Supply chains and cyber threats: how your legal practice can manage risk

Supply chain (SC) risk in the legal sector has shifted from an emerging concern to a current threat.

Modern supply chains are more exposed than ever, facing a broad spectrum of risks, from economic uncertainty and political instability to natural disasters and supplier failures, all of which can have a significant impact on operational continuity and resilience.

In this article, however, we’re focusing on one particularly urgent threat: cyber risk within your supply chain.

The supply chain within the UK legal sector may not mirror the traditional models seen in manufacturing or retail, but it still depends on a complex network of upstream and downstream relationships.

As demand for legal services grows, the pressure on these supporting systems intensifies. In 2024 alone, 148,630 civil court claims were filed, and the Crown Court received 121,579 cases, the highest figures recorded since 2016. This surge increases reliance on external providers and digital systems, making the legal sector’s supply chain more critical, and more vulnerable, than ever.

Identifying risks within this network can be challenging. Legal supply chains are often vast, interconnected, and constantly evolving. Threats can arise at any stage, whether inherent to the system, introduced through third parties, or deliberately exploited by cyber criminals searching for weaknesses.

Why is the UK legal sector a target

Over 32,000 legal services organisations operate in the UK, generating more than £43 billion in revenue and employing over 320,000 people. The sector is a vital part of the national economy, and one that continues to grow in size, complexity, and risk exposure.

This economic significance, combined with the industry’s reliance on digital systems and sensitive data, makes it an attractive and high-value target for cyber criminals.

When you take a closer look at the UK business landscape, it becomes clear why the legal sector is particularly vulnerable.

Around 99.9% of UK businesses are small and medium enterprises (SMEs), and as of early 2024, government figures show that 99.2% of those SMEs were small businesses with fewer than 50 employees.

Many of these smaller organisations provide critical services to law firms. However, despite their important roles in the legal supply chain, they often lack dedicated cyber security resources, risk management frameworks, and financial resilience to defend against increasingly sophisticated threats.

Many have limited IT support, little formal risk management, and rely on outdated systems, making them easier targets for attackers.

Given the economic value of the legal sector, its high level of interconnectivity, and reliance on SMEs as suppliers, it’s clear that supply chain resilience must now be treated as a cyber security priority.

Understanding your supply chain risk

Your law firm’s ability to deliver secure, high-quality legal services depends on the strength and resilience of its supply chain.

While direct client services such as litigation, transactional work, and regulatory counsel are the most visible elements of your practice, these rely heavily on a complex network of external providers, internal infrastructure, and governance processes. Any disruption across this network can directly affect clients and expose your firm to reputational, operational, and regulatory risk.

Identifying risks across each area of your supply chain is essential for maintaining business continuity, client trust, and compliance. These include:

External providers

Most law firms rely on a wide network of third-party providers to deliver core and supporting services.

These could include Legal Process Outsourcing (LPO) firms, IT service providers, translation and transcription services, managed print vendors, secure courier services, and even everyday suppliers such as office and equipment vendors.

Why it matters:

While these partnerships can improve efficiency, scalability, and flexibility, they also introduce significant supply chain risk.

Many of these providers handle sensitive information or connect directly to your internal systems. If their security, compliance, or service reliability falls short, your firm bears the consequences.

Key vulnerabilities:

• Inadequate due diligence during vendor onboarding, leading to weak security or compliance standards
• Contracts or Service Level Agreements (SLAs) that lack clear accountability, response times, or breach protocols
• Overreliance on a single provider, increasing the impact of vendor failure or service withdrawal (vendor lock-in)
• Misaligned processes or expectations causing delays, data mishandling, or breakdowns in communication

Technology and infrastructure

Your firm’s digital infrastructure is a critical part of the legal services supply chain. Platforms such as iManage, Microsoft Azure, Relativity, and internal communication tools enable the flow of information, collaboration, and secure data storage across your organisation and with external partners.

Why it matters:

These systems don’t operate in isolation. Many rely on third-party vendors, cloud environments, and integrations with other tools, forming a complex, interdependent digital supply chain.

A failure in one link, whether due to cyber attack, vendor downtime, or compliance missteps, can have immediate, firm-wide consequences.

Key vulnerabilities:

• Cyber attacks or ransomware targeting cloud-based legal platforms
• Third-party service outages affecting system access or performance
• Inadequate backup or disaster recovery protocols leading to data loss
• Misconfigurations or poor vendor oversight creating security gaps

Admin and support services

Functions like HR, payroll, and facilities management often operate behind the scenes, but they’re essential to keeping a legal practice running smoothly.

These services underpin your workforce’s ability to perform and are often delivered by external suppliers as part of your extended supply chain.

Why it matters:

Even brief disruptions to these services can have a knock-on effect on productivity, morale, and security. For example, delayed payroll can impact employee trust and retention; poorly managed office environments can expose sensitive information; and IT or facilities downtime can halt access to critical systems.

Key vulnerabilities:

• Outsourced providers with low resilience, limited scalability, or poor service continuity
• Labour strikes, employee shortages, or management failures disrupting key functions
• Inadequate provisioning for remote teams (e.g. equipment, secure connectivity, tech support)
• Physical security or facility management issues impacting data protection and continuity plans

Regulatory and Governance

The legal sector operates under some of the most stringent regulatory frameworks in the UK. Law firms must comply with oversight from bodies such as the Solicitors Regulation Authority (SRA) and the Bar Standards Board, as well as broader obligations under GDPR, Anti-Money Laundering (AML) regulations, and professional codes of conduct.

Why it matters:

Failure to meet regulatory standards can result in financial penalties, disciplinary action, reputational harm, and, in some cases, criminal liability.

As legal services become increasingly digitised and reliant on external vendors, maintaining oversight across all areas of your supply chain becomes even more critical.

Firms must ensure that partners, suppliers, and technology providers meet the same standards, especially when they have access to sensitive data or support regulated functions.

Key vulnerabilities:

• Overlooking third-party compliance responsibilities (e.g. data processors, outsourced services)
• Incomplete or weak audit trails, making it difficult to prove compliance during investigations
• Inadequate response plans or reporting mechanisms for handling non-compliance or data incidents
• Failing to keep pace with evolving regulatory requirements and sector-specific guidance

The legal services supply chain is broad, interconnected, and under constant pressure, from clients, regulators, and evolving cyber threats. A weakness in one area can have cascading effects across your firm.

That’s why visibility and proactive risk management are critical. By understanding each link in the chain, and where the vulnerabilities lie, you can build a more resilient, secure, and future-ready legal practice.

Mitigating supply chain risks in the legal sector

Here are some tips for how to mitigate risk in your supply chain:

Third party and outsourcing risk

To mitigate the risks associated with third-party providers, law firms should implement a robust vendor management strategy.

Begin with comprehensive due diligence during onboarding, assessing each supplier’s financial stability, security practices, and regulatory compliance. Build clear service level agreements (SLAs) into contracts, outlining expectations, escalation procedures, and response times.

Establish regular performance reviews and maintain a list of pre-vetted alternative providers in case of service disruption. It’s also important to document and test contingency plans to ensure the business can continue operating if a key supplier fails or withdraws services.

Cyber security and data breach risk

Minimising cyber risk requires a proactive and layered security approach. Law firms should adopt industry best practices, including multi-factor authentication, encryption of sensitive data, endpoint protection, and secure access controls across all internal and third-party systems.

Regular security audits and penetration testing can help identify vulnerabilities before they’re exploited. Work closely with vendors to ensure they meet the same cyber security standards and include breach notification clauses in all contracts.

Establishing a detailed and well-practiced incident response plan will ensure your firm can react quickly and contain any breach if it occurs.

Technology failure and system downtime

To reduce the impact of technology failures, firms should prioritise working with trusted technology partners who offer strong uptime guarantees and responsive support.

Invest in infrastructure monitoring tools and conduct regular system health checks. Ensure all critical systems are backed up in real time, with automated failover capabilities where possible.

Maintain and test disaster recovery and business continuity plans at least annually, so employees know what to do in the event of an outage. Avoid vendor lock-in by ensuring data portability and system interoperability across platforms.

Regulatory compliance risk

Mitigating compliance risk starts with a strong internal governance framework and extends to all third-party relationships.

Assign clear responsibility for regulatory compliance within the firm and integrate regulatory checks into your procurement and contract management processes. Require vendors to provide evidence of compliance with relevant standards, such as GDPR or SRA guidelines.

Conduct regular internal and supplier audits, and ensure that documentation, reporting, and record-keeping practices are up to date and easily accessible. Continuous employee training on regulatory obligations, particularly in areas like data handling and confidentiality, is critical to maintaining a compliant culture.

Talent and skills shortage

Bridging skills gaps starts with building confidence and capability from within. By investing in your own people, through targeted training, mentoring, and structured career development, your firm can empower your internal team to take ownership of cybersecurity, vendor oversight, and regulatory compliance.

This internal capability not only improves operational efficiency but also strengthens overall supply chain resilience.

When firms are less dependent on a single supplier, or have the expertise to assess, challenge, and support their vendors, they are in a much stronger position to identify emerging risks early, respond to incidents faster, and maintain service continuity even if a supplier fails or is compromised.

Types of risk

Within your supply chain, there are three primary types of risk to consider:

• Inherent risk: This is a vulnerability that exists within your supply chain regardless of any internal measures you put in place. Even with strong security practices in your own organisation, certain risks remain outside your direct control.
• Introduced risk: This risk is introduced into your supply chain through various factors, including human error, negligence, or deliberate malicious actions.
• Exploited risk: This is an instance where a vulnerability is taken advantage of to launch a cyber attack or to compromise the confidentiality, integrity, or availability of business-critical systems or data.

Real life examples

Here are some real-life examples of each type of risk in the UK legal sector:

Merseyside-based law firm (Inherent/Exploited risk)

In 2022, a Merseyside-based law firm suffered a cyber attack after hackers accessed a legacy administrator account without multi-factor authentication. Over 32GB of highly sensitive personal data was stolen and later published on the dark web.

An investigation found that inadequate security measures enabled the breach, leading to regulatory action and a £60,000 fine.

This incident highlights both inherent risk, reliance on under-secured systems, and exploited risk, where attackers take advantage of known weaknesses. It’s a clear reminder that data protection isn’t optional, and the consequences of failure can be severe.

Levales solicitors (Introduced risk)

In October 2024, the ICO reprimanded Hampshire-based Levales Solicitors LLP after hackers gained access to its data through an administrator account hosted on a third-party cloud-based server, using legitimate credentials.

The firm lacked multi-factor authentication and did not have visibility into the security controls of its IT provider. Over 8,000 individuals, including victims, complainants, and clients, were affected with sensitive criminal-law data appearing on the dark web.

This demonstrates introduced risk, where a third-party vendor’s weak configuration exposed Levales’ systems.

CTS ransomware attack (Exploited risk)

In November 2023, a ransomware attack on CTS, a UK-based managed service provider used by numerous conveyancing law firms, caused a widespread service outage affecting an estimated 80–200 firms.

The outage prevented access to critical systems, delaying property completions and forcing firms to resort to manual workarounds.

Though CTS did not confirm data loss, the incident illustrates a clear case of supply chain exploited risk, where a trusted vendor’s compromise severely disrupted legal operations across the sector. The UK NCSC has flagged MSPs as high‑value targets due to their access to many firms’ infrastructure

How to effectively manage your supply chain

Supply chain risk management is your ally in the fight against cyber threats. Ultimately, you’re looking for reassurance that your suppliers take cyber security as seriously as you do. You already carry out financial and health & safety checks, but are you checking their cyber credentials?

One effective way to gain this assurance is by verifying that they hold recognised accreditations, such as Cyber Essentials or ISO 27001.

Cyber Essentials

The Cyber Essentials certification scheme is designed to help protect your business against the most common cyber threats, while promoting best practices across your entire IT infrastructure.

Although most cyber attacks are relatively simple in nature, the threat landscape is constantly evolving. New risks emerge regularly, each aiming to exploit weaknesses in your systems. By achieving and maintaining your Cyber Essentials certification, you significantly reduce your risk exposure and help protect your people, processes, customers, and finances.

For enhanced assurance, Cyber Essentials Plus (CE+) goes a step further by including an independent assessment of your systems, providing additional confidence that your defences are working effectively in practice.

What does Cyber Essential cover?

Cyber Essentials is a government-backed certification that focuses on the fundamental technical control’s organisations should have in place to protect against the most common cyber threats. It’s designed to help businesses of all sizes strengthen their cyber defences by addressing five key areas: firewalls, secure configuration, user access control, malware protection, and patch management.

By completing a self-assessment questionnaire, businesses can demonstrate a proactive approach to cyber security risk management. Certification shows that you are taking essential steps to safeguard your systems, data, and reputation.

In addition, UK organisations with a turnover of less than £20 million may also benefit from automatic eligibility for Cyber Liability Insurance upon achieving certification, adding an extra layer of protection and reassurance.

What does Cyber Essentials Plus cover?

Cyber Essentials Plus (CE+) builds on the core Cyber Essentials certification by including a hands-on technical verification. A certified CE+ assessor will carry out an in-depth audit of your systems, either on-site or remotely, to validate that the controls you’ve implemented are not only in place but also functioning effectively.

Throughout the process, we work collaboratively with you to highlight any areas that require improvement, supporting you every step of the way to meet the standard.

Achieving CE+ goes beyond ticking a compliance box, it’s a clear signal to your employees, customers, and stakeholders that you are serious about cyber security and committed to upholding robust Information Security Standards.

ISO27001

ISO 27001 is the internationally recognised standard for Information Security Management Systems (ISMS). Its scope encompasses your organisation’s IT systems, data, processes, and people, providing a structured framework to manage and protect sensitive information.

In simple terms, ISO 27001 acts as a blueprint for building a robust, reliable, and scalable information security management system.

By achieving certification, you not only strengthen your data protection efforts but also demonstrate your commitment to managing risk and safeguarding information, both internally and to external stakeholders.

The standard covers key areas such as:

Risk management

ISO 27001 helps you to identify, assess, and manage information security risks in a structured and systematic way, ensuring that potential threats are recognised early and addressed with appropriate controls.

CIA Triad

At the heart of ISO 27001 are three core principles of information security, confidentiality, integrity, and availability, often referred to as the CIA triad.

Together, these form the foundation for protecting your organisation’s data and systems.

• Confidentiality: Ensuring that sensitive systems and data are protected from unauthorised access, so that only those with the appropriate permissions can view or handle them.
• Integrity: Safeguarding your data against unauthorised alterations, whether accidental or malicious.
• Availability: Making sure that your systems, services, and data are accessible to authorised employees whenever they are needed.

Data protection

While ISO 27001 is not specifically focused on personal data, it applies to all types of information, ensuring that data, regardless of its nature, is appropriately protected throughout your organisation.

It can help you strengthen your overall data governance and demonstrate a strong commitment to data protection.

Continuous improvement

Nothing stands still in the world of information security, and ISO 27001 reflects this by placing continuous improvement at the core of its certification process.

This means organisations are encouraged to regularly review and enhance their security measures to adapt to evolving threats, ensuring their systems remain resilient over time.

Why it’s important to manage supply chain risk in the UK legal landscape

Clients trust their legal representatives to uphold strict confidentiality and safeguard sensitive information. This isn’t just a matter of professional ethics, it’s a legal obligation, reinforced by frameworks such as the SRA Code of Conduct, the Bar Standards Handbook, and the Legal Services Act 2007.

Law firms routinely process large volumes of confidential client data, making them attractive targets for cyber criminals. For threat actors, this data is highly valuable — whether for financial gain, identity theft, or leverage in ransomware attacks. A single breach can result in significant financial, legal, and reputational damage.

Ransomware remains one of the most pressing threats. In the high-stakes world of legal services, firms may feel compelled to pay ransoms quickly to regain access to critical case files and minimise disruption. The impact of lost time and client confidence can be severe.

Smaller firms, which make up a substantial portion of the sector, are especially exposed. Many rely heavily on external IT providers, which introduces third-party risk, if a supplier is compromised, multiple firms could be affected simultaneously.

In an industry where reputation is paramount, the fallout from a security incident can be long-lasting. When it comes to risk, law firms have three options: accept it, mitigate it, or transfer it. The real question is, can your firm afford to stand still?

Managing risk: acceptance, mitigation, or transfer

Risk mitigation can be achieved through recognised frameworks and certifications such as Cyber Essentials and ISO 27001.

If you’re looking to transfer risk, the only viable route is cyber insurance.

Cyber insurance helps manage the financial consequences of cyber incidents by covering costs such as data breach notifications, legal fees, and business interruption losses.

Over recent years, the cyber insurance market has undergone significant changes. It has become more accessible to a wider range of businesses, thanks to the growing number of providers entering the market.

How to ensure compliance

At Net-Defence, we understand that managing cyber security compliance and reducing risk within the legal sector can be complex and time-consuming. That’s why we offer expert guidance and tailored solutions to help your firm achieve certifications such as Cyber Essentials and ISO 27001 and maintain compliance with key industry standards.

Contact our team today to learn more about managing cyber risk in the legal sector or to get expert support with gaining these certifications.