Ransomware attacks are on the rise, but if that’s not enough to get your attention, check this out.
According to Accounting Today, cyberattacks on accounting firms have increased an incredible 300% since COVID-19 started. No matter how much you value your cybersecurity, there’s no denying that number.
One thing is for sure: keeping things secure online is a hot topic for accountants right now. In this blog, we will cover the top seven security threats accounting firms are facing in 2024.
7 Top Threats CPA Firms Should Know About
Threats can affect anything from finances to access to information to reputation. Regardless of the intended outcomes of different threats, accounting firms are wise to avoid these top seven threats, as they pose the most significant risk for damage – financial or otherwise.
Ransomware
Ransomware is a threat that can affect a firm’s ability to pay contractors and force systems offline. Ransomware in 2024 is a breed of malware that encrypts sensitive data, demanding payment for its release and wreaking havoc on accounting firms.
Phishing
Criminals may trick accounting professionals into revealing sensitive information through email and other messaging services. The full arsenal of phishing techniques includes deceptive emails, malicious attachments, and fraudulent websites that mirror legitimate platforms.
Insider threats
Employees may accidentally share sensitive information or fall victim to phishing scams. Investing and prioritizing regular employee cybersecurity training is crucial in reducing this vulnerability.
Malware
Hackers may install malicious software on a firm’s systems without the firm’s knowledge. Accounting firms are a significant target for malware because of the amount and type of data they store. A managed IT provider will monitor a firm’s systems 24-7 for malware-related suspicious activities.
Internet of Things (loT) Vulnerabilities
As more devices are connected to the internet, the risk of these devices being used in a cyberattack increases. Additionally, with more employees working from home and firms adopting BYOD (Bring-Your-Own-Device) policies, the IoT vulnerability landscape widens.
Weak passwords
Employees may use weak passwords that can be easily guessed or use the same passwords for multiple accounts. Specifically, email accounts are often a target for hackers, with weak passwords a common gateway for cybercriminals to infiltrate a firm.
DDoS Attacks
Distributed Denial of Service (DDoS) attacks are a popular cyber threat against financial services that targets banking IT infrastructures, customer accounts, and payment portals with overwhelming volumes of traffic that cause systems to fail.
Honorable Mention Threats
While the seven threats detailed above are the heavy hitters, there are some additional threats that are worth knowing about. If your firm’s cybersecurity resources are limited, focus on the seven above first for the best chance at a secure security environment. If you have greater bandwidth, address these threats as well:
- Outdated software – You can invest in sophisticated security tools all day long. Still, if you fail to update your company’s software regularly, you open your firm to a world of vulnerability. It’s always critical for accounting firms to keep their software (OS, business software, browsers, and others) up to date.
- Cloud security concerns – The transition to cloud-based solutions for easier accessibility and adoption of Bring Your Own Device (BYOD) policies introduces potential vulnerabilities, as personal devices may lack necessary security features.
- Advanced persistent threats (APTs) – APTs represent highly sophisticated and persistent cyber attacks, often orchestrated by skilled threat actors with specific targets in mind. APTs highlight the need for firms to invest in advanced detection methods.
- Supply chain attacks – These attacks exploit vulnerabilities in the relationships between firms and their third-party vendors, posing a substantial threat to the integrity of financial data.
- Social engineering – Cybercriminals use psychological manipulation to exploit employees with access to critical data, leading them to click on malicious links or disclose confidential information unknowingly. With social engineering growing, firms should prioritize employee training as a first line of defense.
- Regulatory compliance challenges – As regulatory requirements tighten, accounting firms must stay attuned to compliance requirements. Working with a qualified MSP will ensure the protection of financial data aligns with industry standards.
- Remote data access – With the added convenience, remote data access also makes it easier for hackers to steal and misuse clients’ sensitive financial data. Accounting firms should work with an MSP to ensure critical data is secure and backed up.
Addressing Security Threats at Accounting Firms
When your firm is in the business of managing personal information and financials, you are an automatic target for hackers. Employees are often the gateway for money-hungry hackers, who prey on individuals who make common mistakes, allowing their email or other systems to be infiltrated.
The numbers and the rising prevalence of ransomware attacks remind firms of the necessity of working with a managed IT service provider. At PK Tech, we are proud to offer 15 years of experience with a heavy focus on CPA firms. We also hold AICPAs SOC 2 Type II attestation, proving via third-party audit by an independent CPA firm that we passed a rigorous and comprehensive assessment of our security and privacy controls. With the insider knowledge to support your firm, we will build a proactive security structure that pinpoints and addresses vulnerabilities.
Schedule a time to chat with our team here.
