2023 is already shaping up to be a challenging year for cybersecurity teams. Accounting firms must not only implement tech tools to protect their data, but they must train their workforces to recognize and mitigate security risks, and if worse comes to worst, know how to clean up the damage when an attack does happen.
Cyberthreats to the accounting profession come in many forms. Phishing scams, ransomware attacks, data breaches, insider threats and regulatory noncompliance are all risks that firms must urgently track and prepare to mitigate when threats arise.
These threats come from different sources. Phishing scams, ransomware attacks and data breaches largely originate from malicious actors outside an organization. They are designed to trick employees into sharing sensitive information, to pressure organizations into paying ransom for locked information or to access and distribute private data. Internal threats, as one might surmise, come from employees, contractors or third-party vendors with access to confidential information. Finally, a different kind of threat comes from regulatory bodies, when organizations fail to comply with regulations and industry standards for data protection and privacy, such as the General Data Protection Regulation and the Payment Card Industry Data Security Standard. This affects accounting firms’ ability to pass audits, which are critical to compliance with industry regulations.
Regardless of the source, these threats can be structurally, financially and reputationally damaging for accounting firms and their clients. The impact of cyberattacks can lead to loss of sensitive client information, financial fraud and damage to the reputation of the firm. Also, the rapid increase in the use of technology in accounting practices has created a large attack surface for cybercriminals, making accounting firms even more vulnerable to breaches and attacks.
Cybersecurity measures for accounting firms
To accommodate the rising trend of cyberattacks, it’s vital for accounting firms to implement proactive measures to secure themselves and their clients from potential threats. To accomplish this, there are several steps that accounting firms can take to ensure the protection of their systems and data. On a technological side, this includes patch management, system hardening, implementation of multifactor authentication and threat detection strategies. On a human level though, security awareness training, incident response planning, password strengthening and regular system backups are equally essential.
By taking these steps, accounting firms can minimize the risk of a data breach, protect their reputation, and ensure the confidentiality and privacy of their client’s financial information.
Raising awareness among the workforce
The human factor also plays a critical role in protecting sensitive financial data in accounting firms. A combination of regular training, employee engagement, real-world scenario education and effective communication can help employees to become informed and proactive participants in cybersecurity efforts.
Regular security awareness training sessions help keep employees informed and up-to-date on the latest threats, while also reinforcing the importance of being vigilant. Employees can also be encouraged to take an active role in their own cybersecurity by participating in training, asking questions, and reporting any suspicious activity.
Illustrating the impact of successful cyberattacks through real-world examples can help employees understand the importance of following best practices and the potential consequences of a breach. This can help make cybersecurity a top priority for all employees, not just those in technology or security-focused roles.
In addition to training and engagement, regular communication is critical for maintaining a culture of cybersecurity. This can include sharing updates on the latest threats, discussing new technologies and best practices, and promoting a company-wide commitment to data protection.
Cleaning up after an attack
Despite the best measures in place, it’s possible for an accounting firm to fall victim to a cyberattack. In the event of an attack, it’s crucial for firms to have a plan in place for responding and cleaning up the damage.
The first step here is to assess the extent of the damage and determine the source of the attack. Second, notify clients and relevant authorities, such as the police or regulatory bodies, of the breach. These are key to implementing measures that prevent further damage, such as shutting down systems or disconnecting from the network. In the event of a ransomware or malware attack, working with cybersecurity experts to remove malware and restore systems to their secure state is a must for accounting firms. After all of this is done, it’s critical for teams to review and update their cybersecurity measures to prevent similar incidents from happening in the future.
A necessary investment
As technology continues to evolve, it’s crucial for accounting firms to stay up to date on the latest cybersecurity measures and best practices. In addition to implementing technical measures, accounting firms should regularly evaluate their security processes and policies to ensure they are taking full advantage of the latest tools and techniques to protect against cyber threats.
The impact of a cyberattack can be devastating for an accounting firm, affecting not only the financial bottom line but also damaging the reputation of the company and its clients. By prioritizing cybersecurity measures, accounting firms can help ensure the protection of sensitive information, maintain the trust of their clients, and safeguard the future of their business. The investment in security measures will pay off in the long run by reducing the risk of cyberattacks and promoting the continued success of the accounting firm in 2023 and beyond.
