• March 29, 2024
 Only 6% of Law Firms Protect Their Money Transfers

Only 6% of Law Firms Protect Their Money Transfers

Law firms are failing in their efforts to tackle the rising risk of cyber crime. Even with £millions continuing to be fraudulently redirected, with the associated reputational impact and knock on effect on professional indemnity insurance premiums, most law firms have not implemented even the most basic cyber security measures.

The research has been undertaken by a leading provider of risk management tools to the legal sector, Lawyer Checker.

In a series of insight articles we’ll review how firms are failing to implement simple cyber strategies that will protect their business, protect client funds, and communicate a cyber journey to PI insurers.

In our first two articles we considered the low take up amongst law firms of cyber security products Cyber Essentials and DMARC.

In our third article we consider the risks associated with money transfer fraud which in 2018 saw c.£11m of client money be compromised as a result of cyber fraud.

The national news continues to report on cases where law firms are infiltrated, bank details are altered and funds are redirected to criminal bank accounts. This happens when law firms are transferring funds between each other, and increasingly when remitting funds to clients.

While conveyancing is the highest risk area of law due to the amount of money that is being transferred in the course of a transaction, the risk is apparent where funds are being remitted to clients. This will include private client work like probate and family, and personal injury awards.

The advice from regulators it to have robust processes in place when remitting funds. There is no one size fits all solution and a combination of checks and balances must be in place.

In a survey undertaken by leading cyber risk management specialists Lawyer Checker just 6% of law firms adopted both the industry leading Account and Entity Screen law firm to law firm check alongside the law firm to client check, Consumer Bank Account Checker.

Account & Entity Screen provides lawyers with enhanced risk management when transferring funds by checking the account details of the solicitor you are sending funds to against Lawyer Checker’s unique database. The database determines whether the account you searched against has a track record of successful usage within conveyancing.

Consumer Bank Account Checker is not conveyancing specific and works by verifying the destination of the funds when it comes to transferring sale funds to customer bank accounts; adding a crucial step in your risk processes when it comes to remitting funds.

Start your cyber journey with Lawyer Checker today. Account & Entity Screen and Consumer Bank Account Checker can be used as part of your risk management processes when it comes to remitting funds.

For more information about our cyber risk products and services, and to find out about our packages, please contact us on 0800 133 7127.

This article was submitted to be published by Lawyer Checker as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.

Lawyer Checker

http://www.lawyerchecker.co.uk

Lawyer Checker Provider of market-leading risk management solutions to the legal sector. Lawyer Checker is a leading provider of risk management solutions to the legal sector, offering a full inclusive suite of products and services which have one thing in common – they are all designed to protect and to promote your firm. Our expert understanding of the legal sector means that we are in a unique position to ensure that your business is protected from the main threats without delay. We are committed to being proactive when it comes to caring for our clients, and to getting them onto a platform where they are safer. What does Lawyer Checker do? Our suite of fraud prevention and cyber security products include: Thirdfort Thirdfort is the latest in Lawyer Checker's innovative suite of products helping to defend law firms against the persistent threats lurking in the legal sector, by providing enhanced due diligence to source of funds and ID checks. It uses a mobile app to digitally confirm a client's identity by combining facial recognition technology with document scanning and open banking, enabling you to confidently “Know Your Customer." Find out more > Account and Entity Screen (AES) AES provides your firm with enhanced risk management when transferring funds by checking the accounts details of a solicitor you are sending funds to against our unique database. This ensures your client funds are sent to a legitimate bank account associated with the vendor’s conveyancing firm. Find out more > Consumer Bank Account Checker (CBAC) CBAC offers enhanced due diligence when remitting sales proceeds and balancing payments to consumers. It works by validating the source and destination of funds by checking the bank account details match your client’s personal details when sending or receiving client funds. Find out more > OnDMARC A vital layer in protecting against email modification fraud, OnDMARC can actively block phishing attacks and obstruct 3rd parties impersonating your email domain to any recipient such as your clients, suppliers or employees. Email fraud is a law firm’s biggest risk. To avoid sensitive data being stolen through email impersonation fraud, safeguard your firm by implementing OnDMARC, otherwise anyone can send an email directly to your customers, suppliers or employees pretending to be you. Find out more > Cyber Certifications The National Centre for Cyber Security has identified the legal sector as a top target for cyber criminals. The sensitive data, large sums of money and important information that is held needs protecting to avoid severe damage to clients and your reputation. Cyber Essentials Cyber Essentials is a ‘must have’ certification for law firms which will protect your business, prevents data breaches and highlights to your customers, your regulators, the ICO and cyber criminals that you take cyber security seriously and shows you have taken the recommended steps to secure yourselves from potential threats. Getting Cyber Essentials certification for your firm is quick and easy, our in-house expert Cyber Essentials Assessors at Lawyer Checker (Part of Practical Vision Network) can conduct your online assessment and issue your certificate in less than 48hrs. For only £350 plus VAT it will give you peace of mind that you have shielded your law firm from cyber risk. Cyber Essentials Plus Our professional in-house assessors can issue official certificates to compliant firms for Cyber Essentials Plus, which is the next step up from Cyber Essentials. It covers the same controls but this time it is independently verified by a site visit from our expert assessor who will carry out a thorough inspection of online devices and web hosts through a detailed network vulnerability scan and certify your security arrangements to Cyber Essentials Plus level. IASME Governance Our expert in-house assessors can issue official certificates to compliant firms for IASME which includes Cyber Essentials certification along with a GDPR readiness assessment. It signifies to your customers and shareholders that you consider data protection a priority, and your desire to manage risk by demonstrating a high level of security. This certification is particularly suitable for businesses that are working towards ISO27001 and want a stepping stone, or for those that want to align to ISO27001 but perhaps don’t have the budget to go to a full certification. ISO 27001 Our expert in-house consultants will help your firm prepare for ISO 27001 certification audits. It is internationally recognised as the most comprehensive and detailed accreditation to help embed a healthy security culture within your business. The consultation focuses on all business areas and not just the IT department. Our execution experts can work with you to implement ISO27001 in a way that works for your business and can provide as much or as little support as you need from project plans, document templates to full implementation. Our professional assessors can even help you to book and prepare for your certification audits. To safeguard your business, use Lawyer Checker’s comprehensive products and services to arm you and your law firm with the right tools and information to be able to obtain the assurances you need to act in the best interests of your clients. Key contacts: Heidi Jenkins Key Relationship Manager at the Practical Vision Network including Lawyer Checker, Solve Legal Marketing and The Move Exchange. M: 0330 052 7588 E: heidi.jenkins@practicalvision.co.uk Mark Siwiec Business Development Manager (Cyber) at the Practical Vision Network including Lawyer Checker, Solve Legal Marketing and The Move Exchange. M: 03300529150 E: mark.siwiec@practicalvision.co.uk Address Suite 4, Wright House, 67 High Street, Tarporley, Cheshire, CW6 0DP