If you are about to pay out trust funds, and you receive new or changed payment instructions electronically from your client, assume that a hacker is impersonating your client behind the scenes. Stop, and ensure that the new or changed instructions are legitimate by making in-person or phone contact with your client using the phone number on your client file and follow the tips found here. Not only will this help you to avoid a theft of trust funds, it is also a condition of your firm’s new cyber coverage.
LIF has now included cyber coverage for qualifying law firms operating in BC in the Indemnification Program through underwriter, Coalition, Inc. Coverage is claims-made and applies to third party liability claims, first party losses and cybercrime claims, including the most common cyber risks – ransomware, social engineering fraud and data breaches. If you do not do your due diligence to authenticate payment instructions received electronically, you may not have coverage if there is a theft.
If you suspect that you have been the victim of a cybercrime, immediately follow the reporting instructions on the LIF website. Further information, including links to pre-recorded webinars, details on coverage, risk management and FAQs, is available here. If you have questions about the new coverage, please email Shelley Braun at sbraun@lif.ca.
Vacation alert and precautions
Cybercriminals target lawyers on vacation as changes in the usual procedures give them an opportunity to deceive your clients and staff. So be on high alert for scams during vacation. Arrange for a competent lawyer to supervise your practice and provide your contact information to the lawyer and your staff. Your staff are not in a position to deal with trust funds, except in accordance with the BC Code and Law Society Rules, and should not be left without proper supervision (see BC Code, Chapter 6 and Law Society Rules 3-64 to 3-66).