We’re all sufficiently aware of the importance of protecting customer data, but have you ever considered how many of your clients’ accounting systems you have online access to? And how much of their customers’ sensitive information might also be at risk?
If you’re focusing solely on safeguarding your clients’ personal and business data, it’s time to take a step back and see the bigger picture.
Many accounting systems are connected to company bank accounts and facilitate online vendor payments. Now, imagine if hackers gained access to your clients’ systems because your credentials were compromised through social engineering or phishing. What would the consequences look like? How significant would the fallout be?
If a hacker obtained a CPA’s login credentials to access clients’ accounting systems, the consequences could be severe. Here are some key risks and implications:
- Data Theft
- Client Financial Data: The hacker could access and steal sensitive financial data, including revenue figures, tax information, and payroll data. This could lead to identity theft or financial fraud.
- Personal Information: If the CPA also manages personal data (e.g., Social Security numbers, employee details), this data could be compromised, increasing the risk of identity theft for the clients’ employees.
- Financial Fraud and Embezzlement
- Altered Financial Records: A hacker could manipulate financial records, such as falsifying expenses or income, redirecting payments, or creating fake vendors or clients to siphon funds.
- Unauthorized Transactions: The hacker might initiate or approve fraudulent transactions, such as fake refunds, misappropriated funds, or unauthorized purchases.
- Legal and Regulatory Consequences
- Violations of Privacy Laws: In the U.S., laws like the Gramm-Leach-Bliley Act require CPAs to protect client information. A breach could lead to fines and sanctions, particularly if it’s determined that the CPA failed to implement adequate security.
The IRS has mandated Written Information Security Plans (WISP’s) in an effort to fight against the growing number of CPA breaches. Understanding your risks requires attention to your existing digital environments and daily operations. The fact is, post breach statistics reveal that CPA’s over trust their IT providers and take cyber security for granted.
Get your CPA Checklist and Contact ControlAltProtect for a FREE Hack Analysis (877) 292-3791
For more information, Contact us