How to Ensure Data Security in Legal Accounting
Law firm data security is vital. Protecting your client data and complying with regulations is important to keep a good reputation, provide a quality service, and operate within the confines of the law. The primary play where data security is relevant for legal accounting is with the software you use.
At Klyant, we provide legal accounting software that is safe, efficient, and secure. In this article, we’ll discuss data security, including what it is, what you need to comply with, how to handle a data breach, and how our software can support your business with compliance and operations.
Get in touch with our team to find out more about our software or pick your plan!
What is Data Security?
Data security is all about the protection of data. This can be from theft, corruption, or access from unauthorised parties. And, although data only regards digital information, physical protection is still a part of it; hazards like flooding or fires, power outages, and theft of equipment all pose a threat to servers and the data they hold.
There are, of course, digital elements of security to be aware of as well. Common digital threats include:
- Hackers
- Spoofing or phishing attempts
- File corruptions for a variety of reasons
- Misuse of data by internal staff or external influences
At the same time as dodging all these threats, you need to be aware of the various regulations that exist for data security – and what you need to do to comply with them. Furthermore, you need to maintain a high standard of data regulation for the entirety of your asset’s lifecycle, and prevent the data you’re responsible for from being mishandled or misused.
Data Security Compliance for Legal Accounting
In legal accounting, data security is a vital component. It is your responsibility to ensure that the data you handle is protected – especially so, as much of that data is sensitive, like personal details or financial information. Data security compliance for various regulations provides:
- Reputation
- Trust
- Privacy and security for your clients
- Protection for sensitive data in law and finance
Sadly, data security compliance is far from simple. There are dozens of data protection acts around the world – ensuring you’re complying with each one can be a major, ongoing challenge that businesses constantly battle with.
While making sure you’re aware of all the potential pitfalls and places where security is needed is imperative, you can achieve data protection compliance by utilising legal accounting software, built by specialists who have the expertise to ensure your digital information can be stored, accessed, and handled correctly.
To get a head start on what you need to do to comply, here is a rundown on several major data protection laws around the globe:
GDPR
A commonly cited data protection law in the UK is GDPR, or the General Data Protection Regulation. This regulation stands to protect the data of any EU citizen, regardless of where the data is stored or accessed.
GDPR is an incredibly important part of compliance for legal accounting. It is always safe to assume that an EU citizen can access your site, and as such you should always comply with GDPR. Even without the restriction of protecting European citizens, following GDPR is best practice for protecting your client data.
Breaking the GDPR can result in some pretty hefty fines, totalling up to €20 million or 4% of your global revenue – whichever is higher. These fines are handled by and paid to the country in which the non-compliance occurred, and individual compensation from affected persons can also apply.
The Data Protection Act
As the UK isn’t part of the EU, we have our own implementation of GDPR known as the Data Protection Act 2018. The purpose of this act is to provide data protection principles, ensuring that data is:
- Used fairly, lawfully, and transparently
- Only used as explicitly specified
- Only used as necessary
- Accurate
- Not kept longer than necessary
- Handled appropriately
Under the Data Protection Act, sensitive information, such as details pertaining to an individual, have even stronger legal protection. Breaches of the Data Protection Act follow the same fine structure as GDPR, with a maximum fine of £17.5 million or 4% of your global revenue, which is handled by the ICO and paid to the UK Government as appropriate.
CCPA
The US state of California also have their own data protection law known as the California Consumer Privacy Act (CCPA). This law gives users more control over their data, including the right to:
- Know what data is collected, how it is used, and where it is shared
- Delete most personal information that’s been collected
- Opt-out of the sale or sharing of personal information
- Non-discrimination for exercising their rights under the CCPA
- Correct inaccurate personal information
- Limit the use of sensitive personal information
Under specific conditions, individuals can sue businesses who have breached the CCPA for up to $750 per occurrence – this process can be halted by ensuring compliancy before a 30-day window after the move to sue is made.
Meanwhile, breaches of the CCPA itself can bring civil penalties of up to $7,500 per violation in a given lawsuit, depending on the intent behind the violation. This can quickly add up, but the generous window for accidental breaches in cases where due diligence can be seen means you’re unlikely to be caught out if you’re conscious of the legislation. Other US states are starting to adopt their own versions of this policy, so it is important to check on a state by state level for your operations.
LGPD
Last updated in 2020, Brazil’s General Data Protection Law (LGPD) aims to protect personal data on the grounds of privacy, self-determination, freedom of expression, and a number of other important factors.
It also has a number of exclusions, such as the processing of personal data that is done for private, non-economic, artistic, or academic purposes.
Breaches of the law can result in fines of up to €50 million or 2% of your annual global turnover, which can be more or less harsh than the equivalent laws in Europe.
Other Data Security Regulations
Many countries around the world have their own data security regulations, like the APPI in Japan, the PIPEDA in Canada, and more. Having an understanding of the intricacies of each data security regulation can be hard to achieve, especially when you’re bogged down with other work.
While following general data protection guidance is a good step, it’s not the only one you should take. By working with qualified professionals and quality software, you can comply with the regulations while protecting the data of clients across the globe – avoiding fines, building trust, and continuing to provide an excellent service.
Get in touch to see how our solution can optimise your legal accounting while ensuring compliance with data security regulations.
How to Handle a Data Breach
Even with the best security, it is still possible for data breaches to occur. Handling a data breach needs to be done with care, speed, and consideration. Here are the steps you need to take to minimise or mitigate the damages to your business and clients:
- Identify where the breach occurred and secure that point to prevent further damage and stop this breach from happening again.
- Mobilise your breach response team.
- Use data forensics to investigate the scope, source, and potential impacts of the breach.
- Consult with legal experts to determine what actions you need to prioritise.
- Notify appropriate parties – legal team, law enforcement, affected clients, and any other parties specific to your business and the data that was accessed.
- Offer those affected advice on what steps to take (changing passwords, etc).
- Tell users how you’re contacting them, to prevent phishing attempts.
Preventing Data Breaches
The best way to handle a data breach is to prevent one in the first place. There are several methods you can do to stop breaches from occurring, such as:
- Investing in data protection. From the software you use to the training of the people using it, data protection is something that encompasses your entire business. Investing in all the avenues of data protection for your business can offer the greatest overall results.
- Take action against breaches. Shore up any weak points in your system or interactions, and show bad actors that you’re going to take action. This will deter people from trying to access your data, and make it harder for them if they do try.
- Protect data more securely in the cloud. High-level encryption and robust physical and digital security for servers means that the cloud is a highly secure place to put your data. The Klyant solution provides cloud integration, and a secure client portal for your customers to engage with.
- Uncover vulnerabilities. Perform routine checks and maintenance to ensure your systems and team are up to speed with the latest in data security.
Ensure Data Compliance with Legal Accounting Software
Legal accounting software is the solution to many problems you may be facing, from inefficiencies in your operations to compliance with various regulations from around the world. Our solution provides oversight from industry professionals, ensuring full compliancy and boosting your capabilities.
With legal accounting software, you gain access to dedicated servers and firmware that have the highest levels of protection and quality. This also comes with reduced admin time by leaving server management up to other people, increased uptime from the externally hosted solution, reduced setup costs since the hardware and team are already in place, and increased availability for customer support.
At Klyant, we don’t offer you a sunset system – instead you’ll benefit from continual updates, support, and improvements over time, providing the highest standards of customer service and software features while keeping you compliant with the law.
Data Secure Legal Accounting with Software from Klyant
Following the minefield of data security regulations can be a challenge, but solutions like legal accounting software from Klyant can keep you compliant. For any and all handling of user data, observe what regulations are in place, what you need to do to abide by them, and how you need to respond in case a breach does occur.
Get in touch if you want to see how our solution can make an impact on your legal firm, or buy a plan today!
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