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s a result of the COVID-19 pandemic, working remotely has opened new potential access points and vulnerabilities that hackers are exploiting. CPA firms are already prime targets for identity thieves, and these new vulnerabilities exacerbate the profession’s cyber-related challenges.
HOME IS WHERE THE HACKER IS Remote Work Creates Opportunities for Hackers By CAMICO
Since April 2020, 13 CAMICO policyholders have reported data breaches that in aggregate resulted in the hackers filing over 300 fraudulent income tax returns through the CPAs’ tax software. Now, more than ever, data security is an urgent concern for the accounting profession. Clever hackers have many ways of exploiting accountants facing tax filing deadlines, especially when firms have outdated software, vulnerable email systems, and inattentive employees. As the sophistication of hackers and other cyber criminals increases, so do the types of threats and the number and scope of data breaches. CPA firms are not alone in facing a surge in ransomware attacks on businesses and institutions, ranging from small and medium-sized entities to large organizations. For example, Michigan State University and the University of California at San Francisco have both been victimized, according to media reports. MSU opted not to pay the ransom demanded, a decision that culminated in personal information and financial documents being published online. UCSF opted to pay a $1.14 million ransom demand in June to recover malware-encrypted data. A June cyberattack also brought Honda car manufacturing to a halt around the world. Cyber experts have been scrambling to provide security for businesses employing thousands of employees now working from home. With employees connecting from a variety of locations and devices, suspicious activity is difficult to monitor, creating more opportunities for hackers to launch attacks. Ransom amounts demanded by hackers have also been increasing.
Take Action Now
It is critical that firms be extra diligent to follow established security measures and safeguards. Remind all employees of the importance of strict adherence to security protocols and established safeguards.
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the journal entry | October 2020
