The internet can be used to a law firm's advantage, and extranets and dealrooms are springing up everywhere. There is more than a whiff of media panic about much of the coverage of online security lapses, but the latest breach might have given the City firms that have spent the year falling over themselves to launch virtual dealrooms something to think about.
Firms are quick to dismiss online scare stories as software industry hype.
But IT security consultant Peter Wood has had some sobering experiences. He has just hacked his way into one company's extranet within 45 minutes, recovering a spreadsheet containing the names, addresses and financial details of 10,000 people. Many law firms are sitting ducks, says Wood, who works as a 'white hat', or ethical hacker, testing the security of networks. He is a senior partner at internet security consultancy First Base, whose clients include City law firms, large corporates and the Bank of England. The company in question was not a legal practice but he has advised many law firms with near-zero protection.