CPA firms, particularly smaller ones, often have cybersecurity weaknesses that hackers can exploit. As mentioned in our last blog, a 2022 survey by CPA Practice Advisor found that only 40% of CPA firms had a comprehensive cybersecurity plan in place! The AICPA published an article stating, “Cybersecurity isn’t an option for CPAs – it’s a necessity.”
In order to understand what cybersecurity protections a firm must employ, business owners must possess basic knowledge of the vulnerabilities cybercriminals exploit. Below are typical vulnerabilities and how they can be exploited:
1. Weak Passwords
- Weakness: Employees may use simple, reused, or easily guessed passwords, or fail to change default credentials.
- Exploitation:
- Brute Force Attacks: Hackers use automated tools to guess passwords.
- Credential Stuffing: If passwords are reused across sites, hackers can exploit leaked credentials to access systems.
- Phishing: Tricks employees into revealing passwords.
2. Lack of Multi-Factor Authentication (MFA)
- Weakness: Absence of MFA makes it easier for hackers to access systems with just a stolen or guessed password.
- Exploitation:
- Account Takeover: Hackers use stolen credentials to access email, tax software, or accounting systems.
- Data Breaches: Gaining access to client files stored in cloud-based systems.
3. Outdated Software and Systems
- Weakness: Unpatched systems leave vulnerabilities open to exploitation.
- Exploitation:
- Exploiting Known Vulnerabilities: Hackers use exploits for unpatched software (e.g., ransomware, malware).
- Zero-Day Attacks: Target unpatched flaws before they’re widely known.
4. Poor Email Security
- Weakness: Lack of email encryption and spam filters.
- Exploitation:
- Phishing Attacks: Hackers send fake emails to steal credentials or install malware.
- Business Email Compromise (BEC): Hackers impersonate the firm to trick clients into transferring money or sharing sensitive data.
5. Inadequate Data Encryption
- Weakness: Sensitive data is not encrypted at rest or in transit.
- Exploitation:
- Data Interception: Hackers intercept unencrypted data over public or insecure networks.
- Data Theft: If devices or storage systems are breached, unencrypted data is easily accessible.
6. Insufficient Employee Training
- Weakness: Employees are unaware of cybersecurity risks or best practices.
- Exploitation:
- Social Engineering: Hackers trick employees into sharing confidential information.
- Phishing Scams: Employees may click on malicious links or download infected files.
7. Lack of Network Segmentation
- Weakness: All systems are on the same network without proper segmentation.
- Exploitation:
- Lateral Movement: Once inside, hackers can easily move across the network to access sensitive data.
- Privilege Escalation: Exploit poorly secured areas to access high-value systems.
8. Poor Vendor Management
- Weakness: Third-party vendors with access to systems or data may have weaker security practices.
- Exploitation:
- Supply Chain Attacks: Hackers exploit vendor systems to gain access to the CPA firm’s data.
- Credential Sharing: Vendors might reuse credentials or share them insecurely.
9. Lack of Incident Response Plans
- Weakness: No formal plan to detect, contain, and respond to cyber incidents.
- Exploitation:
- Extended Downtime: Hackers can prolong the attack due to slow response.
- Greater Damage: Firms may be unable to contain or mitigate the impact of breaches.
10. Improper Data Disposal
- Weakness: Firms fail to securely dispose of outdated hardware, paper records, or digital files.
- Exploitation:
- Dumpster Diving: Hackers retrieve discarded physical records.
- Data Recovery: Recovering data from improperly wiped devices.
11. Over-Reliance on Legacy Systems
- Weakness: Older systems lack modern security features and updates.
- Exploitation:
- Exploiting Insecure Architectures: Hackers target vulnerabilities specific to legacy systems.
12. Weak Wi-Fi Security
- Weakness: Use of unsecured or poorly configured wireless networks.
- Exploitation:
- Wi-Fi Snooping: Hackers intercept traffic on unsecured networks.
- Unauthorized Access: Exploit weak Wi-Fi passwords to infiltrate the network.
13. Insufficient Backup and Recovery Systems
- Weakness: No regular or secure backups.
- Exploitation:
- Ransomware Attacks: Encrypt systems and demand payment, knowing the firm has no way to recover data.
- Data Loss: Hackers delete or corrupt data without a fallback option.
How do cybercriminals exploit these weaknesses?
Hackers often use a combination of tactics:
- Reconnaissance: Gather information about the firm through public records, social media, or phishing attempts.
- Initial Access: Exploit weak passwords, phishing, or software vulnerabilities to gain entry.
- Persistence: Install malware or backdoors to maintain long-term access.
- Data Exfiltration: Steal sensitive data for resale, fraud, or ransom demands.
- Lateral Movement: Move across systems to access high-value targets.
- Extortion or Ransomware: Lock systems or threaten to release stolen data unless paid.
Contact Structured Technology Solutions today to learn how your firm can mitigate these weaknesses.