‘Tis the season to be wary! Cybersecurity reports highlight a significant rise in cybercrime during the festive period, with 43% of annual cyberattacks targeting small to medium-sized businesses during the holidays.  In December 2023 alone, accounting firms experienced: 

• 68% of financial services breaches targeted firms with fewer than 100 employees. 
• Response times to cyber incidents doubled from 4 hours to 9.2 hours. 
• The breach costs for financial institutions and accounting firms soared to a staggering $10 million on average 
• 43% of successful breaches originate from malware and phishing emails. 

While the fairy lights twinkle and office parties wind down, cybercriminals seize the opportunity to launch their most aggressive campaigns of the year. 

As the holidays draw near, cybercriminals gear up for their version of festivities, exploiting the season’s distractions to target vulnerable businesses, especially accounting firms. For accounting firms, this time of giving often becomes a time of taking, with cyberattacks surging during the holiday season. Before the merry and jolly moments take center stage, ask yourself: are your firm’s cybersecurity defenses future-proof enough to fend off holiday cyber threats? 

The Christmas Crime Wave: Why Accounting Firms Are Targets 

Accounting firms inarguably face a perfect time for cyber-attacks during the holidays due to the following factors, but not limited to: 

• Holiday Hustle: During the busy holiday season, staff often juggle year-end reporting and client deadlines while managing holiday plans. creating an environment where cyber threats can easily be overlooked. 
• Excessive System Access: Temporary staff or contractors are often granted overly broad permissions, increasing the risk of internal security breaches. Without proper oversight, this increased access can lead to inadvertent internal security breaches or give attackers a point of entry. 
• Remote Work Risks: Employees working remotely from holiday homes, local cafes, or airports expose the firm’s systems to unsecured Wi-Fi, making sensitive data vulnerable. When workers are away from secure office environments, it becomes much easier for attackers to infiltrate firm networks. 
• Supply Chain Vulnerabilities: The holiday season often sees an increase in third-party interactions, whether it is with vendors, clients, or contractors. Cybercriminals exploit these connections by targeting weaker links in the supply chain. If one vendor is compromised, attackers can gain access to multiple organizations through shared data. For accounting firms, which rely on trusted external partners for various services, this is a growing risk, especially when businesses may not be as diligent in ensuring their vendors follow cybersecurity best practices. 
• Holiday Software Updates and Patch Delays: During the holiday season, IT teams are often stretched thin, and there’s a tendency to delay or overlook important software updates or patches. Cybercriminals know this and use unpatched systems as their entry point. With many employees and contractors working remotely, ensuring timely updates and patch management across all devices becomes even more critical. Firms that neglect this can find themselves vulnerable to known exploits, especially in accounting-specific software that handles financial data. 

The Surge in Cybercrime  

1. Phishing Attacks: Cybercriminals exploit the festive season to send malicious yet convincing phishing emails that take advantage of the holiday spirit. Cybercriminals impersonate trusted entities, like the Australian Taxation Office, sending urgent emails that require immediate action. These lures take advantage of the busy season, often catching staff off guard. 
2.  Credential Harvesting: Employees working remotely risk exposing their credentials and login information. Cybercriminals can exploit these vulnerabilities by installing credential harvester, or malicious extensions to a website or application. Attackers can set up fake Wi-Fi networks to mimic legitimate ones, capturing sensitive information when users connect to these networks. 
3.  Remote Access Exploits: Cybercriminals target poorly secured home networks, using them as entry points to firm resources. When working remotely, employees use personal computers and networks without enterprise-grade security which can be easily compromised.  
4.  Payment Redirect Fraud: During the holidays, cybercriminals exploit reduced oversight and heightened workloads to commit payment redirect fraud. By intercepting email threads or invoices, attackers alter payment details, diverting funds to fraudulent accounts. These schemes often rely on Business Email Compromise (BEC), which cost organizations an estimated $43 billion globally over the past five years. 

Holiday Risks: Why Your Firm’s Security Can’t Take a Break 

The holiday season brings more than bright and festive cheer. It brings heightened risks to businesses, especially accounting firms. With 43% more attacks, surging breach costs, and response times doubling, the stakes are high, and it becomes more devastating each year. 

While cybercriminals plan their holiday heist, you have a choice: act proactively today or risk your practice of becoming the next victim. The difference between a secure holiday and a crisis-filled Christmas comes down to choosing to act before it’s too late. 

Turn cybersecurity into your competitive advantage with Practice Protect. Enjoy peace of mind knowing your identity and access protection never takes a holiday.  

Book a free security consultation with our cybersecurity consultants today and ensure your firm doesn’t become next year’s case study of security experts. Remember, cybercriminals don’t take holidays. In fact, they’re counting on you taking one.