Lawyers required to protect personal information under new federal rule

April 2, 2009 by
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Oh what fun, lawyers (and their clients) have new regs to comply with and new exposure if they don’t. Civil damages, administrative penalties, and even criminal charges are possible under these new rules. But this emerging field also provides new marketing opportunities. You can advise (and bill), you can represent damaged parties, and you can defend parties charged with failure to comply. And, if you practice in any related field, you can attract new business by speaking and writing about these new regulations. You can also earn profits beyond your legal fees by offering non-legal identity theft protection to your clients and their employees. I work with many attorneys who do this and the income is not only substantial, it is residual. If you’re interested in learning more, send me a personal message. dw

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By Susan D. Oja and Alex De Grand

April 1, 2009 — Lawyers who bill their clients after services have been rendered are expected to implement a written program guarding against the theft of their employees’ and clients’ personal information under a new federal law.

The Federal Trade Commission will begin enforcement of the “red flags rule” on May 1. The rule is part of the Fair and Accurate Credit Transactions Act of 2003 (FACTA), a congressional response to spikes in reported identity theft. Identity thieves assume a person’s entire identity or synthesize one from parts of various victims. Because more than half of identity thefts occur in the workplace, businesses are required to implement safeguards.

Those subject to the rule are “creditors” and financial institutions who maintain consumer-type accounts or other accounts at reasonable risk of identity theft. The FTC noted that identity thieves look for opportunities to obtain products or services that do not require payment up-front.

As interpreted by the FTC, “creditors” has a broad definition, encompassing professionals such as lawyers and doctors who defer payment of a client’s bill. The American Medical Association protested that other federal laws and professional ethical duties to maintain patient confidentiality precluded the new rule. But the FTC held in a letter that the statute borrows the sweeping definition of “creditor” from the Equal Credit Opportunity Act (ECOA). Agency interpretation of the ECOA specifically includes doctors and lawyers within the meaning of “creditor.”

What is expected

Under the new rule, lawyers must implement a written policy specifying how they will watch for the warning signs — the “red flags” — that indicate an identity theft may be occurring and how they will respond to prevent or mitigate the crime if uncovered.

Policies are supposed to be tailored to the amount of risk. The FTC acknowledges there is no bright-line rule to distinguish between high and low-risk. But the rule suggests a lawyer consider such factors as how easily an account is opened or accessed and previous experience with identity theft.

If a lawyer finds there is little risk, an appropriate program might comprise no more than checking photo id at the time services are sought and a policy against collecting from an identity theft victim or reporting it on the victim’s credit report.

In its letter to the AMA, the FTC stated that it does not foresee the new rule imposing a great burden. “For example, a small medical practice with a well-known, limited patient base might have a lower risk of identity theft, and thus might adopt a more limited Program than a clinic in a large metropolitan setting that sees a high volume of patients,” the letter read.

What to watch for

The Appendix of the “red flags rule” provides examples of incidents putting a creditor lawyer on notice of potential identity theft. In addition to fraud alerts from consumer credit agencies or the client’s complaint, this list includes suspicious documents, perhaps altered or forged. A creditor lawyer may receive fishy personal information such as an unexpected change of address. Creditor lawyers are also directed to look for unusual use of an account.

A creditor lawyer’s policy should address the detection of “red flags” at the time an account is opened by obtaining identifying information about the new client and verifying it, the rule instructs.

What to do

Responses to “red flags” should be in proportion to the risk posed and a creditor lawyer is advised to consider any “aggravating factors” such as a data security breach that may exacerbate the threat. The rule Appendix suggests appropriate responses could be alerting law enforcement, monitoring the account for evidence of identity theft, changing passwords or other security devices controlling account access, reopening an account with a new account number, or closing an account. Under certain circumstances, the rule states that a creditor lawyer may determine no response is necessary.

These written policies should be updated periodically to account for changes in risks to clients’ information or innovations in detection of identity theft. A subsequent merger, acquisition, joint venture, or service provider arrangement may also prompt the need for an updated written policy.

The rule also requires appointing a senior management person to implement the program; appropriately educating employees; and overseeing any service provider arrangements. Liability follows a creditor lawyer’s data, so due diligence is necessary to confirm vendor compliance before outsourcing payroll or hiring an office cleaning company.

More information from the FTC: The Red Flags Rules: Are you complying with new requirements for fighting identity theft?

Susan D. Oja, a solo practitioner in Middleton, is a certified identity theft risk management specialist through the Institute of Fraud Risk Management. Alex De Grand is a legal writer for the State Bar of Wisconsin.

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Filed Under: Continuing Legal Education, Increase your income, Law office management, Marketing legal services Tagged With: , , , , , , , , , , , , , ,

How to get big personal injury cases

June 23, 2008 by
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A personal injury attorney wrote and asked me if I have a strategy for bringing in bigger cases. I was a personal injury attorney for most of my legal career and when I look back at what I did, I have to say that I did not have that strategy. In fact, I intentionally focused on bringing in a volume of smaller cases.

My thinking was that quantity would bring quality. Bring in thousands of clients over a period of years and you are bound to have some big cases in the mix. And that was certainly true for me. But I also recall thinking, as every personal injury attorney does, that one day, I’ll get a case that will bring me millions of dollars in fees and I’ll be able to retire if I want to. But in twenty years, that never happened. Big cases, yes, but not a single practice-making monster.

But there’s something else I understood and that was that I was not one of the big boys. The biggest cases are almost always handled by the biggest names and most of the time, they are referred there by other attorneys. I wasn’t prepared to compete in that arena. I didn’t have the expertise and, more importantly, I didn’t have the passion for developing it.

The best strategy for getting the biggest cases is to become one of the best lawyers. Win bigger and bigger verdicts, develop your skills and your reputation amongst the bar, and when you have the respect of your colleagues, you will get their referrals.

Another way to get big cases is the one adopted by a lot of attorneys who aren’t one of the best and that is to appear to be. They swing a big stick with multiple full page yellow page ads and TV commercials, they sponsor charitable events attended by centers of influence in their community, they network with the right people, send press releases celebrating their victories, and otherwise promote themselves so that they appear to be one of the biggest and one of the best. And by and large, it works.

To do this, you need money and some marketing skills, but most of all, you need drive. The biggest promoters have big, healthy egos. They are driven as much by the desire for attention as the desire for money. I’m not taking anything away from them. They are usually good enough to serve their clients well and smart enough to bring in one of the best when they aren’t.

If you’re not one of the best and you aren’t willing or able to become one, and if you’re not willing to do what the big promoters do, there is an alternative: target niche markets. Become the biggest fish in a small market where word of mouth is strong and limited resources (and hubris) can go a long way. Become the attorney everyone in that market thinks of when they think of injuries. Network in that market, write for that market, serve that market and the centers of influence in it, and over time, you’ll get big cases. Do it well enough and long enough and you may even get one of the very biggest.

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Filed Under: Advertising, Image, Increase your income, Marketing legal services, Networking, Press release, Publicity, Referrals, Specializing Tagged With: , , , , , , , , , , , , , , , , , , ,

How full is your bucket?

May 27, 2008 by
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"How Full Is Your Bucket?" by Tom Rath and Donald O. Clifton is a little book filled with big wisdom. Here’s why you should read this immediately: 

  • It reveals simple but powerful strategies that can dramatically improve your relationships with clients, employees, friends, family, and others. These strategies can increase your income, improve your productivity, and even improve your health and extend your lifespan.
  • It is based on 50 years of research, not guesswork. The authors PROVE their premises.
  • You can read the book in an hour and begin using the principles immediately. In my opinion, you’ll see results in days, if not hours.

The book is based on the relatively new field of "Positive Psychology," which focuses on what is right with people rather than what is wrong.

The book and accompanying web site show you how to replace negativity and criticism with positive strategies to obtain desired results.

Good reading!

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Filed Under: Client relations, Increase your income, Personal development, Productivity, Salesmanship Tagged With: , , , , , , , , , , , , , , , , , , ,

Referrals mean better clients, bigger income for lawyers

April 2, 2008 by
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Where did your clients first find out about you? Chances are it was one of the following:

  • They were referred to you
  • They saw an article you wrote or heard you speak
  • They met you at a networking event
  • They saw your ad
  • They saw an article about you or saw you on the news
  • They found your web site via a search engine

Whatever brought you clients in the past is probably something you should continue to do in the future.

Do it in more places, do it more often, do it better, and you should bring in more clients.

But no matter what other marketing strategies you use, the cornerstone of your marketing efforts should be based on getting more referrals.

Referred clients are the best clients. As a general rule, they come to you pre-sold. You don’t have to convince them to hire you, to pay what you ask, or to follow your advice.

Referred clients tend to be better clients, too. They are less likely to complain and more likely to come back to you again and again. And, because they were themselves referred, they are far more likely to refer other clients to you.

Lawyers who get a lot of referrals tend to have the most profitable (and enjoyable) practices.

Use other marketing methods to bring clients to your attention if they suit your style and budget. But build your practice on a foundation of referrals.

Referrals from clients are the easiest to generate. But while clients may be the most willing to refer, there are usually limits as to how much–or how often–they CAN refer.

Non-client referral sources may have the ability to refer you a lot of business, but they may not (yet) be willing to do so.

You need strategies to deal with both situations.

For clients, the simplest strategy is simply to stay in touch. Clients who don’t have anyone to refer to you today may have referrals tomorrow. Your objective is to be "in their minds and their mailboxes" when that occurs.

For non-client referral sources–attorneys, other professionals, business owners, and so on–don’t count on merely letting them know what you do. You may get some referrals that way, but your best sources are likely to come only after you have built relationships with key centers of influence.

Building those relationships doesn’t necessarily depend on your ability to refer them business. Do it if you can, but if you can’t, you can either

  • Build a personal relationship, based on friendship and common interests, and/or
  • Help them professionally in other ways. For example, while you might not be able to refer them much business yourself, you can introduce them to some of your colleagues who might be able to refer them business.

Relationship marketing means helping others first, without demanding or expecting anything in return. It means finding out what prospective referral sources want and looking for ways to help them get it. Put aside what you want for now, and help others, FIRST. Try it and watch what happens.

Zig Ziglar said, "You can get anything you want in the world by helping enough people get what they want."

Shameless plug: The number one resource for lawyers who want to build a referral-based practice is my own, "Referral Magic" marketing course. More than 5,000 attorneys worldwide are using Referral Magic to get more clients and build a successful law practice. You can learn about The Referral Magic Marketing Program on this page.

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Filed Under: Increase your income, Marketing legal services, Referrals, Relationship marketing Tagged With: , , , , , , , , , , , , , , , , , , ,

The three things that matter most

March 24, 2008 by
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What are the three most important things you do in your career? Sure, you do a lot of things, but chances are, three of them are more important than the rest. We’ve talked about the 80/20 Principle before. These three things are the twenty-percent activities that deliver eighty percent of your results. They are worth identifying. If you can identity them, you can do more of them (and less of those things that aren’t of the three).

What’s more, if there are only three things, you can remember them. You don’t need a list. “These are the three areas I focus on,” you’ll say. “This is where I focus eighty percent of my time.” So what are they? If you could only do three things all day long, what would they be? Don’t think too much about this; you already know the answer.

When I was practicing (personal injury), I would have said that these are my three things:

  1. Marketing
  2. Settling Cases
  3. Managing staff

For me, litigation was not one of the three things that matter(ed) most. We did it, but the practice was a high-volume of smaller cases and litigation was not our primary focus. So, it was these three things that mattered most to my practice. If I was doing one of these three things, I was doing “twenty-percent activity”. Anything else was “eighty-percent activity” (which brings in only twenty percent of the results).

Let’s take things a step further, shall we? Once you have identified your “three things that matter most,” what about identifying the three things that matter most about each of those three things? This allows you to get more specific about how you are spending your time and how you are focusing your energy. You will perform “on purpose” instead of reacting to whatever presents itself. And, if you can recall the three things that matter most, you should also be able to recall the three things about each of those things, too. If they are truly important and you are doing them, they will be second nature to you.

In my case, I would have identified the three things about my three things, like this:

MARKETING

  • Ads in yellow pages
  • Network with referral sources
  • Client referral strategies

SETTLE CASES

  • Client interviews/evidence collection
  • Demand package
  • Negotiation

MANAGE STAFF

  • Interview/hire
  • Monitor work flow
  • Recognize and incentivize

What are your three things? And what are the three things about each of those three? Take the time to identity these crucial items and then focus eighty percent of your time and attention on them. You’ll get more done in less time and you’ll get more results. You’ll earn more and work less.

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Filed Under: Increase your income, Productivity Tagged With: , , , , , , , , , , , , , , , , , , ,

Do you know what “passive income” is?

January 28, 2008 by
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A friend of mine by the name of Brian used to be a real estate agent. He told me a story about a very successful business mentor of his who once asked him if he knew what “passive income” was. Brian said he did. “Well, do you have any?” he asked. When Brian said he did not, the mentor said, “Then I don’t think you know what it is, because if you did, you would crash through walls to get some.”

He went on to explain it this way:

“When you sell a house, you get paid a commission, right? And then you move onto the next deal. If you don’t sell a house, you don’t get paid. You’re only as good as your last deal. Now, what would you rather have, $5,000 when you sell a house or $50 every time someone opened or closed a door? That’s passive income.”

I once explained passive income to a lawyer this way: “Think about what you currently earn in your practice and imagine that you were paid that amount but you didn’t have to show up for work.”

What would it mean to you if you had enough passive income coming in so that you never had to work again? If you had money AND the time to enjoy it?

If there was a way to accomplish that, would you want to know about it?

(Keep reading. . .)

Very few people have passive income. Athletes, entertainers, artists, writers, are usually cited as examples. Some attorneys achieve passive income by taking a percentage of their client’s business venture or intellectual property. But most attorneys (and I was no exception when I was practicing) earn linear income.

Linear income means there is a direct correlation between your personal services and your compensation. It doesn’t matter whether you bill hourly, flat rate, or contingency, what you get still depends (mostly) on what you do.

When you have employees, you have leverage, and that provides a semblance of passive income. Someone else does the work, you bill the client at a higher rate, and you profit from the difference. But it’s not true passive income because you still have to supervise those employees and you are responsible for the work they do.

If your firm is big enough that you don’t have to do that, if you can stay home and the practice runs without you, then you have true passive income. But then you probably wouldn’t be reading this.

What if there was another way to generate passive income? What if, in the next few years, you could create a six-figure passive income and it didn’t interfere with your current practice or job?

And what if I told you that a lot of attorneys have already done it?

Including me.

It’s true. In just a few years, working part time, I created a six-figure passive income that continues to pay me today. The money comes in month after month, year after year, and I don’t have to work for it.

Now you know I’m telling you this for a reason. I won’t keep you in suspense any longer. I’ve just launched a new web site that will tell you exactly what I did to create this passive income, and, more importantly, how you can do it too.

Here’s the site: https://attorneymarketing.com/legal-plans

Take a look and let me know what you like best.

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Filed Under: Increase your income, Wealth Tagged With: , , , , , , , , ,

I dare you. . .

December 10, 2007 by
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I just told my business partners (my other business) that my goal for 2008 is to triple my 2007 income.

This is BIG GOAL! (Let’s just say I already do okay).

I told them I was sharing my goal with them for two reasons. First, so they would hold me accountable to it. Few things motivate more than accountability. Remember something we used to call “peer pressure”? That’s accountability. If you go to the gym and have a work out partner or coach, that’s accountability. When you promise your spouse you will do something and it’s important, that’s accountability. Accountability to others is powerful because we will often do for others (or what we have promised to others) what we won’t do for ourselves. I also asked my parnters to tell me their goals, so I could hold them accountable.

The second reason I shared my goal with my partners was to inspire them to think bigger. After all, if it’s good enough for me to think in those terms, it gives them “permission” to think bigger, probably bigger than they would do on their own.

So, as you contemplate 2007 and plan for 2008, I am issuing you a challenge to not only think bigger than you have ever thought before, but to find someone who will hold you accountable.

Helen Keller once said, “Life is either a daring adventure or it is nothing.”

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Filed Under: Goal Setting, Increase your income

Don’t let this happen to your clients (or you)

December 3, 2007 by
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Many (most?) people think identity theft is about credit and credit cards, but that’s only about a fourth of the problem. These two videos are frightening examples of other kinds of identity theft and, unfortunately, they are more common than you think.

Once you have watched these, spend a little time educating yourself about identity theft, and then tell your clients. Warn them and inform them. Tell them what to watch out for and tell them how to protect themselves. Especially now, during the holiday season, when identity thieves run like pack wolves. As the first video suggests, it could save their life.

And if you don’t have identity theft protection, think about getting some. I have what I believe is the best service available and I also sell it. (No commercials, though; if you want some information about the service for yourself and/or to offer it to your clients, contact me.)

 

 

 

 

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Filed Under: Client relations, Increase your income Tagged With: ,

Marketing opportunity for lawyers: FTC releases survey of identity theft

November 28, 2007 by
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FTC Releases Survey of Identity Theft in the U.S. Study Shows 8.3 Million Victims in 2005

Now that you know, do you know what to do about it?

Here’s the lead to their press release:

The Federal Trade Commission today released a survey showing that 8.3 million American adults, or 3.7 percent of all American adults, were victims of identity theft in 2005. Of the victims, 3.2 million, or 1.4 percent of all adults, experienced misuse of their existing credit card accounts; 3.3 million, or 1.5 percent, experienced misuse of non-credit card accounts; and 1.8 million victims, or 0.8 percent, found that new accounts were opened or other frauds were committed using their personal identifying information.

"Whether you’re from Malibu or Manhattan, Tacoma or Tallahassee, no one is immune to identity theft," said Lydia B. Parnes, Director of the FTC’s Bureau of Consumer Protection. "The important thing is that people learn how to deter identity thieves, detect suspicious activity on their financial records, and defend against the crime, should it happen."

The full story: http://www.ftc.gov/opa/2007/11/idtheft.shtm

The FTC Identity Theft site: http://www.ftc.gov/idtheft

Another FTC Identity Theft resource: http://www.ftc.gov/bcp/edu/microsites/idtheft/

Identity theft is a growing problem and some experts predict it will soon become an epidemic. As more people become aware of the issue, they will be seeking answers. Who better to provide those answers than an attorney?

There is no shortage of information available. In addition to the FTC, which, I believe grossly understates the scope of the problem, millions of web pages provide an abundance of data and real life stories of identity theft victims. A few hours of weekend research would provide enough background to make you conversant with the issues and various strategies for combatting the growing problem.

Armed with this knowledge, you could inform your clients, prospects, and referral sources, via your newsletter, ezine, reports, articles, web sites, seminars, and so on, and thus, position yourself as a valuable resource on the subject. That opens up all kinds of marketing opportunities for you. And, as identity theft becomes more prevalent, the value of your "expertise" on the subject could skyrocket.

There are five common types of identity theft, and anyone with a social security number is at risk. Personal information stolen from the victim themself is not the biggest risk. It is the vulnerability of the thousands of databases where that information resides. Every day we see evidence of this in the news–stolen laptops, hacking, insufficient wireless encryption. And no, we cannot stop identity theft, as some advertising would have you believe. All anyone can do is prepare themselves for the consequences in the event they become a victim. By the way, the odds of that happening, according to some estimates, will soon be in the neighborhood of one in four.

Your business clients are at risk as well, and so are you. New federal laws impose administrative and civil penalties, and even criminal liability, for failiure to safeguard certain non-public data, even if that data is not stolen. These laws apply to nearly any business that is in possession of that data, and that includes lawyers. Many states are considering (and some have already passed) even more stringent legislation. And, we’re starting to see the plaintiff class action bar sharpening their chisels. (Why is that not surprising?)

So, this is not something that’s going to go away. A lawyer friend of mine who has become a national expert in this field tells me identity theft will increase twenty-fold in the next two years. Bad news for consumers and businesses, but a marketing bonanza for astute attorneys who position themselves in front of the coming wave.

One more thing: some lawyers have developed a new practice area, consulting business clients on (a) how to comply with the new laws and (b) how to mitigate their exposure in the event of a breach. And many lawyers are starting to offer their (business and consumer) clients third-party identity theft protection services, both as a service to those clients and as a source of revenue. If you are interested in either one (consulting and/or offering third-party services), I’ll be happy to show you what I, and many other still-practicing attorneys are doing. 

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Filed Under: Client relations, Increase your income, Marketing legal services
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