The Big 3 Cyber Risks For Small Law Firms In 2026
Small law firms are attractive targets for a variety of factors including valuable client data, a constant sense of urgency, and a lower security budget versus a large firm. In 2026, three risks will continue to be top of mind: business email compromise, ransomware, and phishing or impersonation.
The good news is that foundational cybersecurity can stop many of these attacks in their tracks.
Business Email Compromise (BEC)
What it is
Attackers get into a person or firm mailbox, then sit quietly and watch. They wait for a wire transfer request, settlement, vendor payment, or retainer, then send “updated” wiring instructions or a fake invoice that looks completely normal. Another popular BEC attack is to use the trusted relationships and send out further attacks, such as a fake 365 login page or a virus, to existing contacts.
One Simple Control
Require multifactor authentication (MFA) on all email accounts. A Microsoft study showed over 99% of BECs would have been prevented by MFA being configured properly. Both Microsoft 365 and Google’s cloud products include MFA with every license at no additional cost.
What the damage looks like
Client files floating around the dark web, and a potential public relationships nightmare for the firm. Malpractice and cyber insurance claims. Significant time spent on incident reports, regulators, and insurers instead of billable hours.
Ransomware
What it is
Hackers that encrypt servers and steal data at the same time. These attackers both lock the firm out and threaten to publish client files if they are not paid.
Simple control
Deploy 24x7 managed endpoint detection and response (MDR) on all workstations and servers, not just a basic antivirus. While this does not block the attacks 100%, it stops them early in their tracks, resulting in minimum downtime and damage.
What the damage looks like
Days with no access to client files, practice management, or email. Emergency work to rebuild servers, restore backups, and prove what data was touched. Lost billable hours. Potential reporting obligations if client data was accessed, which can result in fines and reputational damage.
Phishing And Impersonation
What it is
Fraudulent emails, texts, and sites that trick the firm into downloading malicious applications or entering passwords. These often look like Microsoft 365 login pages, DocuSign links, or messages “from” a partner, managing attorney, or bank contact. They can even be emails sent from the actual address of co-counsel or opposing counsel whose firm was hacked.
Simple control
Require secondary confirmation for sensitive approvals, such as document requests, new vendors, wire changes, or large payments. Call the other party on a known good number, not the one in their email signature as the attackers may have changed it.
What the damage looks like
Lost funds, embarrassing disclosures. Use of that access to set up deeper and more convincing email compromises. The firm may not notice for weeks, which increases both cost and liability.
Bringing It Together
Most small firms are not breached because attackers are brilliant; they are breached because foundational controls were missing or not enforced. A few simple security controls can be added at little to no cost and exponentially increase the firm’s security. If you’re interested in learning more about where your firm stands security-wise, fill out this form and someone will be in touch with you soon: