Sparke Helmore Lawyers discuss cyber-security

Firms need to gear up in the fight against cyber crime

By Emanuel Oros, Partner, Sparke Helmore Lawyers

In today’s digital age, security cannot be an afterthought – proactive measures and education are necessary in order to minimise the risks presented.

This is pertinent for the legal industry, particularly those practising within property law and facilitating settlements for homebuyers and sellers.

Residential property is Australia’s largest asset class, worth $7.1 trillion1 , which makes it an understandably attractive target for criminals and fraudsters.

And the latest Australian Competition and Consumer Commission (ACCC) Scamwatch data is telling.

In 2019, phishing via email and phone – the apparent primary weapon of choice for hackers due to its low complexity and high success rate – scammed Australian businesses out of more than $1.5 million, almost doubling the losses experienced in 2017 and 2018 1 .

This is a trend that has continued into 2020. The ACCC reported financial losses as a result of phishing to be $121,319 in January 2020 alone, nearly doubling that of January 2019 2.

Further to this, the outbreak of COVID-19 sparked a surge of phishing attempts on unexpectant individuals seeking to benefit from the rushed approach of some parties to get up to speed with these types of transactions. The microscope is on legal practitioners now more than ever.

How firms can bolster their cyber security

Fundamentally, we need to broaden our view of what being cyber-secure is. This calls for a holistic, 360-degree approach to security – and in particular, cyber-security. Constant education and briefing of staff, as well as instilling discipline and processes in securing operations is paramount.

Critically, we must also embrace the technology available to us. A common misconception is that you need a big budget and sophisticated products to be cyber-secure. In reality, taking the time to review and maintain the technology within your organisation may likely bolster your firm’s security without significant cost.

Technology should always be viewed as a tool in your toolbox – and tools need to be maintained and sometimes updated to ensure you can work at full efficiency.

The Australian Cyber Security Centre (ACSC) has an established ‘essential eight’ list of strategies, which when used in combination may greatly protect against threats.

There is also excellent technology available to lawyers as well, including a range of trusted no-cost or low-cost anti-virus protection software to help safeguard your data.

Industry specific solutions exist too. For example, with property settlements you can make use of free applications such as PEXA Key to enable your client, individual or organisation, to provide their bank account details for the transfer of funds in an encrypted environment – eliminating an otherwise significant risk for lawyers and clients alike. Trust account details can be communicated securely to the client via the app also.

The industry has an obligation to its clients to continuously bolster its understanding of technology and with it, cyber-crime, something the legal profession has historically found challenging.

This need not be a daunting task and by simply taking the time to review and prioritise your risk profile you can take control of your cyber-security and likely improve it through small inexpensive measures and better education and practices being implemented.

“We’re very close to 100% digital property transactions and industry is truly seeing the benefits of electronic lodgement. There are fewer errors with electronic transactions being lodged and the process is more seamless with greater transparency and certainty of the status of the transaction.” Ian Ireson, Chief Executive, Land Use Victoria.

1 Australian Competition and Consumer Commission (ACCC) https://www.scamwatch.gov.au/about-scamwatch/scamstatistics?scamid=31&date=2019

2 Australian Competition and Consumer Commission (ACCC) https:// www.scamwatch.gov.au/about-scamwatch/scam-statistics?scamid=31&d ate=2020-01