Why should accounting firms invest in Cybersecurity?

Introduction

The rise of automation tools in accounting firms’ operations made the life of customers easier than ever — but this has raised another alarming ring of factors, i.e., cybersecurity vulnerabilities. 

There is a treasure of sensitive data at any financial firm that always attracts cyber crooks.

As per PwC, accounting firms are 30% more prone to becoming victims of cyber crimes— which indicates the need for firms to deploy a security fortress around their data is no longer optional. 

So, read on to discover why you should embrace cyber security and invest in precautions to deal with the same.

Let’s dive in.

Table of content:
  • 5 Reasons to Invest in Cybersecurity 
  1. Rise of cybersecurity breaches in accounting firms
  2. Growth of IoT devices and its simple
  3. Safeguards credential data of your clients
  4. Secures public trust and firms’ sovereignty
  5. Reduce financial risk and time wastage 
  • 5 Precautions against cyber and data breaches
  1. Cyber security plan
  2. Regularly deleting any unnecessary data.
  3. Employee training 
  4. Review cloud-based service providers
  5. Cyber incident insurance 

5 Reasons to Invest in Cybersecurity 

Here we have outlined five reasons you need to invest in Cybersecurity for your accounting firm

1. Rise of cybersecurity breaches in accounting firms

Since the onset of the pandemic, it has seen a 300% increment in cyber attacks in the financial accounting sector. 

With accumulated a massive amount of data— cyber attackers mainly target corporate financial information, Independent audit files, and Individual tax returns— which contain the most sensitive data.

Today data is currency— and accounting firms are the best to hunt. 

2. Growth of IoT devices and their simple

Online transmission has become easier with automation tools for firms or cyber attackers. 

Now, a cybercriminal can hack thousands of computers with the least operators from a safe and remote convenience. According to Cabinet, 95% of cybersecurity breaches are caused by human errors.

Cybercriminals are only a click away— with a simple email with a downloadable file. They enter into systems and gather precious data about your clients. 

The skillful integration of digital tools is still due at many firms!

3. Safeguards credential data of your clients

Trust in relationships is foremost for longer retention of customers: once declaimed, trust can’t be claimed again.

According to one such report, after losing data security faith in brands, 64% of customers had deteriorated their relationship with them.

Now, the data breach can also be done with the insider’s aid, either deliberately or unconsciously— That’s why employee access in firms requires monitoring for the proper amendment of rules and regulations.

4. Secures public trust and Firms’ Sovereignty

The data of your customer, which must be put to their benefit, shouldn’t be impeded by the forbidden attacker. Otherwise, it can cost the public interest in the organization and retards its reliability. 

This is why accounting firms require robust systems to protect customer data sovereignty and proactive endeavors for sustaining trustability.

5. Reduce financial risk and time wastage

With the sovereignty loss, other major calamities that come with it are financial loss and time wastage.

With such practices as Malware, Ransomware, and Phishing schemes, cyber criminals break into the firms’ networks through infected files. 

These cyber breaches have cost financial turmoil, with staggering numbers of $3.92 million between July 2018 to April 2019, as per IBM and Ponemon’s discovery.

Such activity affects the workflows and operations of the whole firm, and you waste a lot of time fixing and regaining them.

This also brings us to our next point— how firms can follow the right majors and reduce the possible threats of such forbidden practices by cyber attackers.

Precaution to cyber and data breaches

Here’s the list of precautions:

1. Cyber security plan

It’s a written plan with rules and regulations that make the internalities of firms liable.

With these plans, firms can document steps to handle security breaches and strategize policy, procedure, and controls workflow.

2. Regularly deleting any unnecessary data.

About 60% of companies have over 500 accounts with non-expiring passwords. (Varonis)

The piles of that unuseful data can be the best target for hackers. These data breaches are comparatively easier as they leave no trace. 

So firms have to make sure they follow this:

  • Keep the system updated and revise passwords regularly
  • Encrypt credential file
  • Deploy firewalls and anti-virus
  • Limiting access to authorities
3. Employee training 

According to Varonis reports, 17% of all sensitive files are accessible to all employees— it illuminates the need for employees’ training on cyber security matters.

Even a simple click by an employee can cause a big turmoil in operation— Therefore, without cyber-immune workers, firms can’t visualize feasible growth.

4. Review cloud-based service providers

Any infected wifi-enabled device can bait a serious security risk. Hence it’s advisable to check the business network connectivity and any suspicious devices.  

Furthermore, use a secure and reliable VPN provider that mitigates the risk. 

5. Cyber incident insurance 

According to Cabinet, more than 77% of organizations don’t have a response plan. 

The provoking benefit of holding insurance is that it covers financial risk and helps to recover, eventually minimizing breach hazards.

Conclusion

The bottom line is the plethora of systems around us— the need for investment in Cybersecurity is the bare minimum. So, the final goal is to make insights-driven decisions and eventually diminish possible risks.

We at FinaAccountants help accounting firms with consulting— which tells you how you can handle and boost your business with the least external risks.

Our team of professionals provides you with real insights and consults for the cyber incident insurance and plan, how to deploy employee training, devising the right strategies, and deciding on cloud services.

Book a call!