As an accountant, you are responsible for handling sensitive financial information for your clients, making you a prime target for cybercriminals. With the widespread use of technology in the accounting industry, it’s more important than ever to be aware of the potential IT security risks and to take steps to protect yourself and your clients from data breaches. In this blog, we will discuss common IT security risks faced by accountants and provide practical tips on how to avoid them.
The costs of being hacked can be significant. A data breach can lead to financial loss, damage to reputation, and legal repercussions. Not only can it lead to the loss of client trust, but it can also result in costly fines and penalties from regulatory bodies. Furthermore, if a client’s data is stolen, they may also have to bear the costs of identity theft, which can lead to further damage to your reputation.
Combining accounting and cybersecurity is crucial to ensure the protection of sensitive financial information. One way to do this is to implement strong security measures such as firewalls, antivirus software, and encryption to protect your computer systems and networks. Additionally, you should also have a clear security policy in place, including regular employee training on cybersecurity best practices. Furthermore, having a disaster recovery plan in place, in case of a data breach, is also important. It’s also necessary to conduct regular security audits and penetration testing to identify vulnerabilities and potential threats to your system.
Common IT Security Risks For Accountants
- Email Phishing Scams
One of the biggest cyber threats to accountants is email phishing scams. These scams involve criminals sending emails that appear to be from legitimate sources, such as a bank or a government agency, in an attempt to trick individuals into providing sensitive information. According to a study by the Anti-Phishing Working Group, there were over 1.2 million unique phishing attempts in the third quarter of 2022. Using dummy phishing emails can help your team spot real ones when they need to. - Social Engineering
Another major cyber threat to accountants is social engineering. This involves attackers using psychological manipulation to trick individuals into revealing sensitive information. This can take many forms, such as phone phishing, where attackers impersonate a trusted source over the phone, or “pretexting”, where attackers create a fake scenario to convince individuals to reveal sensitive information. - Inadequate Password Policies
Inadequate or non-existent password policies are another risk for accounting firms. Using weak passwords or reusing the same password for multiple accounts can make it easy for attackers to gain access to sensitive information. According to a study by NordPass, “123456” and “password” were the two most common passwords used in 2022. - Unsecured Wi-Fi Connections
Unsecured Wi-Fi connections can also pose a risk for accounting firms. Connecting to unsecured networks can allow attackers to intercept sensitive information, such as login credentials and financial data. CNBC recently reported that 87% of Americans have connected to a public Wi-Fi network without taking any security precautions. - Lack of Training
Lack of training for staff members is another important factor to consider when it comes to cyber security for accounting firms. Without proper cybersecurity training, staff members may not be aware of the risks and may inadvertently expose the firm to cyber threats. - Failing to Establish Backups
Failing to establish backups is another risk for accounting firms. Without backups, a cyber attack can result in the permanent loss of important data. On average, 60% of small businesses that suffer a cyber-attack are out of business within six months.
5 Tips for Accountants on How to Prevent Cybersecurity Threats
Cyber threats for accountants are on the rise and firms need to take proactive measures to prevent cyber threats.
- Enforce A Secure Password Policy
Enforcing a secure password policy is crucial. Passwords should be complex and changed regularly to prevent unauthorized access to the system. You should also consider using a password manager. - Stay Updated With The Latest Security Patches
Keeping systems updated with the latest security patches is important as it addresses known vulnerabilities and keeps the system protected from potential threats. - Utilize Multi-Factor Authentication
Utilizing multi-factor authentication adds an extra layer of security and makes it harder for hackers to gain access to the system. - Educate Yourself About Cybersecurity Basics
Educating yourself about cybersecurity basics, such as understanding phishing scams, is essential in identifying and preventing cyber threats. - Hire A Knowledgeable IT Security Company
Hiring a knowledgeable IT security specialist is an effective way to safeguard your system. By having the right people in charge of your security, you will be protected against cyber threats and be able to react faster than some other companies.
By following these steps, accounting firms can effectively prevent cyber threats and safeguard their systems.
Need Professional Help Securing Your Accountancy Firm?
The steps outlined in this blog, such as enforcing a secure password policy, staying updated with the latest security patches, utilizing multi-factor authentication, and educating oneself about cybersecurity basics, are effective ways to prevent cyber threats.
However, it is important to remember that cyber threats are constantly evolving, and firms need to stay vigilant and implement measures to protect their systems. A team of experts like us who manage and monitor your company’s security can prevent possible threats, damage, and losses. Speak to our team today to book a cybersecurity audit.
