3 Ways Small Firms Can Protect Against Cyberattacks
3 Ways Small Firms Can Protect Against Cyberattacks
Without cybersecurity protocols, solo practitioners and small firms are vulnerable to cyberthreats.
Cybersecurity firms often overlook the needs of small businesses and instead focus on large enterprises with substantial IT budgets. Major IT service providers are disconnected from the needs of the solo attorney drafting contracts from a home office, the clinic storing patient records on a shared computer, or the accountant managing the financial data of multiple clients without dedicated IT staff. These professionals are low-hanging fruit for hackers, and without cybersecurity protocols, they are equally, if not more, vulnerable to cyberthreats.
While these professionals have small IT budgets and limited IT support, with the help of an IT service provider, they can adopt essential cyberhygiene practices, enabling them to guard against cyberthreats without an internal IT team.
The threat is growing for solo practitioners
Legal, healthcare, accounting, and consulting professionals often handle highly sensitive client data that is attractive to cybercriminals. The percent of law firms reporting a cybersecurity breach increased from 25 percent in 2021 to 27 percent and 29 percent in 2022 and 2023, respectively, according to the ABA Legal Technology Report.
There has been a 300 percent increase in cyberattacks on accounting firms since 2020, according to the Texas Society of CPAs. The finance sector, which includes accounting firms, was the most breached industry in 2023, according to Kroll, a risk and financial advisory firm.
Healthcare providers are also targeted by cybercriminals. There have been 819 breaches reported of unsecured protected health information affecting 500 or more individuals in the last 24 months, according to the U.S. Department of Health and Human Services Office of Civil Rights.
These threats are real and can have a financial impact on practitioners. In November 2024, the Florida-based law firm Gunster settled for $8.5 million following a data breach that compromised the personal and health information of nearly 10,000 individuals. Many leading firms, such as Orrick, Herrington & Sutcliffe, and Bryan Cave Leighton Paisner, have also faced multimillion-dollar settlements due to similar breaches affecting hundreds of thousands of records.
These incidents highlight the increasing rise in cyberattacks targeting businesses that manage sensitive information. They demonstrate that no organization is too small to be vulnerable. The financial consequences of these attacks can be devastating and demonstrate why businesses need to prioritize their cybersecurity measures like never before.
For solo practitioners, a successful phishing attempt or an overlooked vulnerability can result in a catastrophic exposure of confidential client information, lead to regulatory fines, and damaged reputation. Here are three ways to protect your firm’s data from cybercriminals.
1. Enable multi-factor authentication
Cyberhygiene starts with basic best practices, such as enabling multi-factor authentication (MFA) on all accounts to prevent unauthorized access and leveraging password managers to generate and store strong passwords.
Emails attract hackers the most, and compromised emails pose significant risks to professionals handling sensitive transactions. For example, a law firm we assisted sidestepped a $25,000 wire fraud incident due to our recommended verification protocols. Without effective defensive measures, both the funds and client trust would have been at risk. Doctors’ offices and accounting firms face phishing schemes disguised as insurance verifications or regulatory updates by introducing ransomware or stealing login credentials. Training professionals to identify these threats should be a top priority.
2. Secure devices and cloud systems
Professionals rely on laptops and smartphones but they frequently neglect vital protections like encryption and automatic screen locks. An unencrypted, stolen laptop poses a serious risk. Both Windows and macOS provide built-in encryption that should always be enabled. Data backup is also essential.
Follow the 3-2-1 rule: Maintain three copies of your data, use two different storage types, and keep one copy offsite or in the cloud. One of our healthcare clients was able to successfully recover from a ransomware attack without making a payment because they backed up, segmented, and secured their data.
Cloud tools are convenient but require secure configuration. Many users wrongly assume these platforms are safe by default but they lack MFA, role-based access, and audit logs. We have assisted many small firms in properly configuring their systems to avoid costly mistakes.
3. Navigate compliance requirements
Like any organization, professionals are also obligated to adhere to cybersecurity compliance requirements, whether its HIPAA for doctors, the ABA’s model rules for lawyers, or IRS and FTC regulations for accountants.
Compliance can often intimidate professionals; however, IT service providers can help make it easier to adopt and integrate compliance requirements with office processes by establishing secure client portals, implementing encrypted email solutions, and creating straightforward incident response plans.
One of our leading examples is a case study of a consultant who recently secured a half-million-dollar contract, after demonstrating compliance with the NIST Cybersecurity Framework. They didn’t need a massive IT overhaul but an intelligent alignment with best practices facilitated by our team.
Cyberhygiene provides a strategic advantage
Robust cybersecurity extends beyond mere protection and focuses on building trust. Clients anticipate that professionals will safeguard their data with the same seriousness as major corporations. Professionals who show dedication to this cause tend to gain greater confidence and often draw in more valuable clients.
Maintaining good cyberhygiene boosts credibility, whether through client portals, preparing for compliance, or demonstrating to clients that security is essential.
A trusted IT partner makes all the difference for professionals who lack the resources, time, or knowledge to implement all this independently.
Staying focused
With all that is being required of you and your management team, in order to keep the lights on and manage your day to day business, who is making sure your customer service required deliverables are being followed on a regular basis? We are here to help monitor your service standards so that you and your managers are connecting with your individual business communities to market your brand and promote your services. Give us a call, we can help.
BY ALI DHOON AND CARL PHILLIPS
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