Top Cybersecurity Considerations for Accountancy Firms

Cybersecurity is the most pressing concern for businesses operating in our modern, digital landscape. This is especially true for the finance and accountancy industry.

Data breaches could compromise financial data, and operational downtime caused by cyberattacks could be costly for accountancy firms. IBM estimates that the average cost of a data leak is an eye-watering $4.24 million.

Why are accountancy firms such a lucrative target for cybercriminals? What cyber threats should you be aware of? How can accountants protect themselves from threats online?

In this blog, we’ll cover all you need to know about cybersecurity for accountants. Let’s get started!

Why are accountancy firms an attractive target for cybercriminals?

Cybercriminals target accountancy businesses for two reasons: money and financial data.

Firstly, accountants and finance officers handle large sums of money, providing many opportunities for criminals to intercept cash. Secondly, criminals want to steal sensitive financial data from your clients, including tax returns, financial statements, and confidential business information.

This information can be used to commit fraud, fuel insider attacks, or even blackmail your firm by threatening to release sensitive details.

What cybersecurity threats do accountants face?

Here are some common cyber threats that your accountancy firm should watch out for:

Ransomware

Ransomware is malicious software that encrypts a victim’s files and demands payment for the decryption key.

How do these attacks start? There are three main entry points for ransomware attacks:

• Malicious software (malware) downloaded from the internet: Hackers can hide ransomware in downloads, such as app installers or archive files. Anti-malware software can protect you from these, but it’s best practice to only download files from sites you trust.
• Malicious email attachments: Attackers often send emails with malicious attachments disguised as legitimate files, such as invoices, resumes, or software updates. Email filters can quarantine these emails for you, but we recommend only opening files from senders you trust.
• Insider attacks or physical downloads involve someone plugging in a device – such as a USB flash drive – and transferring the software in person. Unlocked, unattended systems in public areas are a common weak point for this attack.

Once a computer is infected, the ransomware can spread to other systems on your network. Once your system has been infected, the software will encrypt your files. Attackers will then ask for payment, usually in cryptocurrency, in exchange for unlocking your files.

Is it possible to decrypt ransomware files? It depends on the attacker’s encryption algorithm, and it’s tough to determine the type. Some decryption tools exist for common attacks, but restoring your data from a backup is usually much safer.

It is strongly advised against paying a ransom. There’s no guarantee that your files will be decrypted once you pay up, and your systems will still be infected with the malware. Contact a security expert immediately if you fall victim to a ransomware attack.

Data Breaches

As mentioned, cybercriminals target accountants because they handle financial data. This information could be used to defraud clients, steal money, and cause reputational damage to partners.

Data breaches can occur through several means, including:

• Hacking and network penetration: Attackers can exploit vulnerabilities in your network infrastructure to access files or intercept communications.
• Unsecured data storage: Storing sensitive information in unencrypted databases or cloud storage can leave it vulnerable to theft or loss.
• Physical theft: Laptops, phones, and other sensitive information devices can be lost or stolen. If left unattended, devices could also be accessed.
• Malware: Malicious software, such as viruses, Trojans, and ransomware, can infect a computer or network and compromise confidential information.

The increased remote working has caused more data security issues for accountancy firms. Accountants may be accessing client data from unsecured networks, making it easier for hackers to steal sensitive information.

Another issue is the use of personal devices in the workplace. A study by Yubico found that 43% of employees use their devices without their employers’ permission. Individual devices may not have the same security tools and measures as work devices and can be lost or stolen more easily.

Phishing Attacks

Phishing attacks are fraudulent attempts to steal sensitive information, such as passwords and credit card numbers, by pretending to be someone you trust.

This is typically done through emails or messages from a reputable source but contains links to fake websites or attachments that install malware on the recipient’s computer.

Accountants can be attacked by criminals who pretend to be clients, colleagues, payment providers, or banks.

To reduce the risk of falling for a phishing attack, accountants should be trained to recognise scams, avoid clicking on suspicious links or downloading attachments from unknown sources, and verify the authenticity of emails or messages before taking any action.

How to protect your accountancy firm from cyberattacks

To keep your accountancy firm safe, you must implement a complete cybersecurity strategy that prepares you for any attack.

Here are some excellent best practices to get you started:

1. Train employees: Regularly train employees on cyber security best practices, such as how to recognise and avoid phishing scams and the importance of keeping software and systems up to date.
2. Implement strong passwords: Encourage employees to use and change unique passwords regularly.
3. Keep software and systems updated: Regularly update software and systems, including antivirus and anti-malware software, to protect against known vulnerabilities.
4. Implement firewalls: Block unauthorised access to the company’s network and systems.
5. Conduct regular backups: Regularly back up important data to protect against data loss in a cyber attack.
6. Monitor network activity: Monitor network activity for suspicious behaviour, such as unauthorised access or unusual data transfers. We recommend using a Data Loss Prevention (DLP) tool.

By taking these steps, your firm can reduce the risk of being hacked and protect its clients’ sensitive financial information.

Implement your cybersecurity strategy with a trusted expert

Cybersecurity is a long & complicated process. However, the potential ROI in avoided costs is astronomical. Investment in your security infrastructure can help keep your data safe and avoid costly attacks.

We highly recommend working with a trusted security expert to plan your cybersecurity strategy. Need some help protecting your accountancy firm?

Our security experts can run a full security audit on your network to find vulnerabilities, configure firewalls, antiviruses and other security software and even help you train your staff to be aware of potential threats.

Get in touch with us today and see how we can help!

Protect your firm today