How Hackers Target Law Firms and Accounting Firms: Common Cyber Threats and How to Protect Your Business

Cyberattacks on professional firms are increasing at an alarming rate. Law firms and accounting firms store confidential financial data, privileged communications, and other sensitive information, making them prime targets for hackers. Understanding how these attacks happen—and how to protect your firm—is critical.

Why Professional Firms Are Prime Targets for Hackers

A 2023 study by the American Bar Association revealed that 29% of law firms experienced a data breach, and reports show that cyberattacks on legal practices continued to escalate in 2024. Accounting firms face similar risks. According to CPA Practice Advisor, 15% of accounting firms reported a breach in 2024.

Hackers exploit these firms because they hold valuable client data and financial records. Once inside a network, attackers can steal information, demand ransom, or use compromised systems for further criminal activity.

Common Cyberattack Methods

Phishing Attacks

Phishing is one of the most common entry points for hackers. In these attacks, criminals send emails, text messages, or instant messages that appear legitimate—often mimicking banks, retailers, or even colleagues. Clicking a malicious link can install malware, freeze your network, or capture login credentials for later use.

Business Email Compromise

Business email compromise (BEC) involves hackers gaining access to a legitimate email account or creating a convincing spoof. They use this access to impersonate trusted professionals and send fraudulent instructions, such as wire transfer requests. Firms that handle client funds are especially vulnerable.

Malware and Spyware

Phishing often leads to malware or spyware installation. Spyware collects sensitive information and can disable firewalls and antivirus software. Malware includes viruses and other malicious programs that disrupt operations and spread across networks.

Ransomware Attacks

Ransomware encrypts your firm’s files, making them inaccessible until a ransom is paid. A newer variant, known as a Maze attack, adds another layer of extortion by threatening to publish stolen data unless a second ransom is paid. Several law firms have fallen victim to Maze attacks in recent years.

Cryptojacking

Cryptojacking is an emerging threat where hackers hijack your firm’s devices to mine cryptocurrency. This drains computing resources, slows systems, and can even crash networks.

How to Protect Your Firm from Cyber Threats

To reduce risk, implement multi-factor authentication, schedule regular employee training on phishing and social engineering tactics, and work with cybersecurity professionals to audit and secure your systems.

Even with strong defenses, no firm is completely immune. That’s why cyber liability insurance is essential. This coverage helps protect your business from financial losses and legal liabilities resulting from data breaches or cyberattacks.

Why Cyber Liability Insurance Is Essential

Cyber insurance provides coverage for costs related to data recovery, legal fees, regulatory fines, and business interruption. It also offers access to breach response teams that help manage incidents and minimize damage.

Get Protected Today

If you’re ready to safeguard your firm against cyber threats, contact ProDefender. Our experts will help you choose the right level of cyber liability insurance and secure competitive rates to protect your business.