The Importance Of Cyber Insurance For Accountants

The IRS has urged accountants and tax preparation firms to strengthen their cyber security measures this year because most identity thieves and hackers are targeting the accounting practice to gain information on their client’s personal and financial data. It is important for accountants to be prepared in the face of threats by having insurance accountant as protection.

Last month, a New Jersey-based CPA was compromised by malware which resulted to identity theft and fake tax refund requests that were filed on behalf of the client. KrebsOnSecurity was alerted by Alex Holden; a security expert of Hold Security that there is a malware gang whose focus is on CPA’s. The culprits are using a web-based keylogger that has the ability to record every keystroke that is typed on the target’s computer. It also records uploaded screenshots of whatever is being displayed on the computer screen of the target.

A keylogger is not particularly sophisticated but it is very effective. Aside from being able to grab data that the victim submits in web-based forms, it can capture typing including backspaces and typos. The individuals behind the scheme can capture the victim’s information that was uploaded in the website that was protected from data scraping by search engines. The site itself does not require any type of authentication in order to view data that was captured from the victim’s computer.

Nothing is clear on what methods were used by the culprits to place malware on the computer of the CPA from New Jersey. Based on the screenshots of his account, he has routinely ignored Microsoft messages and other 3rd party Windows-based programs to apply critical security updates.

It is very likely for a computer to be compromised through an email attachment or link that has been inadvertently clicked on. Phishing attacks are also used by cybercriminals to compromise computers of accountants.

Accountants are very vulnerable to cyber attacks because they are managing other’s people money. It is important for accountants to be protected by insurance accountant to ensure the best possible outcome in the face of these threats. The accountant may be innocent but proving so may require substantial legal fees.