The nightmare for accountants and businesses alike is a growing issue. The financial data, in particular, makes it a prime target to hackers who want your information- whether you’re an individual or a company! IT teams need expert help keeping precious records safe from prying eyes and malicious software attacks that could cause significant damage if not dealt with immediately upon detection (such as ransomware).
Why Accounting cyberattacks are on the rise, and what you can do about it.
The cloud is a great way to make accounting more accessible, but it also presents new risks that must be considered. To clarify: even robust IT infrastructures can be vulnerable and penetrated by hackers or cybercriminals who want to access your internal data; this will cost you more in the long run than if these people were able to read paper-based books!
Cyber security and data privacy are important issues for accountants because both threaten livelihood. This doesn’t mean that you need to worry about hackers trying to get into your computer. Instead, it’s more subtle than this; malware or malicious activity can happen through something as simple a debit card number being inputted incorrectly on web pages where users aren’t aware of what they’re doing – which then leads them straight towards an electronic form of theft!
This is a severe issue. The data breach industry and the finance sector are also on an upswing with more threats coming out every day – don’t let your guard down!
6 Essential Accounting Cyber Security Practices for Accounting Departments
Cybercriminals are always looking for new ways into your organization, and they will use any vulnerability they find. But, with the proper security measures, you can protect yourself from these attacks!
Know Your Threats
Whether you’re an accountant faced with hacking, ransomware and phishing scams, or mistakes in your organization’s accounting practices that lead to data being misplaced – it is crucial for each business owner/accountant to maintain accountability over their own actual financial lifecycle.
Train Your Staff
What is a more secure way to store financial data? In an era where hackers are increasingly targeting business and government institutions, it’s essential for accountants like you – who handle sensitive information about clients’ finances-to take precautions. A great place to start is to allow CFO Network to provide a IT Security Scan for your network.
Know Your Regulations
Your business is subject to many regulations that protect you and your customers. Federal law, for example, protects the integrity of financial statements while ensuring proper accountability in accounting standards with its requirement on annual reports filed by firms who regularly work with federal agencies like NASA or USDA (United States Department Of Agriculture).
Design an Approval and Validation System
The most experienced and trustworthy staff members should have the final authority on using data. That way, you can protect your accounting firm from potential errors caused by human or machine mistakes. Indubitably accidentally sharing information that could jeopardize their job security if they make any unauthorized modification to it without knowing what exactly happened during an earlier part of processing when someone else had access before them.
Establish Security Requirements
Collaborate with your team to identify risk factors and create a comprehensive list of financial security requirements. You should also consider examining the unique process you have for data slips not to happen, as this will be relevant when looking at internal controls that can help define additional functionality needed from an accounting system.
Choose the Right Accounting System
It’s not enough to just have an accounting system anymore. You need one with strong encryption and automated internal security functions so it can withstand current cyber threats, like ransomware attacks that aim at stealing valuable company data or editing financial records without user approval.
Implementing these six essential accounting cyber security practices can help protect your organization from cybercriminals. And, with the ever-growing threat of cybercrime, it’s necessary to take every step possible to secure your data. Have you implemented any of these practices in your office? Let us know how they worked out for you!
Schedule time with CFO Network to discuss your Accounting Cyber Security options.