Why Accountants Are Prime Targets for Cybercrime — And How to Protect Your Practice

In today's digital-first world, accountants are increasingly in the crosshairs of cybercriminals. With access to vast amounts of sensitive financial data—client records, tax filings, payroll details, and more—accountancy firms are highly attractive targets for hackers and scammers.

The consequences of a cyberattack can be devastating: from financial loss and operational disruption to reputational damage and regulatory penalties. Here's what accountants need to know—and do—to stay protected.

Common Cyber Threats Facing Accountants


Phishing Emails

Cybercriminals frequently use phishing tactics—fraudulent emails designed to trick staff into revealing login credentials or clicking on malicious links. These emails often mimic trusted brands, government bodies, or even clients.

Tip: Always verify unexpected requests and avoid clicking on links or attachments unless you're sure of the source.

Ransomware Attacks

Ransomware is malicious software that encrypts your files, locking you out of critical data until a ransom is paid. These attacks are often launched via phishing emails or compromised software.

Prevention:

  • Invest in robust antivirus protection
  • Keep regular, secure backups of key data
  • Train staff to spot suspicious activity

Data Breaches from Unauthorised Access

Hackers don't always break in—sometimes, they log in. Weak passwords, poor access controls, or a lack of encryption can allow cybercriminals to gain entry to sensitive systems and steal data.

Best practices include:

  • Implementing strong access controls
  • Using multi-factor authentication (MFA)
  • Encrypting sensitive files and communication

Outdated Software & Security Patches

Using old or unpatched software is like leaving the back door open. Cybercriminals exploit known vulnerabilities to gain access.

Solution:

  • Keep all software, operating systems, and plug-ins updated and patched regularly
  • Replace unsupported or legacy systems

Insider Threats & Cloud Security Risks

Sometimes, the threat comes from inside. Employees or contractors misusing their access—or accidentally exposing data—can lead to serious breaches. The increased use of cloud platforms adds another layer of risk if not properly secured.

Mitigation:

  • Review user permissions regularly
  • Choose cloud providers with robust security protocols
  • Train staff on data handling procedures
  • Cyber Insurance: A Safety Net for Accountants

While prevention is crucial, even the best security can't guarantee total protection. That's where Cyber Insurance comes in.

At LBH Insurance, we offer specialist Cyber Insurance tailored for accountancy practices. Our policies can help protect your business from the financial and legal fallout of a cyber event, including:

  • Business interruption costs due to downtime
  • Legal fees and data breach response costs
  • Regulatory fines and client compensation
  • Reputational management and PR support
  • Stay Safe in a Risky Digital World

Cyber threats are real, rising, and increasingly targeting professions like accountancy. By adopting strong cybersecurity practices and securing appropriate insurance cover, you can protect your clients, your business, and your peace of mind.

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.