Keep Your Firm Protected From Accounting Cybersecurity Threats

Accounting firms have access to a wide range of sensitive financial and personal client data. This makes them a top target for hackers who want to steal high volumes of sensitive information.

According to the Harvard Business Review, there was a 20% increase in data breaches from 2022 to 2023. And 98% of organizations have a relationship with a vendor that experienced a data breach within the past 2 years. By understanding the most common threats and implementing some basic best practices, accounting firms can effectively secure customer data and have a plan to deter, detect and respond to threats.

Phishing and vishing

A phishing scam occurs when hackers use compromised or fraudulent email addresses to target a specific employee. A vishing attack is similar, with criminals spoofing phone numbers and generating voice recordings to request credentials over the phone.

Often, these attackers ask the employee to facilitate what looks like a legitimate transaction or to make changes to key payment or vendor information.

Phishing scams have long been the most common type, and a report from Zscaler shows that they continue to rise—with a 50% increase between 2021 and 2022.

Conduct regular training sessions to help employees recognize suspicious emails and phone calls. Consider an email encryption system that encrypts sensitive internal emails with attachments automatically. Check with your IT team or service provider to make sure they have an alert system for suspicious emails.

Malware and ransomware

Malware and ransomware are growing cybersecurity threats aimed at organizations that deal with highly confidential data—accounting firms included. Malware is any software designed to steal data and damage computer systems. Ransomware is a type of malware in which hackers encrypt all files on an organization's computers and networks, blocking the owner's access and holding their systems hostage. Owners can only regain control of the sensitive data by paying a ransom.

Your organization should have multiple data backup strategies in place. Set up daily and weekly backup procedures to transfer information to a separate device that can be removed and stored off-site. And make sure to periodically test these backups. That way, even if the entire network becomes compromised, the backup isn't infected.

Unsecured devices

Cloud-based accounting systems allow employees to access critical software on different devices from any location. Many firms even allow employees to use their own devices for business purposes. The risk, of course, is that these personal devices may not have the security features and updates needed to protect client and firm data.

Ensure antivirus software is installed on all devices. Require employees to use strong passwords and a secure virtual private network to access computers and systems remotely. Also, develop clear policies and procedures for handling sensitive data, such as making it a requirement that employees remove unneeded client data from their devices regularly. Training can help everyone understand why it's crucial to protect sensitive client data.

Cryptojacking

Cryptojacking involves using a computing system or network to mine cryptocurrencies. Because these currencies employ blockchain technology—the combined power of multiple computer programs to authenticate the transaction—they're untraceable as a form of online payment.

By embedding malware into a firm's systems, cybercriminals use the computer's processing power to create new tokens and generate fees, which are deposited in the miners' online wallet. While nothing in the firm's computer network is stolen or encrypted, cryptojacking can slow down a firm's computer network and overwork processors.

Make sure your systems are updated with the latest antivirus and malware-detecting software. These regularly scan for suspicious scripts. Because most cryptojacking scripts are embedded in ads, make sure you install an ad blocker.

Educate your team

There are several cybersecurity certifications specific to CPAs and accountants that business owners can obtain to help assess and navigate digital risks. This kind of education can protect client information and demonstrate your business's commitment to cybersecurity.

The American Institute of Certified Public Accountants, or AICPA, is the largest member association representing the accounting profession. The AICPA offers four certificate programs, including Cybersecurity Fundamentals for Finance and Accounting Professionals, Cybersecurity Advisory Services, SOC for Cybersecurity Services and Cybersecurity Practical Applications.

By educating yourself and your staff about threats, you'll be positioned to put effective accounting cybersecurity protocols in place. This will limit your firm's exposure to online risks and reassure customers that you have their best interests and the safety of their information in mind.