Cybersecurity Considerations for Accounting Firms
October is Cybersecurity Awareness Month in Canada. It's a critical reminder for all businesses, especially considering that 75% of small- and mid-sized accounting firms say they would only be able to survive less than a week if they suffered a major cyberattack, according to a survey commissioned by CyberCatch earlier this year.
A few months ago, Stuart Smith, Chief Technology Officer with Keyworks, joined WealthCo’s Tim Coakwell on our Innovative Accountant podcast series to discuss cybersecurity and technology for accounting firms. Here are some key takeaways from that discussion.
The Risks Businesses Face Today
Large-scale data breaches and cyberattacks frequently make headlines, and data protection remains paramount for organizations, particularly in the financial sector.
“Especially in the financial sector, the data we handle is so sensitive and personal. Privacy and confidentiality are critical. Clients need the peace of mind that they are working with a trusted partner who is diligent in keeping their information safe. Reputationally, this couldn’t be more important,” says Smith.
Key Regulatory Considerations
Personal accountability is a significant aspect of cyber due diligence.
“It’s important to raise personal awareness around accountability,” Smith emphasizes. “We’re all accountable, and directors of companies are liable and accountable for privacy now, so they need every assurance that the systems in place are current and sufficient.”
Smith references the Colonial Pipeline cyberattack in May 2021, where a single compromised password, believed to have been obtained from the dark web, caused the largest publicly disclosed cyberattack against critical American infrastructure. Colonial paid 75 bitcoin ($4.4 million) and took the pipeline offline for five days to mitigate further risk.
The impact was significant and widespread:
The airline industry faced a jet fuel shortage.
Panic buying led to long lines and gas shortages.
Gas prices spiked.
The US Consumer Product Safety Commission issued warnings as people stored gas in plastic bags.
Smith alludes to the regulatory response, noting, “After this attack, President Biden convened tech leaders to discuss new measures to protect infrastructure, finances, and the economy. We’ll see more compliance frameworks driven by government and industry.”
Finance's Impact on Technology
The financial industry has profoundly influenced technology, driving the development of sophisticated systems to handle large data volumes and early adoption of mobile technologies, such as banking apps and mobile payment systems.
“The financial services industry has driven governance, risk, and compliance (GRC). They’ve been pioneers in setting GRC standards,” Smith points out.
Technology Opportunities for Accounting Firms
Smith highlights the numerous opportunities for accounting firms to leverage technology.
“Our approach is to drive better business outcomes, supporting our clients and our businesses by making things more efficient, optimizing, and automating. Embracing and leveraging new technologies like artificial intelligence is key,” Smith says.
Technology offers exciting opportunities to enhance the customer experience. “What was acceptable three years ago, such as taking several days to sign a document, is no longer okay,” Smith explains. “The pandemic shifted behaviors, and perceptions have changed. We’re now in a world where everything is mobile and real-time, with high transparency—from tracking your pizza delivery to monitoring your Uber driver. We need to transform our businesses to meet these new expectations, particularly in the finance industry, by implementing customer experience enhancements that our clients will appreciate.”
Final Thoughts
Cybersecurity is more crucial than ever, especially in the financial sector. By understanding the risks, complying with regulatory requirements, and leveraging technology, accounting firms can safeguard their data, enhance efficiency, and improve the customer experience.
About Lisa Barron
Lisa Barron joined the WealthCo team in 2021 and has been instrumental in ensuring we adhere to the best possible cybersecurity and information management practices. Given WealthCo’s commitment to adopting new tools and technologies, Lisa’s exceptional problem-solving skills have been a tremendous asset. When Lisa’s not keeping us cybersafe, you’ll find her hiking and spending time with her two dogs and her husband. She also gives back by helping reunite lost pets with their families in the Calgary community.
If you have any questions or need assistance with cybersecurity, please contact us. WealthCo is here to help you navigate these challenges with confidence and security.
To check out the podcast, “Cybersecurity, Data Privacy, and Technology for CPA Firms” in its entirety:
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