How Law Firms Can Stop Wire Fraud and Business Email Compromise
Settlement funds and retainers make law firms a favorite target. These controls stop most attacks cold.
· 5 min read
Business email compromise is one of the costliest cybercrimes in the country. Law firms — especially those handling real estate, settlements, estates, and trust accounts — are attractive targets because large sums move based on emailed instructions.
How the scam works
An attacker gains access to an attorney’s or client’s mailbox, often through a convincing phishing email. They quietly watch conversations, then send updated "wiring instructions" at exactly the right moment. Sometimes they simply register a lookalike domain one letter off from yours.
Technical controls
- Multi-factor authentication on every mailbox — no exceptions
- Impersonation and lookalike-domain protection
- External sender banners on incoming email
- Alerts for new forwarding rules and unusual sign-in locations
- SPF, DKIM, and DMARC configured for your domain
Process controls
Technology is only half the defense. Adopt a firm-wide rule: any change to payment instructions is verified by phone using a number already on file — never one provided in the email. Tell clients about this policy at engagement so they know to expect it.
This article is general information about IT and security practices, not legal advice.
