Data security is an increasingly important topic for CPA firms, as the number of attacks and the associated costs of these attacks continue to grow. Cyber criminals are targeting CPA firms because they often have access to sensitive financial data, which can be used to commit fraud or identity theft.
In this blog post, we will discuss the problem of increasing surface areas for cyber attacks, the costs associated with each attack, why CPA firms are vulnerable, five different types of cyber attacks, steps that small CPA firms can take to minimize cyber risk, and how CySafe’s Cyber Toolkit can help small firms create a cyber security plan themselves.
The Problem
The increasing surface areas for cyber attacks presents a serious problem for CPA firms, as the risk of a successful attack is increasing every day. Cyber criminals are targeting CPA firms because they often have access to sensitive financial data, which can be used to commit fraud or identity theft. In addition, CPA firms are often viewed as easy targets because they do not always have the same level of cyber security measures in place as larger organizations. This makes them a prime target for cyber criminals. The costs associated with each attack can be significant, as the damage to reputation, lost data, and legal fees associated with a successful attack can be costly. In addition, the cost of an attack can be compounded if the CPA firm does not have the appropriate cyber security measures in place. According to a survey conducted by the American Institute of Certified Public Accountants (AICPA), the cost of a cyber attack on a CPA firm can range from $70,000 to $300,000. This cost includes the cost of the attack itself, as well as the cost of recovering the data and any related legal fees.
For example, the recent attack on Equifax cost the company $1.4 billion in legal fees and settlements.
Why CPA Firms are Vulnerable
CPA firms are particularly vulnerable to cyber attacks for a number of reasons. First, CPA firms often have access to sensitive financial data, which can be used to commit fraud or identity theft. This makes them attractive targets for cyber criminals. Second, CPA firms generally lack the resources to properly protect themselves from cyber attacks. Many CPA firms are small businesses, which means they may not have the budget to invest in the latest cyber security measures. This can leave them vulnerable to attack. Third, CPA firms often have outdated systems and software, which can leave them vulnerable to attack. This is particularly true for firms that do not regularly update their software. Outdated systems and software can make it easier for cyber criminals to exploit vulnerabilities.
Five Different Types of Cyber Attacks
There are a number of different types of cyber attacks that can be used to target CPA firms. The following five are some of the most common:
Phishing attacks: Phishing attacks are when cyber criminals use emails, websites, and other online methods to try to steal sensitive information from the target. They may try to gain access to the target’s passwords or financial information.
Malware attacks: Malware is malicious software that can be used to gain access to a target’s system. Cyber criminals may use malware to gain access to sensitive data or to spread malicious software to other computers.
Social engineering attacks: Social engineering attacks are when cyber criminals use social media or other online methods to try to gain access to a target’s system. They may try to gain access to passwords or financial information by pretending to be someone else.
Distributed Denial of Service (DDoS) attacks: DDoS attacks are when cyber criminals send a large amount of traffic to a target’s website, which can overwhelm the system and cause it to crash.
Man-in-the-middle attacks: Man-in-the-middle attacks are when cyber criminals intercept communications between two parties and use the information to gain access to the target’s system.
What Cyber Criminals Hope to Gain
Cyber criminals hope to gain access to sensitive financial data or passwords, which can be used to commit fraud or identity theft. They may also be after trade secrets or other confidential information, which can be sold on the black market. In some cases, the goal of a cyber attack may be simply to cause disruption or damage to the target’s system.
Steps that a Small CPA Firm Can Take
There are a number of steps that a small CPA firm can take to minimize their cyber risk. The first step is to conduct a risk assessment. This will help the firm identify any vulnerabilities in their system and develop a plan for addressing them. The second step is to implement an information security plan. This should include measures such as encryption, firewalls, and anti-virus software. The plan should also include policies and procedures on how to handle sensitive data. The third step is to educate employees on cyber security best practices. This includes teaching them about the importance of strong passwords, how to spot phishing emails, and how to identify suspicious websites. The fourth step is to regularly monitor the system for any signs of a breach. This includes regularly analyzing log files, monitoring for suspicious activity, and conducting penetration testing.
Hiring an external consultant can be expensive
CySafe’s Cyber Toolkit CySafe’s Cyber Toolkit is a powerful tool that can help small CPA firms create a cyber security plan without the need for an expensive cyber security expert. The toolkit includes templates and guidance on how to create a plan, as well as information on the latest cyber security best practices.
Conclusion
Data security is a critical issue for CPA firms, as the risk of a successful attack is increasing every day. Cyber criminals are targeting CPA firms because they often have access to sensitive financial data, which can be used to commit fraud or identity theft. In this blog post, we discussed the problem of increasing surface areas for cyber attacks, the costs associated with each attack, why CPA firms are vulnerable, five different types of cyber attacks, steps that small CPA firms can take to minimize cyber risk, and how CySafe’s Cyber Toolkit can help small firms create a cyber security plan themselves. By following these steps, CPA firms can reduce their risk of a successful cyber attack and protect their clients’ data.
