Law firm data security in spotlight after Mossack Fonseca leak
Experts have warned that law firms need to ‘up their game’ on data security after millions of documents were leaked from Panama offshore firm Mossack Fonseca.
With some 11.5 million documents leaked, the ‘Panama Papers’ scandal is reportedly the biggest ever data breach and calls into question the ability of law firms to protect clients’ data.
The effects of the leak are already being felt, with Iceland’s prime minister Sigmundur Gunnlaugsson having resigned after documents revealed he owned an offshore company with his wife but had not declared it when he entered parliament. The leak also reveals information on the offshore fortunes of individuals associated with Russian president Vladimir Putin.
Benedict Hamilton, Europe, Middle East and Africa managing director of risk consultant Kroll Experts, said that much more still needs to be done by firms to protect private data.
‘No company can totally protect itself against an employee abusing trust, but there are things you can do that make it harder for people to leak documents.’
The Panama papers leak comes after reports that nearly 50 prominent law firms were targeted by cybercriminals aiming to hack into their systems to gain information for insider trading.
As a result of the leak, private client partners agree clients will have questions around the security measures firms have in place.
‘I’m sure there will be clients who are worried – they will read about it and wonder,’ commented one.
‘We and other law firms constantly review whether we are as protected as we can be from hacking but any email is potentially disclosable … Everyone is vulnerable and if you have got a rogue employee, that’s just life.’
Another private client partner added: ‘The best protection is to make sure you are not acting for people who have laundered money in Panama.’
Source: Global Legal Post
