Cybersecurity

Welcome to the new world of digital litigation, which is rapidly emerging in the context of an increasingly globalized world — a world where it is now commonplace for domestic law firms to extend their reach across international borders, engage in legal matters that span multiple jurisdictions, and collaborate with overseas colleagues and foreign counsel on a regular basis.

The recent takedown of dark web marketplace AlphaBay represented a major success for law enforcement agencies in the U.S. and around the world. However, experts caution that its effect on mitigating the overall level of cyberthreat faced by corporations and law firms alike, while significant, will likely be temporary at best.

Calling for a broader view of standing, a federal appeals court in Washington, DC, has reversed the dismissal of a case brought over the 2014 cyberattack of health insurer CareFirst.

Cyber attacks and theft are on the rise around the country, and law firms are becoming prime targets. Unlike manufacturers, banks and retailers, law firms are unique organizations that are highly vulnerable.

The departure of eight members of the council could signal a strained relationship between the business sector and the government around cybersecurity policy.

Overall global spending in the information security services and products sector will total $86.4 billion this year, an increase of 7% over last year.

Financial services firms and their management should keep a close eye on developing cybersecurity regulations, so as to be better prepared to proactively address the shifting regulatory landscape as it continues to evolve.

At press time, DLA Piper was still recovering from its massive cyberattack, with insurance brokers claiming that the resulting upheaval could lead to costs "in the millions" for the firm.