Credit: Shutterstock.com[/caption] Alarmed by the rising threat of hackers bent on extorting, exposing or undermining their work, Washington, D.C., law firms have been quietly changing their behavior since DLA Piper fell victim to a major security breach last June. DLA Piper's D.C. leader, meanwhile, says the firm has emerged stronger than ever from the crisis. It's been about eight months since a cyberattack briefly crippled the 3,600-lawyer megafirm's operations—and nearly two years since attacks on Cravath, Swaine & Moore, Weil, Gotshal & Manges and other firms first went public. Since then, firms in the nation's capital have quickened their behind-the-scenes efforts to thwart and respond to such attacks. Law firms that didn't have cyber insurance immediately began purchasing coverage after the DLA Piper breach, and large firms with cyber insurance increased their coverage, said Tom Ricketts, a senior vice president and executive director at insurance brokerage Aon Risk Solutions. Ricketts said the June attack, which paralyzed some other global business as well, had a “dramatic impact” on Aon’s business. In the final six months of 2017, Aon’s client base of law firms purchasing cyber insurance grew 10 percentage points, he said, adding that the medium limit of insurance purchased by firms with more than 500 attorneys grew from $10 million to $20 million since last summer.
A sign greeting DLA Piper's Washington employees on June 27, 2017. Photo: Eric Geller/Politico
Even more than their counterparts outside the capital, the political nature of the work at many D.C. firms may put them in hackers' crosshairs. That was true even before a growing number of private lawyers and their firms became deeply involved in special counsel Robert Mueller's probe of alleged Russian meddling in the 2016 election. And while it didn't involve breaches at the firms themselves, the hack and leak of Democratic National Committee emails during the 2016 presidential campaign included correspondence with lawyers at multiple firms. Firms in D.C. and elsewhere are particularly concerned about an attack worse than the one DLA Piper faced, caused by a “zero day” virus that could bring a firm to its knees. A zero-day virus refers to malware relying on a software vulnerability for which no fix yet exists. Like other businesses, law firms have seen the rate of attempted cyberattacks grow rapidly in recent years and months, leading some firm leaders to decline to talk about the topic for fear of placing a target on their back. One Washington-based firm told The National Law Journal the number of attempted daily cyberattacks it witnessed increased 500 percent in just the last two years.
'An Act of War'
At DLA Piper, the fallout over the cyberattack last June may have settled, but the firm has made permanent changes in its wake. The attackers knocked the firm’s phones down and rendered its computers useless in most of its offices worldwide. Lawyers entering the firm’s D.C. offices during the attack were greeted by a message on a whiteboard instructing them not to turn on their computers. A statement from the firm nearly two weeks after the attack showed that some of its systems were still being restored at the time. Jeff Lehrer, managing partner of DLA Piper’s D.C. and northern Virginia offices, said that in the months since, his firm has returned to developing hard-copy printouts of phone numbers and other information needed for the firm to continue functioning in case of a cyber crisis. Lehrer, who said the firm has made many improvements to its infrastructure and systems, told The National Law Journal that DLA Piper was the victim of a geopolitical conflict originating on the other side of the globe. “It was an act of war against the Ukraine, and we happen to have a Ukraine office,” Lehrer said. “One of the negatives of being global is that we had a Ukraine office. So if you didn’t have a Ukraine office, you wouldn’t have been subject to this. And the person who [inadvertently triggered the virus] happened to, had to have been an administrator with administrative privileges. So it took that as well to spread it.” The attack came via an update to accounting software unique to Ukraine that was necessary to submit tax filings, Lehrer said. After one DLA Piper user with administrative privileges opened the program, the firm’s connected operations around the world became infected with the virus that Lehrer said used “technology that came from the NSA.” National Security Agency spokeswoman Kelly Biemer responded to questions about Lehrer’s claim in an email, stating, “We’re not able to discuss allegations regarding intelligence activities.” She pointed to a White House press secretary statement from Feb. 15, 2018, that said, “In June 2017, the Russian military launched the most destructive and costly cyberattack in history.” While initial reports suggested the virus was so-called ransomware,” intent on extorting payment from affected users for access to their devices, Lehrer said the cyberattack was not ransomware but an attack designed to shut things down. Lehrer said “no data was lost” by DLA Piper as a result of the attack. The malware harming DLA Piper appears to have been a variant of the malware “Petya,” which some analysts dubbed “NotPetya,” that hit businesses around the globe including companies in the shipping and health care industries. Unlike earlier iterations of Petya attacks, where ransomware was deployed seeking to extort affected users, the new malware was reported to be more of a “wiper” that mimics ransomware but is designed to wreak havoc, not extract a ransom. Lehrer said that in the end, the crisis left DLA Piper in a better position to serve its clients. He said he thinks clients appreciate that the firm’s lawyers are better advisers in the cybersecurity realm because of their firsthand experience, and the firm was able to more than overcome the financial impact. “That was a horrible experience, what we went through,” Lehrer said. “And despite that, we still beat budget. So it was a good morale booster in that even though we lost some important billing time and down cycle, the firm still was doing so well economically that even despite that that loss of revenues for a certain period of time, we still beat budget.” Lehrer said the D.C. office also had plenty to celebrate last year, with low attrition and plans to grow in the Washington market. DLA Piper is moving forward with its plans to grow its footprint in Washington to better match some of its competition’s scale in the nation’s capital. The other good news amid setbacks caused by the cyberattack that hit the firm in 2017, Lehrer said, is the rate of attrition among partners in DLA Piper’s D.C. office last year was among its lowest numbers in the preceding ten years. Local Lessons Crowell & Moring firm chair Phil Inglima said his 400-plus lawyer firm has long made cybersecurity a top priority. But the malware attack on DLA Piper still appears to have come as a surprise. “I think that it’s been a wake-up call to everybody in the legal community, and probably there are many firms that say, “There but for the grace of God go I”,” Inglima said. “But I do think that we’ve done a very good job of developing the maximum defenses that we can in the time that we’ve had this kind of awareness and vulnerability of IS [information services] systems.” Arent Fox chief technology office Ed Macnamara said DLA Piper's experience offered a case study to illustrate to firm leadership the dangers they face. “It really is an escalating war going on every day,” Macnamara said. The direct and indirect victims of cyberattacks can range from large firms with several thousand attorneys to small shops with just a handful of lawyers. A study by the startup cybersecurity consulting firm LogicForce from 2017’s fourth quarter found that hackers wielding malware prey on vulnerabilities that are “commonplace” throughout the legal industry. “Law firms should not take comfort in thinking they may be too small or remote to be victimized,” the report warned. “The event that impacted DLA Piper and innumerable other businesses would likely have affected thousands of law firms in the U.S. if it wasn’t primarily a regional event.” Austin Berglas, global head of cyber forensics and incident response at cyber defense practice BlueVoyant, also said he has witnessed firms increasing their investments in cyber defense. He said firms should also proactively work with public relations firms as part of their response planning, to minimize the reputational risks an attack can bring. “More firms are asking for the development and updating of their IR [incident response] plans and taking some lessons learned from the [DLA] Piper incident," especially when it comes to maintaining communications amid an attack, said Berglas, a former head of the FBI’s cyber branch in New York. “Most importantly, they’re starting to realize they’re not immune,” he said.
