Karen McDonald, Accountancy Insurance
Cybercrime is now one of the fastest-growing threats facing Australian accounting firms of every size.
Small and mid-sized firms are being targeted because they hold valuable financial data, process large volumes of payments, and rely heavily on email, cloud platforms, and third-party software. Criminals know that even a single compromised inbox can be enough to redirect client payments, access tax and financial records, or shut a firm out of its own systems for days or weeks.
For many firms, the most damaging part is not the breach itself. It is the operational, financial and reputational fallout that follows, long after the technical issue has been fixed.
Why accountants and bookkeepers are attractive targets
Modern accounting firms are built on interconnected systems. Practice management platforms, cloud accounting software, ATO Online Services for Agents, document storage and email are all linked together. That efficiency is good for business, but it also creates multiple entry points for attackers.
Business email compromise remains one of the most common and costly attacks in professional services. A criminal gains access to a staff member’s inbox, quietly monitors communications, then alters payment details on invoices or trust account instructions. By the time the fraud is discovered, the funds have often been transferred and cannot be recovered.
Ransomware is also increasing. Firms are locked out of their systems and threatened with the release of sensitive client data unless a payment is made. Even where backups exist, firms still face data exposure, operational paralysis and mandatory reporting obligations. These are not theoretical risks. They are the types of incidents that the Accountancy Insurance is handling all the time for accounting firms.
QMS changes have made cyber risk a business issue
The Tax Practitioners Board’s updated Quality Management System rules have sharpened the focus on risk management across the profession. That includes how firms manage cyber threats, data security and operational resilience.
This is a positive shift. Firms that understand their risks, document their controls and have response plans in place are far better positioned to survive a cyber incident than those who assume it will not happen to them.
The real cost of a cyber incident
For a small or mid-sized accounting firm, a cyber incident rarely ends with a single financial loss.
There are forensic IT costs to identify what happened. Legal and regulatory obligations to notify clients and authorities. Time lost while systems are restored. Work that cannot be billed. Client fees that must be refunded. In some cases, clients who never return.
For a profession built on trust, reputational damage can be more devastating than the technical breach itself.
Practical steps every firm can take
Cyber security does not need to be complex to be effective. Some of the most powerful protections are also the simplest.
Multi-factor authentication should be enabled on email, cloud accounting platforms and ATO systems. Staff should be trained to recognise phishing emails and payment change requests. Software should be kept up to date and unsupported systems retired. Access to sensitive systems should be limited to those who genuinely need it.
Just as importantly, firms should know what they will do when something goes wrong. Who do you call. How do you contain the breach. How do you communicate with clients. How do you get back to business.
This is where many firms remain unprepared.
Why cyber insurance has become essential
Cyber insurance is now as fundamental to an accounting firm as professional indemnity insurance.
When a cyber incident occurs, speed and expertise matter. The earlier specialists are involved, the greater the chance of limiting financial loss, containing data exposure and protecting client relationships.
Every Cyber Shield cyber insurance policy arranged through Accountancy Insurance provides access to a full incident response team following a cyberattack. This includes legal negotiators to manage communication with attackers, forensic IT specialists to identify and close the breach, regulatory advisers to handle notifications, and PR support to manage client communications.
Firms are not left to deal with criminals, regulators and system failures on their own. The response is coordinated, structured and focused on restoring the business as quickly and safely as possible.
A smarter way to protect your firm
Cyber risk is now part of doing business in accounting. It affects compliance, client trust, cash flow and professional standing.
Strong systems, informed staff and sensible technology choices all play a role. But when something does go wrong, having the right insurance and the right response team can be the difference between a temporary disruption and a lasting business crisis.
Accountancy Insurance specialises in protecting accounting and bookkeeping firms. Cyber Shield is designed to sit alongside other methods of protection. It’s the line of defence when the inevitable happens and you need to get your systems back up and running.
Want an obligation-free quote?
Complete the relevant Cyber Shield quick quote form by clicking one of the links below. Once you have completed each question and submitted the form, a member of the Professional Risks team will be in touch with you.
Accountants and Financial Planners, click here.
Bookkeepers/BAS Agents, click here.