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February 7, 2022

Legal industry trends to watch in 2022 (Part II)

In this part II article, we’ve compiled a few more trends that will be shaping the legal landscape in 2022 and onward. Let’s have a closer look.

Cybersecurity remains a priority

Law firms with their most confidential data are becoming the lucrative target for numerous cybercriminals or organized cybercrime groups that present a real danger for legal business. No surprise, since the digital revolution is shifting the world we live in. Today too much data is shared over networks between clients and lawyers, financial transactions are transferred virtually back and forth, and personal details are posted on social media. Such aspects leave space for ill-intentioned internet hackers to exploit personal information in their favor.

What are the most common cyber security threats in the legal space?

In 2018,
the NCSC said the most significant cyber threats facing law firms were phishing, data breaches, ransomware, and supply chain compromise. And here is
the case study of a mid-sized law firm, reported by the Solicitors Regulation Authority back in 2018, even before millions of law firms changed the way they work. “A senior partner revealed details about a business trip to Barcelona on social media. A group of online hackers located overseas used this info to provoke a phishing attack against the firm accounts team. A clerk then got an email from an account spoofing the senior partner’s email address, instructing her to pay an invoice, and asking for confidentiality”.

Whether it is to steal data for financial gain, exploit law firm services, install malicious programs (spyware), or simply make employees disclose personal information on social media networks — cybercriminals know well where to find the “weakest spots” in every industry. Lawyers and attorneys can merely face a threat, for example, when cyber attackers instill malware in their network to restrict access to files and then demand payment for stolen data.

Phishing emails are one of the riskiest types of social engineering attacks. According to the
FBI, phishing was the most common type of cybercrime in 2020. And phishing activities nearly doubled in frequency, from 114,702 incidents in 2019 to
241,324 incidents in 2020.

Cybercriminals can create false authoritative figures or other trusted entities and send a false email to an employee of a law firm. Anyone who opens it and follows the steps enclosed might be redirected to a phishing website by clicking on a malicious link. That leads to devastating consequences for the company’s funds and reputation: stolen credentials, identity theft, or installation of malware that allows hackers to remotely access internal systems.

Law firms owners should reevaluate their data security standards. That means implementing strict security policies, training, and onboarding for existing employees and all newcomers to safeguard firm reputation and money and to lower the risk of unauthorized attacks of any kind.

A smart approach to legal contracts

We’ve already talked about the potential of automation solutions to take over a huge volume of work and elevate law firm productivity. AI tools and technology leveraged for legal document automation are among the many offerings. When it comes to simplifying legal contract preparation and execution, many law firms will use the blockchain in the near future (some are using it already for their business purposes).

Smart contracts are the form of digital items stored and run via the blockchain. They are used predominantly to immediately execute and automate the workflow of the agreement preparation and contract terms between legal experts and clients. Only participants included in that process are granted permission to see the terms and outcomes. A computer network executes the action itself when all prearranged requirements are met — at a higher speed and with fewer expenses. Plus, no need for third-party involvement and in and out editing or approval rounds.

Since being virtually present is enough to close a deal, smart contracts look like a more reliable and convenient way to prepare an agreement between lawyers and clients, enhance security and mitigate risks in legal contract management.

You can look more in-depth at how you can benefit from
legal case management software.

Alternative Legal Services will be growing in number

Alternative legal services are a kind of a new way of doing business that is mature and based on expertise, a client-centered approach, successful partnering, and collaboration. Legal firms outsource to alternative legal solutions providers certain tasks, especially those where lawyers might lack the needed competence or resources.

Solution providers are paid per task or piece of work they undertake, while a company achieves results faster and at a significantly lower price. A law firm gains tangible benefits such as boosted efficiency, higher revenue, more strategic use of resources, and cost savings. This win-win scheme allows in-house legal departments to concentrate more on high-priority matters rather than on routine processes.

In a 2021 report by Thomson Reuters, Alternative Legal Service Providers (ALSPs) in the USA, Canada, the UK, and Australia showed a high market penetration with e-discovery being the prevalent service. According to the report, the
ALSP market is valued at almost $14 billion. Nearly
80% of law firms and more than
70% of corporate law departments surveyed are using ALSPs.

Not surprisingly, alternative law services largely turn to technology (like deployment or support of selected software), project management, or processes automation and might less concern law-specific tasks. As stated in the
report, technology solution providers (legal technology consultants) are staying on top of a wide array of ALSPs’ offerings.

Final thought

Trends can come and go. But tech solutions that make the work of law specialists better and bring their practice of law to success won’t stop prevailing any time soon. You can start with our platform to move beyond a traditional way of running a legal practice.
Jusnote is a place where you can effectively keep and manage all your legal cases with centralized storage, take control of your finances, and streamline daily workflows.

Elena Ivanenko

Author, Content Creator at Jusnote