As we head into 2025, I think it’s safe to state that most things technology continue to evolve at a rapid pace. And this includes cybersecurity. This rapid evolution also continues to present new challenges for accounting firms. Cybercriminals are becoming more sophisticated every day, requiring firms to adopt advanced security measures to protect sensitive client data.
Join us as we explore the top cybersecurity predictions and strategies that accounting firms should consider to stay ahead of threats.
Emerging threats continue to disrupt and destroy
Disinformation campaigns—focused attacks aimed at deceiving, misleading or confusing people—are a top global threat. In fact, a recent study by Gartner shows that 61% of businesses think these attacks will have an impact on their business. Bad actors are seeking to steal customer information and disrupt business operations through deepfakes and destructive ransomware attacks. This demands a proactive approach for accounting firms to safeguard sensitive data. Understanding these threats and implementing defensive strategies will be vital for firms to protect their digital assets and client information. Let’s take a look at these two types of threats.
Deepfakes and phishing attacks
Cybercriminals are increasingly using advanced technologies like deepfakes to carry out convincing phishing attacks. These aren’t your standard phishing emails (though you still need to be prepared to defend against those, too). Rather, deepfake phishing can convincingly mimic voices and videos, making it difficult to distinguish between real and fake communications. In fact, according to a new report by Onfido, deepfake fraud attempts increased by a whopping 3,000% in 2023.
Action steps:
- Implement robust identity verification processes. Always verify client requests through live voice or video calls.
- Educate employees about the dangers of phishing attacks and deepfakes…and reinforce the importance of verifying unusual requests.
Ransomware with destructive capabilities
Ransomware remains a significant threat, with new variants capable of not only encrypting data but also destroying systems and hardware. This evolution demands an enhanced response strategy from firms.
Action steps:
- Conduct regular employee training to help your staff recognize phishing attempts, which often lead to ransomware attacks.
- Implement strong password policies, multifactor authentication (MFA) and biometrics to secure access to data.
- Develop a comprehensive backup and recovery strategy to ensure quick restoration of data in case of an attack.
Infrastructure and compliance become more comprehensive and complex
As accounting firms continue to adapt to more remote and hybrid teams, ensuring secure systems and compliance with evolving regulations remains imperative. Remote work and increased digital interactions introduce vulnerabilities that must be addressed strategically. One of the best ways to build the right infrastructure and systems—one that is secure and scalable—starts with the managed cloud. Firms must prioritize a secure environment with proactive and responsive compliance measures to safeguard operations and client data.
Secure remote workspaces
The shift to more remote and hybrid work has been a double-edged sword for accounting firms. While it offers flexibility and operational continuity, it also exposes firms to increased security vulnerabilities, particularly due to unsecured home networks and devices. As employees access sensitive client data from various locations, ensuring secure connections becomes paramount to protect against potential cyberthreats. To mitigate these risks, firms must implement comprehensive security measures tailored to the remote work model.
Action steps:
- Partner with a cloud solution provider that offers 24/7 data protection, ensuring that sensitive information is continuously monitored and safeguarded against unauthorized access.
- Equip your staff’s remote devices with updated security software. It’s imperative to ensure that all remote devices, including laptops, tablets and smartphones, are updated regularly and equipped with the latest antivirus software. Regular updates protect against new vulnerabilities and help ensure devices are fortified against malware and other cyberthreats.
- Use virtual private networks (VPNs) to encrypt data transmitted over the internet. VPNs create a secure tunnel between individual devices and firm resources, protecting sensitive information from being intercepted by cybercriminals.
Comply with increasing government regulations
As cyberthreats evolve, so do regulatory requirements that govern data privacy and cybersecurity. As an accounting firm, you handle a wealth of sensitive financial and personal client data. And you’re under increasing pressure to comply with stringent government regulations. Regulatory bodies will continue to update and expand requirements to ensure that firms maintain robust cybersecurity practices.
Action steps:
- Stay informed about changes in regulations and ensure compliance with frameworks such as the IRS Security Six and the FTC Safeguards Rule, among others. Regularly review updates from government agencies and regulatory bodies to ensure your firm is aware of any new requirements or amendments to existing laws.
- Ensure that your firm has a well-documented data protection strategy that aligns with regulatory requirements—a Written Information Security Plan (WISP). A WISP should include policies for data collection, storage, sharing and disposal, as well as protocols for breach response.
- Conduct regular compliance audits of your firm’s policies and procedures to help identify areas where compliance may be lacking.
- Partner with a security provider that can help you create a WISP, identify security gaps, adapt to regulatory changes, and streamline and manage compliance on your behalf.
Vendor and third-party security options must be vetted and verified
The security of your firm is only as strong as the weakest link in your network of vendors and partners. Third-party relationships, while essential, introduce unique security risks that must be managed diligently. Ensuring that your vendors adhere to stringent security standards is crucial in protecting client data and maintaining the integrity of your firm’s cybersecurity posture.
Consolidating IT security services
Gartner predicts that by 2025, 80% of enterprises will adopt a strategy to unify web, cloud services and private application access from a single vendor’s SSE (security service edge) platform. This approach can enhance security efficiencies, reduce complexities and lower costs, among other benefits.
Action steps:
- Evaluate potential security partners that offer comprehensive security services, including a managed cloud and a full slate of security offerings.
- Conduct a comprehensive audit of existing security tools and processes to identify redundancies and gaps. (Hint: The right security partner can help you do this.)
- Develop a phased implementation plan that minimizes disruption.
Third-party vulnerabilities
Third-party vendors can pose significant security risks if they lack robust security measures. Once again, Gartner predicts that, by 2025, 60% of organizations will use cybersecurity risk as a primary determinant in conducting third-party transactions and business engagements. You have to consider how secure the companies you do business with are. Your firm is part of a security chain with every other company you do business with.
Action steps:
- Conduct thorough due diligence and ongoing monitoring to assess the cybersecurity practices, compliance and risk management of third-party vendors.
- Implement strong, contractual safeguards and technical controls with contracts that include data protection requirements. Use technical measures like network segmentation, encryption and MFA to limit access to sensitive data.
- Involve third-party vendors in your incident response planning, establish protocols for identifying anomalies and consider using managed security service providers for enhanced protection.
Building a culture of security leads to confidence and competitive advantage
Creating a healthy culture of security within your firm is critical to its success. Regular education, training and updates on the latest cybersecurity threats can empower employees to act as your first line of defense. A strong security culture promotes awareness and accountability, which is key to helping employees identify and mitigate risks before they escalate into major incidents.
Action steps:
- Invest in continuous security awareness training programs that include simulations of phishing and social engineering attacks. This proactive approach results in fewer security incidents and helps firms stay compliant with government regulations.
- Encourage open communication about potential security threats and foster an environment where employees feel comfortable reporting suspicious activities.
Navigating the future with confidence
As with most years, 2025 will bring both challenges and opportunities. By understanding emerging threats and strategically implementing robust security measures, firms can protect sensitive client data and maintain operational integrity. From securing remote work environments to staying ahead of ever-changing government regulations, proactive steps are essential for safeguarding your business.
The key to success lies in building a strong security culture within your firm. By investing in continuous education and fostering open communication, you empower your employees to become vigilant defenders against cyberthreats. Additionally, carefully vetting and working with trustworthy vendors and partnering with an expert in security services for accounting firms ensures the security chain remains unbroken, ultimately leading to a competitive advantage.
With these strategies in place, your firm will be well-equipped to navigate the complexities of cybersecurity, instilling confidence in your clients and securing a future of growth and resilience.
For more advice on securing your firm, contact us today. And don’t forget to subscribe to our blog below. ⬇️⬇️⬇️
