When you deposit your money in a bank, you expect that it will be protected, preferably behind a thick, steel safe door. The image provides you with a sense of security. When after a few weeks you learn that someone has lifted your banking information and charged thousands of dollars to your account, the bank's security protocol is suddenly found wanting.
Your clients will feel this way about your accounting firm too if it's learned that you did not take every safety measure you could to protect their financial information.
Cyber insurance for CPAs will help you to better protect your business, your clients and your reputation. Are you thinking that your current safety measures suffice? Here are three reasons to invest in a cyber insurance policy directly at the conclusion of this article!
Outdated computer security software can make your clients' financial details ripe for the picking.
According to the Financial Times, "hackers know to go where the money can be found." An accounting firm holds the financial details of all of their clients. The Financial Times goes on to say that "accounting that provides tax advice on mergers, boutique advisory firms and consultants who weigh in on synergies and downsizing plans are almost certainly on the [cyber]criminals' hit list."
If your firm is using outdated security software, a cybercriminal can easily manipulate the code, enter your firm's network and deploy a malware attack. After stealing your company's data, they can sell it on the dark web, forever leaving your clients at risk of identity theft.
An employee's lack of cybersecurity training could make your network susceptible to an attack.
Every day, businesses across the U.S. fall prey to well-crafted phishing emails. Known as spoofing, scammers will send an email to a mid-level employee that looks as though it's from a supervisor. Generally, the email will ask for confidential account information, such as financial information. The unsuspecting employee will send their \"supervisor\" the information they've asked for, not knowing that they have sent sensitive data to a cybercriminal.
By training your accountants to learn how to spot a phishing email and other cyber scams, you can avoid having your firm come under fire by hackers. To make sure your firm is doubly protected however, you'll need cyber insurance in case a cybercriminal is crafty enough to compose an email that by all accounts (see what we did there?) looks to be from you!
Litigation can take years and cost you your accounting firm.
If your accounting firm is breached and your clients' data has been compromised, your firm will be held liable. As your firm is liable, your clients have the right to sue your firm for negligence. Litigation can cost tens to hundreds of thousands of dollars and can be a years-long process. Does your accounting firm have the resources to pay court fees for years to come? You can bet too that an accounting firm facing litigation for client breaches won't be acquiring any new clients.
To keep your accounting firm on the up-and-up, you'll need cyber insurance. Visit CyberPolicy today to sign-up for your new plan.