Keeping Accounting Firms Secure – 5 Key Considerations of a Cybersecurity Plan

Cyber threats are evolving all the time, and so should the cybersecurity posture of your accounting firm. With data becoming the primary currency, it should come as no surprise that hackers want to get at the financial data of your firm. Between 2014 and 2020, data breaches in CPA firms increased by more than 80%. From a ransomware perspective, the general ransom range for small firms has been $100,000, and for large firms, this figure generally hovers around $2.6 million.

These statistics highlight the need for accounting firms to start getting serious about cybersecurity. A comprehensive security action plan is driven by the implementation of strict cybersecurity controls. Implementing security tips for accounting firms can help mitigate these risks. However, the security deployment shouldn’t happen in an ad-hoc manner. Improving your cybersecurity posture should be well-planned.

Here are a few primary considerations and security tips for accounting firms that are looking to protect their network and endpoints from cyberattacks:

1. Security Awareness Amongst Employees

Your cybersecurity is as weak or strong as the levels of security awareness of your in-house staff or even your remote employees. People are the weakest link in cybersecurity, and human error is right there at the top of the list when it comes to listing the cause of data breaches. Your accounting firm needs to take its team through its security paces. They must know about the cyber threats that your firm can face and how they might be targeted. Training must be imparted about the various types of phishing attacks that might land up in their inboxes and how they can identify such emails.

Also, if there are specific access control protocols in place, employees must be trained to follow them. They must also be made well aware of the consequences of their actions, either intentional or unintentional, in terms of the havoc they will cause.

2. The Client Angle

You might choose to deploy the most expensive and comprehensive security solutions that will help address the sophisticated threats your firm will face. However, what about your clients? Since you are going to collaborate closely with your clients on various accounting tasks, including sharing critical financial information through integrated systems, you need to be sure about the security posture of your clients.

The attacker can exploit a security vulnerability at the client’s end to infiltrate your firm’s network. While evaluating clients and their requirements, make sure they are compliant with the necessary data security regulations, whether SOC 2, Cyber Essentials, or any other.

Pro tip: If you think their security isn’t up to par and you can identify weaknesses it would be a great opportunity for a strategic partner. Point them to your trusted IT or Cybersecurity partner which will not only help your client but help build a referral relationship with your provider.

3. Attack Surface

Accounting firms need to reduce their attack surface. The attack surface is the number of ways a cybercriminal can exploit to gain unauthorized access to a device or network. This allows the criminal to gain access to sensitive data, which is then either sold on the Dark Web or held for ransom.

Therefore, your firm and security partners must identify the potential ingress points on the network and other vulnerabilities that can be potentially exploited. The pandemic has meant more firms are working remotely and leveraging cloud applications to get work done. This has increased the attack surface. Also, employees that were protected by the firm’s network security cover are now working from home. In this case, the laptops or home computers used by the employees become an attack surface. Firms will therefore need to extend their security to remote employees.

The plan must include a strategy to ensure that employees and their work devices are protected from data breaches, irrespective of their location.

4. Plan Third-Party Security Audits

Your firm doesn’t exist in a silo. It works with several third-party vendors, which offer a variety of services. Some of the most prominent organizations globally have suffered data breaches because of third-party data breaches. The answer lies in not taking the IT security of third-party vendors for granted. Your cybersecurity plan of action must also focus on conducting a third-party audit to know about the security measures in place and evaluating their efficacy through penetration testing. This way, you can be sure that these vendors are not opening up vulnerabilities in your network.

5. Always plan for the ‘What If’ Scenario

You might have the best cybersecurity infrastructure in the world, but that doesn’t guarantee that your accounting firm won’t suffer a breach. What do you do if your accounting firm suffers from a data breach? Do you have a data backup infrastructure in place? If not, you should invest in it. If a malware attack impacts business continuity, you need a business continuity plan that ensures the firm’s productivity doesn’t suffer. Do you have Cyber Insurance? If not, start the process now as it is getting increasingly difficult to qualify & more expensive.

Once you focus on these considerations, find a cybersecurity expert you trust to assess your network and make improvements. Make sure their contact information is always accessible and TEST your “What If” scenarios.

The objective is to build a meaningful and all-encompassing cybersecurity plan that ticks all the boxes.

Why is Security Important for Accountants?

In the digital age, data has become the primary currency, and this is especially true for accounting firms. The importance of security for accountants cannot be overstated. With the rise of cyber threats, the need for robust cybersecurity measures has become paramount. Between 2014 and 2020, data breaches in CPA firms increased by more than 80%. This statistic alone underscores the critical need for accounting firms to prioritize cybersecurity.

Accounting firms handle sensitive financial data, making them attractive targets for hackers. A successful breach can lead to devastating consequences, including financial loss, reputational damage, and potential legal implications. Moreover, the average ransom demanded for small firms is around $100,000, and for larger firms, it can be as high as $2.6 million.

Furthermore, the security of an accounting firm is not just about protecting the firm’s data. It also involves safeguarding the financial information of clients. A breach can compromise client trust, which can be detrimental to the firm’s business. Therefore, maintaining a strong cybersecurity posture is not just a necessity, but a responsibility for accounting firms.

How Do You Secure Accounting Information?

Securing accounting information requires a comprehensive and well-planned approach. Here are some key steps:

1. Security Awareness Amongst Employees: The human factor is often the weakest link in cybersecurity. Regular training and awareness programs can help employees understand potential cyber threats and how to identify and respond to them.
2. Client Security: Since accounting firms often share critical financial information with clients through integrated systems, it’s essential to ensure that clients also maintain robust security measures.
3. Reducing the Attack Surface: Identify potential ingress points on the network and other vulnerabilities that can be exploited. With the rise of remote work and cloud applications, the attack surface has increased, making this step more crucial than ever.
4. Third-Party Security Audits: Accounting firms often work with third-party vendors. It’s important to conduct regular audits to ensure these vendors are not introducing vulnerabilities into your network.
5. Planning for the ‘What If’ Scenario: Even with the best cybersecurity measures in place, breaches can still occur. Having a robust data backup infrastructure and a business continuity plan can help mitigate the impact of a breach.

Remember, securing accounting information is not a one-time task but an ongoing process. Regular audits, updates, and improvements are necessary to keep up with evolving cyber threats.

At QXAS, we understand that data security is not just a requirement, but a commitment to our clients. As a leading provider of outsourcing services, we prioritize the protection of your sensitive information. We employ a multi-layered security approach, incorporating advanced encryption, secure access controls, and regular audits. Our team undergoes rigorous training to stay ahead of evolving cyber threats. Moreover, we have robust contingency plans in place to ensure business continuity in the event of a breach. With QXAS, you can rest assured that your data is in safe hands, allowing you to focus on what you do best – growing your business.