Top 8 Cyber Security Problems in Accounting Firms

In today's digital-driven world, the threats of cybercrime are everywhere. All businesses from different industries must take sound measures to secure their digital assets and confidential business data. It helps to prevent cyber attacks that lead to customer satisfaction.

The same goes for the accounting industry, and it is even more important for accounting firms to implement solid cybersecurity practices.

If your accounting system or software is vulnerable, then it means that the classified data of your customers is at stake.

Hackers exploit the vulnerabilities of accounting software services to steal valuable customer data like credit card numbers, bank account numbers, and other relevant details. They can use this data to get access to customers' accounts which means the customer can lose their money as well.

A vulnerable accounting system can raise a huge question mark on the credibility of an accounting firm. It can also make you lose your current customers. Therefore, it is crucial to identify the current cybersecurity issues in accounting.

Top 8 Cyber Security Problems in Accounting Firms

Let's find out some of the cybersecurity problems in accounting that firms are facing today.

1) Using Outdated Software

In the past, companies failed to protect the confidential information of customers because they did not invest in updated security tools and software. Accounting firms are the biggest target of cyber thieves. Therefore, they have to implement the latest cyber security accounting practices to stay safe from ransomware and malware attacks.

When the operating system and applications of the accounting software are not updated, then it can increase the chance of cyberattacks. Using the updated software is crucial that can keep your sensitive information safe with the latest security patches.

2) Data Breaches from Employees

Most accounting firms provide access to employees of their accounting software, so they can use it from different locations and devices. They also allow employees to use their own devices for different operational matters. If these devices lack security features, then it can make data vulnerable.

Companies are responsible for guiding their employees about the usage of specific apps to share sensitive data. As an employer, you should also let your employees know that keeping antivirus software on their devices is crucial to secure clients' data.

3) Not Analyzing Security Risk

Some accounting firms do not implement robust security practices, which makes them vulnerable to security attacks. Therefore, it is crucial to assess the security risk, regardless of the size or location of your accounting firm.

Most hackers and scammers use malware attacks to target accounting firms. They exploit vulnerable data security to get access to sensitive financial information. In this regard, it is essential for accounting firms to ensure sound security risk assessment. It will help to check which type of devices employees use to access the client's data, so it can help to prevent targeted attacks.

The security risk assessment can also help accounting firms to determine how they can improve their security. You can also consider getting high-quality security services that can help you identify the possible security loopholes in your accounting system.

4) Phishing

Phishing emails can manipulate users to click on a particular link that is attached to a virus or malware. Therefore, you have to make everyone in your company aware of it. These attacks provide access to the hackers to the firm's valuable data, so everyone has to stay vigilant.

Cybercriminals can use phishing attacks in different ways. You may get a credit card alert or a link related to package shipment delays. In such situations, it is crucial to be mindful and stay alert, so accounting departments must guide their team members accordingly.

5) Remote Data Access

Accounting firms provide accounting software access to their employees by using cloud-based computing and other services. It helps them to control and manage client data remotely from anywhere and anytime. Remote data makes it easier for online thieves to steal financial data or misuse it.

Consider using a firewall that can keep data secure while sharing it remotely. If you are using cloud computing services, then a firewall can also help to prevent security breaches, ensuring added levels of security.

6) Data in Transit

While implementing cybersecurity practices, accounting firms should protect data in transit and rest both. Nowadays, companies communicate through different channels, but accounting firms specifically communicate through emails with their clients.

They share bank statements, tax documents, and other relevant information by email attachments. Cybercriminals target the data in transit through ransomware and malware attacks. Therefore, accounting firms need to harness the email encryption mechanism to safely share financial information. It will automatically encrypt the attachments and emails that will protect your details.

7) Weak Passwords

One of the common mistakes that most accounting professionals make is not setting up a strong password. It is essential for accountants to create separate passwords for their applications and email system.

Using the same password for all accounts can make your security weak. It means that if hackers get access to your one password, then they can also get access to other accounts. Consider using a password generator that can help you create a strong and unique password for all your accounts. It will help you to create a password with special characters, numbers, and letters that will make it difficult for cybercriminals to get access to your account.

8) Cryptojacking

Another threatening issue that the accounting industry is facing is cryptojacking. It is the technique that hackers use to mine cryptocurrencies by using unauthorized use of devices. They also use phishing-like attacks to execute the cryptojacking and target browser extensions and websites.

Companies are using cryptocurrencies big time nowadays to buy or sell goods, so accounting firms need to have an effective strategy to prevent cryptojacking. Accountants firms need to ensure that cryptocurrency can only be mined through the authorized use of employees’ computers. They also need to have a sound plan to recover from the crypotojacking.

Conclusion:

It is crucial for accounting firms to know about different cybersecurity issues to create sound strategies accordingly. Any security breach can put a huge question mark on the credibility of your firm. Therefore, you need to hire a competent in-house cybersecurity team who can monitor your accounting systems and take the right measures to prevent attacks.