Common Cybersecurity Threats Accounting Firms Face and How to Protect Client Data

What’s happening now: Data breaches in accounting

Data breaches are not new in the accounting industry, and even the top accounting firms are not immune to them. In 2017, Deloitte, one of the world’s corporate finance giants, suffered a cyber-attack that compromised confidential data. The hackers revealed private email addresses and internal communications, increasing the risk of phishing and stolen sensitive information.
While Deloitte claimed no significant loss, many emphasized the need for robust cybersecurity measures.

More recently, in October, Feilding-based New Zealand accounting firm Advanced Accounting suffered a ransomware attack that grabbed 115 gigabytes of data, sharing scans of passports, driver’s licenses, and financial documents. No ransom was posted by the cybercriminals, but they warned the company to be more responsible for their security.

Even though both cases did not report nightmare-ish repercussions, not every accounting firm can risk a fracture of a loss from cyberattacks, which includes the following:

• Disruption of the company’s workflow
• Loss of revenue leading to bankruptcy
• Loss of trust among clients
• Poor reputation
• Low employees morale
• Compliance issues

According to the National Cyber Security Alliance, 60% of small businesses fail within six months of a cyber attack. Don’t let your accounting firm be next in line—take a responsible attitude toward accounting cybersecurity with Synapse Accounting & Bookkeeping.

What are the most common cyber security threats accountancy firms face?

As more information is stored on digital media, you are more exposed to cybercrimes if you don’t know what to spot. Chris Painter, President of The Global Forum on Cyber Expertise Foundation, said, “Cybersecurity is a continuous cycle of protection, detection, response, and recovery.”

Becoming aware of the following common cyberthreats to accounting firms is crucial to protecting your client’s sensitive data and your practice.

1. Phishing: This method involves sending out a fraudulent email that looks like it’s coming from a trusted source. The email likely contains a link to click. Once clicked, end users may have downloaded threatening software, locked their organization out of their systems, or given hackers access to passwords and other sensitive data. Phishing attacks can also be done via text or SMS (i.e., smishing) to trick people into clicking on a malicious link.
2. Ransomware: This malware uses cryptography that holds a victim’s information at ransom. They generate a public-private pair of keys that encrypts the files, with the private key to decrypt the stolen information on the attacker’s server. The private key becomes available only after the ransom is paid, but that isn’t always the case.
3. Denial-of-service (DoS): This type of cyberattack is a malicious attempt to overwhelm a server or online service with what looks like legitimate website traffic. However, the target is flooded and unavailable to its intended users during the attack. It can show up as sluggish behavior, system crashes, or other deleterious server behaviors.
4. Password guessing: Otherwise known as brute-force attack, this is another common method amongst hackers. Accounting firms that do not have a comprehensive and living password policy, combined with an unaware staff that uses reused passwords, are the Achilles’ heel of security. Hackers could easily run high-powered fast computers to crack passwords in a matter of seconds.
5. Malware or viruses: Attackers are always looking for an entry point to steal valuable assets from your business. Installing viruses is one of the most common ways to do so. For most malware, their goal is to wipe out all of your data, which can be a very serious problem for accounting firms.

Secure every byte with Synapse Accounting and Bookkeeping

Everything we have discussed so far is just the tip of the iceberg. A comprehensive training with your accounting staff can equip them with the knowledge needed to combat any cyberattacks. This may include secure configuration, user access control, security update management, and more.

Synapse Accounting and Bookkeeping’s teams utilize the best cybersecurity measures to ensure protection in every byte:

• Multi-factor authentication (MFA)
• Anti-malware software
• Regular security update management

Partnering with us can be an innovative way to solidify your protection against attackers. Take the next steps with Synapse Accounting and Bookkeeping and discover that every facet of our services ensures every byte of data is secured. Call us at (844) 384-7532 or connect with us via email: accountingsales@synhs.com

Sources:

Cost of a data breach 2024 | IBM. (2024).
https://www.ibm.com/reports/data-breach

Entrepreneurs need to stay aware: cybersecurity threats may directly impact the bottom line. (2024, October 3). U.S. Small Business Administration.
https://www.sba.gov/article/2024/10/03/entrepreneurs-need-stay-aware-cybersecurity-threats-may-directly-impact-bottom-line

Hollingworth, D. (2024, October 10). Exclusive: New Zealand accounting firm confirms Sarcoma ransomware attack. Cyber Daily.
https://www.cyberdaily.au/security/11225-exclusive-new-zealand-accounting-firm-confirms-sarcoma-ransomware-attack

Hopkins, N. (2017, November 27). Deloitte hit by cyber-attack revealing clients’ secret emails. The Guardian.
https://www.theguardian.com/business/2017/sep/25/deloitte-hit-by-cyber-attack-revealing-clients-secret-emails