With the proliferation of remote working and highly sophisticated cyber attacks, all accounting firms today need to demonstrate their commitment to safeguarding sensitive financial data. It pays to optimise IT security with an expert partner that understands the specific needs of the accountancy industry.
Why IT security and data protection matter for accountants
Since the start of the pandemic, the growth in remote working has created a wider attack surface for cybercriminals. Given the huge volume of sensitive client data that passes across the desk of accountants every day, the accountancy industry is a natural target for these bad actors.
With the number of attacks increasing and the financial impact of data breaches growing in step; it’s no surprise that IT security is high on the agenda of accounting firms – and their clients too.
The need to process, manage, store and share valuable financial data means that IT security is now business critical for professional accounting firms. As such, client confidentiality, regulatory compliance and reputational integrity are the responsibility of every member of the team, from the CEO to the IT technician.
In this article, we unpack the key cyber threats faced by accounting firms, exploring the specific threats and available protections in an industry where safeguarding sensitive financial data is essential for operational resilience and reputational integrity.
We will also highlight the benefits of a Hosted Desktop solution in IT security and why accounting firms are wise to work with a trusted partner such as Cloud2Me to optimise their protection.
How to anticipate and mitigate the real threat of cyber attack
Those firms that fail to safeguard sensitive financial data can face stringent fines, loss of business and damaging headlines in the media. On a more positive note, firms that demonstrate a clear track record of sound IT security and instill trust in their clients can make cybersecurity a valuable asset for attracting new business and also top talent.
The vital importance of cyber protection has convinced many accounting firms to outsource their IT security to a specialist provider. Given the specific challenges faced by accountants, it is critical to work with a partner that understands the importance of cybersecurity at an operational and cultural level.
When it comes to cyber threats in the accountancy industry, everything starts with the sensitive financial data that flashes across the screens of accountants and their support staff every day. From business records to personal client data, confidential tax information to bank account details, there is plenty to attract cyber criminals.
Human error remains the most common cause of data breaches. Key vulnerabilities include the use of personal devices or unsecure networks (such as public Wi-Fi networks) when working on the move or from home. Firms need to balance the many benefits of expanding remote working for employees with the need to protect sensitive data from interception by criminals.
Accountancy firms are under pressure to comply with data protection regulations, and in particular GDPR, which brings weighty fines and legal consequences for non-compliance. As regulatory requirements shift, firms need to stay up to date.
Partnering with a specialists such as Cloud2Me – with solutions tailored to the accountancy industry – will provide all of the security advantages of private cloud hosting, alongside operational collaboration and efficiency.
Understanding IT security challenges from phishing to malware
Accounting firms can find their operations gridlocked by a ransomware attack until the ransom is paid, resulting in damaging delays and also reputational embarrassment. Despite training and security measures, staff members still fall for sophisticated phishing attacks that dupe them into sharing sensitive information – resulting in severe financial losses.
The healthiest mindset for an accounting firm intent on safeguarding sensitive financial data is one that assumes the system is under constant attack. At all times, firms should be looking to strengthen their security and accept that there will always be weaknesses that criminals seek to exploit. It pays to treat online assets with the same stringent care as shown to tangible assets. Complacency is the enemy of protection.
Regular risk self-assessments are essential for identifying risks and maintaining controls. These routine checks should flag up equipment that is faulty or outdated, while also creating an up-to-the-minute audit of who needs training to reduce the likelihood of costly human error.
Accountants – handlers of sensitive data
Accounting firms must confront a number of specific concerns given the nature of their work as everyday handlers of sensitive data.
- The dark web provides a shady environment for criminals to trade material, such as sensitive databases, so dark web monitoring technology can help spot data breaches before they are sold on the open market.
- Firms need to stay on top of fake emails phishing for information from employees on private computers and unsecure networks, or with bogus communications directed at clients, pretending to be from the firm.
- Another threat are hackers who seek unauthorised and illegal access to systems. Once inside, they can steal information or cause disruption that impacts operational continuity.
- Ransomware programmes that encrypt valuable data behind a paywall are a cause of huge disruption, stress and reputational damage for accounting firms.
- Malware (malicious software) that infiltrate systems through phishing, infected websites or USB sticks, can bug the system undetected, collecting data and messing with programmes.
By outsourcing cybersecurity through a Hosted Desktop provider, accounting firms can access expert protection and reduce the overheads of employing and equipping an in-house team. The right partner will help to detect and mitigate threats, monitor systems in real time, review and audit the network for vulnerabilities, and respond rapidly to security breaches.
A proactive approach involves phishing simulations and penetration (pen) tests to assess preparedness of teams and systems for genuine scams and exploitation. Regular pre-emptive training – rather than shoring up gaps in response to an attack – will help an accounting firm stay ahead of criminals’ latest techniques and strengthen its security stance.
Key components of a secure IT strategy
Creating a tough cyber shield around an accounting firm relies on a number of different protection plates, all overlapping and working together.
- Ensure that clear and robust cybersecurity policies are in place, backed by the necessary checks and balances, individual responsibility and governance, such as senior stakeholder sign-off procedures. Incident response planning will help bolster protection and avoid delays in case of breach.
- Firms should create guidelines for secure and healthy remote work practices. Setting an annual budget is another guardrail for ensuring IT security remains a priority. Sourcing cybersecurity insurance can also help mitigate the financial impacts of data breaches.
- Another measure is supervising who can access confidential data and take relevant actions – such as sharing, copying or deleting files – with a combination of permission management software, passwords and authentication systems.
- The cold truth is that most data breaches are caused by human error. Often, an employee will open an attachment or website link – an error that could have been avoided with the right training. Moreover, a robust training programme will allow the accounting firm to demonstrate to clients that its leadership is proactively taking steps to protect their sensitive financial data.
- With the right policies and processes around data storage, an accounting firm will be able to protect these precious assets from attack from viruses, malware and hacking. Data encryption will help to safeguard data on private devices or when working on public networks when on the move, away from the office security systems.
- The necessary logging and reporting procedures will allow an accounting firm to comply with the Notifiable Data Breaches scheme, which demands that businesses notify individuals that a loss of information could result in serious harm.
- Make sure there are clear lines of communication available to all staff, so they can log an incident or loss/theft of a device without fear of blame or reprisal. Yes, staff are the most common cause of data breaches, but they are also the first line of defence for spotting incidents and alerting the IT team to take action.
- Finally, it helps to make cybersecurity part of the company culture and empower everyone in the firm to take individual responsibility – and lead colleagues where possible. Newcomers and leavers require stringent on-boarding and off-boarding procedures, as they represent the highest areas of risk. Internal communications, case studies and performance reviews are a good way to make IT security part of the everyday conversation.
Actionable steps to enhance IT security
Given the financial incentives too of downsizing office space; ensuring that accountants and other team members can work securely from home whenever needed makes commercial sense.
Here are several steps that every accounting firm (or their hosting partner) should already be taking:
- Perform regular security audits to identify potential security gaps. This proactive vigilance is vital for safeguarding sensitive financial data and strengthening client trust.
- Ensure that staff understand the real vulnerabilities of using private devices. Regular updates of operating systems and apps, as well as anti-virus and encryption software, will help keep them, the firm and its clients protected.
- Implement password management tools and multi factor authentication. Additional authentication steps such as personal questions, email verification, mobile phone authentication apps and SMS codes help to reduce the vulnerability of passwords.
- Mobile device management (MDM) is a helpful tool that allows the IT team to access and make necessary interventions on home devices.
- Putting a Virtual Private Network (VPN) in place also provides another layer of protection when properly patched and licenced. Users should steer clear of free WiFi hotspots without a VPN to encrypt data.
Secure cloud hosting and SaaS tools reduce risks and improve data management
For accounting firms looking to protect sensitive financial data and grow trust with clients; secure cloud hosting services can help safeguard operational continuity and integrity.
At the heart of cloud-based security lies sophisticated encryption technology, backed by firewalls and regular security audits. An advanced cloud security solution will also provide intrusion detection systems that encourage rapid response.
In case of data breaches, a cloud services provider should also offer automatic data backups and disaster recovery against hardware failures or unintentional deletions. These regular backups are stored in multiple locations, including physical servers, bringing additional peace of mind.
SaaS security tools protect business processes through a combination of authorised APIs, data encryption, data access policies and compliance management tools that correspond to latest rules and standards, as well as disaster recovery plans.
With so many cloud-based solutions on the market, it pays to find experts who truly understand the specific challenges faced by accounting firms and the deep importance of safeguarding client data.
Cloud2Me provides powerful protection for its customers, putting data security is at the heart of its hosting platform. Shielded by industry-leading SonicWALL firewall security, with backups stored in four secure locations, Cloud2Me ensures that critical data is protected and recoverable.
A Smarter Approach to IT Security
The risk of human error and the growing sophistication of cybercriminals mean there is no such thing as a 100%-secure system. Emerging technologies and evolving regulations keep the goalposts for security and compliance moving. However, accounting firms can boost their chances with market-leading technologies and solutions, regular staff training and data security policies.
For accounting firms looking to raise the level of their IT security, Cloud2Me is a trusted partner that understands the priorities and ways of working in this specialist industry.
The stakes for cybersecurity are only reaching higher. Commercial and private clients will choose against hiring accounting firms that can’t protect their sensitive financial data. IT security sends a clear message to clients.
But saying isn’t enough – firms need to demonstrate that they are safe from cyber threats. A proactive, comprehensive approach will do more than keep criminals at bay. Optimising IT security is essential for business over the long term.
Want to learn more about how a hosted desktop can protect your practice from cyber threats? Contact one of our experts today.
Written by Jack Bedell-Pearce, Director at Cloud2Me
