Common Cyber Attacks for Accountants and How to Avoid Them

The saying “an ounce of prevention is worth a pound of cure” suits the most for accounting firms in terms of cybersecurity. No industry is 100% immune to cybercrimes and the devastating financial loss it inflicts. Accounting firms, especially, make attractive targets for cyber attacks, as they house sensitive financial and relative confidential data.

What is a Cyber Attack?

The International Organization for Standardization (ISO) defines a cyberattack as “an attempt to destroy, expose, alter, disable, steal or gain unauthorized access to or make unauthorized use of anything that has value to the organization”. As far as there is a way of securing the data, there will also be ways to breach the wall.

Cyber-attacks, though are inevitable, can be handled in the right way to expect minimal injury. So, it is in our hands to heighten our security, high and strong enough to endure a breach.

Types of Cyber Attacks

Ransomware

Ransomware is a breed of malware, crafted to infect computers, networks and files that conceive sensitive data. You will not realize the happenings all through until you find your files completely encrypted. You will be asked to pay a great sum, to non-traceable crypto-currency accounts, to get the decryption key. Until then, your access to the computer or files will be blocked.

If you are not ready to pay the ransom, your files will be placed for auction on the dark web.

Phishing

While a majority of the population fears ransomware, there is another form of cybercrime slipping under the radar - Phishing. It is the most lucrative form of attack for cybercriminals and costly for business owners and accountants. Ransomware is often initiated by phishing.

This type of attack is thriving up in frequency and popularity. Usually, the malware is hidden in an ostensibly innocent e-mail, sent by a person in disguise of your close business acquaintance.  Once you open the file or click the link, your business game changes ultimately. Or there are people who do social engineering to entice you, duping your higher official, and draw confidential information.

Data-Theft

Not every cybercrime comes from outside. You may also have some cybercriminals hiding under professional blankets in your company. It might be someone currently working with you, or your ex-employee or anyone who has access to your firewall and endpoint protection. The one who knows your passwords and the structure your company works is liable to commit a cybercrime. Data-theft can lead to spillage of your bank credentials, sensitive reports and other company secrets, either to push you into fear or to use you as a cash cow or for revenge or by your vicious rival.

Data-thefts can sometimes be passive attacks, wherein it would not harm the functioning of the system, yet operates and copies your digital resources, for financial gain or other purposes.

Cyber Attacks on SMBs

Most people believe that cyber threats predominantly focus on large firms. This idea might be provoked by the dominating headlines, crowding the newspapers and social media, on data breaches in high-profile companies during such instances. But in reality, smaller firms are equally, sometimes comparatively more vulnerable to cyber-attacks, pertaining to poor security measures.

Small and mid-sized companies and accounting firms are often labeled as soft targets by cybercriminals. Large companies afford greater security budgets and resources to fortify their data up to a convincing perimeter. But small companies are easily prone to cyber-attacks and are feeble to revive from the financial catastrophe aftermath.

9 Ways to Avoid Cyber Attacks on Accounting Firm

U.K.'s Bromium cybersecurity firm reports that the cyber breach business thrives up to make $1 trillion annually, from all over the globe. Even the biggest firms on the planet had encountered cyber breaches and rendered millions of dollars and days of stagnancy at work.

So, it is highly imperative that you construct and enforce a solid defence plan.

Scroll down to latch on to effective cyber security measures for accounting firms

Get a Grip on Cyber Threat Landscape

Steve Jobs says, if you define the problem correctly, you almost have the solution. So you have to stay in the know of recent trends in cyber threats and protective measures to mitigate them. If you cannot even realize what is going on with your cyber part, you may not be able to locate and heal from it. So, it is mandatory that you are in live trends with the cyber threat climate.

Educate the Team on Cyber Security

There are three significant elements in data security- technology, policy and people. Most companies adapt top-tier technology and reinforce premium policies to prevent their data from the breach. But they fail to educate their employees about it. All the employee must undergo proper cybersecurity training and ardently stick to the policies of the organization, not only in the office but also when working at home or during business meetings in the restaurants. Let them always remember that they are just one click away from the cyber scam. Leave no room for complacency.

Have a Sound Back-Up System

Security professionals suggest small businesses and accounting firms to have a multi-location backup strategy. Instead of backing up the same record multiple times, you shall retain different versions of the back-up. Backup of each day at the weekend, each week at the month-end, each month at the year-end and for one accounting year – all at different locations, so that you can restore suitable back up in case of an ordeal.

Implement User Access Control

Failure to manage advanced user access may expose your application and server to a high risk of breaching. It makes the way hurdle-free for the hackers to get into your systems and exploit your data.  So, employ restricted user access within buildings, systems and networks. Users licenced for privileged access should possess reasonable rights and permissions to access the networks and data, just enough to perform their business roles.

Prioritize Assets

The frequency of cyber-attacks has been escalated by 30% this year. Cyber-attack is an inevitable contingency, regardless of the size and type of your organization. So, for the safer side, it is highly suggestive to prioritize assets and place them under proper cyber protective shells. Construct heightened security for the most sensitive one.

Upgrade your Security Gears

Malware protection to your computers and networks goes without saying, is mandatory. But once installed, ensure that you keep your system and malware protection is up-to-date.  Though you observe all the other measures properly, you might slip your security by not updating your systems and protection schemes. An older version of software or system might not be aware of the advanced functionalities of a newer one, and so it is likely vulnerable to hackers, who are always updated with the new and upcoming trends.

Reinforce Strict Password Policies

Strong passwords are highly critical when it comes to cybersecurity. Though it may sound like a cliché, it is imperative to build each password with uppercase, lowercase, number and special characters. Always use long passwords in combinations that are hard to crack. A lot of companies demand employees to use passphrases, which are sentences.

Also, instruct them to change their passwords periodically, and the new password should not resemble the old one. Strictly prohibit the sharing of passwords.

Integrate with the Cloud

Cloud computing means placing your data and records under the shelter of a third-party cloud vendor. It will ensure maximum security of your data from their end because you are paying for it. So, the security of your data will be the vendor’s responsibility. The cloud will try to toughen the security wall as much as it could.

You need not completely rely upon the cloud. Yet, migrating to the cloud adds an additional layer to your cybersecurity.

Have a Rescue Plan

However tough and high your security measures are, hackers are always looking out for ways to breach your data. So, be prepared with your armours and response plan to retrieve your data or at least to dim down the effect of the attack from your side. Have a working plan and backup plan regarding notifying clients, contacting law enforcement and other relative actions as your federal law suggests.

There are also companies that provide cyber specific insurance. Research on them and sign up if you find it truly helpful after the attack.

Bottom Line

Being said everything about cyber threats and ways to prevent and mitigate them, it is always a contingency. It just takes three seconds for a cyber-attack to happen. We can expect it anytime and have to be perpetually vigilant. So, it is in our hands to maintain security hygiene.