As the dependency on technology is increasing every single day, so are the cyber threats. According to the latest survey by Ani Petrosyan, as of 2023, over 72% of businesses worldwide were affected by ransomware attacks. This figure represents an increase on the previous five years and was by far the highest figure reported.
The accounting industry is highly vulnerable to cybersecurity threats due to the sensitive financial data it handles. Hackers see these firms as prime targets, and without the proper protections in place, they risk exposing client information, damaging their reputation, and facing legal consequences.
Strengthening Cybersecurity with MSSP
One of the biggest challenges accounting firms face, particularly SMBs, is the lack of internal resources and expertise to manage cybersecurity risks effectively. Keeping up with the latest cyber threats and compliance regulations can be overwhelming for in-house IT teams, leading to gaps in security coverage.
As a solution, engaging with a Managed Security Service Provider (MSSP) allows firms to outsource their cybersecurity needs to experts who specialize in monitoring, detecting, and responding to cyber threats.
MSSPs include a wide range of technologies and solutions like E-mail Security, Managed DNS Filtering, Managed SIEM, Managed EDR, and more. These tech-based solutions help accounting firms overcome various cybersecurity challenges.
MSSPs Tech-based Solutions
| End Point Detection | E-Mail Security & Phishing Analysis | Web Filtering | Vulnerability |
|---|---|---|---|
| Real-time Endpoint Monitoring | Phishing and Malware Protection and Analysis | URL / Content Filtering | Identify and manage CSVS |
| File and Memory, Unknown Application Analysis | Anti-Spam Filtering | Web Traffic Inspection | Vulnerability Scanning |
| Threat Detection and Hunting | Content Filtering | User Web Traffic Prioritization | Patch Management |
| Endpoint Patch Management | URL Inspection | DNS Filtering & Security | Integration Compliance Scanning |
| User and Entity Behavior Analytics | Sender Authentication & SPF and DMARC Analysis | URL Categorization | Asset Tagging and Grouping |
Here are some of the critical challenges accounting firms face and how MSSP solutions can help regarding cybersecurity and the technology-driven solutions to address them.
Tech-Driven Solutions to Cybersecurity Challenges for Accounting Firms
Data Breaches
Highly sensitive data, such as tax returns, bank records, and personal identification numbers, are stored by accounting firms. Cybercriminals prey on these firms to gain access to valuable client data, leading to data breaches that can result in severe legal and financial repercussions.
According to the survey by IBM, the cost of a data breach is USD 4.88M; the global average cost of a data breach in 2024 has a 10% increase over last year and the highest total ever.
Implementing advanced Encryption ensures that sensitive client data is encrypted both during transmission (such as through e-mails) and while stored on servers.
Even if a breach occurs, encrypted data remains unreadable without the decryption key. It offers safety against unauthorized access & secure curial data.
With the Endpoint Detection Service provided by MSSP can help in the proper encryption of data & safeguarding it.
Phishing Attacks
One of the most popular methods used by hackers to fool employees into disclosing passwords or clicking on harmful websites is phishing. Almost 1.2% of all e-mails sent are malicious, amounting to approximately 3.4 billion phishing e-mails each day.
Accounting firms are particularly vulnerable due to the high volume of communication with clients via e-mail, making it easier for attackers to impersonate trusted contacts.
Advanced anti-phishing software can detect and block phishing e-mails before they reach employees. Combined with regular cybersecurity training programs, firms can educate employees on how to identify and avoid phishing scams.
MSSP’s Phishing Analysis software & DNS Security solution protects critical credentials and lowers the possibility that staff members will fall victim to phishing scams.
Ransomware
Ransomware attacks involve hackers encrypting a firm’s data and demanding a ransom for its release. According to a survey by the National University, about 52% of the population experienced a ransomware attack that significantly impacted business systems and operations.
Accounting companies suffer greatly from ransomware attacks, which can result in lost data, costly recovery attempts, and downtime.
Implementing Anti-Malware Software and Intrusion Detection Systems can help prevent ransomware from infiltrating systems. Additionally, regular automated data backups in secure, offsite locations allow firms to quickly restore data without ransom.
Managed EDR Solutions from MSSP can reduce downtime, ensure data integrity, mitigate financial loss from ransomware attacks, and protect your Endpoints with AI-Powered Integrated Security.
Weak Passwords and Insider Threats
Employees are the weakest link in businesses. Sensitive data can be easily accessed through weak passwords, improper access controls, or malicious insiders, which can lead to unauthorized access to sensitive data.
The latest survey by Exploring Topics suggests that around 30% of internet users have experienced a data breach due to a weak password.
Managed E-mail security service can help in applying anti-spamming filters to protect your inbox from ransomware, phishing, and advanced e-mail threats. It strengthens login security, minimizes insider threats, and prevents unauthorized access.
Mitigate Cybersecurity Risks with Comprehensive Employee Training
Keeping up with technology trends is essential, but understanding them is equally important. A lack of cybersecurity knowledge and awareness of technological advancements can unintentionally open the door to cyberattacks. Staying informed and educated helps safeguard against potential threats and vulnerabilities.
Cybersecurity awareness training leads to a 70% reduction in security-related risks in 2023.
Cybersecurity threats and compliance regulations like GDPR, HIPAA, and PCI DSS are constantly increasing. Businesses should make sure employees are fully educated about the best practices of cybersecurity.
Security Training Programs from MSSP can be induced for employees to ensure they are aware of the latest security threats and how to avoid common pitfalls such as phishing e-mails, ransomware, and malware attacks. This helps businesses stay in compliance with pertinent legislation and prevent fines and legal problems.
Conclusion
Technology plays a pivotal role in addressing cybersecurity challenges faced by accounting firms. By implementing advanced MSSP tech-centric solutions like encryption, multi-factor authentication, AI-powered threat detection, and compliance management systems, firms can better protect sensitive financial data and reduce vulnerability to cyberattacks.
Additionally, investing in employee training ensures that staff can recognize and respond to potential threats, further strengthening the firm’s security posture. Embracing these technologies not only helps mitigate risks but also builds trust with clients, ensuring that the firm remains compliant and secure in an increasingly digital landscape.
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