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IT security for law firms: protecting trust accounts and privileged files

Law firms are prime targets for payment redirection and data theft. These are the controls that matter most.

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Why law firms are targeted
Law firms hold privileged client information and regularly move large sums through trust accounts. That combination makes them attractive targets. Business email compromise was one of the top cybercrimes reported by Australian businesses in 2024–25, and conveyancing and settlement payments are a common target.
Email impersonation and payment redirection
Criminals compromise or spoof a firm’s email to send clients fake bank details. DMARC, DKIM and SPF stop domain spoofing; impersonation protection flags lookalike domains; and MFA prevents mailbox takeover. Clients should always be told to verify bank details by phone.
Trust account protection
Restrict access to trust accounting to the people who need it, enforce MFA, log access, and require dual approval for payments.
Practice management software
LEAP, Smokeball, Actionstep and FilePro are the core of most practices. They need fast, reliable infrastructure, correct integration with Microsoft 365, and tested backups.
Document security
Matter files need sensible permissions, version control and audit trails. Sensitivity labels and data loss prevention in Microsoft 365 help stop confidential documents leaving the firm.
Secure remote work
Lawyers work from court, chambers and home. Managed devices, conditional access and single sign-on let them work securely from anywhere without a clunky VPN.
Regulatory obligations
The Privacy Act, the Notifiable Data Breaches scheme and Law Society guidance all have technical implications. Documented controls make it easier to show you take them seriously.
Real-world example
Xen IT onboarded a Gold Coast law firm whose previous provider had left accounts without MFA and the WiFi exposed. After implementing 24/7 SOC monitoring, zero trust, correct networking and fixing LEAP and sign-in issues, the firm reported the least downtime and quickest response times it had seen in 10 years.
Sources
Australian Signals Directorate, Annual Cyber Threat Report 2024–25 (cyber.gov.au). Figures are self-reported averages per cybercrime report.
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