Accounting Firms have a 30 to 60% Chance of a 2025 Cyber Event
While it’s difficult to predict exact odds, the risk of an accounting firm experiencing a cyber-attack in 2025 is significant and likely increasing. If current trends persist, the probability could be 50% or more, particularly for firms without strong security practices. Cyber-attacks are a growing concern for accounting firms in 2025. With the increasing sophistication of cybercriminals, accounting firms are particularly vulnerable due to the sensitive financial data they manage. Cybercriminals use ransomware, phishing, and even deepfake technology targeting accounting firms.
In 2024 certain accounting firms experienced notable data breaches. In one example, an Illinois based accounting firm detected unauthorized access to its network, compromising sensitive information. The data breach exposed approximately 217,000 individuals including names, Social Security numbers, and health-related information. This firm is currently facing multiple class-action lawsuits alleging inadequate protection of personal data.
Employee involvement in data theft is a significant concern. Studies suggest that 74% of data breaches involve a human element, which includes both accidental and intentional actions by employees. Additionally, 55% of insider-driven data theft incidents are intentional, highlighting the risks posed by disgruntled or careless employees.
Your employees are the weakest link:
- Insider threats—both accidental and malicious account for 25-35% of data breaches
- Malicious insiders—employees intentionally stealing client or firm data—cause around 20% of these breaches.
- Human error—such as misdirected emails or weak passwords, are responsible for 60-80% of cybersecurity incidents
What to do:
- Cyber insurance coverage – Essential for accounting firms. Insurers may require enhanced security.
- Multi-Factor Authentication (MFA) – Still one of the best defenses.
- Employee training – Over 80% of breaches stem from human error.
- AI-driven security solutions – Advanced threat detection is crucial.
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Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080
