Safeguarding Financial Integrity: Navigating the Cybersecurity Landscape in the Accountancy Sector

In an era where almost all financial transactions are completed online, often at the speed of a click, accountancy firms face a dynamic and evolving cyber security landscape.  

In fact, according to a September 2023 report by RPC (Reynolds Porter Chamberlain), financial services firms reported over a threefold increase in the number of cyber security breaches to the Information Commissioners Office (ICO) in 2023 compared to the previous year. 

A data breach can cost a firm severe reputational and financial damage, impact client confidentiality/trust and reduce competitiveness.  

The Rising Threat Landscape for Accountancy Firms 

The Accountancy sector holds huge amount of sensitive financial information, making it a prime target for malicious actors. This includes passwords, bank account information, financial records, tax identification numbers, payroll information, investment data and intellectual property. 

Many accountancy firms, especially smaller or self-employed businesses underestimate the threat posed by cyber criminals, and as such may under-invest in appropriate measures. It is also seen as an easy target for cyber criminals and a ‘gateway’ to this sensitive information.  

Phishing Attacks  

Phishing remains one of the main threats to accountancy firms, particularly spear-phishing. AI is making it easier than ever to create convincing phishing emails and impersonate the communication style of an accountancy firm’s senior executives or clients, particularly as accounting executives may lack proper training to spot a cyber-attack. PureCyber’s Phishing Simulation services can help your staff learn how to spot the tell-tale signs of a phishing email and identify which employees are most susceptible to attacks.  

Ransomware 

The prevalence of ransomware adds another layer of complexity. Without adequate protection, accountancy firms' risk being locked out of essential systems, facing potential loss of critical financial data and operational disruptions.   

Data Breaches & Third-Party Risks 

A data breach can cost a firm severe reputational and financial damage and impact client confidentiality. One potential factor in breaches is the widespread use of the same software, and therefore shared vulnerabilities. Cyber criminals are aware of this and the high reward that can be gained by breaching multiple firms that use the same third-party software. Once they have exploited new and existing vulnerabilities within one type of software, they are in a perfect position to target other firms. Conducting due diligence on third party vendors and suppliers is therefore vital to protect supply chains.  

In June 2023 cyber criminals exploited a vulnerability in the MOVEit file transfer app to breach hundreds of organisations, including major accountancy firms such as Deloitte, Crowe, PricewaterhouseCoopers (PWC) and Ernst & Young (EY).  

As stated by EY, this forced the firm to manually investigate its systems where data may have been accessed, inevitably costing the firm time and resources.  

Remote Working 

Implementing a hybrid and remote working approach can create its own challenges for accountancy firms, including monitoring user access, user authentication, applying effective access controls, outdated or unpatched devices and software or connecting to public WIFI. PureCyber’s Security Operations Centre can monitor your employees' devices and networks wherever they are.  

Mitigating Risks through Cybersecurity Best Practices 

Outsourcing your Security Operations Centre 

An outsourced SOC serves as a centralised unit for monitoring, detecting, and responding to cybersecurity incidents in real-time. This proactive approach allows for early threat detection and swift incident response, reducing the potential impact of cyber incidents. 

Effective Compliance and Governance  

Complying with cyber security standards, including ISO2 7001 and data protection laws and regulations helps accountancy maintain compliance and effective governance. Cyber Essentials and IASME Cyber Assurance are ideal schemes for accountancy firms who are undertaking their first steps towards cyber security accreditation.  

An Effective Incident Response Plan 

In the event of a successful data breach, it is imperative that employees know their roles and responsibilities. This helps to maintain business continuity and reduce damaging downtime and associated reputational and financial damage. Having a thorough and regularly updated incident response is a must for any organisation.  

Implementing Multi-factor Authentication & Access Controls 

Implementing multi-factor authentication adds an extra layer of security to user accounts, so even if cyber criminals manage to breach initial credentials, they have another layer to crack. Similarly, implementing strict access controls can prevent employees from accessing data they don’t need to see.  

Educating Your Employees 

An awareness of common cyber threats and the importance of strong passwords is essential for an effective cyber security posture. Awareness training also helps place an emphasis on employees to view cyber security as a shared responsibility.  

Regular Testing and Updates  

Accountancy firms can strengthen their cyber security posture further by undertaking regular penetration testing to simulate cyber-attacks and identify vulnerabilities in their systems. Regular software and system updates keep cyber criminals from exploiting known vulnerabilities.  

Next Steps  

The Accountancy Sector is among the most vulnerable industries and a high value target for malicious actors.  

The sector’s sustainability relies on the trust of clients and partners and its ability to safeguard sensitive financial information and data. By taking pro-active measures, embracing emerging technologies, and staying compliant with regulations, accountancy firms can help secure their cyber security posture and future. 

Investing in cybersecurity measures, including penetration testing, governance, SOC teams, and phishing simulations is essential for the financial integrity of the accountancy sector and maintaining the trust of clients in an increasingly interconnected and digital landscape.

Take Action 

Get in touch with PureCyber to learn more about these services and to book a free consultation call.  

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Sources 

www.rpc.com 

www.cybernews.com