In full transparency, I asked "the machine" to write this article to kick off Cyber Security Awareness month. It only seemed appropriate since "the machine" is what's being leveraged in the attacks anyway. The list provided is nothing new, but is meant as a reminder to stay vigilant and secure.
In today’s digital-first environment, protecting sensitive client data is not just a regulatory requirement—it’s essential for maintaining your reputation and client trust. Tax and accounting professionals are prime targets for cybercriminals given the volume of confidential financial information handled daily. Here are the top cybersecurity awareness tips tailored for accountants, bookkeepers, and ProAdvisors looking to safeguard their firms and client data.
1. Adopt Strong Password Practices
Leverage complex, unique passwords for every system and application. Use password managers to generate and securely store credentials. Enforce regular updates and prohibit password reuse across different platforms.
2. Enable Multi-Factor Authentication (MFA)
Implement MFA wherever possible, especially on email, banking, and accounting platforms. MFA requires users to verify their identity using two or more methods, significantly reducing the risk of unauthorized access.
3. Stay Current with Software Updates
Cybercriminals often exploit vulnerabilities in outdated systems. Regularly install updates for operating systems, tax software, accounting apps, and any third-party integrations. Automate updates where available to further reduce risk.
4. Educate Your Team on Phishing Attacks
Phishing remains the most common vector for cyberattacks in professional services. Train all staff to recognize suspicious emails, links, and attachments. Encourage verification of unexpected or unusual communications, especially those requesting sensitive client data or fund transfers.
5. Secure Remote Work Environments
With more professionals working remotely, ensure your team uses secure Wi-Fi connections, strong VPNs, and company-managed devices. Restrict access to sensitive data from unmanaged devices or public networks.
6. Practice Data Backup and Recovery
Regularly back up client data using encrypted, offsite solutions. Test your restoration process to confirm data integrity, and ensure backups are resilient against ransomware and other threats.
7. Implement Access Controls and Permissions
Adopt a ‘least privilege’ approach—only grant access to those who require it for their role. Periodically review user permissions across all systems, and immediately revoke access when staff members leave or change responsibilities.
8. Monitor for Unusual Activity
Utilize logs and monitoring tools to track access and changes to sensitive information. Set up alerts for suspicious activities, such as failed login attempts, large file downloads, or irregular working hours.
9. Establish a Cybersecurity Policy
Document your firm’s cybersecurity procedures, update them regularly, and ensure all employees understand their responsibilities. Include incident response plans so your firm can act swiftly if a breach occurs.
10. Stay Informed About Emerging Threats
Cybersecurity is constantly evolving. Subscribe to industry news—like Insightful Accountant—and participate in educational webinars or professional networks to stay on top of new risks and solutions.
Final Thoughts
If you are subscribed to Insightful Accountant or visit our site, you are likely required to have a Written Information Security Plan (WISP) since you likely handle sensitive personal or financial data. If you don't have one -- here's another article with more information and useful links to help you make it happen.
The financial stakes and regulatory obligations for tax and accounting professionals make cybersecurity more than an IT issue—it’s a practice management imperative. Building a culture of vigilance and continual improvement will help protect your clients, your reputation, and your practice. For ongoing professional insights and training, consider exploring memberships and resources tailored for accounting professionals committed to safe, modern practices.