As the holiday season kicks off, accounting firms are entering their busiest period of the year and paradoxically, their most vulnerable one. When the end-of-year rush kicks in, security vulnerabilities can’t be kept at bay. And cyberthreats don’t take holidays. 

With accountants and bookkeepers caught up in the whirlwind of year-end financial reporting and tax preparation, the risk of cyberattacks multiplies. This heightened business activity creates the perfect opportunity for cybercriminals to strike. 

Cybercriminals Never Rest  

According to IBM’s 2023 Security Report, cyber-attacks surge by 70% during the holiday season, with the financial sector being one of the most frequently targeted industries. For accounting firms and financial services providers, this trend is particularly alarming, considering that the average cost of a data breach in the financial sector reached $5.97 million in 2023. 

As the year winds down, the holiday rush can lead to a shift in focus. While it’s natural to ease into the spirit of festivities, device security shouldn’t take a backseat— a security lapse now could be costly later. 

Holidays as Hotbed for Cyberthreats  

The hustle and bustle of year-end operations and holiday planning can make firms more susceptible to cyberattacks. Accounting Today previously reported that accounting firms face a staggering 300% increase in cyber-attacks with an uptick in significant periods like the end of the financial year and holiday seasons, which are considered as high-risk times of the year.  

Why do cybercriminals see this as an opportunity? Several critical factors come into play: 

• Year-End Processing: Accountants and bookkeepers handle an increased volume of sensitive data during year-end with tax preparation, annual reporting, and financial closing procedures all happening simultaneously.  
• Increased Client Communications: The constant back-and-forth communication between clients and firms amplifies the risk of data breaches as a higher volume of digital document sharing and client correspondence is expected. 
• Remote Work Preferences: Recent industry research shows that 64% of accounting professionals work remotely during the holidays, with 82% of firms handling sensitive client data from remote locations during year-end. This setup often involves accessing company systems on personal devices or from unsecured locations, creating potential security gaps. 
• Skeleton Staff and IT Support: Reduced IT team availability during the holiday season creates gaps in device monitoring and security management, leaving systems vulnerable to attacks. 

Couple these challenges with extended device inactivity during vacations and teams enjoying extended time away from the office and you open the doors to potential breaches.  Protecting your firm’s data isn’t just about keeping your client’s data safe; it’s about ensuring uninterrupted operations during one of the busiest seasons of the year.  

The Do’s: Best Practices for Securing Your Devices 

1. Use Strong, Unique Passwords

71% of accounting data breaches resulted from weak or reused passwords​ based on a survey conducted by CPA Australia in 2023. During the intensive period of year-end financial reporting, your devices serve as gateways to client data. Create a unique and complex password for each device you use and applications you log into. This is one of the most crucial measures you can proactively take to keep your devices and accounts safe. 

2. Enable Multi-Factor Authentication (MFA)

With accounting professionals working remotely, cybercriminals actively seek to exploit any security oversight. Passwords alone, even with unmatched complexity, isn’t enough, especially when hackers have your firm in their crosshairs. Multi-factor authentication adds an extra layer of protection by requiring a second form of verification before accessing sensitive information.  When you’re handling sensitive financial data remotely, this extra verification step isn’t just nice to have, it’s essential for keeping the bad actors out during crunch time.

3. Maintain Regular Software Updates

Year-end schedules are demanding, but neglecting system updates creates security vulnerabilities. Keeping your software up to date is crucial in patching vulnerabilities that could be exploited. Prioritize regular software updates across all devices and applications to address security flaws and minimize risks. Schedule these updates strategically like during lunch breaks or after hours to keep your security tight without disrupting your workflow.

4. Implement Secure VPN Protocols

Remote work device security becomes paramount as professionals access practice systems from various locations during the holiday season. As transition to remote work becomes likely, staff members could potentially use public Wi-Fi connection, making a user device susceptible to attack. A VPN provides safe access to company resources when working outside the office as it securely extends a company’s network by creating encrypted connections like your own private tunnel through the internet, keeping your sensitive information under wraps as it travels between devices and your network 

5. Enforce Data Encryption Standards

Think of encryption as your data’s invisibility cloak. Encrypt all sensitive data, especially when sharing it externally. This ensures that even if data is intercepted, it remains unreadable to unauthorized parties.

6. Deploy Professional Antivirus Protection

Modern threats evolve fast, and yesterday’s protection might not catch today’s sophisticated malware attacks. Ensure all practice devices, particularly those used for remote work, maintain current antivirus protection with regular definition updates to guard against sophisticated malware attacks.

7. Prioritize Security Awareness Staff Training

Human error remains a leading cause of security breaches. Regular training isn’t just another box to tick; it’s about building a security-first mindset.  Training your staff in cybersecurity best practices helps prevent common mistakes during high-pressure periods. Help your team spot those sneaky phishing emails and handle client data like the precious asset it is. 

The Don’ts: Common Pitfalls You Should Avoid

1. Don’t Install Unauthorized Software 

During the busy season, staff may be tempted to install unapproved applications and tools to aid in work efficiency. However, unauthorized software is like inviting a stranger into your office, you never know what they might bring with them. Stick to firm-wide approved tools only to lessen the risk of malware and compromise on your systems. 

2. Don’t Skip Device Locking

Require personal identification numbers, fingerprints, or facial recognition to unlock devices, ensuring no sensitive information falls into the wrong hands, even if you’re “just stepping away for a minute.”  Physical security is just as important as digital security. Encourage team members to lock devices when not in use, especially in public or shared spaces. Implement a check-in and check-out system for laptops and other devices that are taken off-premises to ensure they aren’t misplaced or stolen.

3. Don’t Ignore Security Alerts

Security notifications from antivirus software or IT teams are not holiday spam. Address these alerts immediately to prevent small issues from snowballing into major breaches.

4. Don’t Save Passwords in Browsers

Convenience is tempting, but saving passwords in browsers increases vulnerability to malware and keyloggers. Use secure password managers to protect your credentials. 

5. Don’t Delay Incident Reporting 

The holiday season doesn’t pause cyberthreats. Encourage employees to report suspicious activity or breaches immediately. If something looks fishy, report it immediately. Better to raise a false alarm than miss a real threat. 

6. Don’t Overlook Routine Maintenance

Sensitive information often resides in unexpected places like download folders, trash bins, or desktop files. Your digital workspace needs regular decluttering, just like your physical desk. Make it a habit to clear out these locations regularly to minimize risk.

7. Don’t Neglect Backups

Ensure all devices are backed up to secure, cloud-based systems. This simple step can save your firm from data loss disasters and support business continuity if a breach occurs or in the event of a data loss. 

Keep Your Practice Secure: Cybersecurity That Goes Beyond Holidays 

In perspective, a tailored cybersecurity system might feel like a significant investment, but it pales in comparison to the $5.97M average cost of a data breach. Moreover, statistics report asserts $3.35 million costs of a breach in Australia. That’s not just a number but a manifestation of damaged client relationships, lost trust, and potentially years of reputation building down the drain.  

With a specialized cyber security partner like Practice Protect, accounting professionals can ensure their practice stays protected during the vulnerable holiday period and all year round. 

Don’t turn holiday cheer into a new year nightmare with a device breach. By implementing these industry-specific security measures, you can maintain the integrity of your practice and client data way beyond a well-deserved break. 

While your firm is focusing on closing books and serving clients, let Practice Protect keep your practice secure, compliant, and protected against cyber threats. Your firm deserves more than seasonal protection like the holiday decorations you put up once a year.