Accounting firm security best practices 2025

A secure password manager program allows you and your staff to create, manage, and store strong passwords conveniently and safely. Your data will remain safe, and you will save time and eliminate frustration. Your excellence as an accounting company is no defense against a cyberattack. You can be the top firm in your field and still be the victim of a devastating hack. Instead of sympathy for suffering such a crime, you will likely experience some severe consequences.

• In-person identity proofing for people unable to use their personal my Social Security account for certain services will be effective April 14, 2025.
• On the other hand, we must emphasize insider threats originating from employees or trusted individuals within an organization.
• To clarify, even robust IT infrastructures can be targeted and penetrated by hackers and cybercriminals.
• In this article, we look at how accountants can structure an accounting cybersecurity strategy to keep financial data secure.
• Most of them do it via email, which is not the safest way to send documents (to say the least).

Social Security Strengthens Identity Proofing Requirements and Expedites Direct Deposit Changes to One Day

We have detailed risk assessments that can further break down the risks you identified in the SOC for Cybersecurity Framework. Then, we can help them implement mitigation strategies to improve their cybersecurity. But if your clients have scored badly on their SOC for Cybersecurity examination, you might not know what to do. Of course, you want your client to score well because it can help them with customer trust and retention. However, you might not be enough of an expert in cybersecurity to help them enhance their security systems. The SOC cybersecurity framework is appropriate for businesses, nonprofit organizations, and any other type of organization.

• With the rise of remote work and digital collaboration, the risk of unauthorized interception of communications has intensified.
• Many Social Security beneficiaries will still have the option to verify their identities online.
• Many accounting firms use email encryption when sending data to another party.
• Clients tend to mistrust organizations that fail to protect their sensitive information, which leads to a decline in business and partnerships.
• Secure your office premises by implementing access control systems, surveillance cameras, and alarm systems.

Regular security audits and compliance checks

More importantly, a companies’ reputation can also face immense backlash, even resulting in it having to close. Most importantly, the biggest danger is assuming that ‘my accounting firm’ or ‘my company’s financial data’ isn’t threatened. Data breaches Car Dealership Accounting in the financial services industry, and in general, are on the rise. Over the next two weeks, SSA will carefully transition to stronger identity proofing procedures for both benefit claims and direct deposit changes. At the same time, the agency will expedite processing all direct deposit change requests – both in person and online – to one business day. Prior to this change, online direct deposit changes were held for 30 days.

Regular data backups

• These security measures also ensure that only select users can do a certain process in the system.
• The digitalization and gradual migration to cloud accounting for many financial institutions has seen an increased cyberattack rate.
• This removed two provisions that reduced benefits for retirees who receive pensions from employers that weren’t covered by Social Security, including many firefighters, police officers, and teachers.
• You cannot afford to downplay the number of cyber security threats to your industry.
• For instance, a phishing email might mimic a legitimate request from a client or regulatory body, prompting the recipient to click on a malicious link or download an infected attachment.

With a 100% certification success security in accounting rate, Trava Security provides comprehensive solutions that validate and protect operations. Increasingly, forensic accountants are working along with cybersecurity teams to investigate, quantify, and report the financial impact of cyberattacks. They can investigate losses from many different perspectives and defend a company against class action lawsuits.

Protect your accounting firm with cybersecurity measures

Employees with elevated access to sensitive data should receive advanced security education, tailored to their responsibilities. For example, IT staff might learn secure software development practices, while accountants focus on safeguarding client information. Encouraging employees to report vulnerabilities or suspicious activities strengthens an organization’s cybersecurity posture. Regular updates to training materials ensure employees remain prepared for emerging threats. For instance, in 2021, major companies such as Sequoia and Capital One suffered severe data breaches that What is bookkeeping damaged their financial health and reputation.

In the US, a single data breach costs $500,000 on average, with many companies losing millions. To make matters worse, the number of data breaches rose significantly in 2021 compared to 2020. These numbers are staggering and illustrate why all financial industries, including accounting, must make financial data security a constant priority.

Firewalls and antivirus software

In fact, cybercriminals are creating more sophisticated hacks and unleashing them on companies of all types, particularly those dealing in finance. Confidentiality in accounting is a core principle that protects sensitive financial data. It is enshrined in professional standards, such as the AICPA Code of Professional Conduct, which mandates accountants to refrain from disclosing client information without explicit consent. This obligation is also a legal requirement under regulations like the Sarbanes-Oxley Act, which imposes controls on financial reporting and data management.