Why Accounting Firms Are Targeted
High Value Client Data
Accounting firms manage tax records, financial statements, identity information, payroll data, and other commercially sensitive information. A security incident can therefore affect more than internal operations. It may expose multiple clients at once, create investigation and recovery costs, disrupt service delivery and damage client confidence. Protecting this information requires controls that reflect the volume and sensitivity of data held.
Smaller Security Budgets
Smaller and mid-sized practices may not have the same internal security resources as larger organisations. This can make it difficult to maintain specialist expertise, review controls regularly and respond to changing threats. Rather than adding disconnected tools, firms should prioritise practical controls around access, authentication, backups, staff behaviour and incident response based on their actual risk profile.
Trusted Access to Client Accounts
Accounting teams often require access to client portals, financial platforms and documents to complete their work. This makes cyber security for accounting firms particularly important, as excessive or poorly managed access can increase exposure. Firms should regularly review who has access, what level of access they require, and whether access remains appropriate when responsibilities change or employees leave.
The Threats Firms Face Most
Business Email Compromise
Business email compromise can exploit trusted relationships and normal payment workflows. An attacker may impersonate an employee, client, or supplier and request a payment or change to account details. For accounting practices, verification procedures are particularly important where teams handle financial transactions or communicate sensitive information. Clear approval steps can reduce the risk of fraudulent instructions being acted upon.
Credential Theft
Stolen passwords can give attackers access to email accounts, cloud platforms and client information. The impact can extend quickly when the same credentials provide access to multiple systems. Firms should reduce this exposure through multi-factor authentication, strong password practices, controlled permissions and regular reviews of active accounts. These controls are particularly important for systems containing sensitive client information.
Ransomware
Ransomware can disrupt access to files and systems while creating significant recovery and business continuity challenges. For an accounting practice working against reporting and compliance deadlines, data security for accounting firms must include reliable backups, recovery testing, system updates, and a defined incident response process. These measures can help firms restore operations and reduce the consequences of an attack.
Essential Security Controls
Multi Factor Authentication
Multi factor authentication adds another verification step beyond a password, reducing the risk associated with compromised credentials. Firms should prioritise it for email, cloud platforms, financial systems and other sensitive applications. Regular access reviews should remove inactive accounts and former employee access, reducing unnecessary exposure.
Patching and Updates
Outdated software can leave known vulnerabilities unresolved and increase the attack surface across the practice. Firms should establish a process for identifying available updates and applying them within an appropriate timeframe. This should cover operating systems, business applications, security tools and connected devices.
Backups and Recovery Testing
Backups only provide protection when they can be restored successfully. Firms should identify critical systems and information, maintain appropriate backup arrangements and test recovery procedures rather than assuming the process will work during an incident.
Access Control
Access should reflect an employee’s current responsibilities rather than historical roles. Firms should review permissions periodically, particularly when employees change positions or leave the practice. Restricting access to what each person needs can reduce unnecessary exposure if an account is compromised.
Staff Security Training
Technology controls cannot address every risk created by human behaviour. Staff need to recognise suspicious emails, unusual requests, credential theft attempts and other common attack methods. Training should be relevant to the firm’s actual workflows rather than treated as a once a year compliance exercise. Regular reinforcement can help teams identify risks earlier and respond consistently when something appears unusual.
Your Obligations After a Breach
Assessing Whether a Breach Is Notifiable
Assess what information was affected, how it was accessed and whether serious harm is likely. Document the assessment clearly to support consistent decisions and determine applicable notification obligations.
Notifying the OAIC and Clients
Where notification requirements apply, firms must communicate with the OAIC and affected individuals as required. Accurate, timely communication helps manage regulatory obligations while maintaining client confidence during the response.
Building an Incident Response Plan
Define responsibilities, escalation paths, communication procedures and recovery actions before an incident occurs. Regular reviews help firms identify gaps and respond faster when a security incident affects operations.
How SuperRecords Protects Client Data
ISO 27001 Certification
SuperRecords is ISO 27001 certified, demonstrating a structured approach to information security management. This provides firms with an established framework for assessing security risks, maintaining controls and managing information securely across operational processes.
Controlled Access to Client Systems
Access to client information should be limited to authorised personnel with a business need to use it. We apply controlled access practices to help protect sensitive information while allowing our teams to complete assigned work efficiently.
Security Governance
We maintain structured governance across policies, controls, responsibilities and information handling. Our approach helps accounting firms understand how client information is managed and supports stronger oversight when SMSF work is handled externally.
Frequently Asked Questions
