10 Essential Steps CPAs Need to Take When Hacked

by Kindsey Haynes, Kirkham IronTech | August 12, 2024

Getting hacked as a CPA is a grave concern due to the sensitive financial information managed. If you suspect or confirm a breach, prompt action is crucial to minimize damage. Here are ten essential steps to take if you find yourself in this unfortunate situation:

  1. Stay calm and assess the situation. First, don’t panic. Take a moment to gather information about the breach. Identify what has been compromised — your email, social media accounts, bank information or your computer system as a whole?
  2. Disconnect from the internet. To prevent further unauthorized access, disconnect your device from the internet. This can help stop the hacker from continuing to extract data from your system.
  3. Change your passwords. Immediately change your passwords for all your accounts, starting with the most sensitive ones — banking and email accounts. Use strong, unique passwords for each account and consider utilizing a password manager for secure storage.
  4. Enable two-factor authentication (2FA/MFA). This adds an extra layer of security by requiring not just a password but also a second verification form, such as a code sent via text. This is also known as multi-factor authentication.
  5. Notify relevant parties. Inform your bank, email provider and other relevant organizations about the breach. They can assist in securing your accounts and monitoring for suspicious activity.
  6. Run a security scan. Utilize reputable endpoint detection software to perform a comprehensive scan of your device. This can help identify and remove any malicious software that might have been installed.
  7. Update your software. Ensure your operating system, browsers and all applications are updated. Software updates often include security patches that protect against known vulnerabilities.
  8. Pull from backups. If you have backups of important data, make sure they are in working order now. This ensures you do not lose critical information if you need to reset or reformat your device. If you haven’t been backing up your data, now is the time to start.
  9. Educate yourself and your team. It’s crucial to educate yourself and your team on online security best practices. Focus on recognizing phishing attempts, avoiding suspicious downloads and using secure connections. Use secure portals with clients to exchange sensitive information instead of email to ensure encryption and data protection.
  10. Initiate risk assessment and incident response protocols. Conduct regular risk assessments to identify vulnerabilities. Develop a comprehensive incident response plan covering communication protocols, data recovery and mitigation strategies.

Being hacked can be distressing, but with immediate and thoughtful action, you can mitigate the damage. Following these steps can help you regain control of your accounts and strengthen defenses against future threats. Staying up to date on state-specific regulations can also help, such as New York’s SHIELD Act, which outlines reasonable security practices and breach notification procedures, and on the IRS’s “Security Six” steps. Stay vigilant and proactive to safeguard your digital life. 


Kindsey  Haynes

Kindsey Haynes

Kindsey Haynes is the chief marketing officer of Kirkham IronTech and can be reached at kindsey.haynes@kirkhamirontech.com.

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