Accounting Firms are Big Target for Hackers

By:  |  Category: Blog, Telephony Friday, September 28th, 2018  |  No Comments
Accounting Firms

Over the past few years cyberattacks have left no industry unscathed. Of the 78,617 business and email account compromise scams, 41,058 occurred in the United States. The costs resulted in companies suffering $2.9 billion in losses from October 2013 to May 2018. Globally, cyber-crime is expected to cost the world $6 trillion per year by 2021. Damaging attacks such as NotPetya in Ukraine, which is estimated to have cost companies $1.2 billion, underscores the fact that cybercrime is a serious concern for every industry world-wide.

Unfortunately, accounting firms are one of the more lucrative targets for hackers. Cyber incidents affecting firms have increased almost 10 times in the last 10 years. Small firms are at more risk than larger firms, with the smaller organizations composing 57% of the cases. In comparison, large firms only compose 21%. Since smaller firms have fewer resources to recover from a breach, the median loss of $800,000 can be extremely damaging to a company’s ability to withstand an attack. Given the sensitive data that accounting firms store, it should come as no surprise that personal privacy and personal financial identity compose 80% of data losses for accounting firms. This can be extremely damaging not only monetarily, but in terms of an organization’s reputation as well. The trust of clients is an invaluable asset to any business, but in the accounting sector this trust is vital for operations.

The median loss of an accounting firm is $800,000.00!

In 2017, one of the Big Four firms, Deloitte, had a breach that was kept under wrap for an extended period. The attackers had access to their major corporate and government clients because a Deloitte employee failed to use two-factor authentication. This incident demonstrates that even a firm which prides itself on its cybersecurity, an organization that was recognized in 2012 as the best cybersecurity consultant in the world, can easily be breached if cybersecurity protocols aren’t followed.

While cyberattacks do not discriminate against any sector, accounting firms  generate a bigger bang for the hackers effort.  But every sector endures challenges when working to prevent, stop, or overcome a cyberattack.

Working to educate employees on practicing the best cybersecurity defense can significantly reduce the potential for a successful breach. It is important to be vigilant in combating potential compromises. This is especially true in the sectors that rely on client trust. When customers feel their personal information is at risk, companies will have a more difficult time re-gaining the trust of once loyal customers. The Internet Age has brought an amazing ability to conduct business at a new level of profitability. With this increased reward brings more danger of threat actors inflicting harmful attacks on business.

Being proactive in developing a cybersecurity plan can be the difference in successfully defending a breach or losing millions to a harmful attack. If you need assistance with a cybersecurity solution or security training give EnhancedTECH a call at 714-970-9330 or contact us at [email protected]

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