Unapproved apps and personal accounts may be quietly compromising attorney-client privilege and data security.
In Montana law firms, confidentiality isn’t just a best practice, it’s the foundation of attorney-client trust. Clients expect their most sensitive information, from financial records to criminal defense strategies, to be handled with absolute discretion. But while most firms focus on defending against outside hackers, one of the biggest risks to confidentiality may be coming from inside the firm itself: employees using unapproved technology tools.
This hidden problem, known as Shadow IT, is growing rapidly across law firms of all sizes. At Information Systems of Montana (ISM), we’ve worked with firms in Helena, Billings, Missoula, and beyond, uncovering dozens of Shadow IT practices that put client data at risk, often without leadership even realizing it. Left unchecked, these practices can open the door to compliance violations, reputational damage, and the loss of client trust.
What Is Shadow IT?
Shadow IT occurs whenever employees use software, apps, or cloud services that haven’t been approved or secured by the firm’s IT team.
Examples in law firms include:
- Saving sensitive case files to personal Google Drive or Dropbox accounts.
- Emailing contracts or pleadings through private Gmail or Yahoo addresses.
- Using free, consumer-grade project management tools like Trello, Slack, or WhatsApp to coordinate casework.
- Sharing discovery files via USB drives or personal laptops without encryption.
In most cases, these employees aren’t malicious. They’re usually trying to work faster, collaborate remotely, or access documents at home. But good intentions don’t equal good security, and when sensitive data leaves the firm’s-controlled environment, it becomes a liability.
Why Shadow IT Is Especially Risky for Montana Law Firms
- Confidentiality Breaches
Attorney-client privilege is one of the most sacred principles in the legal profession. If staff use unapproved apps, confidential documents may end up stored on unsecured servers outside of your control. For example, a personal Dropbox account might be synced to multiple devices, any of which could be compromised. Once that information leaks, privilege is broken—and recovery is nearly impossible.
- Compliance & Ethics Issues
The American Bar Association (ABA) Model Rules of Professional Conduct require attorneys to take “reasonable efforts” to safeguard client information. Similarly, state bar associations emphasize cybersecurity diligence. Shadow IT directly undermines these obligations. If regulators or courts discover that sensitive data was compromised due to unapproved tools, your firm could face ethics complaints, malpractice claims, or disciplinary action.
- No Visibility or Control
You can’t secure what you don’t know exists. Shadow IT apps typically operate outside the scope of monitoring, meaning:
- No encryption
- No centralized backup
- No audit trail to prove who accessed what, and when
This blind spot creates serious challenges for legal hold obligations, eDiscovery, and compliance audits.
- Business Continuity Risks
If an employee stores client files in a personal account and then leaves the firm, or worse, becomes disgruntled, you may lose access to critical work product. Without visibility or ownership, recovering those files can be costly, time-consuming, or impossible.
Real-World Example: Shadow IT Gone Wrong
A mid-sized Montana law firm recently discovered that a paralegal had been saving discovery files to her personal Dropbox account so she could “work from home more easily.” Unfortunately, her Dropbox credentials were stolen in a phishing attack, exposing hundreds of sensitive records.
The fallout included:
- Client complaints and loss of trust
- Emergency remediation and forensic costs
- Potential reporting obligations under state data breach laws
- Reputational damage in the local community
This wasn’t a malicious act; it was simply an employee trying to be efficient. But the consequences were severe and avoidable.
The Cost of Shadow IT for Law Firms
The risks aren’t just theoretical. According to IBM’s Cost of a Data Breach Report, professional services firms (including law practices) face an average breach cost of $4.47 million, and Shadow IT is often a contributing factor.
For Montana law firms, the true costs include:
- Loss of Client Trust → Once breached, reputational damage can cost you referrals and long-term client relationships.
- Regulatory Penalties → Non-compliance with ABA standards, HIPAA (for firms handling health records), or PCI-DSS (for payment data) can trigger fines.
- Operational Disruption → Breaches cause downtime, prevent access to files, and delay critical case deadlines.
- Insurance Challenges → Cyber insurance providers increasingly require proof that firms have controls in place to prevent Shadow IT. A breach tied to unapproved apps could lead to denied claims.
How Law Firms Can Eliminate Shadow IT
Shadow IT may be widespread, but it’s not inevitable. With the right strategies, Montana law firms can regain control, protect attorney-client privilege, and boost overall cybersecurity.
- Audit & Detect
The first step is visibility. Firms should conduct a Shadow IT risk assessment using monitoring tools or by partnering with IT experts who specialize in legal environments. This helps identify unapproved apps already in use, as well as gaps in security policies.
- Educate Staff
Many Shadow IT practices start with employees who simply don’t understand the risks. Regular cybersecurity awareness training ensures attorneys, paralegals, and support staff know why unapproved tools can jeopardize confidentiality and compliance.
- Provide Secure Alternatives
Employees often turn to Shadow IT because they feel the approved tools are too slow, outdated, or inconvenient. By investing in modern, secure collaboration platforms, such as Microsoft 365 for law firms, you can give staff the tools they need without compromising security.
- Establish Policy & Enforcement
Clearly outline which tools are approved for use and enforce these policies consistently. This includes defining:
- Acceptable cloud storage services
- Approved email and communication channels
- Secure file-sharing methods for clients and co-counsel
Policies should be documented, communicated, and revisited regularly.
- Partner with a Local IT Provider That Understands Law Firms
At ISM, we’ve been supporting Montana businesses, including law practices, for nearly 30 years. We understand the unique blend of confidentiality, compliance, and cost-control that firms face. Our legal IT services include:
- Shadow IT detection and remediation
- Secure collaboration platforms
- 24/7 monitoring and cybersecurity support
- Compliance reporting and documentation
Protect Privilege, Protect Your Practice
Your firm’s reputation depends on safeguarding attorney-client privilege. Don’t let hidden apps or personal accounts quietly undermine your duty to clients.
With the right partner, you can eliminate Shadow IT, improve staff productivity, and maintain compliance, all while reinforcing the trust that keeps your practice thriving.
Schedule a free Shadow IT Risk Assessment with ISM today and ensure your firm’s technology strengthens, not weakens, your client relationships.
