The 2018 Cost of a Data Breach Study by the Ponemon Institute reports that the global average cost of a data breach is $3.9 million. The average cost for each lost or stolen record containing sensitive and confidential information increased to $148 per record.

Looking at it from another angle, a study presented at RSA, a US-based organization that created encryption and computer security products, reflects that global cybercrime generated $1.5 trillion in 2018.

At OBLIC, we see that cyber-attacks continue to plague businesses, including law firms. We reported in the Summer 2018 Malpractice Alert that a recent report by NAS analyzing cybercrime indicated 62% of the cybercrime claims were due to phishing attacks. The draft 2018 NAS Cybercrime Report indicates that more than 90% of successful hacks and data breaches stem from phishing – emails crafted to lure their recipients to click a link, open a document or forward information to someone they shouldn’t.

Phishing remains the #1 method of cybercrime because criminals have had success at exploiting a very common business practice, wiring money to a third party, to siphon funds to their own accounts. See page 5 of the 2018 NAS Cybercrime Report for more on how phishing happens.

At OBLIC, we also continue to see internet scams involving check fraud and phony wiring instructions. If there are any doubts about undertaking a representation solicited via the internet from a potential client, please do not hesitate to contact OBLIC before taking any action.

Of course, the best way to manage the risk of cybercrime is prevention. Click to read more on Preventing Fraudulent Wiring Instructions.