Let’s skip the sensationalized headlines and get to the point: fraud is no longer a threat only to big corporations.
Law firms and other businesses of all sizes are increasingly targeted, and the consequences are real: stolen funds, compromised client trust, and disrupted workflows.
A recent study shows 90% of U.S. companies faced cyber fraud in 2024, with many experiencing losses over $10 million. Payment fraud alone soared by 136% compared to the year before.
That’s not a scare tactic, it’s just what you need to know about the current state of cyber crime.
Why law firms are appealing targets
- High-value transactions happen every day. Whether moving settlement money or client trust funds, attorneys handle large sums. Fraudsters know this, and they’re watching.
- Staff wear many hats. Paralegals or finance admins often manage invoicing, approvals, and payments – making them prime targets for email or vendor scams.
- Reputation matters. A stolen client file or misdirected payment can damage your credibility long after the money is recovered.
How fraud looks in a law firm
Fraudsters don’t need physical access. They exploit trusted-looking channels:
- Payment redirection scams. A fake “vendor” email asks for a routine payment to a new account. Unless you check, it goes through.
- Business Email Compromise (BEC): A spoofed partner or vendor sends an urgent invoice. Staff are instructed to bypass approval processes.
- Deepfake calls or video meetings. Now scammers use voice or video cloning to impersonate your CFO or managing partner, making it hard to spot the fake.
- Chargeback fraud on digital payments. Firms accepting online payments for seminars, webinars, or courses can be challenged fraudulently, costing both money and time.
It’s no longer enough to trust the sender or assume staff will double-check every detail.
The impact on your firm
- Financial loss. Even small scams can add up quickly.
- Time drain. Reconciling payments, fielding customer complaints, contacting banks; it all pulls staff away from billable work.
- Trust erosion. Clients expect confidentiality and financial responsibility. A cyber incident undermines both.
- Emotional strain. You don’t need the stress of explaining to clients that security failed (again).
What straightforward and smart protections look like
1. Communicate payment changes out-of-band
If a vendor asks for payment to a new account, pause. Call or video‑verify using a trusted number. Never reply to the email. Embed that step into your standard process.
2. Segment duties and double-check approvals
Avoid letting one person approve and send payments. Even better: set automated approval workflows with oversight – especially for high-value transactions.
3. Tighten access and authentication
- Require multi‑factor authentication (not SMS-based) for any financial or cloud tool.
- Use conditional access – restrict financial apps to known devices or IP ranges.
- Enroll everyone in passkeys or authenticator apps. These are far less vulnerable to phishing than codes sent by email or text.
4. Deploy fraud monitoring tools
Interfaces like accounting or payment platforms increasingly offer AI-driven anomaly detection to flag suspicious payments. Work with your MSP to enable these.
5. Train everyone (regularly and continually)
One-off trainings aren’t enough. Do quarterly phishing simulations, monthly refreshers, client scam alerts. Emphasize how a single click could divert thousands – or stall a deal.
6. Have a quick-response plan
When fraud strikes:
- Block the transaction immediately.
- Contact your bank and credit processor.
- Notify affected clients or stakeholders.
- Document the incident.
- Learn from it: adjust processes and retrain staff.
Your partner in preventing fraud
I know this feels heavy. Many law firm leaders assume “fraud won’t happen to us.” But statistics show otherwise:
- 90% of firms are targeted.
- First-party fraud and chargebacks are skyrocketing: $15 billion lost globally in 2025 alone.
- Deepfake-based attacks are not fiction. They’re happening now.
The good news is that prevention works. Firms combining clear policies, modern authentication, automated monitoring, and staff awareness drastically reduce fraud losses – sometimes by over 40%.
Call to action for law firm leaders
- Review your onboarding process. What happens when new vendors are added?
- Audit your MFA setup. Are you relying on SMS or email tokens?
- Ask your MSP to enable fraud alerts in payment software and accounting tools.
- Schedule a fraud-awareness session this quarter.
Your goal isn’t paranoia – it’s peace of mind. When systems hum along, clients don’t worry and neither do you. If you’d like a policy template, a staff training script, or a tech partner checklist, I’m here. Let’s help your firm stay secure, efficient, and client-ready each day.
Here’s to protecting what matters – people, cases, and peace of mind for the firm.