Tax season 2024: 7 security tips for your accounting firm.

Tax season brings a surge in cyber threats, making it imperative for accounting firms to bolster their security measures. With a significant increase in tax-related identity theft and cyberattacks targeting small businesses, safeguarding sensitive client information is more critical than ever.

1. Strengthen Email Security

Email remains a primary vector for cyber threats. Implementing email encryption ensures that all sensitive communications are protected from unauthorized access. It’s crucial to verify sender identities by double-checking email addresses before opening attachments or clicking on links. Utilizing robust spam filters can help detect and block phishing attempts. Avoid sending sensitive documents via regular email; instead, use secure methods for sharing confidential information.

2. Adopt Secure Client Portals

Transitioning to secure client portals for document exchange can significantly reduce security risks. Establishing such portals allows clients to upload tax documents safely through encrypted channels. Selecting portals with strong security features, including robust access controls and data protection, is essential. Educate clients on the proper use of these portals to ensure compliance and security.

3. Prioritize Security Training for Your Team

An informed team is a strong defense against cyber threats. Conduct regular phishing simulations to test and train employees in recognizing and responding to phishing attempts. Keep the team updated on common scams prevalent during tax season. Maintain a routine of security awareness sessions leading up to and during tax season, and encourage a culture where security is a daily consideration.

4. Implement Robust Access Controls

Limiting access to sensitive data minimizes the risk of internal breaches. Enable multi-factor authentication (MFA) for all systems to add an extra layer of security. Grant access to client information strictly on a need-to-know basis, and periodically assess and update who has access to various systems and data. Maintain detailed records of system access to monitor for any unauthorized activities.

5. Ensure Timely Software Updates and Patching

Outdated software can be a gateway for cybercriminals. Regularly updating all software helps patch vulnerabilities. Where possible, enable automatic updates to ensure timely patching, and stay informed about security updates for all software and hardware used by your firm.

6. Secure Physical Devices

Physical security is as important as digital security. Encrypt all devices that store or access sensitive information. Implement strong password policies, requiring complex passwords and regular changes. Define clear guidelines for the use of personal and company devices to maintain security standards.

7. Develop an Incident Response Plan

Being prepared for potential security incidents can mitigate damage. Develop a comprehensive plan detailing steps to take in the event of a security breach. Ensure all team members understand their roles and responsibilities during an incident, and practice the response plan to identify weaknesses and areas for improvement.

By implementing these measures, your firm can enhance its security posture, protect client information, and navigate the tax season with greater confidence.