QuickBooks Cloud Accounting: Prioritizing Security in Cloud-Based Accounting (Blog Series Part – 4)

Welcome to our 4th blog of the series, “QuickBooks Cloud Accounting,”- where we explore the importance of prioritizing security, highlighting the potential risks and the measures necessary to safeguard financial data.

In the previous blog, we covered the best practices for choosing a reliable QuickBooks Cloud hosting provider.

The Importance of Security in Cloud Accounting

Now more than ever, organizations must prioritize a “cloud first” approach to transform how they manage their finances, offering unparalleled convenience, accessibility, and efficiency. But every new cloud instance has the power to brew up a security storm.

• 82% of breaches involved data stored in the cloud. (IBM Report)
• 80% of companies have experienced at least one cloud security incident last year. (Snyk Report)

Cyberattacks and threats are the primary security concerns and the most significant barriers to cloud adoption. When QuickBooks is hosted on the cloud, it comes up with robust features that cater to the dynamic needs of modern businesses, but it also brings some significant security concerns.

However, when QuickBooks Cloud Accounting security is addressed proactively, you can create a secure cloud environment, ensuring the security of sensitive accounting data and building client trust.

Understanding Potential Risks in QuickBooks Cloud Environments

Unmanaged Attack Surface

The attack surface refers to the sum of different points where an unauthorized user can try to enter or extract data. In cloud environments, this surface can become extensive due to multiple integrations, APIs, and user access points.

Example: If a business uses QuickBooks Cloud Hosting and integrates it with other applications without taking proper security measures. Then, the hackers might exploit vulnerabilities in these integrations to access sensitive financial data.

Solution: Regularly reviewing and updating security protocols to minimize attack surfaces.

Human Error

Human error is one of the leading causes of security breaches. It includes human mistakes, such as weak passwords, accidental data sharing, and inappropriate handling of sensitive information.

Example: Employees save the password on their device or share an email containing login credentials for QuickBooks Cloud Hosting to a phishing scam, ultimately unauthorized access to the company’s financial data.

Solution: Conducting training for employees to recognize and avoid phishing scams and other threats.

Misconfiguration

It occurs when cloud settings are not configured properly, leading to potential security vulnerabilities. It can occur during initial setup, updates, or modifications.

Example: If QuickBooks Cloud Hosting user access control is misconfigured, unauthorized users might gain access to financial or sensitive data, which could unintentionally be exposed to the Internet.

Solution: Ensuring that QuickBooks Cloud Hosting settings are correctly configured and regularly reviewed.

Data Breach

A data breach involves unauthorized access and recovery of sensitive information, leading to financial loss, reputational damage, and legal consequences.

Example: A breach in the QuickBooks Cloud Hosting service due to weak security protocols or a successful cyberattack could result in hackers stealing financial records, payroll information, and client details.

Solution: Utilizing QuickBooks’ built-in security features like data encryption and multi-factor authentication to protect against data breaches.

Understanding Threats in the QuickBooks Cloud Environment

Zero-Day Exploits

Zero-day exploits refer to vulnerabilities in software that are unknown to the vendor and thus unpatched. Attackers can exploit these vulnerabilities before developers have a chance to fix them.

Example: Hackers might discover and exploit an unknown flaw in QuickBooks Cloud’s authentication process to gain unauthorized access to user accounts. It can lead to data theft before Intuit, the developer of QuickBooks, releases a patch to fix the vulnerability.

Solution: Ensure QuickBooks is constantly updated with the latest security patches and updates from Intuit to protect against newly discovered vulnerabilities.

Advanced Persistent Threats (APTs)

APTs are prolonged, targeted cyberattacks in which an intruder gains access to a network and remains undetected for an extended period.

Example: An APT attack might target a specific company using QuickBooks Cloud. The attacker infiltrates the network through a phishing email, gradually escalating privileges and extracting financial data over months without detection, leading to significant financial loss and data compromise.

Solution: Implement advanced monitoring tools and threat detection systems to promptly identify and respond to suspicious activities.

Insider Threats

Insider threats involve employees or individuals within an organization who misuse their access to sensitive information for malicious purposes.

Example: An employee accessing QuickBooks Cloud might intentionally leak financial data or sell customer information to competitors or cyber criminals. This type of threat is particularly challenging as it involves trusted individuals who already have legitimate access to the system.

Solution: Enforce strict access controls and monitor user activities to detect and prevent unauthorized access and data misuse by insiders.

Cyberattacks

General cyberattacks encompass a wide range of malicious activities, including hacking, phishing, ransomware, and denial-of-service (DoS) attacks.

Example: A ransomware attack on QuickBooks Cloud could encrypt a company’s financial data, rendering it inaccessible until a ransom is paid. Alternatively, a DoS attack might target QuickBooks’ servers, causing service outages and preventing users from accessing their financial data during critical times, such as tax season.

Solution: Use comprehensive cybersecurity solutions, including next-gen firewalls, anti-virus software, and rolling data backups, to defend against and mitigate the impact of cyberattacks like ransomware and DoS attacks. Reputed cloud hosting providers, including Ace Cloud, follow such security measures.

Best Practices to Improve QuickBooks Cloud Accounting Security

Here are some best practices to enhance the security of your cloud accounting:

Strong Access Controls and Authentication

To secure cloud accounting systems, you should follow robust security measures, such as enabling multi-factor authentication (MFA), which can help prevent unauthorized access and limit user permissions based on the roles and responsibilities.

Data Encryption

Advanced Encryption Standards (AES) can be used in data encryption when in transit and at rest. This ensures data is safe if it is intercepted or viewed without permission. It can be a crucial component of data security.

Vulnerability Assessments and Regular Security Audits

Regular security audits and vulnerability assessments can help you find cloud accounting system issues. With the help of security experts, you can recognize and suggest significant changes to make things work better.

Training and Awareness Programs for Employees

Human error is usually the reason for safety issues. Training programs should be conducted to teach staff members about security best practices, scams, risks, and threats. It will help you train and teach employees to pay attention to cyberattacks and stay updated.

Plans for Data Backup and Recovery

Following robust data backup and recovery processes can help businesses prevent data loss. Regular or specific time period backups guarantee that data may be recovered in case of a cyberattack or accidental elimination.

Adherence to the Regulations

It’s crucial to follow applicable regulatory standards, as cloud accounting systems’ integrity and legality depend on compliance. Companies should collaborate with legal and compliance experts to understand industry-specific regulations and implement policies that adhere to these standards.

Constant Attentiveness and Identification of Threats

Providers should employ constant monitoring and threat detection systems to quickly find and manage security incidents. By being proactive, we can reduce risks before they escalate into serious incidents.

Policies for Transparent Security

Gaining client confidence necessitates transparency in security policies and procedures. Providers should clearly communicate their security measures, incident response strategies, and regulatory compliance. It allows you to make informed decisions when choosing cloud accounting systems.

Wrapping Up

Prioritizing security in QuickBooks Cloud Accounting is essential for protecting sensitive data. By addressing security concerns proactively, businesses can enjoy the benefits of cloud technology while ensuring compliance and operational efficiency.

Choose secure cloud solutions to unlock QuickBooks’s full potential and drive sustainable business growth. Ace Cloud, a reliable QuickBooks cloud hosting provider, can help you, as it offers various cloud hosting options with guaranteed 99.99% uptime, 45-day data backup, and bank-level security features. Take a free trial to experience their services.

In the upcoming blog – “QuickBooks Cloud Accounting: Budgeting Considerations for Cloud Success,” we’ll discuss the budget considerations while opting for QuickBooks hosting solutions and how it can help in the longer run.