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Who Bears the Risk of Loss When a Hacker Targets a Settlement?

Author Steven Puiszis is a partner in the Chicago office of Hinshaw & Culbertson LLP. He serves as the Firm's General Counsel on Privacy, Security & Compliance. This timely article discusses Bile v. RREMC, LLC, a 2015 district court case which concluded that an attorney owes a duty to notify opposing counsel when the lawyer becomes aware that a hacker is targeting a settlement involved in one of the lawyer's cases. In addition to examining the district court’s ruling, Puiszis discusses risk management issues for lawyers and law firms, as well as social engineering and phishing risk management considerations. To conclude he provides a sample law firm policy that addresses these issues.