How to Ensure Your Accounting Data is Kept Safe from Cyber Threats

Last year, cyber attacks cost companies over $6 billion. By 2025, that number is expected to climb to $10.5 billion. Considering that someone falls prey to a new cyber attack every 39 seconds, it’s essential for firms to implement robust security measures to protect sensitive financial data and client information. 

A data breach can result in a tarnished reputation, loss of client trust, and potential legal consequences. It’s a scenario that no law firm wants to encounter. 

The good news is, there are proven methods to help mitigate the risk of cyber threats at your law firm.  

Let’s explore the potential risks cyber attacks pose and what you can do to keep your law firm’s accounting data safe. 

Consequences of cybersecurity breaches for law firms 

Understanding the potential consequences of cybersecurity breaches can empower law firms to take proactive steps toward enhancing their defenses. Data breaches can have many serious repercussions, including the following: 

• Loss of client trust: Clients entrust law firms with their confidential information, expecting it to be protected from unauthorized access. A security breach can severely damage this trust, leading to loss of business. 
• Financial repercussions: The cost of recovering from a cybersecurity incident can be substantial, including expenses related to legal fees, public relations efforts, and potential fines or penalties. 
• Damaged reputation: News about a security breach spreads quickly these days, and consequently, a law firm that has been compromised may struggle to attract new clients or retain existing ones. 
• Risk of litigation: Clients affected by a breach may pursue legal action against the responsible party for failing to protect their sensitive information adequately. 
• Potential for ABA Model Rules violations: Lawyers are required by American Bar Association Model Rules to: implement “competent and reasonable measures” to ensure that client data is secure; share measures and obtain informed consent from clients; and supervise staff and service providers to ensure security measures are upheld. Failing to do so can lead to sanctions, depending on the scope and severity of the issue.  

To safeguard your practice against these consequences and ensure that you’re doing everything possible on behalf of your clients’ interests, it’s essential to implement robust cybersecurity measures. 

Strengthening your firm’s cybersecurity 

As we navigate the evolving digital landscape, bolstering your law firm’s cybersecurity becomes a critical necessity. Consider the key measures you can take to enhance your firm’s resilience against cyber threats and safeguard your data. 

Implement two-factor authentication  

Two-factor authentication (2FA) adds an extra layer of security by requiring users to provide two forms of identification before accessing sensitive information. By implementing 2FA on all user accounts within your firm, you can provide effective protection against unauthorized access, even if passwords are compromised. 

Follow best practices in data security management 

Protect your firm from cyber threats and maintain the trust of your clients by creating a culture of awareness and implementing data security best practices. This should involve providing regular training on cybersecurity best practices, implementing workflow rules, and paying attention to user permission management. 

Provide employee training on cybersecurity best practices 

Employees who are well-informed about cyber threats can be a strong line of defense against attacks.  

Regular employee training on cybersecurity best practices can help raise awareness about potential risks and teach staff how to recognize common threats such as phishing emails or ransomware attacks.  

This education should cover topics like: 

• Password hygiene: Encourage employees to use strong passwords that are unique for each account they access. 
• Social engineering: Instruct personnel to be aware of and recognize any suspicious solicitations that may seek confidential details. 
• Data protection: Educate staff about proper handling procedures for sensitive client data both online and offline. 
• Device security: Train employees on securing their devices with antivirus software, firewalls, encryption tools, and secure Wi-Fi connections when working remotely. 

By investing time in training your staff on these critical topics, you will not only make them more vigilant but also turn them into active participants in your firm’s cybersecurity defense. 

Workflow rules and user permission management 

To further enhance data security within your firm’s accounting system, employ workflow rules that control task access and define user hierarchies. These steps limit who can view or edit account information, which ensures that sensitive data is only accessible to those who need it and minimizes the risk of unauthorized access.  

Consider implementing the least access principle, which grants users the minimum level of access necessary for their job responsibilities. This step minimizes exposure risks associated with unauthorized access or misuse. 

You can further bolster security with role-based permissions, which assign user roles based on specific job functions and limit access accordingly, and audit trails, which monitor all actions taken within your accounting system to detect any suspicious activity quickly. 

Incorporating these best practices into your firm’s data security management strategy will help guard against cyber threats while demonstrating a commitment to maintaining client trust.  

Use cloud-based software solutions for enhanced security 

One effective way to reinforce security protocols is by using cloud-based software, which has numerous benefits when it comes to protecting your firm’s accounting data while streamlining billing services, including enterprise-grade security. 

There are many ways that a cloud-based solution for billing and accounting services can bolster your firm’s data security while enhancing your operational efficiency. Look for the following: 

• Data protection: With a cloud-based solution, your sensitive financial information is hosted off-site on secure servers maintained by trained professionals. This ensures that even in the event of a physical disaster or breach at your office location, your data remains safe and accessible. 
• SOC2 compliance: Your provider should adhere to strict SOC2 compliance standards. These rigorous guidelines guarantee robust protection against potential breaches while maintaining high levels of confidentiality, integrity, and availability. 
• Ease of use: An intuitive and integrative interface allows users to manage their practice, billing, and accounting tasks with just one login, eliminating the need for multiple programs or platforms. 
• Frequent updates: Cloud-based solutions are regularly updated with new features and enhancements designed to improve user experience while staying ahead of emerging cybersecurity threats. 

Fortify your law firm’s defenses with CosmoLex 

With CosmoLex’s customizable permission settings feature, you can easily establish role-based access controls for your team members. This ensures that sensitive financial data is only accessible to those who truly need it, reducing the likelihood of accidental or malicious exposure. 

In addition to these robust security features, CosmoLex offers secure file-sharing capabilities and a dedicated client portal—further enhancing your firm’s ability to protect confidential information while fostering collaboration among team members. 

If you’re looking for a comprehensive solution for streamlining billing and accounting services with top-notch security measures, sign up for a free trial of CosmoLex today to learn more about how to keep your accounting data safe from cyber threats.