Accounting firms face many security threats that can put their business at risk. From obsolete software to personnel-caused data breaches, there are many ways cybercriminals can steal or damage crucial data. In this blog post, we’ll cover the top six security threats accounting firms should watch out for in 2023 and how to protect your business from these threats.
1. Obsolete Software:
Many tech companies invest in modern security systems, but outdated software can still leave them vulnerable to cyberattacks. Accounting firms are especially at risk since they handle valuable financial data. If their operating system and software are out of date, they’re more likely to fall victim to malware and ransomware attacks. To prevent this, accounting firms should ensure their software, including the operating system, business software, and web browsers, is always up-to-date. Additionally, each endpoint should have reliable anti-malware software installed to protect against attacks.
2. Personnel-Caused Data Breaches:
With the rise of cloud accounting, many accounting firms allow employees to access accounting software from various devices and locations. However, many of these devices lack proper security safeguards and updates, making them more susceptible to data breaches caused by employees.
To prevent personnel-caused data breaches, accounting firms should encourage employees to use specific apps and solutions to access and share client data. Additionally, employees should install dependable antivirus software on their devices and regularly delete consumer data from their machines. Accounting firms should also be aware of social engineering and phishing scams that trick employees into revealing personal information or visiting harmful websites. Working with managed security solution providers that monitor all employee endpoint devices can help prevent these types of breaches.
3. Failure to Evaluate Security Risk:
Small and medium accounting firms often don’t have the resources to implement adequate security procedures, leaving them vulnerable to targeted security threats. Fraudsters often use malware attacks to target these firms, taking advantage of their insufficient data protection measures. To prevent these types of attacks, accounting firms should regularly review their security risks and assess the type of client data each employee has access to. This will help them determine the capabilities of each employee’s device to repel specific security attacks and improve their security approach. Accountants who use managed security services benefit from regular inspections of their cybersecurity posture, helping them stay ahead of potential security risks.
4. Data Transmission:
Accounting firms use various internal and external communication tools to transmit data, including email. However, email is not a secure method of communication and can leave valuable financial information vulnerable to attacks like ransomware. To protect sensitive financial data, accounting firms should use email encryption technology to securely discuss and transport data. They should configure the email encryption programme to automatically encrypt emails and attachments.
5. Remote Data Access:
Many accounting firms use cloud computing to provide remote access to accounting software and customer information. This can be especially useful for firms with multiple locations. However, if hackers gain remote data access, they can easily steal and misuse sensitive financial information. To prevent remote data breaches, accounting firms should implement strict security measures like two-factor authentication and limit access to sensitive information only to authorised personnel.
6. Insecure Passwords:
Many accounting professionals make the mistake of using weak passwords for their accounts. Accountants must generate unique passwords for their email, systems, and programmes. However, they usually use the same password for all of their accounts. As a result, if hackers obtain just one password, they will be able to access all accounts. Accountants are required to generate strong passwords for each of their accounts. A strong password is created by combining alphabets, special characters, and numerals. They should not use sensitive information as their password, such as their name or birthday.
In conclusion, accounting firms need to be proactive in addressing security threats. They must stay up-to-date with the latest security technologies and conduct regular security risk assessments. Accounting firms must also ensure that all employees follow security protocols and use strong passwords. Additionally, accounting firms should use email encryption technology when communicating with clients and encrypt data in transit and at rest. By taking these steps, accounting firms can effectively protect their clients’ sensitive financial information from cyber threats.
