personal or corporate data, as a result of a lapse in security measures. These lapses are often exploited through hacking or become apparent through human error.  

Put simply, it’s when private information is accessed by those who shouldn’t have access to it. 

Common breach methods include phishing emails, malware, ransomware, or even something as simple as leaving client files on a train. Whether malicious or accidental, the result is the same: your organisation is left exposed. 

The Impact of Breaches on Your Organisation 

Reaction and Response Costs 

Responding to a breach isn’t cheap. You may need to engage IT specialists, cybersecurity consultants, legal advisors, and PR professionals — all to contain the breach, assess the damage, notify affected parties, and restore trust. 

Regulatory Fines and Penalties  

Under UK data protection law, fines for serious breaches can reach £17.5 million or 4% of annual global turnover - whichever is higher. While maximum fines are rare, the financial hit from even a moderate breach — particularly if compliance measures were lacking — can be significant. 

Reputational Damage 

Loss of client trust is perhaps the most damaging long-term consequence of a breach. Clients expect their data to be handled with care — especially when it involves highly sensitive legal matters. Breaches can also bring about internal disruption – have there been employees affected by the breach? Are they leaving the organisation and are you able to replace them with equally talented replacements? 

Case Studies: 

Advance Computer Software Group Limited 

Most recently, in March 2025, Advance was fined £3.07 million by the ICO following a ransomware attack that compromised the personal data of over 79,000 people. The breach affected critical healthcare systems, including NHS 111 and other healthcare staff were unable to access patient records. Advanced’s key failing was the lack of MFA on a customer account, where hackers were able to access certain systems from. 

DPP Law 

In 2025, DPP Law incurred a £60,000 fine after details of 682 clients and confidential information relating to 109 experts were accessed and exposed by cyber criminals.   

The firm only became aware of the data breach after it was contacted by the National Crime Agency. However, they failed to notify the ICO of the breach until 43 days after the attack, which took place in June 2022.  

When considering its enforcement action, the ICO did not believe that DPP acted intentionally in committing the breaches, but they were “negligent in character.” 

Where LOCS:23 comes into play: 

As the first and only ICO-approved GDPR certification scheme tailored specifically to the legal sector, LOCS:23 offers a clear, structured framework for identifying and mitigating vulnerabilities — before they’re exploited. 

  • Demonstrate accountability: Certification shows that you take your data protection obligations seriously and meet the high standards expected by clients, regulators, and partners. 
  • Reduce regulatory risk: Achieving LOCS:23 can help minimise the severity of fines or enforcement action by proving that reasonable measures were in place — a key factor in ICO investigations. 
  • Improve internal resilience: The certification process identifies gaps in policies, training, and systems, helping organisations build stronger internal processes and response capabilities. 
  • Reassure clients: In an increasingly privacy-conscious market, having a recognised certification gives clients confidence that their data is in safe hands. 
  • Protect reputation: Prevention is always better than damage control. Certification significantly reduces the risk of incidents that could undermine your credibility. 

Interested in starting your LOCS:23 journey? 

Our in-house barristers are LOCS:23 consultants with extensive experience helping clients prepare for and pass the certification.  

As a team of LOCS:23 specialists, we have a proven track record of success, assisting 36 Group and guiding other clients like 30 Park Place and Muckle LLP to a successful LOCS:23 certification.   

We have also undertaken the certification ourselves, successfully achieving LOCS:23 certification as a legal services supplier. This firsthand experience gives us unmatched insight into the requirements, challenges, and best practices needed for success.   

Get In Touch

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