When Ransom Isn't Enough: The Real Cost of a Cyber Attack on Accountants

A UK firm of Accountants recently had its data and backups encrypted. Despite paying the ransom (against official advice), the attackers still leaked data online. The firm faced weeks of downtime, client disruption, and GDPR violations.

The immediate operational disruption means, ransomware can lock access to client files, including payroll records, and tax returns, meaning firms may be offline for days or weeks, unable to serve clients or meet deadlines.

The impact is..

Lost Revenue: Missed filings and delayed services can lead to financial penalties and lost fees.

Breach of Confidential Data
Accountants handle highly sensitive information:
Tax records
Bank details
National Insurance numbers
Payroll and pension data
A breach can lead to identity theft, financial fraud, and exposure of personal data on the dark web.

Legal and Regulatory Fallout
GDPR Violations: Firms must report breaches to the ICO. Failure to do so—or poor data handling—can result in fines.

Client Lawsuits: Clients may sue for damages if their data is compromised.
Professional Liability: Breaches can trigger malpractice claims, especially if poor security practices are revealed.

Reputational Damage
Loss of client trust is often the most lasting consequence.
Even if data is recovered, clients may leave, fearing future breaches.
Public disclosure of the attack can tarnish the firm's brand for years.

Emotional and Internal Impact
Staff may face stress, burnout, or even job loss.
Owners may feel personal guilt or reputational shame.
Recovery efforts can drain time, morale, and resources.

Cyber-attacks are now one of the biggest threats a business can face, and what's even more concerning is 60% of small businesses that suffer a major cyberattack, go out of business within 6 months!

If you would like advice on how you can protect your business from a Cyberattack and the financial implications it can lead too call us on 01702 347889 for a no-obligation, competitive quote—and peace of mind that your cover reflects both your risk and your reputation or email enquiries@lbhinsurance.co.uk.