Cyberfraud is growing at an incessant rate. Experts within the legal industry believe that firms will soon be required to outline their risk management plans to their insurers in further detail, to give substance to claims that they are performing necessary and essential due diligence.
The potential for higher insurance premiums is an additional factor that is likely to increase firms’ desire to prove that they are utilising effective risk management solutions, and ensure that they have a robust risk register in place.
QBE are one of the nation’s foremost indemnity insurers for the legal sector, covering a vast expanse of England and Wales. According to data from QBE, over £85 million has been stolen within the last 18 months, predominantly through fraudulent transactions.
The occurrence of cyber ‘hacks’ is becoming far more frequent, with CNN, CBS and BBC all reporting in the past month on the issue of ‘ransomware’.
Paul Tucker, business development manager at Lawyer Checker said:
“Indemnity insurers need to be confident that firms are doing their utmost to bolster their risk register and make use of the available risk management enhancement tools on the market.
“At Lawyer Checker, we have seen both firms and insurers start to develop awareness of this, leading to elements of the renewal process specifically questioning as to whether Lawyer Checker is being used.
“Continuous improvements are being made internally to enhance the Account & Entity Screen to ensure that firms have a simple, efficient and innovative product that can help adherence to Principle 10. The product is unique in this sector with regards to the information provided and helps facilitate firms in making a decision about potentially fraudulent accounts.”
The use of Lawyer Checkers’ Account & Entity Screen is an integral part in providing protection against potentially fraudulent activities, and will be taken into account positively by insurers when considering a firm’s indemnity insurance.
With individual firms being quoted losing as much as £173,000 in a single transaction, there has never been a more critical time to enhance your security provisions.