Cyber Risks, Firm Cyber Claims and Cyber Incident Responses

LawFirmCyberRisksandClaims

TheLawSocietyofTasmania

Friday,29September2023|Hobart

Outline

Cybercrimeashorthistory

Cyberriskimpactinglawpractices

Cyberclaimsthereality

RecentcasesBECandRansomware

Causesofcyberattacks,identifyinglawfirm

vulnerability

Managingthreatsandidentifyingopportunities

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MalcolmHeath,PracticeRiskManager,Lawcover

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2 Cyberriskimpactinglawpractices Cyberassistedfraudclaims Totalincurred-$12.33mat30June2023 1.07 1.2 2.54 3.12 1.41 2.99 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2017/182018/192019/202020/212021/20222022/23 Totalincurred 3 4

3 Cyberassistedfraudclaims Byyear 10 21 26 44 35 24 1 2 14 5 0 5 10 15 20 25 30 35 40 45 50 2017/182018/182019/202020/212021/222022/232023/24 Closedclaims Openclaims 21 26 44 37 6 38 CyberclaimsLawcoverGroupCyberRisk InsurancePolicy 93% 7% Claims BECRansomware 1800BREACH(1800273224) Automaticcoverforlawpractices thatpurchasePII Upto$50Klimit Nopremiumpayablebylawpractices Crisisandclaimsassistance Subjecttoterms,conditions& exclusionsofthepolicywording Aper-claimexcessapplies >90%arecausedbyBusiness EmailCompromise 5 6

Groupcyberriskinsurancepolicyclaims

RecentcasesinvolvingAustralianlawyers

BusinessEmailCompromise

Fakeemailsthatappeartobefromaclientgivinginstructions

Fakeemailsfromalawyertotheclient(orlawyertolawyer) varyingtrustaccountdetailsorpaymentinstructions

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Summaryat31July2023 Jan 18 Jul19 (18 months) 2019/202020/2120221/222022/23 Jul 23 (1month) Total Notifications56557345557291 Totalincurred24917317024433601,173

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5 BusinessEmailCompromise Whatisitandhowdoesitwork? Ransomware Whatisitandhowdoesitwork? 9 10

BusinessEmailCompromiseandRansomware

Whatcanyoudotoreducetheriskofbusinessemailcompromiseand ransomwareinfiltratingyourcomputersystem?

BusinessEmailCompromiseandRansomware

Whatcanyoudotoreducetheriskofbusinessemailcompromiseand ransomwareinfiltratingyourcomputersystem?

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Whatcanyoudotoreducetheriskofbusinessemailcompromiseand ransomwareinfiltratingyourcomputersystem?

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BusinessEmailCompromiseandRansomware BusinessEmailCompromiseandRansomware

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Ransomwarescenario

Thefollowingscenarioisbasedonactualclaim.

Asolicitor at workonMonday morning, turned on his computer and foundthe below screen message.

Ransomwarescenario

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https://www.lawcover.com.au/cyber-resources/

9 cyber.gov.au

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Designedtohelplegalpracticesnavigatethe worldofcybersecurity;identifyandprioritise theirsecurityneedsandimplementeffective defensesystems,ongoingprotectionand appropriateresponseplansintheirown practice.

GuidetoCyberSecurity

Supplementarymaterialswithstep-by-stepinstructionstohelpprotectcritical aspectsofyourpractice.

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Data Mobiledevice Passwords Hardware Emailand messaging 19 20

11 Developments,trendsandreforms? Prudentlawpracticebusinessmanagement Capitalisingonopportunities LawFirmCyberRisksandClaims TheLawSocietyofTasmania Friday,29September2023|Hobart mheath@lawcover.com.au 21 22

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