Legal technology has changed how law firms work. Lawyers now use cloud storage, case management software, e-discovery tools, and AI-powered research platforms. These tools save time and cut costs. But they also create new risks to client privacy.
You have a duty to protect your clients’ information. That duty doesn’t disappear when you use technology. In fact, tech can make confidentiality harder to maintain. Data breaches happen. Vendors get hacked. Software may share information without your knowledge.
This guide will show you how to protect client privacy when using legal tech. You’ll learn what risks to watch for, what questions to ask vendors, and what steps to take before you adopt any new tool.
Why Client Privacy Matters More Than Ever
Client confidentiality is a core ethical duty. It’s protected by attorney-client privilege and by state bar rules. When you break that trust, you risk disciplinary action, malpractice claims, and damage to your reputation.
Legal tech adds complexity. You’re not just storing files in a locked cabinet anymore. You’re uploading sensitive data to servers you don’t control. You’re trusting third parties to secure that information.
Many lawyers don’t realize how much risk they take on. A 2023 ABA survey found that 29% of law firms experienced a security breach. Most breaches involved email phishing or ransomware. Once hackers access your systems, they can steal client files, financial records, and case details.
Your clients expect you to keep their information safe. They assume you’re using secure tools. If you’re not, you could be violating your ethical duties without even knowing it.
Know Your Ethical Duties Before You Choose Tech
Every state has rules about protecting client information. Most follow the ABA Model Rules of Professional Conduct. Rule 1.6 requires you to keep client information confidential. Rule 1.1 says you must provide competent representation, which now includes understanding the risks and benefits of technology.
Comment 8 to Rule 1.1 specifically mentions technology competence. It says lawyers should stay current with the benefits and risks of relevant technology. That means you can’t ignore how your tools handle data.
You also have a duty under Rule 1.4 to communicate with clients. If you’re using tech that could expose their information, you may need to inform them and get their consent.
Before you adopt any legal tech tool, ask yourself these questions:
- Does this tool meet my duty of confidentiality?
- Do I understand how it stores and protects data?
- Have I reviewed the vendor’s security practices?
- Do I need client consent to use this tool?
If you can’t answer yes to all four, you’re not ready to use that technology. For a deeper look at your responsibilities, read more about AI legal ethics and the duties lawyers must follow.
Vet Your Legal Tech Vendors Carefully
Not all legal tech vendors are created equal. Some have strong security measures. Others cut corners. Your job is to separate the safe options from the risky ones.
Start by asking vendors about their security practices. Here’s what you need to know:
Data encryption. The vendor should encrypt data both in transit and at rest. That means your files are scrambled when they travel over the internet and when they sit on servers. Ask what encryption standards they use. AES-256 is the current industry standard.
Access controls. Who can see your client data? The vendor should limit access to authorized personnel only. They should also use multi-factor authentication to prevent unauthorized logins.
Data location. Where are your files stored? Some vendors use servers in other countries. That can create legal complications. US data stored abroad may not have the same privacy protections.
Backup and recovery. What happens if the vendor’s system crashes? They should have regular backups and a disaster recovery plan. Ask how quickly they can restore your data.
Breach notification. If the vendor gets hacked, will they tell you? Look for a clear breach notification policy. You need to know immediately if client data is compromised.
Compliance certifications. Does the vendor meet industry standards? Look for certifications like SOC 2, ISO 27001, or HIPAA compliance if you handle health information.
Don’t just take the vendor’s word for it. Ask for documentation. Review their security policies. Check online reviews and ask other lawyers about their experiences. For a step-by-step approach, see how to vet legal tech vendors for ethical compliance.
Read the Terms of Service and Privacy Policy
Most lawyers never read the fine print. That’s a mistake. The terms of service tell you exactly what the vendor can do with your data.
Look for these red flags:
Data ownership. Some vendors claim ownership of the data you upload. That’s a problem. Your client data belongs to your clients, not to the software company.
Third-party sharing. Does the vendor share data with advertisers or partners? That could violate client confidentiality. Make sure the policy says they will not share your data without your consent.
Data retention. What happens to your files when you stop using the service? Some vendors keep your data indefinitely. Others delete it after a certain period. You need to know what they’ll do.
Liability limits. Many vendors limit their liability if something goes wrong. Read these sections carefully. If the vendor gets breached, you may still be on the hook for damages.
If the terms are unclear or unacceptable, negotiate. Some vendors will revise their agreements for law firms. If they won’t, find a different vendor.
Use Strong Passwords and Multi-Factor Authentication
Weak passwords are one of the biggest security risks. Hackers use automated tools to guess common passwords. If your password is “password123,” they’ll crack it in seconds.
Use a password manager to create and store strong, unique passwords for every account. A strong password is at least 12 characters long and includes uppercase letters, lowercase letters, numbers, and symbols.
Multi-factor authentication (MFA) adds an extra layer of security. Even if someone steals your password, they can’t log in without the second factor. That might be a code sent to your phone or a fingerprint scan.
Enable MFA on every legal tech tool you use. Most platforms offer it as an option in the security settings. It takes a few extra seconds to log in, but it can prevent a catastrophic breach.
Train Your Staff on Privacy and Security
Your staff handles client data every day. If they don’t understand security risks, they can accidentally expose information.
Train everyone on these basics:
- How to recognize phishing emails.
- Why they should never share passwords.
- How to use secure file sharing tools.
- What to do if they suspect a breach.
Hold training sessions at least once a year. Update your policies as new threats emerge. Make security part of your firm culture, not an afterthought.
Limit Access to Client Data
Not everyone in your firm needs access to every file. Limit access based on job roles. Paralegals working on a case should have access to those files. Your receptionist probably shouldn’t.
Use role-based access controls in your legal tech tools. Most platforms let you assign permissions to specific users. Review those permissions regularly. Remove access when employees leave or change roles.
This principle is called “least privilege.” People should only have access to the data they need to do their jobs. It reduces the risk of accidental exposure or intentional misuse.
Monitor and Audit Your Tech Regularly
Security isn’t a one-time task. You need to monitor your systems and audit your practices regularly.
Set up alerts for unusual activity. Many legal tech tools can notify you if someone logs in from a new location or tries to access files they shouldn’t.
Review your security settings every few months. Software updates may change default settings. Make sure encryption and access controls are still in place.
Conduct annual audits of your tech stack. Are you still using tools you signed up for years ago? Do they still meet current security standards? If not, it’s time to switch.
Have a Data Breach Response Plan
Even with the best precautions, breaches can happen. You need a plan for what to do if client data is exposed.
Your plan should include:
- Who to notify (clients, bar association, law enforcement).
- How to contain the breach and prevent further damage.
- How to investigate what went wrong.
- How to communicate with affected clients.
Most states require lawyers to notify clients if their data is compromised. Some states also require bar notification. Know your state’s rules before a breach happens.
Keep your plan in writing. Train your staff on their roles. Test the plan with a tabletop exercise so everyone knows what to do.
Get Client Consent When Necessary
Some legal tech tools require you to get client consent before use. This is especially true for AI tools that analyze case files or for cloud storage in certain jurisdictions.
Tell clients how you’ll use their data. Explain what tools you’re using and what safeguards are in place. Give them the option to opt out if they’re uncomfortable.
Document their consent in writing. This protects you if a client later claims you mishandled their information.
Being transparent builds trust. Clients appreciate knowing you take their privacy seriously. For more guidance on ethical tech use, explore how to use legal tech ethically.
Stay Current on Security Threats
Cyber threats change constantly. What worked last year may not protect you today.
Subscribe to legal tech security newsletters. Follow cybersecurity experts on social media. Attend CLE programs on technology and ethics.
Your state bar association may offer resources on legal tech security. Many bars have technology committees that publish guides and best practices.
Make it a habit to stay informed. Dedicate time each month to learning about new threats and solutions.
When to Consult an IT Professional
You don’t have to do this alone. If you’re not confident in your tech skills, hire an IT professional who understands legal industry needs.
A qualified consultant can:
- Audit your current systems.
- Recommend secure tools.
- Set up encryption and access controls.
- Train your staff on best practices.
- Monitor your systems for threats.
This is an investment in your firm’s security and your clients’ trust. It’s worth the cost to get it right.
Take Client Privacy Seriously
Legal tech can make your practice more efficient. But it also creates real risks to client confidentiality. You have an ethical duty to understand those risks and take steps to minimize them.
Vet your vendors carefully. Read the fine print. Use strong security practices. Train your staff. Stay current on threats.
Your clients trust you with their most sensitive information. Honor that trust by protecting their privacy every time you use technology. If you’re unsure about any tool or practice, consult an IT professional or your state bar association.
The law is clear: you must protect client data. The tools you use don’t change that duty. They just make it more complicated. Take the time to get it right.
