The legal profession, long defined by its focus on trust, discretion, and meticulous record-keeping, is facing a reckoning. The challenge? Cybersecurity. As law firms increasingly become targets of sophisticated cyberattacks, the cost of inaction—both financial and reputational—has reached an all-time high. According to the 2025 Integris Report: Law Firms, Cybersecurity, and AI: What Clients Really Think, a majority of clients expect law firms to modernize their technology and proactively safeguard sensitive information. Yet many firms continue to fall behind, and the consequences are piling up.
For clients, the stakes are personal and professional. Nearly 40% of law firm clients surveyed said they would consider firing a firm after a data breach, and 37% indicated they’d be willing to pay a premium for firms that demonstrate strong cybersecurity practices. Meanwhile, IBM’s 2024 Cost of a Data Breach Report reveals that professional services firms, including law firms, face breach costs averaging $5.08 million—higher than the global average of $4.88 million.
The message is clear: law firms must modernize their approach to cybersecurity or risk losing clients, revenue, and their hard-earned reputations.
The Rising Tide of Cyber Threats
Law firm data breaches are on the rise, with 2024 already shaping up to be a record-breaking year. At least 21 law firms have reported breaches to state attorneys general offices in the first five months alone, compared to 28 for all of 2023, according to public filings. These incidents range from ransomware attacks, such as the one that hit Taft Stettinius & Hollister, to email compromises like those experienced by Robinson & Cole. The breaches have exposed a wide array of sensitive data, including Social Security numbers, financial account details, and even healthcare information.
“These breaches don’t just harm the individuals whose data is exposed,” says Greg Cooke, Vice President of Sales at Integris. “They erode trust in law firms as institutions and put client relationships at risk.”
Clients are taking notice. The Integris report found that 67% of clients hesitate to work with firms using outdated technology, and 29% have experienced delays caused by antiquated systems. Meanwhile, a growing number of clients expect law firms to proactively communicate their cybersecurity practices, with 36% citing this transparency as essential to their trust.
Lessons from IBM’s 2024 Report
IBM’s 2024 Cost of a Data Breach Report sheds additional light on the cybersecurity landscape, offering a roadmap for how firms can mitigate risks. The report shows that organizations leveraging advanced tools like AI-driven security solutions experience lower breach costs—$3.84 million on average compared to $5.72 million for those without such tools. These organizations also detect and contain breaches nearly 100 days faster, underscoring the value of proactive investment.
For law firms, the lessons are clear: investing in cybersecurity pays off, both in reducing immediate costs and in preserving long-term client trust. But the challenges go beyond technology. As IBM points out, many organizations don’t discover breaches themselves. In 2024, only 42% of breaches were identified internally, with the remainder revealed by third parties or even attackers themselves.
The Ethical and Regulatory Imperative
Law firms face not only financial and operational risks from cybersecurity lapses but also ethical and regulatory ones. Under the American Bar Association’s Model Rule 1.6, attorneys have an ethical duty to make “reasonable efforts to prevent the inadvertent or unauthorized disclosure” of client information. This obligation is compounded by compliance requirements such as HIPAA for healthcare data and GDPR for data from EU residents.
“Law firms operate at the intersection of trust and responsibility,” says Cooke. “Failing to meet cybersecurity standards isn’t just a business risk—it’s an ethical one.”
The costs of failure extend far beyond the immediate fallout of a breach. Firms may face malpractice lawsuits, regulatory fines, and a loss of credibility that can take years to rebuild.
Outdated Technology: A Silent Dealbreaker
One of the most striking findings from the Integris report is how outdated technology impacts client relationships. A staggering 66% of clients prefer firms that use the latest technology, and 69% rank secure document-sharing portals as a critical feature. Yet many law firms continue to rely on unsecured email and other legacy systems that fall short of client expectations.
The consequences of this technological lag are tangible. Clients report delays caused by system crashes, lost documents, and other inefficiencies. These frustrations erode trust and, ultimately, drive clients to competitors who offer faster, more secure services.
AI: Friend or Foe?
Generative AI, from tools like ChatGPT to automated legal assistants, has introduced both opportunities and challenges for the legal industry. While AI can streamline workflows and improve efficiency, it also raises serious concerns about confidentiality and accuracy. According to the Integris report, 81% of clients expressed worries about how firms use AI, and 70% were concerned about potential overreliance on these tools.
To address these concerns, law firms must be transparent about how they use AI and emphasize the human oversight involved. Clients need assurance that while AI may assist, their cases are ultimately handled by skilled legal professionals who understand the nuances of the law.
Turning Risks Into Opportunities
For law firms willing to adapt, the growing focus on cybersecurity presents a unique opportunity. By investing in IT upgrades and showcasing their commitment to data security, firms can differentiate themselves in a competitive market. The Integris report found that 37% of clients are willing to pay more for firms that prioritize cybersecurity, while 40% would choose a tech-forward firm over one lagging behind.
“Clients are increasingly viewing cybersecurity as a hallmark of professionalism,” says Cooke. “It’s not just about protecting data—it’s about signaling that your firm is prepared for the future.”
Building Digital Trust
The days when trust was built on a firm handshake and a corner office are long gone. In today’s digital-first world, clients expect law firms to be proactive, transparent, and vigilant about cybersecurity. The Integris and IBM reports make it clear that digital trust is now a key driver of client loyalty and willingness to pay.
For law firms, the path forward is clear. By adopting secure communication tools, leveraging advanced cybersecurity technologies, and being transparent about AI usage, firms can not only protect their clients’ data but also create a competitive edge. The hidden costs of cyber neglect—lost clients, missed revenue opportunities, and reputational damage—are simply too high to ignore.
The legal industry stands at a crossroads. Firms that embrace the challenge of building digital trust will thrive in an increasingly tech-savvy marketplace. Those that don’t risk being left behind in a world where trust is no longer just earned—it’s engineered.
