Cybersecurity for CPAs: One expensive click

Have you ever wondered how much a single click could cost? Well, for one small CPA firm in Georgia, the price tag was a staggering $450,000. This unfortunate incident occurred when an employee of the firm clicked on a link that led to a malware site. The malware, once accessed, automatically downloaded a program onto the firm's systems, which then encrypted all of their client data.

The firm's work came to a standstill as no one had access to their own files. Even worse, the confidential information entrusted to them by their clients was now in the hands of someone with less-than-lawful intentions. The people behind the attack soon made their demands, asking for a whopping $700,000 in exchange for the data, a sum that a small firm such as theirs would consider "material." The firm's leadership was clear that they could not pay this amount. 

Negotiating with the hackers to reduce the original demand was a challenge, but eventually, the firm talked them down to $450,000. The ransom was paid, and the hackers gave the firm back access to their files. However, the firm was left with a substantial bill to pay for their mistake.

This incident highlights the growing threat of cyber attacks on small and midsized businesses. With the rise of remote work and online transactions, businesses are becoming increasingly vulnerable to cybercriminals. Unfortunately, small businesses are often seen as easy targets as they may not have the same level of cybersecurity infrastructure as larger organizations.

This real life example was from K2 Enterprises, which provides technology training (including cybersecurity) to accountants. Randy Johnston, K2's executive vice president, said the incident highlights the importance of backing up data regularly and securely. Had the firm done this, the ransomware attack would have been moot. He also pointed to the importance of strong cybersecurity measures such as antivirus software and firewalls. 

"Ransomware attacks involve the use of malware to encrypt a victim's files and demand payment in exchange for the decryption key. These attacks can devastate CPA firms and businesses, resulting in data loss, business disruption, and reputational damage," he said. "In many cases, ransomware attacks are delivered through phishing emails or malicious websites. Firms mitigate attacks by implementing strong cybersecurity measures such as antivirus software, firewalls, and employee training."

"If a CPA firm falls victim to a ransomware attack, taking immediate action to mitigate the damage is crucial," he added. "Activities may include isolating infected systems, restoring data from backups, and reporting the incident to law enforcement and relevant regulatory bodies. It is also essential to evaluate the firm's security posture and implement any necessary improvements to prevent future attacks."

Vast majority say they would balk at ransomware demands, refuse to pay: A recent 600-person survey from Naoris Protocol, a platform centered around decentralized cybersecurity, found the vast majority of people would refuse to pay anything to a ransomware gang, no matter what terrible things the hackers might threaten to do to their data.

SEC proposes raft of new cybersecurity measures for public entities: The Securities and Exchange Commission has released a series of proposed regulations meant to bolster the cybersecurity practices of public companies and increase oversight of technology.

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