Growth Of Cyber-Crime Consulting Services In The Legal Services Market
26 Sep, 2019
Law firms around the world are offering cybercrime legal consulting services to their clients, owing to the increasing incidence of this type of crime. Cybercrime refers to a crime that is committed using an internet connection and a computer. This includes cyber-stalking, counterfeiting, money laundering, embezzlement, fraud, and tax evasion, using the internet and electronic devices. In the UK alone, around $35 billion is the estimated annual cost of cybercrimes. Law firms offering cybercrime consulting services employ lawyers, consultants, and ethical hackers who are experienced in handling crisis management, online financial theft, loss of data, data privacy, and intellectual property infringement. Large law firms practicing in the field of data privacy and cybersecurity include Latham & Watkins, DLA Piper, and Skadden, Arps, Slate, Meagher & Flom. The growing concern of organizations and individuals about cybercrimes is expected to drive the cybercrime legal consulting services market globally.
The global legal services market was valued at around $885 billion in 2018. It is expected to grow at an annual growth rate of more than 4% to 2021.
Following the growing incidence of cybercrimes, an increasing number of law firms are investing in data security technologies to safeguard clients data. Law firms dealing with criminal cases possess confidential data regarding case details, witness statements, financial disclosures, and property details. Companies are adopting various technologies and practices to safeguard clients data, which includes two-factor authentication, email encryption, risk assessment, and breach response plans. According to law firm Cyber Security Scorecard, a study conducted by Logic Force based on a survey of 200 law firms, every law firm surveyed was targeted for confidential client data in 2016, while around 40% of them did not know about the breach. On average, a law firm faces about 10,000 network intrusion attempts and 1,000 invalid login attempts daily.
The purchase patterns of clients seeking legal services is evolving continuously and clients are becoming more willing to purchase legal services from non-traditional companies that offer a range of professional services. For instance, according to a survey by Deloitte, about 52% of in-house departments are considering buying legal services from non-traditional law firms. Clients are looking for companies that have cross-functional expertise such as finance, accounting and marketing, as well as legal services and who offer services through online tools such as LegalZoom, Rocket Lawyer and Law Depot. Also, according to a survey by Deloitte on Legal Services Trends in 2016, about 35% of organizations are looking for commercial and non-legal expertise and 18% of organizations are looking for expertise in digital, data privacy and cyber security expertise from legal service providers.