How Plan for a Cybersecurity Incident
Accountants face many cybersecurity threats that can compromise sensitive financial data and disrupt operations. As financial stewards, accountants must be vigilant in protecting their clients and firms from cybercriminal activities. This article explores key cybersecurity risks, types of fraudulent activities, and provides practical tips for accountants to plan for cybersecurity incidents.
Understanding the Cybersecurity Landscape
Cybercriminals are constantly evolving their tactics, making it essential for accountants to stay informed and proactive. For accountants, this means understanding the diverse motivations behind cyberattacks and recognising that these threats are not solely financially driven. Some cybercriminals seek political gains, activism, or even simple harassment.
What to Look out For
1. Deep Fakes
Deep fake technology has advanced to the point where it can convincingly mimic individuals on video calls. Accountants must be cautious, as criminals can use this technology to impersonate colleagues or clients, leading to unauthorised transactions. Always verify the identity of the person you are communicating with through a secondary method, such as a phone call or text message.
2. Phishing
Phishing remains one of the most prevalent cybersecurity threats. Cybercriminals often prey on trust, sending fraudulent emails that appear to come from legitimate sources. For accountants, this can mean spoofed emails from clients or financial institutions requesting sensitive information or fund transfers. Always verify the legitimacy of such requests through direct communication with the sender.
3. Generative AI
Using generative AI tools, such as ChatGPT, poses risks when confidential information is entered. These tools can inadvertently share sensitive data with unauthorised parties. Accountants should avoid inputting sensitive financial or personal information into AI platforms and be aware of these risks.
4. Multifactor Identification Fatigue
While multifactor authentication is a great way to enhance security, it can also lead to fatigue if users are bombarded with repeated verification requests. Cybercriminals exploit this by sending numerous fake authentication prompts, hoping users will eventually approve access. Accountants should educate their teams to only respond to initiated authentication requests and report any suspicious activity.
5. Home Wi-Fi Network Vulnerabilities
With the rise of remote work, home Wi-Fi networks have become a target for cybercriminals. They can access personal networks through vulnerable devices like smart TVs and then move laterally to more critical systems, such as laptops containing financial data. To mitigate this risk, accountants should use robust firewalls, regularly update software, and segment home networks to isolate different types of devices.
Common Types of Fraud
Cybercriminals employ various tactics to exploit vulnerabilities within accounting practices:
Unauthorised Bank Transfers: Hackers gain access to bank accounts and siphon funds through fraudulent transfers.
Identity Theft: Criminals steal personal information to impersonate individuals and gain access to financial resources.
Invoice Fraud: Fake invoices are sent to businesses, often appearing legitimate, leading to unauthorised payments.
Ransomware Attacks: Malware encrypts files, and criminals demand a ransom for decryption keys.
Data Breaches: Sensitive financial data is stolen and sold on the dark web or used for further criminal activities.
Nobody is Immune
We have seen many cyber-attacks in South Africa targeting government and major entities like the South African Revenue Service (SARS) and the Companies Intellectual Property Commission (CIPC). SARS eFiling accounts have experienced increased fraud attempts, leading to identity theft and financial loss. Hackers exploit detailed knowledge to submit fraudulent tax returns. Similarly, the CIPC suffered a data breach on 29 February 2024, exposing the personal information of clients and employees. This breach highlighted ongoing cybersecurity flaws and prompted urgent warnings for account holders to change passwords and monitor transactions. These incidents emphasise the need for robust cybersecurity measures and proactive vigilance to protect sensitive information.
Read more on the SARS Scams and Fishing webpage and look at the examples of the latest known scams.
Must Do’s for Accountants
1. Implement Strong Password Policies
Ensure all team members use complex, unique passwords for different accounts and change them regularly.
The safest passwords are complex and hard to remember. Using a password manager will allow you to keep track of them securely. They create and store unique, randomised passwords in a secure vault, accessible with one master password. Some offer free versions and features like compromised password alerts. Learn to use Google Password Manager or subscribe for a similar product.
2. Regularly Update Software
Keep all software, including accounting and cybersecurity tools, up-to-date to protect against known vulnerabilities. Do not put off automatic updates to another day as this may leave you exposed.
3. Educate Staff
Conduct regular training sessions on recognising phishing attempts, the importance of MFA, and safe internet practices. Make sure that staff understand the importance of not sharing passwords.
4. Use Encryption
Encrypt sensitive data in transit and at rest to protect it from unauthorised access.
5. Develop a Response Plan
Have a clear incident response plan in place for cybersecurity breaches. This plan should include steps to contain the breach, assess the damage, and notify affected parties.
