Data encryption is the need of the hour for almost every industry right now that deals and works with data. Almost every industry is affected by cyber-attacks, which have increased by multiple folds over the last few years. As the technology evolves, so are the ways of attacking the data centers of the companies. Hackers are constantly prying to hack critical user data of companies and incur financial gain in the bargain.
One of the major company segments that have been heavily targeted by hackers for valuable data are the accounting firms. Accounting firms and their employees, handle pivotal client data. They periodically collect data such as Government IDs, bank account details, credit card and taxation details; all of which misused can cause devastating impact for the firm. A single data breach can cause steep losses in terms of financial as well as reputation loss. 2021 Cost of a Data breach report by IBM and Ponemon Institute shared that the cost of data breach at accounting firms can reach an average cost of $4.65 Million/data breach coupled with 38% loss in business of the total data breach cost.
Rise of Data Attacks on Accounting Companies
There has been a historic trend of data attacks on accounting companies. Hacking techniques like malware and ransomware, phishing and data theft continue to be the primary drivers through accounting firms are attacked by cybercriminals.
One of the most known cyberattacks on the accounting company was in October 2016, when Deloitte had faced issue. Although the hack happened in October 2016, it was detected six months later in March 2017. The hackers were able to take over the e-mail servers and admin accounts. It occurred as the admin user did not deploy two-factor authentication for the account.
Similarly, another case happened with a Canadian Account firm MNP, where the entire data was crippled through a ransomware attack. The hack led to a cease on the entire operations of the company. Last year, accounting firm PKF and the Queensland Rugby Union (QRU) also fell victim to ransomware hackers. The data hack involved some of the most sensitive and historical client data of the company. The hackers also published the announcement of hacking the data on the Dark Web and thereafter published the data in the next few days.
Why Data Encryption is Critical for an Accounting Company
Hackers do not only steal and misuse data, but they can also alter data which can lead to incorrect entries for your client. Therefore, accounting firms need to exercise appropriate data protection techniques like encryption to store valuable financial and personal information. The aftermath of a data breach can be severe. These include:
- Financial loss: As seen above data breach can cost millions of dollars to the firm. There can be regulatory fines imposed by the Government in addition to the lawsuit which can result in businesses getting wiped off.
- Loss of clients: Today securing the client’s trust revolves around safe data management too. In the absence of data protection software, which is compliant with global encryption technologies, the clients can move to alternative solutions.
- Damaged reputation: Building reputation takes years, but an event like cyberattack can tarnish the entire credibility garnered. A data breach can potentially erode the trust built with the consumers for the brand. Damage reputation is more severe than the financial loss.
- Reduced morale: With a data breach and potential loss of business in the sight, the mindset of the employees can get impacted. Internal blame run can hurt the workplace environment and add to the negative impact of a cyberattack.
How Cryptainer Enterprise Works
Most accounting firms avoid adopting data protection techniques due to cost and the technical expertise needed. Cypherix’s data encryption software is extremely user-friendly and works with a simple drag-and-drop solution. The software uses compliant cryptography solutions like Blowfish and AES to secure all data formats of the firm in seconds. The data encryption software secures the sensitive information of your firm and the client by encrypting data stored on the systems and on removable media in virtual disks which can be accessed by passcode.
The data encryption software creates secured vaults using the existing configuration of operating systems and is compatible with all Windows versions. Once the secured vaults are generated, they can be moved across any system using Cryptainer Enterprise. This ensures critical information are passed down the line through appropriate hierarchy with integrated admin password manager.
With Cryptainer accounting firms can setup admin modules which allows them to control and access every user’s data despite their individual passwords. This safeguards the data of the firms against physical data theft or data loss in case of resignation. Using admin modules, accounting company owners can control the vaults created without the administrative interference. The administrators become a single point of contact controlling and maintaining the data security. This ensures the data of the company is intact against misuse. The software gives accounting firm owners to revise their data security guidelines without making any changes to the software.
Cryptainer Enterprise can be an apt method for accounting companies to add a layer of extra security without compromising the productivity of their machines. The software protects the admin and user-level data with multiple vaults for all the files and folders. The encrypted disks are projected as additional hard disk which is unbreakable.
Accounting companies store and manage umpteen amount of critical data especially, financial data which can lead to dire consequences for the company if leaked. Hence encryption software like Cryptainer Enterprise with simple user-friendly interface and admin module, play a crucial role in building a robust data security framework. Cryptainer Enterprise mitigates the risks associated with a data breach, as the data is illegible in the absence of a passcode. This allows the employees to exchange data, save and secure the information in its’ truest state. The software can encrypt multiple files too in a single batch with command line processing at the dos prompt. Investing in a data encryption software enables accounting firms to uphold their credibility and protect themselves against the loss of data.